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
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.
