California's Property Reuse Program 

What do large business organizations do with items they no longer need in order to run their operations? Most people probably never give the question a thought.

The State of California's vast operations certainly make up a very "large organization." And every year, many State-run operations designate items they no longer need as surplus property. These include desks, chairs, filing cabinets, bookcases, computers and computer peripheral equipment, copiers, calculators, and typewriters. Refrigerators and other kitchen equipment, as well as cooking utensils and flatware, are also available. There is hospital equipment, medical equipment and exercise equipment. Other items include generators, shop tools, and machinery, and heavy equipment such as automobiles, trucks, and forklifts. Sometimes bicycles come from local police departments.

What happens to these surplus items? Because of their condition, some items have no further useful life. In those instances, the State disposes of them through contracts with recyclers. Many of the other surplus items, however, are still useful. So the State of California makes them available for sale to State and local government agencies, school districts, nonprofit organizations, and the general public-all for literally pennies on the dollar when compared to the original cost of the items when they were new.

The beauty of the State's program is that it extends the useful life of surplus property that could otherwise end up in a landfill. And the program allows those interested in acquiring surplus property to save money on items they can use, either for their business operations or for their personal needs.

Dan McDonough, manager of the Surplus Property Program of the Department of General Services' Procurement Division, says, "Making the State's surplus property available to start up small businesses is an especially helpful way for them to acquire useful items at the lowest possible cost.

"Of course, making the property available to any organization or individual that can use it is what we are all about," McDonough emphasizes. "It certainly addresses the problem of reducing landfill. More importantly, it ensures that the citizens of California have access to perfectly good items for their individual business or personal needs. And the income that we derive from the sale of the surplus property goes back to California."

According to McDonough, the program name is changing from the "Surplus Property Program" to the "Property Reuse Program."

"Calling ourselves the Property Reuse Program emphasizes our primary responsibility, which is to ensure that all reusable State surplus property is made available to those who are interested in acquiring it."

The Procurement Division's Property Reuse Program also serves as the State's resource for federal surplus property, which is available for donation to State and local government agencies, school districts, and nonprofit organizations under specific requirements established by the Federal General Services Administration. The property includes a wide variety of items, ranging from commercial refrigeration units to large generators, machine shop equipment, large trucks and vans, cameras and lenses, clothing items, and much more. According to Dan McDonough, many of the items are new or nearly new.

In order for an organization to be eligible to acquire federal surplus property, the Procurement Division's responsible Property Reuse Program personnel must designate the organization as a "qualified recipient" through the requirements established by the General Services Administration.

Federal surplus property is also available to certain small business firms that the federal Small Business Administration designates as eligible to receive the property.

As the incentive for the Procurement Division Property Reuse Program's making federal surplus property available to qualified organizations and small businesses, the General Services Organization permits the Property Reuse Program to charge the recipients of the donated property a nominal service and handling fee. As Dan McDonough is quick to point out, the service and handling fee is a very small figure when compared to the actual value of the donated property.

Another important feature of the federal program is the ability of a qualified recipient to request the Procurement Division's Property Reuse unit to locate and acquire specific items on their behalf. For a nominal service and handling fee, the Property Reuse unit's property screeners will find the items and arrange for their delivery directly to the qualified recipient.

As a condition of receiving donated federal property valued in excess of $5,000, all qualified recipients must provide assurance that they will place the property in use for its intended purpose within 18 months after receipt. Qualified recipients must place all other donated property in use within 12 months after its receipt. The Procurement Division's Property Reuse Program unit is responsible for assuring that the qualified recipient has carried out this condition of use.

From time to time, the General Services Administration may authorize the Procurement Division's Property Reuse unit to make this highly desirable federal surplus property available to the general public in a silent auction. This is another important way for any organization or individual to acquire items at significant savings.

The State of California has two locations where surplus property is available for sale:

Fullerton
Property Reuse Program
701 Burning Tree Road
Fullerton, California 92833
(714) 449-5900
(714) 449-5917 (FAX)
TTY/TDD (714) 733-2093

Sacramento
Property Reuse Program
1700W National Drive
Sacramento, California 95834
(916) 928-4630
(916) 928-0304
TTY/TDD (916) 928-4735

Selected State surplus property is also available through online auctions. To view the property, go to Department of General Services home page. Once there, select SURPLUS PROPERTY and follow the link to BID ON THESE ITEMS.

Clearly, the State of California's Property Reuse Program provides a tremendous opportunity for organizations and individuals throughout the state to save money while providing for their business and personal needs. Dan McDonough and his staff in Fullerton and Sacramento are ready to help anyone who is interested in taking advantage of this outstanding program.

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Last updated: December 30, 2008