CHAPTER 43 –SURPLUS PROPERTY

 

SUBCHAPTER 43A - STATE SURPLUS PROPERTY AGENCY

 

SECTION .0100 - GENERAL PROVISIONS

 

01 NCAC 43A .0101          SCOPE

This Subchapter shall apply to entities engaging in the sale, purchase, or transfer of surplus property through the State Surplus Property Agency.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

01 NCAC 43A .0102          DEFINITIONS

For the purposes of this Chapter, the following definitions apply:

(1)           "Employee" includes full-time exempt and non-exempt, part-time, temporary, and permanent employees of a state agency as defined in G.S. 143-64.02.

(2)           "Fair Market Price" means the agreed price, that price on which the seller, the State Surplus Property Agency and the buyer agree.

(3)           "Immediate Family" means spouse or children/stepchildren under the age of 18.

(4)           "SSPA" means the State Surplus Property Agency.

(5)           "State-Owned" means in the possession of the State of North Carolina and purchased with State funds, property donated to the State, or property purchased with other funds that give ownership of the property to the state.

(6)           "Surplus Property" means property no longer needed by a State agency.

(7)           "Non-Profit Tax Exempt organization" is defined in G.S. 143-64.02.  Note that not all Non-Profit Tax Exempt organizations are eligible to use the services of the State Surplus Property Agency.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. July 1, 2007;

Amended Eff. April 1, 2009.

 

SECTION .0200 – STATE SURPLUS PROPERTY

 

01 ncac 43a .0201          SENSITIVE AND CONFIDENTIAL DATA

The owning agency shall clear and destroy all data from surplus items prior to disposal.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. April 1, 2009.

 

01 ncac 43a .0202          Compressed GASES, FLAMMABLE, NUCLEAR, CHEMICAL, BIOLOGICAL, RADIOACTIVE, AND OTHER HAZARDOUS MATERIALS

(a)  The State Surplus Property Agency does not accept equipment or containers that contain compressed gases, or flammable, nuclear, chemical, biological, radioactive or other hazardous materials.  Any container or equipment that has contained any of these materials must be rendered and declared safe by the owning agency, and a statement to this effect included in the item description when a disposal or sale of the item is requested.  Any container or equipment that has been rendered and certified safe shall have labeling removed that would indicate that the container or equipment is contaminated or contains any of these items.

(b)  All laws and regulations must be followed and proper disposal documentation recorded with various regulatory federal, state and local agencies for the transport, sale or disposal of items described in Paragraph (a) of this Rule.

(c)  Laboratory equipment may be sold with regulated or non-regulated amounts of materials described in Paragraph (a) of this Rule.  When hazardous materials are contained in a piece of equipment, all pertinent information related to types, amounts and any regulatory requirements shall be included in the item description when entered into the SSP System.  If the equipment contains amounts that are not regulated by any federal, state, or local agency, the description of the equipment shall include the statement "Non-Regulated."  These items shall be sold at the agencies location and not transported to the State Surplus Property Agency.  The owning agency shall ensure all applicable laws and regulations are followed in the transport, sale or disposal of such items.  If a potential buyer is required to be registered with any regulatory agency prior to taking possession of the equipment, the selling agency shall include all requirements in the description of the item and review and approve any required documentation presented by the successful bidder within 48 hours of the opening of the bids.

(d)  Each agency shall contact its safety office and ensure that all federal, state and local regulations have been followed prior to the transport or disposal of items described in Paragraph (a) of this Rule.

(e)  This Rule does not apply to equipment, watercraft, aircraft or vehicles that may contain gasoline, diesel fuel, liquefied propane, liquefied natural gas or other fuels when it is contained within a fuel tank or fuel cell approved by the manufacturer of the equipment, watercraft, aircraft or vehicle.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. April 1, 2009.

 

SECTION .0300 - DISPOSAL OF SURPLUS PROPERTY

 

01 NCAC 43A .0301          TRANSFER OR SALE

The State Surplus Property Agency shall determine the method of transfer, sale, or disposal of all State owned property in the best interests of the State.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. July 1, 2007.

 

01 NCAC 43A .0302          NOTIFICATION OF SURPLUS

State agencies shall notify the State Surplus Property Agency of the Division of Surplus Property of any personal property which is surplus to their needs by entering the necessary information into the electronic State Surplus Property Disposal System.  In doing so, agencies may suggest a fair market price which they desire to receive from any disposition made.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0303          TRADE-IN

(a)  Agencies desiring to trade-in property for new or replacement property shall gain State Surplus Property Agency approval prior to said trade-in.

(b)  Where an agency solicits competition for the purchase of a new item and it appears that a trade-in may be advantageous, the solicitation shall contain a provision requesting that a trade-in allowance be offered and the agency’s Purchasing Officer shall seek approval from the State Surplus Property Agency prior to the issuance of a purchase order.

(c)  It is the responsibility of the agency to document the advantages to the State of a proposed trade-in.  However, the State Surplus Property Agency shall be the final authority when concluding advantages to the State.

(d)  Advantages other than for cost-effectiveness and ease of disposal shall be considered exceptions, and shall be documented and approved by the agency head prior to submission to the State Surplus Property Agency for final determination.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0304          ORDER OF PRIORITY IN DISPOSITION

(a)  In the disposition of state surplus property, the State Surplus Property Agency shall give first priority to other agencies of the state for purchase or transfer.  Second priority shall be given to sales to political subdivisions and non-profit tax exempt organizations within the state.  Property thus sold must be for the use of the recipient agency, political subdivision or non-profit tax exempt organization with title being in such agency, unit or organization. 

(b)  All titled vehicles transferred between state agencies must be processed through the State Surplus Property Agency with regard to titles and associated North Carolina Division of Motor Vehicles documents.  Vehicles shall be transferred at fair market price.

(c)  In making transfers over one hundred fifty dollars ($150.00), the price shall be set by the owning agency in consultation with the State Surplus Property Agency.  The price shall be based upon previous sales of similar products on the open market. All transfers of property from or to a receipt-supported agency shall include an exchange of funds.

(d)  State surplus property sold to any political subdivision or non-profit tax exempt organization must be retained by the unit or organization not less than 12 months before disposal.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. July 1, 2007;

Amended Eff. April 1, 2009.

 

01 NCAC 43A .0305          DISPOSAL BY EXECUTIVE ORDER

Notwithstanding 01 NCAC 43A .0304, the Governor, through Executive Order, may direct the disposal of surplus State property by transfer or donation to any North Carolina State agency or political subdivision or to the State Government of any other State within the United States, in response to a declared Federal or North Carolina State Disaster.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0306          BIDDING AND PURCHASES PROHIBITED BY EMPLOYEES AND IMMEDIATE FAMILY MEMBERS

(a)  To avoid conflicts of interest, bidding on or purchase of state surplus property is prohibited to State Surplus Property Agency employees and their immediate family members.

(b)  All State employees specified as custodian of state property for a state agency, and their immediate family members, are prohibited from bidding on or purchasing the surplus property of the employing state agency.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. July 1, 2007.

 

01 NCAC 43A .0307          PUBLIC SALE

Unless otherwise disposed of, State Surplus Property shall be offered for public sale.  Public sale of weapons is limited to licensed firearms dealers.  Public sale is through sealed competitive bids, competitive bids, electronic bids, auction, and other methods.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0308          FIRST-COME FIRST-SERVED

State surplus property is available on a first-come, first-served basis.  This applies to retail sales to the general public as well as transfers to state agencies, political subdivisions or non-profit tax exempt organizations.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0309          REJECTION OF BIDS

(a)  Any and all bids may be rejected.  Bids may be rejected in whole or in part if:

(1)           The bidder has failed to pay for or pick up surplus property awarded;

(2)           The bid is submitted by an ineligible bidder pursuant to Rule .0315 of this Section;

(3)           The bid does not fully comply with the terms and conditions of the request/solicitation for bid;

(4)           The bid is not legible or lacks completeness;

(5)           The bid does not comply with the bid policies of State Surplus Property Agency; or

(6)           Bid rejection is recommended by the State Capitol Police, State Bureau of Investigation, Federal Bureau of Investigation, or other Homeland Security entity.  In such cases, the security entity must provide a written statement requesting rejection and that the recommendation is based on homeland security concerns.  In the event of receipt of a security based bid rejection recommendation, the State Surplus Property Agency shall reject the bid without further supporting documentation.

(b)  If a bid is rejected in whole or part, the subject property may be re-advertised, sold at the highest bidder's amount, the next higher bid accepted, or sale negotiated, in the best interests of the State, without recourse to further bidding.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. July 1, 2007.

 

01 NCAC 43A .0310          RECEIPT OF BIDS

It is the responsibility of the bidder to have the bid properly received in the State Surplus Property Agency by the specified time and date of bid opening.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0311          INSPECTION OF PROPERTY

Bidders are urged to inspect property prior to submitting bids.  All property is sold "as is" and "where is."  Any property descriptions provided by the State are solely as an aid to identification.  Verbal communications by custodians of property cannot be deemed reliable, and will not be considered by the State Surplus Property Agency.  Reasonable opportunity will be afforded for inspection up to the time for opening bids, but no labor will be furnished for such purpose.  The purchaser assumes all liability for the property after award is made.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0312          STATE DOES NOT GUARANTEE

The description of the property offered for sale is compiled from available information.  All property is sold "as is" and "where is."  In addition, all property offered for sale or a portion thereof is subject to withdrawal prior to the bid opening date.  A refund or an adjustment will not be made on account of property not meeting expectations, a bidder's failure to inspect prior to sale, or change of condition of property from the time of award to the time of pickup.  Any cost of weighing, packaging, crating, loading or hauling property is assumed by the bidder unless otherwise provided.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0313          REFUNDS

Refunds or adjustments due to change in condition from time of inspection until time of award are limited to the change in value as determined by the State Surplus Property Officer.  In such cases, the State Surplus Property Officer may remove the property from bid or reverse the award and re-bid the property.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0314          EXTENSION TO PAY OR REMOVE PROPERTY

Extensions to pay or remove property may be granted under the following conditions:

(1)           The purchaser's inability to pay or remove property was due to the actions or inactions of the State Surplus Property Agency or the custodian of the property, and

(2)           In the case of removal of property, the State Surplus Property Officer determines that space is available.

The purchaser waives all rights to recourse for change in the condition of the property as a condition of the extension.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0315          FAILURE TO PAY OR REMOVE PROPERTY

(a)  If the successful bidder fails to pay in full for the property by the time and date indicated on the notice of award, the award shall be rescinded, the property resold, and the defaulting bidder shall be charged with loss to the State, if any, together with all expenses of the sale.

(b)  If the successful bidder does not remove the property purchased by the time and date indicated on the notice of award, the State Surplus Property Agency shall retain the purchase price and resell the property a second time and retain all proceeds therefrom.

(c)  Successful bidders who fail to pay shall be ineligible for award of future bids.

 

History Note:        Authority G.S. 143-64.01; 143-64.04; 143-64.05;

Eff. June 1, 2007.

 

01 NCAC 43A .0316          BOND

(a)  The selling agency or the State Surplus Property Agency may require performance bonds for the purchase of commodities.

(b)  The selling agency or the State Surplus Property Agency shall set the amount and terms of the bond.

(c)  Selling agencies shall document the need for performance bonds. 

(d)  Selling agencies shall request a bond release from the State Surplus Property Agency once the requirements of the bond have been met by the successful bidder. 

(e)  Selling agencies shall submit a justification to the State Surplus Property Agency for any retention in whole or in part of the performance bond.

(f)  The State Surplus Property Agency is the final authority on releasing the performance bond.

 

History Note:        Authority G.S. 143-64.01; 143-64.04; 143-64.05;

Eff. June 1, 2007.

 

01 NCAC 43A .0317          DEMOLITION OF STATE BUILDINGS

(a)  The State Surplus Property Agency handles bids and awards of contracts for the demolition of state buildings including those of universities, hospitals, and other state agencies. 

(b)  Requests for bid forms are sent to interested, contractors and are further available upon request.

(c)  The owning agency shall submit the requirements for permits, insurances, performance bonds and any other applicable requirements from local, state or federal authorities regarding the demolition of a state building to the State Surplus Property Agency.

(d)  The successful bidder is responsible for obtaining all necessary permits, insurances, licenses, performance bonds and other requirements to complete the demolition.

 

History Note:        Authority G.S. 143-64.01; 143-64.04; 143-64.05;

Eff. June 1, 2007.

 

01 NCAC 43A .0318          TIMBER SALES, PINESTRAW, AND FOREST COMMODITIES SALES

Timber, pine straw, and other forest commodities owned by state agencies are disposed of by the State Surplus Property Agency on a competitive bid basis.  A request for bid form shall be sent to any interested party upon request as well as to entities on a list maintained by the State Surplus Property Office compiled from individuals who have previously expressed an interest in similar sales.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0319          SURPLUS WEAPONS AND FIREARMS

(a)  Subject to G.S. 20-187.2, Surplus weapons and firearms possessed by the North Carolina State Highway Patrol, North Carolina Department of Correction, North Carolina State Bureau of Investigation, State Capitol Police, and other non-military armed state security agencies shall be sold through the State Surplus Property Agency upon notification in writing to the State Surplus Property Agency that such weapons or firearms are surplus. 

(b)  The notification shall list each weapon by description and serial number.

(c)  Weapons and firearms are subject to transfer between non-military armed state security agencies.

(d)  The selling agency is responsible for notifying the State Surplus Property Agency of any federal or state restrictions on sale of non-firearm weapons.

(e)  The State Surplus Property Agency, if requested, shall make available to federally licensed firearms dealers a list of firearms to be sold and a statement of the times and locations at which they may be inspected. 

(f)  Surplus weapons and firearms sales shall be made by competitive bids. 

(g)  When payment has been received in full by the State Surplus Property Agency, the State Surplus Property Agency shall authorize the release of the weapons to the successful bidder; provided, however, that no weapons shall be released to any person without the production of satisfactory proof of identification and, in the case of firearms, a valid federal firearms license.

 

History Note:        Authority G.S. 143-63.1; 143-64.01; 143-64.04;

Eff. June 1, 2007.

 

01 NCAC 43A .0320          PAYMENT

All payments must be in the form of cash (retail sales only), cashier's or certified check, postal money order, or other methods as approved by the Department of Administration Fiscal Officer.  Payment for retail sales items must be at the time of purchase.  Payment in full for all other property purchases must be made by the time and date indicated on the notice of award.  Extensions to pay or remove property must be in accordance with 01 NCAC 43A. 0314.  No property may be removed by the successful bidder prior to full payment of the purchase price.  Payments for retail sales shall be made at the retail site where the property is located.  All other payments must be made directly to the State Surplus Property Agency.  Agencies are not authorized to accept payments on behalf of the State Surplus Property Agency.  If an agency releases property prior to receiving documentation that payment in full has been made to the State Surplus Property Agency said agency shall assume all liability related to the release.

 

History Note:        Authority G.S. 143-64.01; 143-64.04;

Eff. June 1, 2007.