Leveraging Exchange/Sale & Meeting Reporting Requirements

1. Leveraging Exchange/Sale & Meeting Reporting Requirements

2. October 5, 2009. President Obama signed Executive Order (E.O.) 13514, Federal Leadership in Environmental, Energy, and Economic Performance, to “create a clean energy economy that will increase the nation’s prosperity, promote energy security, protect the interests of taxpayers, and safeguard the health of our environment.”

3. What should I do as a result of this Bulletin? You are strongly encouraged to do the • following: • A. Disposal • (1) Use every opportunity to reuse functional FEA in condition codes 1, 4, and 7 (refer to Federal Management Regulation (FMR) § 102-36.240 and the attached disposal condition code descriptions) through the Federal disposal program, including (in sequence): • Reuse within your agency, including replacement through exchange or sale under the exchange/sale authority (FMR Part 102-39) • (2) Direct FEA disposed of under your agency’s abandonment/destruction authority to authorized certified recyclers or refurbishers through - • (a) Manufacturer or vendor take-back programs that use certified recyclers or refurbishers

4. “The Federal Government has determined that improper disposal of used electronics may have potentially harmful effects on human health and the environment. This/these electronic product(s) must be disposed of at their end of useful life in accordance with all Federal, state, and local laws. The Federal Government strongly encourages recycling these products through certified recyclers, even when such recycling is not required by Federal, state or local laws.”

5. From budget cuts that reduce staff size and the quantity of new equipment being purchased, to more maintenance expenses being incurred from keeping equipment longer, IT & Property Managers are faced with more challenges than ever. In February, President Obama released the 2013 federal IT budget with a decrease of 0.7 percent from the government's 2012 budget.

6. In accordance with GSA FMR Bulletin B-27 (July 22, 2010), submit an annual report of personal property furnished to non-Federal recipients (Non-Federal Recipients Report). The reporting tool has been updated to capture disposal information regarding property provided or conveyed to a much wider range of non-Federal entities, including, but not limited to, schools, state and local governments, contractors, grantees, donees, vendors (under either the exchange/sale provisions or under vendor take-back provisions), sales recipients, certified recyclers and refurbishers, landfills, incinerators, and trash disposal companies. Reporting Requirements Detailed reporting as a result of an asset exchange-sale will help meet reporting requirements.

7. IT departments needs: • New hardware implementation • Cloud computing solutions • Virtualization • Data center consolidation • The end of Windows XP • Overall alignment between IT operations and business objectives • Proactive IT asset disposal planning may not be addressed, and the opportunity to recoup the residual value may be missed.

8. Proactive planning for IT Disposal • Lower disposal bills and higher ROI • Higher budget for new equipment In addition, establishing ROI objectives may address and solve a number of the IT manager’s budget concerns, freeing up more money towards new equipment purchases.

9. Reseller How to Use the Exchange Sale Model $ $ $ $ $ $ $ $ New Equipment Government Agency Retired Equipment Remarketing & Recycling $ Certified Recycler or Refurbisher By turning upgrade/disposal challenges into a winning solution for agencies upgrading to new products, Property Managers can reduce new acquisition costs while solving the headaches associated with retirement of IT.

10. How to Engage Certified Recyclers or Refurbishers Identify Opportunity Certified Recycler or Refurbisher Determines Value and Services Needed Task Order Issued

11. How the Process Can Work Once you identify a need for Electronic Waste removal, contact a Certified Recycler or Refurbisher They will determine services needed and an estimated value. A Task Order is issued and logistics for pick-up and transportation from agency’s site are coordinated. Your vendor processes the equipment, then performs data erasure and grading assessment. Once the trade-in is completed and a transaction audit report generated, final payout of the total margin share is sent to the preferred reseller to be used towards new equipment. Agency Reseller Onsite packaging & removal from site Delivery to Certified Recycler $ $ Receiving Audit and Testing Remarketing/Resale DoD Data Destruction Transport to Commodities Market Disassembly Shredding Material Sorting

12. Qualify the Opportunity A commercial grade laptop can have value for up to 5 years from date of purchase. A desktop retains value for around 3 years An LCD monitor will have residual value for over 6 years. Servers and storage devices retain value too.

13. What To Look For in a Certified Recycler or Refurbisher: • Recovery, Remarketing, and Recycling • Performs DoD Data Destruction • Zero Landfill Policy • Provides Detailed Reporting and Chain of Custody • Certifications: ISO, R2, GSA, and e-Stewards Contract Holder

14. The Perfect Storm IT Disposal Merging with Acquisitions Don’t be left out in the cold This allows you to dispose of unwanted equipment and your agency can apply the residual value towards the purchase of new equipment. • Environmental & data security compliance • Financial returns for current equipment • Low or no cost recycling for older equipment • Financial planning for future purchases

15. Case Studies The U.S. Department of Commerce replaced 8,000 Dell laptops using exchange-sale. Their reseller received $300,000 for the equipment, which allowed the Census Bureau to buy replacement batteries for their new laptops. The FBI retired 40,000 LCD monitors from 50 different locations. With the money they recouped from the exchange-sale, they bought replacement monitors.

16. Work Vessels for Veterans is an all volunteer movement assisting returning veterans to begin their civilian careers or educational pursuits by acquiring and distributing the necessary start up tools.

17. AnythingIT enables government agencies to utilize the best practices of electronic property management and exchange-sale provision, thereby realizing an ROI for their retired equipment while mitigating environmental and data security risks. Paul Brundage, Sr. VP – Sales and Mktg D: 770.982.9763 M: 973.879.5585 paulb@anythingIT.com www.anythingIT.com