1. (a) Resale.

   1. (1) The Marketing and Redistribution Section will make available to agencies, tax- supported entities, or not-for-profit organizations as defined in Arkansas Code § 22-1-101 commodities in serviceable condition and/or commodities of potential use by agencies, tax-supported entities, or not-for-profit organizations for a twenty-day period prior to making them available to the general public.
   2. (2) During the twenty-day hold period, commodities may only be sold to agencies, tax-supported entities, or not-for-profit organizations by the Marketing and Redistribution Section.
   3. (3) At the sole discretion of the State Procurement Director or the director’s designee at the Marketing and Redistribution Section, commodities which the director or the director’s designee at the Marketing and Redistribution Section reasonably believe to be valued at one hundred dollars ($100) or less per individual item, or commodities that historically have not sold to agencies, tax-supported entities, or not-for-profit organizations, or items that are unserviceable may be offered for sale to the general public without the requirement of the twenty-day hold period.
   4. (4) The director or the director’s designee at the Marketing and Redistribution Section may waive the twenty-day requirement when he or she determines that such waiver is in the state’s best interest.

2. (b) Intrastate agency sale.

   1. (1) Commodities that are no longer needed by an agency may be sold to another agency by completing and submitting an Intrastate Agency Sale Form, which can be found on the Marketing and Redistribution Section website under forms, to the Marketing and Redistribution Section.
   2. (2) This form must be completed and forwarded electronically from the selling agency to the purchasing agency, then to the Marketing and Redistribution Section, where it is forwarded to the Department of Finance and Administration Office of Accounting for completion and transfer of funds.
3. (c) Disposal. When commodities have no scrap or resale value, a certificate of property disposal form must be submitted to the Marketing and Redistribution Section, which will then return to the requestor within ten (10) working days, a certificate of property disposal authorization, indicating the proper handling procedure for the commodities.

4. (d) Cannibalization.

   1. (1) “Cannibalization” means the process whereby a nonexpendable surplus or excess commodity is dismantled for parts to be used as replacements or as components of other machines or devices.

   2. (2)

      1. (A) The disassembly of an item for use of its component parts for repair or maintenance of a similar item will only be authorized if such action has greater potential value and benefit than disposal or trade-in of the item in its existing form.
      2. (B) Authorization for cannibalization will be approved by the Marketing and Redistribution Section prior to any disassembly or removal of components parts.
      3. (C) If authorized, the item will be removed from the agency’s property listing by the requesting agency.
      4. (D) Any residual material remaining after cannibalization must be processed through the Marketing and Redistribution Section.
      5. (E) Requests for authorization for cannibalization will be expedited.
      6. (F) If properly marked, authorization should be returned to the agency with ten (10) working days.
      7. (G) It is understood that there may be no residual material remaining after cannibalization, but if any, residual material must be processed through the Marketing and Redistribution Section.

   3. (3)

      1. (A) Motor vehicles eligible to be registered for highway use (cars and trucks), whether registered or not, may be cannibalized after obtaining authorization from the Marketing and Redistribution Section.
      2. (B) These vehicles will not be removed from the property listing until the carcass of the vehicle has been disposed of by the Marketing and Redistribution Section.
      3. (C) In no event should more than ninety days (90) elapse between the authorization of cannibalization and processing of the carcass by the Marketing and Redistribution Section.
      4. (D) These procedures do not exempt an agency from compliance with any other requirements relating to the disposal or acquisition of motor vehicles.

5. (e) Handling of surplus equipment.

   1. (1) Agencies with surplus items must contact the Marketing and Redistribution Section to schedule a delivery or pick-up date.

   2. (2)

      1. (A) A Surplus Disposal Form must be transmitted by the agency showing the agency name, address, phone number, contact person, and listing of all items with serial and property numbers, if available.
      2. (B) The Surplus Disposal Form will be processed by the Marketing and Redistribution Section when the surplus items are delivered or picked up.

Codification Notes: This section was promulgated as R1:19-11-242 of the Procurement Rules prior to codification into the Code of Arkansas Rules.