Mississippi Administrative Code › Title 12 - Finance and Administration › Part 6 - Office of Purchasing, Travel and Fleet Management › Chapter 8 - Disposal of Personal Property › Sec2 12-6-8.101 - Procedures for Selling, Transferring, or Trading Personal Property are promulgated in accordance with Section 29-9-9 › Sec2 12-6-8.101.01 - Methods › Section 12-6-8.101.01.2 - Personal property which becomes surplus to the needs of an agency or becomes obsolete or inoperable and still has a residual value may be traded as a part of the transaction to acquire new equipment

Current through June 25, 2024
This method of disposal may not be used when acquiring
						any vehicle covered by a state contract. The request for pricing based on a
						trade-in must be made a part of the specification for the equipment being
						purchased. The specification shall contain all pertinent information about the
						item being traded (i.e., make, model, year model, mileage or hours, where it
						may be seen, etc.). Surplus property may also be traded as a part of an
						acquisition of items covered by a state contract. All trades must be submitted
						on an Inventory Deletion Form and approved prior to releasing any equipment.
						The Inventory Deletion Form may not serve as a purchase request. The Inventory
						Deletion Form i s to be considered as an inventory deletion form only. If an
						item is to be disposed of by trade-in, the Inventory Deletion Form shall be
						completed to include all information applicable to the trade-in. However, the
						agency must at the same time submit electronically the P-1 f or approval to
						purchase the item to which the trade-in applies. Approval of both documents
						must be obtained prior to the issuance of a purchase order.
Commentary
It should be noted that, when trading in a commodity and
						applying the revenue towards a reduction in the purchase price the agency must
						evaluate the value of the commodity being traded as well as the value of the
						item being procured to determine the proper methods of soliciting bids. If the
						estimated value of the item or items being traded is greater than $1000 but not
						more than $5000, two written quotes are required. If the estimated value of the
						"trade-in" commodity exceeds $5000, then the transaction shall be
						advertised.
If the estimated value of the commodity to be purchased
						exceeds, $50,000, then the transaction shall be advertised. See Section
						31-7-13,
						Mississippi Code of 1972, Annotated. If the estimated value of the commodity to
						be purchased exceeds, $5,000, then the transaction shall be entered into after
						obtaining at least two competitive bids. See Section
						31-7-13,
						Mississippi Code of 1972, Annotated. An example of what is not proper and not
						allowed would be: an agency wishes to trade in commodities having a value, more
						than $50,000; in return they would purchase commodities with a value of $51,000
						for a total cost of $1,000. The agency would indicate that since the cost is
						only $1,000, they should not be required to obtain bids. This is not a correct
						interpretation. The agency is using $50,000 of state resources and acquiring an
						item with a value of $51,000, therefore, this transaction would require
						advertising and sealed bids.
Another example would be:
If the estimated value of the commodity to be purchased
						is less than $50,000, but the trade in value is over $5,000 then the
						transaction shall be advertised. An example of what is not proper and not
						allowed would be: an agency wishes to trade in commodities having a value of
						more than $5,000; in return they would purchase commodities with a value of
						$40,000 for a total cost of $45,000. The agency would indicate that since the
						cost is only $45,000, they should not be required to obtain bids. This is not a
						correct interpretation. The agency has a trade in valued over $5,000 so
						therefore, this transaction would require advertising and sealed
						bids.