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(Revised June 15, 2012)



 217.7000 Scope of subpart
 217.7001 Definitions
 217.7002 Policy
 217.7003 Purchase request
 217.7004 Solicitation and award
 217.7005 Solicitation provision

217.7000  Scope
of subpart.

This subpart prescribes policy and procedures for exchange of nonexcess personal property concurrent with an acquisition. 40 U.S.C. 503 permits exchange of personal property and application of the exchange allowance to the acquisition of similar property. This subpart does not authorize the sale of nonexcess personal property.


217.7001  Definitions.

As used in this subpart—


      (a)  “Exchange (trade-in) property” means property which—


              (1)  Is not excess but is eligible for replacement (because of obsolescence, unserviceability, or other reason); and


              (2)  Is applied as whole or partial payment toward the acquisition of similar items (i.e., items designed and constructed for the same purpose).


      (b)  “Property” means items that fall within one of the generic categories listed in DoD 4140.1-R, DoD Materiel Management Regulation, Chapter 9.5, Exchange or Sale of Nonexcess Personal Property.


217.7002  Policy.

DoD policy is to exchange, rather than replace, eligible nonexcess property whenever exchange promotes economical and efficient program accomplishment.  Exchange policy, authority, and applicability are governed by—


      (a)  The Federal Property Management Regulations issued by the Administrator of the General Services Administration; and


      (b)  DoD 4140.1-R, Chapter 9.5.


217.7003  Purchase request.

Ensure that the requiring activity provides all of the following in support of the purchase request—


      (a)  A certification that the property is eligible for exchange and complies with all conditions and limitations of DoD 4140.1-R, Chapter 9.5.


      (b)  A written determination of economic advantage indicating—


              (1)  The anticipated economic advantage to the Government from use of the exchange authority;


              (2)  That exchange allowances shall be applied toward, or in partial payment of, the items to be acquired; and


              (3)  That, if required, the exchange property has been rendered safe or innocuous or has been demilitarized;


      (c)  All applicable approvals for the exchange; and


      (d)  A description of the property available for exchange (e.g., nomenclature, location, serial number, estimated travel value).


217.7004  Solicitation and award.


      (a)  Solicitations shall include a request for offerors to state prices—


              (1)  For the new items being acquired without any exchange; and


              (2)  For the new items with the exchange (trade-in allowance) for the exchange property listed.


      (b)  The contracting officer is not obligated to award on an exchange basis.  If the lowest evaluated offer is an offer for the new items without any exchange, the contracting officer may award on that basis and forgo the exchange.


      (c)  Exchanges may be made only with the successful offeror.  When the successful offer includes an exchange, award one contract for both the acquisition of the new property and the trade-in of the exchange property.  The only exception is when the items must be acquired against a mandatory Federal supply schedule contract, in which case, award a separate contract for the exchange.


217.7005  Solicitation provision.

Use the provision at 252.217-7002, Offering Property for Exchange, when offering nonexcess personal property for exchange.  Allow a minimum of 14 calendar days for the inspection period in paragraph (b) of the clause if the exchange property is in the contiguous United States.  Allow at least 21 calendar days outside the contiguous United States.






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