FAR 45.604-4—Sale of property pursuant to the exchange/sale authority.
Plain-English Summary
FAR 45.604-4 addresses when an agency should consider using the exchange/sale authority for disposing of government property by sale, rather than using a more general disposal method. The section points agencies to the Federal Management Regulation at 41 CFR part 102-39 and ties the decision to situations where the agency is acquiring, or plans to acquire, similar products. In practice, this means the agency can potentially trade in or sell property and apply the proceeds toward replacement items, but only if the specific requirements of the exchange/sale authority are met. The section is short, but it is important because it helps agencies reduce disposal costs, improve replacement efficiency, and avoid using the authority when the property being acquired is not sufficiently similar or when the regulatory conditions are not satisfied. It also signals that the agency must look beyond FAR alone and confirm compliance with the FMR before relying on this disposal approach.
Key Rules
Consider exchange/sale first
Agencies should evaluate whether the exchange/sale authority is appropriate when disposing of property, rather than automatically using another disposal method. The rule is framed as a planning consideration, not a blanket authorization.
Use only for similar products
The authority is intended for situations where the agency is acquiring, or plans to acquire, similar products. The property being sold or exchanged should relate to the replacement item in a way that fits the exchange/sale framework.
Meet FMR requirements
The authority may be used only if the other requirements in FMR 102-39 are satisfied. Agencies must confirm that the transaction complies with the detailed conditions in the property management regulations.
Coordinate disposal with acquisition
The section links disposal decisions to acquisition planning. Agencies should align the sale or exchange of property with the planned purchase so the authority is used as part of a replacement strategy, not as a standalone disposal shortcut.
Responsibilities
Agency
Determine whether the exchange/sale authority is a suitable disposal method when acquiring or planning to acquire similar products, and ensure the transaction satisfies the requirements of 41 CFR part 102-39.
Contracting Officer
Evaluate whether the planned acquisition and property disposition fit the exchange/sale authority, coordinate with property management officials, and avoid authorizing the transaction unless the regulatory conditions are met.
Property Management Officials
Advise on whether the property qualifies for exchange/sale treatment, verify compliance with FMR requirements, and support documentation and disposition procedures.
Contractor
If involved in a trade-in, sale, or replacement transaction, follow the solicitation and contract terms, provide required information about the property, and comply with any instructions tied to the exchange/sale process.
Practical Implications
This section is mainly a planning trigger: before disposing of property, agencies should ask whether they are buying a similar replacement item and whether exchange/sale would be more efficient.
A common pitfall is assuming any sale of old property can be tied to a new purchase; the authority is limited and depends on the FMR conditions being met.
Another risk is failing to document the connection between the property being sold and the similar product being acquired, which can create audit and compliance problems.
Contracting and property staff should coordinate early so the disposal method matches the acquisition timeline and the agency does not miss the opportunity to use the authority properly.
Because the section points outside the FAR to 41 CFR part 102-39, users must check both sets of rules before proceeding.
Official Regulatory Text
Agencies should consider the sale of property pursuant to the exchange/sale authority in FMR 102-39 (41 CFRpart102-39) when agencies are acquiring or plan to acquire similar products and other requirements of the authority are satisfied.