FAR 45.604—Sale of surplus personal property.

Sales procedures.

FAR 45.604-1 is a short but important cross-reference provision that governs how surplus personal property is sold after it has completed screening under FAR 45.602-3(a). The section does not create a separate sales system; instead, it directs agencies to use the Federal Management Regulation’s surplus personal property sales policy at 41 CFR part 102-38. In practice, this means the sale process, methods, advertising, terms, and related administrative requirements are controlled primarily by the FMR rather than by agency-specific ad hoc procedures. The section also recognizes that agencies may issue implementing procedures, so long as those procedures fit within the broader FMR framework. For contracting officers, property administrators, and disposal personnel, the practical significance is that once screening is complete, the property must move into the established federal sales process rather than being disposed of informally or under inconsistent local practices.

Use of GSA sponsored sales centers.

FAR 45.604-2 is a short but important rule about how agencies may dispose of surplus property through GSA-sponsored sales centers. It covers two main topics: first, that agencies are allowed to use sales center services; and second, that using those centers to sell surplus property is permitted only when it is in the Government’s best interest and when the action is consistent with the applicable contract terms and conditions. In practice, this section gives agencies flexibility to use a centralized sales channel rather than handling disposal entirely on their own, but it also requires a judgment call and contract compliance review before using the service. The rule matters because surplus property disposal affects recovery value, administrative workload, accountability, and adherence to existing contractual arrangements. It does not create a blanket requirement to use sales centers; instead, it authorizes use when the agency determines the arrangement is advantageous and legally/contractually supportable.

Proceeds from sales of surplus property.

FAR 45.604-3 addresses what happens to money received from the sale of surplus government property. Its core topic is the disposition of sale proceeds: by default, those proceeds must be deposited into the Treasury of the United States as miscellaneous receipts. The section also identifies the limited exceptions to that default rule, including when another statute authorizes a different treatment or when the contract or a subcontract specifically allows the proceeds to be credited to the price or cost of the work. In practical terms, this rule prevents contractors or agencies from treating sale proceeds as available operating funds unless there is clear legal authority to do so. It matters because improper handling of sale proceeds can create fiscal law violations, audit findings, and contract administration problems. The section is short, but it is important because it ties surplus property disposal to federal money-handling rules and the statutory authorities in 40 U.S.C. 571 and 574.

Sale of property pursuant to the exchange/sale authority.

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.