# COMAR Title 04 — Department of General Services ## Subtitle 03 — Personal Property Disposal ### Chapter 01 — Disposal Process **Authority:** State Finance and Procurement Article, §§4-204(b) and 4-501—4-508,Annotated Code of Maryland; COMAR 21.01.03.01A(10) **Administrative History:** Effective date: June 27, 1988 (15:13 Md. R. 1551) **Administrative History:** Regulation .04A amended effective May 1, 2000 (27:8 Md. R. 796) #### Regulation .01 Applicability. *COMAR 04.03.01.01* These regulations only apply to State-owned personal property that has been declared excess or surplus under State Finance and Procurement Article, §4-502, Annotated Code of Maryland. They do not apply to other State-owned personal property that is covered by State Finance and Procurement Article, §10-305. #### Regulation .02 Availability. *COMAR 04.03.01.02* Serviceable excess property will be listed periodically in the Excess Property Bulletin, a Statewide Department of General Services publication, notifying State agencies, local governments, and nonprofit organizations of available excess property. #### Regulation .03 General Requirements. *COMAR 04.03.01.03* A. The Inventory Management Division of the Department of General Services shall determine the method of property disposition. B. Excess property will be transferred to another State agency, whenever feasible, before other methods of disposal are considered. C. Excess property sales will be executed by competitive sealed bids or public auctions. #### Regulation .04 Utilization by a Local Jurisdiction or Nonprofit Organization. *COMAR 04.03.01.04* A. Excess property that is no longer needed by the State may be sold without obtaining competitive bids or donated to a local jurisdiction or nonprofit organization upon approval by the Secretary of General Services or the Secretary's designee at no lower than the Assistant Secretary's level. B. A local jurisdiction or nonprofit organization obtaining donated property shall be required to sign a statement certifying the intended use of the property in the recipient's program. ### Chapter 02 — Surplus Personal Property—Enterprise Activity **Authority:** State Finance and Procurement Article, §§4-501—4-508, Annotated Code of Maryland **Administrative History:** Effective date: November 20, 1995 (22:23 Md. R. 1799) #### Regulation .01 Definitions. *COMAR 04.03.02.01* A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Enterprise activity” means a State governmental operation that markets goods and related services intended to result in revenue after payment of all costs, overhead, and expenses. (2) “Inmate labor” means labor by individuals on work release from the Maryland Correctional System. (3) “MSASP” means the Maryland State Agency for Surplus Property, a self-supporting division of the Department of General Services. (4) “Qualified donee” means a unit of State government, a local governmental jurisdiction, or a nonprofit, tax-exempt organization, eligible to purchase surplus property from MSASP. (5) “Refurbish” means the process of enhancing the marketability of property through operations including, but not limited to, cleaning, painting, assembling, repairing, reupholstering, adding, or replacing component parts, etc. (6) Surplus Property. (a) “Surplus property” means federal surplus personal property as well as items of excess personal property, located at the MSASP Warehouse, that the Department of General Services declares as not needed by any unit of State government. (b) “Surplus property” includes motor vehicles, machinery, office furniture, clothing, office machines, etc. #### Regulation .02 MSASP Enterprise Activity. *COMAR 04.03.02.02* A. Scope and Purpose. (1) MSASP is an unfunded, self-supporting agency that may engage in enterprise activity in order to: (a) Cover its operating expenses; (b) Generate revenue for the State's General Fund; (c) Employ and train qualified inmates in vocational skills; and (d) Provide quality, finished products to qualified donees at attractive prices. (2) MSASP may market refurbished surplus property to qualified donees, together with incidental design, planning, installation, and delivery services on a project-by-project basis, including the marketing of complete modular office furniture systems. B. Disposition of Funds. Money received from the sale of surplus property shall be handled in accordance with State Finance and Procurement Article, §4-505, Annotated Code of Maryland. C. Accounting. (1) MSASP shall keep accurate accounts of all enterprise activity in a standardized form that is complete and subject to audit. (2) Accounts are to be kept on a project-by-project basis and include detailed entries for: (a) Surplus property as well as purchased property; (b) Services incidental to each enterprise agency project; and (c) Payments received from a qualified donee customer. D. Prerequisites to MSASP Enterprise Activity. After the initial consultation, planning, and estimating stages of an enterprise activity project, MSASP shall proceed with the project only if in good faith it can ensure that the materials to be used in the project will consist primarily of surplus or refurbished property. E. Procedure. (1) Materials. Whenever a good-faith estimate in §D of this regulation is made, MSASP may buy additional used or refurbished materials, or both, as well as a minimal amount of new material, as needed to complete the project, and shall obtain the best price in accordance with good business practices. (2) Labor. (a) Except as otherwise provided, all enterprise activity labor, including marketing and customer service such as design, planning, estimating, installation, and delivery, shall be performed by MSASP employees and MSASP inmate labor. (b) If, after the initial consultation, planning, and estimating stages, MSASP is unable to meet a project's labor requirements through its own employees and inmate labor, then MSASP may subcontract the remaining labor to State Use Industries. (c) If State Use Industries cannot perform the labor or cannot enter subcontracts because of time constraints, then MSASP may subcontract for labor with private organizations, subject to good business practices in obtaining the best competitive price.