Buying Surplus From The Government

HOW TO BUY SURPLUS PERSONAL PROPERTY
FROM THE UNITED STATES
DEPARTMENT OF DEFENSE
DEFENSE REUTILIZATION AND MARKETING SERVICE

SECTION I

INTRODUCTION

This pamphlet explains how to buy U.S. Department of Defense (DoD) surplus personal property.

Headquarters, Defense Reutilization and Marketing Service (DRMS), manages the DoD sales program for the Defense Logistics Agency, Sales are conducted on a national and local basis by various sales methods through the National Sales Office (NSO) and numerous Defense Reutilization and Marketing Offices (DRMOs) located worldwide.

Defense Reutilization and Marketing Service (DRMS) sells primarily DoD surplus personal property, DoD retains only property to fulfill current or foreseeable requirements, Only property which is not required by DoD, other federal agencies, or authorized donees is sold to the general public, DRMS sells usable items suitable for use or recovery of parts, or recyclable materials (e.g., ferrous and nonferrous metals, plastics, paper, textiles, rubber, used oil and lubricants.)

DRMS does not sell real estate, confiscated or seized items (i.e. sports cars, and luxury items), most contractor inventory (properly in possession of contractors performing government contracts), or material of primarily military application (i.e. weapons and items of an offensive or defensive nature).

Sale of U.S. Government-owned real estate and surplus property generated by most federal agencies is the responsibility of the General Services Administration (GSA). For information, contact a GSA sales office listed on page 14.

ELIGIBILITY OF BIDDERS

With few exceptions, any member of the general public may bid on DOD properly provided he is not (1) under 18 years of age; (2) an employee of an agency of the Federal Government, (either as a civilian or as a member of the Armed Forces of the U.S., including the U.S. Coast Guard on active duty) prohibited by the regulations of that agency from purchasing property sold hereunder, or; (3) an agent or immediate member of the household of the employee in (2) above.

NATIONAL SALES

The National Sales Office in Memphis, TN, is now the consolidated sales office that will conduct all national sales of DoD surplus property. They prepare sales catalogs, administer bid openings, make awards and conclude contractual arrangements. Mailing address is:

Defense Reutilization and Marketing Service
National Sales Office
P.O. Box 5275 DDRC
2163 Airways Blvd.
Memphis, TN 38114-5210

SALES CATALOGS

A sales catalog describes the properly, sale location, property location, inspection and sale dates, and contact for further information. Catalogs are mailed well in advance of the date of sale to allow sufficient time for inspection.

NATIONAL SALES METHODS

• Sealed Bid

  Sealed bid sales are used to sell large quantities of properly to buyers on a regional or national marketing basis. Recyclable materials are usually sold by this method.

  Term sealed bid sales are used when property, generally recyclable materials, is required to be removed as it is generated throughout a specified period of time.

  Bidders enter the prices they will pay on the bid forms in the catalog. complete other required forms. and return them to the sales office alone with the required deposit. Bids are opened on the specified date. Subsequently, awards are made and bidders noticed.

• National Auction

  A national auction is used to sell a substantial quantity or variety of property having wide commercial application.

NATIONAL BIDDERS LIST

National Sales Office (NSO) maintains a single National Bidders List for automatic mailing of national sales catalogs. Upon completion of an application, your name will appear on the National Bidders List which records the geographical location(s) and class(es) of property you identify. When the class(es) of property become(s) available for sale in the geographical area(s) specified, you will receive a copy of the sale catalog(s).

To be placed on this list, complete the enclosed application and return it to Defense Reutilization and Marketing Service, National Sales Office, P.O. Box 5275 DDRC, 2163 Airways Blvd., Memphis, TN 38114-5210, Phone: 1-800-222-DRMS.

Your name may be removed from the list for failure to participate after receipt of at least five catalogs. if you indicate an excessive number of classes and/or geographical locations on your application, and do not participate in sales, removal may occur soon.

The Commerce Business Daily (published daily Monday through Friday, except Federal Holidays) contains notices of scheduled DoD national sales. It may be obtained from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402.

EUROPEAN NATIONAL BIDDERS LIST

Europe division office maintains the national bidders list for sale of property held by those installations within its geographical area. To be placed on this list, contact Defense Reutilization and Marketing Region - Europe, Europe Division Office, Lindsey A.S., Unit 4490, APO AE, 09196, Phone 0611-82-3505

PACIFIC NATIONAL BIDDERS LIST

Pacific division offices maintains the national bidders list for sales of property held by those installations within its geographical area. To be placed on this list, contact Pacific Division Office, Blvd. 12, Camp H.M. Smith, HI. 96861-5010, Phone (808) 477-1227.

LOCAL SALES

Local sales are conducted by the DRMOs. Information can be obtained from the DRMO in your area (see pages 9 through 13). Information and/or identification of DRMOs in the Europe and Pacific areas can be obtained by contacting the Europe or Pacific sales division office at the address provided above.

LOCAL SALES METHODS

• Auction
  The local auction is used at DRMOs where there are a variety of items in small quantities which hold substantial interest and demand in the local market.
• Spot Bid
  The local spot bid is similar to auction except bidders submit bids on forms provided by the DRMO. Awards are made to the highest bidder, item by item, as the sale progresses.
• Cash and Carry
  Cash and carry sales are conducted by most DRMOs and offer small quantities of individual items at fixed prices based on the current market value. Contact the DRMO for information.

LOCAL BIDDERS LIST

Each DRMO maintains the bidders list for their local sales. To be placed on the list to receive information on upcoming sales, contact the DRMO (or the sales division office for Europe and Pacific areas). Normally your name is removed from the list if you do not participate in a sale after receipt of three catalogs.

BID DEPOSIT BONDS

Bonds may be permitted in certain types of sales involving unusual contractual arrangements, such as term sales. Bid deposit bonds afford a convenience to the buyer who intends to bid frequently. Bonds do not take the place of bid deposits. They only support the non-guaranteed instruments used up to the amount of the penal sum. The types of bonds available are (1) Deposit Bond-Individual Invitation, Sale of Government Personal Property (Standard Form 150) used for a one-time sale; and (2) Deposit Bond-Annual, Sale of Government Personal Property (Standard Form 151) a yearly bond which may be used for the entire fiscal year 1 Oct-30 Sep. The Standard Forms 150 and 151 and instructions may be obtained from: Defense Reutilization and Marketing Service, National Sales Office, P.O. Box 5275 DDRC, 2163 Airways Blvd., Memphis, TN 38114-5210.

SUCCESSFUL BIDDERS LIST

A list of successful bidders, prepared after each national sealed bid sale, shows prices for items awarded. This list is sent to each bidder who participated. It is prepared by, and available at, the sales office which conducted the sale.

SPECIAL CONDITIONS AFFECTING SALE OF CERTAIN ITEMS

Demilitarized Property

Arms, ammunition, combatant aircraft, armored combatant vehicles, and other military type items are not sold in original form to the general public. They are demilitarized to preclude reconditioning for further military use. Demilitarization normally leaves items with no value except for basic material content.

Hazardous Property

Certain properties are hazardous due to toxicity, flammability, corrosiveness, etc. Hazardous items are sold with restrictions published in the sales catalog. To purchase hazardous property, the buyer must meet any local, state or federal regulations.

Jeeps

All M151 series vehicles, including jeeps, are unsafe for public highway use. These vehicles are made unusable by removing major components and destroying the unitized body so it cannot be rebuilt.

False stories often advise that jeeps are available for unusually low prices. Such stories should be brought to the attention of the DRMS Public Affairs Office, ATTN: DRMS-DB, 74 N. Washington St., Federal Center, Battle Creek, MI 49017-3092.

Ships

Aircraft carriers, battleships, cruisers, frigates, patrol combatants, submarines, and ships which are converted from any of these configurations are sold for scrapping purposes. Ships, other than those cited above, are sold as usable items.

Aircraft

Commercial cargo and passenger aircraft are the only types offered for sale as aircraft. Combat aircraft (i.e. fighters, bombers, and certain trainers) must be demilitarized and sold for recovery of basic material content, parts, and components.

Purchasers of aircraft must (1) obtain a Federal Aviation Administration (FAA) airworthiness certificate or (2) show that the aircraft concerns to an existing civilian mode which has an FAA type certificate and prove that it is airworthy. A pamphlet, AC 20-96, entitled Surplus Military Aircraft, A Briefing For Prospective Buyers, is available from your nearest FAA Engineering and Manufacturing District Office. It explains the FAA procedure to certify a surplus military aircraft.

DEFENSE REUTILIZATION AND MARKETING OFFICES

GENERAL SERVICES ADMINISTRATION SALES CONTACTS

(Real Property/Other Federal Personal Property)

The GSA sells U.S. Government-owned surplus real properly, and personal properly generated by most civil agencies of the Federal Government. GSA occasionally sells seized and confiscated property. However, you may wish to contact the seizing agency (i.e., U.S. Customs Service, Internal Revenue Service) for additional information on such properly.

For information on the sale of real properly, contact:

General Services Administration
Office of Real Properly
Federal Property Resources Services
18th and F Streets, NW
Washington, DC 20405

SECTION II:
CLASSES OF PROPERTY SOLD

* Certain items in this property category number are required to be demilitarized. Specific information will be given in the invitation for bid when issued.

* The purchaser must certify on certain stills and distilling apparatus in this property category that he will comply with the provisions of the Internal Revenue Code and with regulations issued thereunder. Specific information will be given in the invitation for bid when issued.

* Certain items in this property category number are sold only to registered manufacturers of narcotic drugs.

APPLICATION INFORMATION

The following is provided in reference to the last insert on the attached application (small or large business):

Definitions of Small Businesses:

A small business concern, for the purpose of sale of Government-owned property (other than timber), is a concern (including its affiliates) which is independently owned and operated; is not dominant in its field or operation; and can further qualify under the following small business classification criteria:

1. Manufacturers. Any concern which is primarily engaged in manufacturing is small if its number of employees does not exceed 500 persons. However, a concern primarily engaged in SIC Industry 2911 Petroleum Refining, is small if its number of employees does not exceed 1,500 persons and it does not have more than 50,000 barrels-per-day crude-oil capacity from owned or leased facilities.
2. Other than manufacturers. Any concern which is primarily not a manufacturer (except as specified in subparagraph 3 of this paragraph) is small if its annual sales or annual receipts for its preceding 3 fiscal years do not exceed $1 million.
3. Stockpile purchasers. Any concern primarily engaged in the purchase of materials which are not domestic products is small if its average annual sales or annual receipts for its preceding 3 fiscal years do not exceed $25 million.

** N O T I C E **

YOU SHOULD ONLY COMPLETE THE APPLICATION AT THE BACK OF THIS PAMPHLET IF YOU ARE INTERESTED IN NATIONAL SALE PROPERTY SUCH AS: MACHINE TOOLS, SCRAP, CHEMICALS, AIRCRAFT, SHIPS, ELECTRONIC EQUIPMENT, OR LARGE LOTS THAT WOULD APPEAL TO DEALERS OR BROKERS.

IF YOU ARE INTERESTED IN VEHICLES, CLOTHING, HAND TOOLS, HARDWARE, MUSICAL INSTRUMENTS, FURNITURE, OR OTHER CONSUMER ORIENTED PROPERTY, YOU NEED NOT COMPLETE THE APPLICATION. INSTEAD, CONTACT THE DEFENSE REUTILIZATION AND MARKETING OFFICE (DRMO) NEAREST YOU TO BE PLACED ON THEIR LOCAL MAILING LIST (SEE PAGES 5-9 FOR ADDRESSES).