You may use the exchange/sale authority if:

1. (a) The property exchanged or sold is similar to the property acquired;
2. (b) The property exchanged or sold is not excess or surplus and you have a continuing need for similar property;
3. (c) The property exchanged or sold was not acquired for the principal purpose of exchange or sale;
4. (d) When replacing personal property, the exchange allowance or sales proceeds from the disposition of that property may only be used to offset the cost of the replacement property, not services; and
5. (e) When replacing personal property by sale, you must use the methods, terms, and conditions of sale, and the forms prescribed in part 102-38 of this subchapter.