§545 Procedure for disposal

Summary

The General Services Administrator must advertise surplus federal property for public bids before selling it or making a disposal contract. Bids must be opened where and when the ad says, and the sale should be given quickly to the responsible bidder whose offer is best for the government, considering price and other factors. The advertising rule does not apply in certain situations, so the Administrator can negotiate sales instead. Those situations include a declared national emergency or a short (up to three-month) category action, matters that affect public health, safety, or national security, urgent needs that won’t allow time to advertise, cases where selling by auction would hurt an industry or the economy, property valued at $15,000 or less, when advertised bids are unreasonable or not competitive, real estate that cannot practically be advertised, sales to states or local or tax-supported agencies, or when another law allows it. Sales of real property through brokers must follow normal commercial practice and the brokers must widely announce the availability. Personal property can be sold at a fixed price without formal advertising if public notice matches the item’s value and the price reflects fair market value; some fixed-price offers may first be offered to state or local agencies. For negotiated disposals above certain values, an explanation of why negotiation was used must be prepared and sent to the appropriate congressional committees before the sale and kept in the agency file. Those thresholds are personal property over $15,000; real property over $100,000 (with special rules for leases and exchanges); leases with annual rent or total rent over $100,000 depending on term; and all exchanges. The Administrator’s regular report must list negotiated disposals over $15,000 for real property or $5,000 for other property unless an explanatory statement was already sent. Section 6101(b)–(d) of title 41 does not apply to disposals made under these rules.