802–Disposition of Obsolete Equipment and Material
POLICY: 802
ADOPTED: December 2002
Revised: July 2003
802 DISPOSITION OF OBSOLETE EQUIPMENT AND MATERIAL
I. PURPOSE
The purpose of this policy is to provide guidelines for the Executive Director to assist in timely disposition of obsolete equipment and material.
II. GENERAL STATEMENT OF POLICY
Effective use of NWSC building space, and consideration for safety of personnel, will at times require disposal of obsolete equipment and material.
III. DEFINITIONS
- “Contract” means an agreement entered into by the NWSC for the sale of supplies, materials or equipment.
- “Official newspaper” is a regular issue of a qualified legal newspaper.
IV. MANNER OF DISPOSITION
(A) Authorization
The Executive Director shall be authorized to dispose of obsolete equipment and materials by selling it at a fair price consistent with the procedures outlined in this policy. Any sale exceeding the minimum amount for which bids are required must first be specifically authorized by the governing board. The Executive Director shall be authorized to properly dispose of used books, materials and equipment deemed to have little or no value.
(B) Contracts over $25,000
- If the value of the equipment or materials is estimated to exceed $25,000, sealed bids shall be solicited by two weeks published notice in the official newspaper. This notice shall state the time and place of receiving bids and contain a brief description of the subject matter. Additional publication in the official newspaper or elsewhere may be made as the governing board shall deem necessary.
- The sale shall be awarded to the highest responsible bidder, be duly executed in writing, and be otherwise conditioned as required by law.
- A record shall be kept of all bids, with names of bidders and amounts of bids, and an indication of the successful bid. A bid containing an alteration or erasure of any price contained in the bid which is used in determining the highest responsible bid shall be rejected unless the alteration or erasure is corrected by being crossed out and the correction printed in ink or typewritten adjacent thereto and initialed in ink by the person signing the bid.
- In the case of identical high bids from two or more bidders, the governing board may, at its discretion, utilize negotiated procurement methods with the tied high bidders as long as the price paid does not go below the high tied bid price. In the case where only a single bid is received, the governing board may, at its discretion, negotiate a mutually agreeable contract with the bidder as long as the price paid does not fall below the original bid. If no satisfactory bid is received, the board may re-advertise.
- All bids obtained shall be kept on file for a period of at least one year after their receipt. Every contract made without compliance with the foregoing provisions shall be void.
(C) Contracts from $10,000 to $25,000
If the amount of the sale is estimated to exceed $10,000 but not to exceed $25,000, the contract may be made either upon sealed bids in the manner directed above or by direct negotiation by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding notice. All quotations obtained shall be kept on file for a period of at least one year after receipt.
(D) Contracts Less Than $10,000
If the amount of the sale is estimated to be $10,000 or less, the contract may be made either upon quotation or in the open market in the discretion of the governing board. The sale in the open market may be by auction. If the contract is made on quotation, it shall be based, as far as practicable, on at least two quotations which shall be kept on file for a period of at least one year after receipt.
(E) Notice of Quotation
Notice of procedures to receive quotations shall be given by publication or other means as appropriate to provide reasonable notice to the public.
(F) Sales to Employees
No officer or employee of the NWSC shall sell or procure for sale or possess or control any property or materials owned by the NWSC to any other officer or employee of the NWSC unless sold at a public auction, or by the quotation procedure specified above, or by sealed bid after reasonable public notice where the employee is the highest bidder and is not directly involved in the auction or sale process. Reasonable notice shall include at least one week’s published or posted notice. A NWSC employee may purchase no more than one motor vehicle from the NWSC in any 12-month period. This section shall not apply to the sale of property or materials acquired or produced by the NWSC in the ordinary course of business. Nothing in this section shall prohibit an employee of the NWSC from selling or possessing for sale public property if the sale or possession for sale is in the normal course of the employee’s duties.
Legal References: Minn. Stat. § 15.054 governmental agencies;
Minn. Stat. § 123.37
Minn. Stat. § 471.345
Minn. Stat. § 645.11