Material & Disbursement Services (MSD)
POLICY 52
Effective Date: 03/01/1998
Last Modified Date: 06/09/2005
General
Trading in used property for credit against the purchase of a new item often provides a greater financial return to the State than selling such items through Surplus Property. (While state regulations address trade-ins as "replacements" for like items, dissimilar items—e.g., a piano for a harp—may be used as trade-ins if the requisitioning department can document that such a transaction would provide more value to the State than selling the item(s) through Surplus.) No trade-ins can be done under the small-order procedure.
Authorization
The Surplus Property Officer must approve each trade-in of used equipment.
Documentation Required
In order to support the approval request, the department must submit a Purchase Requisition along with a description of the item to be traded in. This description should include the make, model, original acquisition date, original cost, UNC decal number, serial number, and original purchase order (if available). If the item to be traded in is not a replacement or like item, the department must attach a signed justification letter stating the reasons the department believes that a trade-in would result in greater financial return to the State than a sale through Surplus.
Acquisition Process
The appropriate purchasing procedure for a trade-in is based upon the acquisition value of the new equipment (without the trade-in credit). If the acquisition value requires obtaining competitive quotes/bids, Purchasing Services will seek quotes/bids both with and without the application of the trade-in allowance.
Additional Information
See also:
ASM Procedure 3, Equipment Traded, Sent to Surplus, Sold from Surplus, or Scrapped
ASM Policy 8, University Surplus Property
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