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(1) The division's property and supply bureau may transfer surplus supplies to other state agencies and other units of government.

(2) Surplus supplies may be offered to the public by the division's property and supply bureau through competitive sealed bids, public auction, established markets, or posted prices. It is recognized, however, that some types and classes of items can be sold or disposed of more readily and advantageously by other means, including barter. In such cases and also where the nature of the supply or unusual circumstances call for its sale to be restricted or controlled, the division may employ such other means, including appraisal, if the division makes a written determination that such procedure is advantageous to the state. On sales greater than $300, only United States postal money orders, certified checks, cashier's checks or business checks may be accepted.

(3) If a sale is to be made by competitive sealed bidding, notice of the sale must be given at least 10 days before the date set for opening bids by posting the bid on the state's bids and proposals website at http://mt.gov/doa/gsd/osbs/default.asp.

(a) Notice of the sale may also be given to prospective bidders by mail or by newspaper advertisement.

(b) The bid must list the supplies offered for sale, designate their location and how they may be inspected, and state the terms and conditions for bid opening. Bids shall be opened publicly.

(c) Award must be made in accordance with the provisions of the bid to the highest responsive and responsible bidder, if the price offered by such bidder is acceptable to the division. If the price is not acceptable, the division may:

(i) reject the bids in whole or in part and negotiate the sale, but the negotiated sale price must be higher than the highest responsive and responsible bidder's price; or

(ii) resolicit bids.

(4) Supplies may be sold at auction, including electronic online auctions. When appropriate, an experienced auctioneer should be used to cry the sale and assist in preparation of the sale. The solicitation to bidders should stipulate all the terms and conditions of any sale.

(5) Established markets are places where supplies such as livestock and produce are regularly sold in wholesale lots, and prices are set by open competition. Surplus supplies may be sold in established markets for such supplies.

(6) Surplus supplies may be sold at posted prices, including by posting on online websites, as determined by the division when such prices are based on fair market value and the sale is conducted pursuant to written procedures established by the division.

(7) Surplus supplies may be traded in only if the division determines the trade-in value is sufficient and in the state's best interest. Generally, trade-ins will not be approved for vehicles.

(8) The state may permit local governments, nonprofit organizations, or private businesses to participate in an auction or other appropriate marketing methods.

History: 18-4-226, MCA; IMP, 18-4-226, MCA; NEW, 1983 MAR p. 1918, Eff. 12/30/83; AMD, 1990 MAR p. 1770, Eff. 9/14/90; AMD, 1997 MAR p. 193, Eff. 1/28/97; AMD, 2005 MAR p. 2446, Eff. 10/7/05.

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