SURPLUS PROPERTY MANAGEMENT TOOLS

1. SURPLUS PROPERTY MANAGEMENT TOOLS Presented by: Brenda Tesch, Cal Poly San Luis Obispo

2. Topics • Contracting & Procurement Policy Manual Statement • Disposing of Surplus Property • Selling Surplus Property • Public Auctions • eBay • Public Surplus • Cal Poly Surplus Property Sales

3. Contracting & Procurement Policy Manual Statement SECTION 600 - SALE, LEASE, LICENSE, AND DISPOSAL OF CSU PERSONAL PROPERTY AND SALE OF CSU SERVICES 601. RELEASE OF CSU-OWNED PERSONAL PROPERTY (Rev. 5/20/05) Reference: California State Constitution Article 16, Section 6; Executive Orders 409b; Education Code Sections 89048(d; Public Contracts Code 12102(i). CSU-owned tangible goods, supplies, equipment, or materials that have been determined to be surplus to CSU’s needs may be sold or released in a manner that will best serve the interest of the CSU. Such sales must be for a fair market price. Sale methods include, but are not limited to, auction or other competitive bidding or transfer to other governmental entities. Such property may, however, be scrapped or otherwise disposed of and surveyed from CSU property records whenever the property is documented to have no remaining market value or practical use to the CSU.

4. Disposing of Surplus Property Methods of Disposal of Surplus Property: • Internal reallocation • Donating to a non-profit organization • Selling surplus property • Scrap or destroy

5. Selling Surplus Property • Public Auctions • eBay • Public Surplus

6. Annual Public Auctions Pros: • You usually only have one auction a year • Campus departments have the opportunity for internal reallocation • Easy reimbursement process Cons: • Surplus property must be stored in a warehouse until time of auction. • Must pay an Auctioneer to hold an auction. Cost is between 25%-30% of total sales, plus the auctioneer usually tacks on a 10% surcharge to the buyer. • Must prepare for the auction. • In most cases must several employees work the auction, on a weekend day. • Must keep track of campus department accounts for reimbursement for sold surplus property.

7. eBay Pros: • Perpetual Auction. You can auction items as they are surplused by the department. • Cost for auction items sold on eBay averages about 6% (See #1 in “Cons”) • Creating an auction is somewhat user friendly • Wide based viewing Cons: • eBay charges a listing fee, regardless whether the item(s) sell or not. • eBay offers little support • eBay cannot customize to your needs. • eBay does not have a internal reallocation function • Minimal reporting tools • Must keep track of campus department accounts for reimbursement for sold surplus property. • Others, shipping, payment…..

8. Public Surplus Pros: • Perpetual Auction. You can auction items as they are surplused by the department. • Cost for auction items sold is 7.25 - 8% of sales. • Offers internal reallocation • Public Surplus has a 7 year audit trail • Public Surplus can customize reports and features to meet your specific needs. • Creating an auction is user friendly • Reimbursement from buyer is user friendly • Wide based viewing • Staff researches, calls and directs buyers to your auctions Cons: • Must keep track of campus department accounts for reimbursement for sold surplus property.

9. CAL POLY, SLOSURPLUS PROPERTY SALES • Fiscal Year 2002/2003 Annual Public Auction $25,000 • Fiscal Year 2003/2004 Public Surplus Annual sales throughout the year $67,000 • Fiscal Year 2004/2005 Public Surplus Annual sales throughout the year $106,000 • Fiscal Year 2005/006 Public Surplus Projected annual sales throughout the year: $100,000

10. Questions?