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Business Policy and Procedure

55.071:  Disposition of Surplus Property


Approved on April 23, 2007Signatures and dates
on archival copy


when approved 

Initiated by:

Gary Dicken
Director of Property Management and Moving Services

Endorsed by:

The Ohio

Kathy Krendl

Approved by:

Roderick J. McDavis

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This policy provides a standard procedure for the disposition of surplus or excess property that complies with applicable laws and insures maximum use of property prior to sale and then maximum income from property at the time of sale.


Any department that declares as surplus or excess State or University property will contact the Property Management Office (also called the Surplus Property Office) at 593-0463. The property will be removed from the department for disposition either through transfer to another University department or public sale. No one is permitted to donate, give away, sell, or otherwise dispose of any surplus or excess property, except by the procedure outlined in this policy. Equipment used as a trade-in as part of the purchase of new equipment is not considered surplus.

This policy does not affect the procedures of Policy and Procedure 44.108, "Hazardous or Radioactive Waste."

Policies and Procedures

I.   Departmental Responsibilities and Procedures

A.   All Equipment

In the disposal of all surplus items, departments must proceed as follows:

  1. Every department or planning unit should have an individual who is authorized to determine when property (equipment, supplies, or other material assets) is no longer useful to the department.

  2. When the authorized individual determines that property is no longer useful, he or she will call the Property Management Office to arrange for disposition.

  3. The department must report inventory changes and deletions directly to Inventory Control, in accordance with Policy and Procedure 19.054, "Equipment Inventory Control," and Policy and Procedure 19.055, "U.S. Government Excess Equipment."

B.   Red Tag Equipment

Red Tag equipment is equipment marked with a red, rather than the usual green, OU Inventory tag. A red tag designates that the equipment was purchased with Grant funds and is titled to the Granting Agency, not the University. Never send Red Tag Equipment to University Surplus without approval from the Equipment Inventory Office. Always check with Equipment Inventory for disposal of Red Tag equipment.

II.   Property Management Office Responsibilities and Procedures

A.   Standard Sale Procedures

Upon receiving a request from the department, the Property Management Office will:

  1. Move the surplus property to the designated sale location as soon as possible.

  2. Record the item description and general condition.

  3. Add the item to surplus property inventory if it has economic value, and direct it to the recycling program if it does not.

  4. Locate inventory control numbers and report change to Inventory Control for removal from the department's inventory records. This provision does not relieve the department from its responsibility to contact Inventory Control directly, as stated in item 3 of sub-subsection A, in subsection I, above.

  5. Prior to public sale, make the item available to University departments for the cost of handling the item.

B.   Sealed Bid Procedures

The Property Management office will administer the surplus program and will, at its discretion, refer items which are not suited for typical public sale (for example, airplanes and buses) to the Purchasing and Contracts Office.

The Purchasing and Contracts Office will make the final determination as to the method of sale for all surplus (e.g., by sealed bid or by web auction, such as e-bay).

  1. Bids will be awarded to the highest bidder when the bid is determined to be reasonable (i.e., commensurate with fair market value of the property).

  2. Bids may be rejected if they are below fair market value, improperly filled out, or lacking in required details. Ohio University may, upon rejecting all bids, re-bid at a later date, or offer the item for open sale.

  3. Equal or tie bids will be awarded based on the stamped submission date and time. The first bidder will be the successful bidder.

  4. Successful bidders must pick up their purchases within five work days following bid opening, unless otherwise arranged with the Property Management Office or the Purchasing and Contracts Office, as appropriate. Failure to meet the pick-up schedule may result in forfeit of the property.

  5. The Property Management Office or the Purchasing and Contracts Office may withdraw items from sale prior to bid opening, if it is determined that an item is of further use at Ohio University, or by another state institution.

III.   Disbursement of Income Generated

A.   Sales Conducted Through the Property Management Office

The division of the income generated by sale of surplus items through the Property Management Office depends on the value of the item:

  1. In cases where the income generated from the sale of the item is $500 or less, all of the proceeds will be retained by the Property Management Office.

  2. In cases where the income generated from the sale of a surplus item is greater than $500, fifty percent (50%) of the proceeds will be returned to the contributing department.

When the proceeds are critical to provide funding for the replacement of the item with a similar item, departments may request up to 80% of the proceeds from the sale by submitting a written request and justification to the Director of Property Management.

B.   Sales Conducted Through the Purchasing and Contracts Office

All income generated (100%) is returned to the contributing department. Sales are referred to the Purchasing and Contracts Office by the Property Management Office only. All departments must contact the Property Management Office for sale of surplus items.

IV.   Regional Campuses

Disposition of surplus or excess property on regional campuses will be managed by the regional campus dean. Each regional campus dean will ensure that procedures outlined in this policy are followed.


Proposed revisions of this policy should be reviewed by:

  1. President

  2. Provost

  3. Cabinet

  4. Associate Vice President for Finance

  5. Associate Controller (for review by Equipment Inventory)

  6. Director of Purchasing

  7. Regional Campus Deans

  8. Planning Unit Heads

  9. Policy and Procedure Review Committee


There are no forms that are specific to this policy.

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Dick Piccard revised this file (http://www.ohiou.edu/policy/55-071.html) on March 23, 2016.
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