Surplus Property Program - 501

Requirement to Utilize Existing Surplus Personal Property

State agencies shall utilize surplus personal property whenever feasible by contacting the DGS Surplus Property & Reutilization (SPR) program to determine if surplus personal property is available.

Personal property includes all types and categories of property (i.e. furniture), except land or other real property, and records of the state government.

Exception: State agencies purchasing property related to an approved Reasonable Accommodation (RA) are not required to contact DGS SPR Program to determine if surplus personal property is available. 

Procurement files must note use of this exemption.

How to Contact SPR

Contact the DGS SPR program at their facility in Sacramento:

Call: (916) 928-5800

Email: contactspr@dgs.ca.gov

Visit: National Drive Warehouse

 1700 National Drive

 Sacramento, CA 95834

Needs Not Met by SPR

When a state agency’s functional needs cannot be met by the SPR program, then the state agency must next consider if its needs can be met by the California Prison Industry Authority (CALPIA) before proceeding with a purchase in the open market.

Modular Systems & Conventional Furniture

State agencies must first check with the SPR program to confirm surplus property is not an option and obtain a CALPIA waiver before purchasing new modular systems & conventional furniture.

For additional information see Management Memo 11-01.

Documentation of the contact with SPR must be kept in the procurement file.

Transfer and Disposal Requirements for IT Equipment

The policy and process for the transfer and disposal of IT equipment (SAM, Sections 5901, 5902 and 5903) is as follows:

• Salvage value of state-owned IT equipment (SAM section 5901) and purchase option credits for leased IT equipment are a source of value to the state. Each state department must ensure that such value is received to the extent that doing so is in the best interest of the state.
• The disposition of surplus IT equipment must be in accordance with the most economical and practical manner for the state as a whole.
• Government Code, Sections 14674-14675 authorizes the Director of DGS to approve the competitive sale, exchange, or interagency transfer of personal property owned by the state if such action is in the best interest of the state. Each state department must receive approval from DGS Surplus Property & Reutilization Unit, prior to disposing of surplus IT equipment.
• Each state department is responsible for ensuring that any residual value in surplus IT equipment is realized. Each state department must explore the reutilization of surplus IT equipment prior to requesting approval for disposal or attempting to use the equipment as a credit toward the purchase or lease of new equipment.
• The state department must submit a completed PSR (STD. 152) to DGS Property Reutilization Unit at least 30 days prior to the disposal of surplus IT equipment. At the same time, the state department must send an informational copy of the completed Property Survey Report to the California Department of Technology (CDT).

Each state department must comply with the state property accounting requirements described in SAM section 8633 and 8640-8642 when disposing of surplus IT equipment.

Transfer and Disposal Requirements for IT Supplies

The disposition of surplus IT supplies must be in accordance with the most economical and practical manner for the state as a whole. Each state department is responsible for ensuring that any residual value in surplus IT supplies is realized. Each state department must comply with the state property accounting requirements described in SAM, Sections 8633 and 8640-8642 when disposing of surplus IT supplies. The state department must prepare and maintain a PSR (STD. 152) when disposing of surplus IT supplies.

A diligent effort must be made to secure at least three competitive bids for the supplies. If three bids cannot be obtained, a list or organizations or individuals solicited must be prepared and signed by an authorized representative of the state department. The list and the bids received must be attached to the PSR.

IT paper goods, e.g., computer printouts, punch cards, and pre-numbered forms, must be disposed of in accordance with SAM, Sections 1930.1 and 1693.

Magnetic media for data processing devices, e.g., magnetic tapes and disk packs, must be disposed of in accordance with the procedures of this section. If sale is not possible, the magnetic media may be disposed of through any organization that will retrieve them without charge to the state.

The handling and disposal of IT supplies containing information classified as confidential or sensitive as defined in SAM, Section 5320.5 must be conducted according to the policies stated in SAM section 1693 and the procedures established by the state department program having ownership responsibility for such information (SAM, Section 5320.2). See SAM, Section 5300 et seq. for detailed information on Information Security.