Tenn. Comp. R. & Regs. 0690-02-01-.12 - TRADE-IN ON REPLACEMENT

(1) Items that must be replaced may, upon approval, be traded in on the replacement property.

(a) When requesting that property be traded in, the following procedures shall be followed:

1. Application for approval of trade-in shall be filed with State Personal Property Utilization Division along with Form SPMD-1A, Report of Surplus Property. This application may be in memorandum form. This memorandum must outline the proposed transaction giving the property inventory number, purchase price, condition of the property, the estimated current value, and the name of the representative of the disposing agency to be contacted should any additional information be required.

2. A requisition for purchase shall be forwarded to the Division of Purchasing along with a copy of the application filed for approval of trade-in, except for agencies which are exempt by Statute from Central Purchasing or which have been delegated direct purchase authority. Procedures for these agencies are designated in subparagraph (1)(d) of this rule.

(b) The Division of Purchasing will perform the following functions:

1. Issue invitations to bid asking for bids with trade-in and without trade-in.

2. Notify the State Personal Property Utilization Division of the proposals received from the invitations to bid.

3. When notified by the State Personal Property Utilization Division of the approval or disapproval of the request for trade-in, issue a purchase order, based on the notification, for the purchase of the replacement property.

4. The notifications received from State Personal Property Utilization Division shall be maintained as a part of the permanent bid file for the related transaction.

(c) The State Personal Property Utilization Division shall perform the following procedures:

1. Make an evaluation of the condition and fair market value of the property to be disposed of.

2. Compare the results of the above evaluation with the proposals received from invitations to bid.

3. Make a determination whether it is in the best interest of the State to dispose of the property by trade-in or by one of the other methods described in rule .03 of this chapter, subject to the final decision of the commissioner.

4. Notify the Division of Purchasing of the determination made in 3 above.

(d) In such cases where agencies are exempt by Statute from Central Purchasing or have been delegated direct purchase authority, those agencies will follow the same procedures as outlined in this rule and will perform the functions that have been designated for the Division of Purchasing.

Notes

Tenn. Comp. R. & Regs. 0690-02-01-.12

Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed July 13, 1979. Notice of Disapproval hearing filed October 9, 1979. Approved by G.O.C. November 13, 1979.

Authority: T.C.A. §§12-235 through 12-248 and Public Acts of 1976, Chapter 821.