PUR 602–02: Trade-Ins
To define the method of disposing of university property by trade-in
Arizona Board of Regents Policy Manual - 3-807
Purchasing and Business Services
University property may be disposed of only by trade-in on like equipment, by sales between departments, or by transfers to another department or to Surplus Property.
Obsolete, worn out, inactive, or uneconomical operating equipment may be traded in on the purchase of equipment of the same general nature. Property should not be traded in if the monetary allowance offered is substantially below the known current market price or if the end result is not in the interest of the university.
Role of the Department with Property to Be Traded In
The requisitioning department will submit a requisition for the new equipment and a Property Relocation Authorization (PRA) form for the old equipment. The PRA will list the equipment to be traded in with full description, condition, location where it may be inspected, and ASU property control number.
The procedure for submitting requisitions and transfer forms is outlined in the Property Control System Policies and Procedures Manual—PCS 501, “Relocating Equipment within a Department.”
Role of Property Control
The requisition and transfer form will be processed through Property Control. All property identified for trade-in will be screened by Property Control to determine title and residual rights of any external agency before trade-in may occur. After screening, the requisition and transfer form will be forwarded to Purchasing and Business Services.
Role of Purchasing and Business Services
The Purchasing and Business Services buyer will follow the normal procurement procedures.
New Equipment Costing $50,000 or More
If the cost of the new equipment is estimated to be $50,000 or more, formal sealed bids will be requested. The invitation to bid (ITB) should include:
- a complete description of the equipment
- the location where the equipment can be inspected
- a statement that the trade-in is “as is, where is” with no guarantee by the university as to operating condition
- a request for separate quotes on the new equipment and the trade-in equipment
- a statement that the university reserves the right to accept or reject the trade-in price.
If the trade-in price is accepted, award shall be based on net price after trade-in.
New Equipment Costing Less than $50,000 but at Least $35,000
If the cost of the new equipment is estimated to be less than $50,000 but at least $35,000, informal bids will be requested. The solicitation will include the same information as listed under New Equipment Costing $50,000 or More.
New Equipment Costing $35,000 or Less
If the cost of the new equipment to be purchased is $35,000 or less, the Purchasing and Business Services buyer may:
- negotiate both the price on the new equipment and a trade-in price
- request competitive bids following the procedure outlined above.
Trade-In Price as a Determiner of Buyer Action
If the trade-in price received from the most responsive and responsible bidder is below known market price, the buyer will notify the requesting department. The buyer, in cooperation with the requesting department, will determine whether to accept the trade-in price as quoted or turn in the material to Surplus Property for disposal or other university use.
If the trade-in price is acceptable, the buyer will issue the purchase order. The purchase order will show the trade-in as a separate item listing the ASU property control number and the trade-in value.
If the item to be disposed of can be used by another department on campus willing to pay the trade-in price, a sale can be effected. A transfer of funds between departments may be requested according to Financial Services procedures.
Sales of equipment between departments must be done according to policies and procedures outlined in the Property Control System Policies and Procedures Manual.
Transfers of property that do not include a sale to another department or a trade-in will follow procedures outlined in the Property Control System Policies and Procedures Manual.
For information on bidding, see:
For information on property transfers, see the Property Control System Policies and Procedures Manual—PCS 502, “Transferring Equipment between Departments at Zero Cost.”
For information on property trade-ins, see the Property Control System Policies and Procedures Manual:
For related information on the disposal of surplus property, see the Property Control System Policies and Procedures Manual—PCS 1002–02, “Disposal of Equipment to Surplus Property.”