TRADE IN PROGRAM

NOTE: GSA announced that they would be making some changes to the Exchange Sale Regulation. The change is supposed to take place in the near future. We will update our information as soon as the change takes place.

The regulations containing policy relating to trade-ins or exchanges are contained in the Personal Property Management Guide, that was revised 4/30/97, the DHHS Logistics Management Manual, and the Federal Property Management Regulations (FPMR). If another Federal Government entity, including another NIH entity, can use the item being screened, they must reimburse the reporting IC the trade in value. Note that exchanges are not automatically approved and, in fact, Federal Agencies are prohibited by the FPMR from exchanging some types of property. For example, furniture, and office supplies may not be traded.

In general - Some companies selling scientific and office equipment to NIH will accept used equipment, regardless of condition, for trade-in against the purchase of new equipment. Trade-ins can only be made for items of a similar nature. Items are considered similar when both fall within a single Federal Supply Classification Group. Therefore, property in FSC Group 66 (scientific equipment) may apply towards the acquisition of other property in FSC Group 66. In order to trade in old equipment for new equipment, the following conditions must be met:

To repair the item would exceed 65 percent of the original acquisition cost to put it back in service; or The item is obsolete and/or the repair parts are no longer available. Other factors to consider include age, repair history (expense and frequency), and the trade-in amount being offered by the Vendor. Requisitions must also contain adequate justification that the items meet one of the above conditions.

Shared Resources Database
The NIH maintains a database with scientific instruments no longer used in NIH laboratories. This database may contain instruments that are newer than those currently being used by individual laboratories. Laboratories can benefit can benefit when claiming a new instrument for use over an older existing instrument in several ways. In most cases newer instruments have more capabilities, take less space, and cost less to maintain than the older ones. To help stretch laboratory budgets, those instruments listed on the data base are also available for trade-in purposes when buying new instruments both on the open market as well as on the GSA contract. NIH can now trade-in any type of laboratory instrument on another. The Shared Resources Database is available on the Internet at http://dirs.info.nih.gov/resource.htm.

Requesting Office Responsibilities -

1. NIH Personal Property Branch should be contacted to see if surplus items are available for trade in by calling 301-496-4247. Office machines and scientific equipment that do not meet the trade-in requirements and are in excess to your needs should be transferred to the Personal Property Branch using Form NIH-649. For accountable property, the Property Custodial Officer transmits the NIH-649 on-line through the Property Management Information System (PMIS).
2. NIH Form 1872 (Rev. 1/96), Request for Trade-in or Exchange of Government-owned Property, must be completed and approved by the Director, Personal Property Branch, prior to award of any procurement involving the trade-in of Government Equipment. You can find this form at the internet address http://forms.nih.gov/public/MS/forms/NIHE-Forms/NH1872.PDF. NIH Form 1872 must be submitted to the Property Management Division, Building 6011, Room 637. Status of these requests can be obtained by calling your IC Property Management Liaison on 301-496-5711.

The requesting office must then submit the approved form along with the RQM to the appropriate purchasing office responsible for processing the requisition. Whenever possible, these requests should be submitted 28 work days prior to the award. This will allow for other NIH and HHS activities to request the item in lieu of a new procurement. Should a requirement surface, the activities may work with each other to agree on compensation. Instruments and other equipment may be used while the trade-in documentation works through the approval cycle.

Leased Equipment - Ordering offices may not offer a vendor NIH-owned equipment as a trade-in to reduce the cost of a leasing arrangement. Only Government-owned property can be traded in on the purchase of a similar item; leases must stand by themselves. Property regulations allow offices to borrow equipment from a Vendor for trial periods before entering into a lease or purchase agreement. For details contact the Personal Property Branch, 301-496-5711.

The Acquisition Planning and Specifications Branch will discuss the advantage of trade-ins of equipment and will assist you in finding NIH-owned equipment for a trade-in when purchasing new equipment. Call Jeff Klein, 301-402-5262. Questions regarding trade-ins can be addressed to:

Jeff Klein
Acquisition Planning and Specifications Branch
e-mail: klienj@mail.nih.gov
FAX 301-496-8422