Can we purchase federal surplus property from the Federal Property Agency in Huron, South Dakota and then resell this property to another political subdivision?
Yes and no. Federal regulations for the acquisition and use of federal surplus property require the political subdivision originally acquiring the property to place it into use within one year of acquiring it. The political subdivision which originally acquired the property must then maintain it in use for twelve months if the unit acquisition cost (original cost to federal government) was less than $5,000. If the unit acquisition cost was more than $5,000, then the original political subdivision that purchased the surplus property from the Federal Property Agency must maintain it in use for at least eighteen months. The property cannot be “sold, traded, leased. loaned, bailed, cannibalized, encumbered, or otherwise disposed of” from the date received until the time limits are up without the prior approval of the General Services Administration or the Federal Property Agency. For more details, you can contact the Federal Property Agency, 20 Colorado Ave. S.W., Huron, South Dakota 57350
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