(a) Exchange Without Solicitation of Formal Bids. Personal property may be exchanged by a simultaneous transaction without solicitation of formal bids, regardless of the value of the trade-in item, when the purchase price of the new item acquired does not exceed $25,000. The transaction must be in writing. It should be accomplished on Purchase Order Form 7-711, describing both items, showing the purchase price of the new item, and credit allowed for the trade-in item.
(b) Exchange With Solicitation of Formal Bids. When the estimated value of the disposal item exceeds $500 and the transaction is not conducted simultaneously as described above, formal advertising is required. This $500 limit is contained in 41 U.S.C. 5. The authority to sell surplus personal property without formal advertising when the estimated value does not exceed $15,000 does not apply to sale of property where proceeds are to be applied to purchase of replacements (Public Law 100-612).
If both trade-in and new acquisition are not included on the purchase document as a simultaneous transaction, the following statement will be placed on the face of Purchase Order 7-711 and sales document:
On the purchase order:
"Proceeds from the sale of similar items will be applied toward the purchase of the items listed in this purchase order."
On the sales document:
"Proceeds from the sale of items listed on this sale will be applied toward the purchase of similar items."
Each sales document should be cross-referenced by number to the acquisition document on which the new item was, or is to be, purchased.
114S-46.304-70 Deposit of Proceeds.
Reimbursements received from transfer of exchange/sale property to other offices are available for appropriation repayment and expenditure in the same manner and under the same conditions as proceeds from sales of exchange/sale property (FPMR 101-46.304).