Vehicle Disposal Policy
Unit: Fleet Services
Contact: Mario Globetti
Title: Associate Director of Fleet Services
Effective Date: 7/13/2020
Revision Date: 07/13/2020
Purpose
The purpose of this policy is to set forth the process for disposal of vehicles, boats, and utility carts owned by The University of Alabama while maintaining compliance with state and federal law.
Policy
Disposal
UA departments must utilize UA Fleet Services for the disposal of University vehicles. State and federal law, as well as grant awards limit the means by which these units can be disposed, regardless of the dollar value. Under no circumstances may a department or individual give away, take item(s) for personal use or personal gain, or dispose of University property. Fleet Services will choose one of the following disposal options:
1. Trade-In
In situations where equipment on hand is traded in for the purchase of new replacement equipment, the owning department will advise Fleet Services by completing a Transaction Form and referencing the purchase order giving credit for trade-in of equipment. The “Delete: Trade In” box should be checked on the Transaction Form. This paperwork should be completed before the purchase of the new equipment and before the old equipment is removed from the University campus. Trade-ins of vehicles should be noted on the appropriate purchase order, referenced by property number and serial number.
2. Surplus Sales
Fleet Services will handle the sale of all inventoried and non-inventoried vehicles in accordance with state laws pertaining to the disposal of surplus property and any policy pertaining to contracts and grants such as 2 CFR Part 200, FAR Part 45, and grant agreements as applicable.
3. Salvage
A salvage vehicle is one so damaged, it makes more financial sense to sell its parts than to try to repair it. Fleet Services will apply for a salvage title.
Fleet Services will not accept or dispose of vehicles titled to another entity without appropriate documentation and approval from that entity.
Departmental Responsibilities
- It is the responsibility of the department to ensure vehicles are accounted for and disposed of in the appropriate manner.
- Vehicles must be prepared for disposal by removing property tags, data, or other identifiable information.
- Each department is responsible for the decontamination of hazardous equipment prior to disposal. Departments must contact Environmental Health and Safety to have the equipment certified/tagged as properly decontaminated prior to removal.
Initiating Disposal
The Property Manager of the department wishing to dispose of a vehicle will be required to submit a Transaction Form requesting that the item(s) listed be advertised for public sale. The Transaction Form should contain a complete description of each item to be sold, including its corresponding make, model, VIN number, state tag number, and UA property number. The working condition of the item and any user manuals should also be included. The Property Manager must sign the Transaction Form. Fleet Services must receive the approved Transaction Form prior to advertisement for sale. Fleet Services will work with Property and Inventory Management to ensure items on the University Inventory listing are properly removed.
Administrative Fee
The following applies only to vehicles purchased with Auxilary or Grant funds. For all other sales, Fleet Services will retain the proceeds to assist in the funding of new vehicles within Fleet Management Lease Program.
Fleet Services will retain a portion of the proceeds of vehicle disposals oringinating from Auxilary or Grant funds to defray the handling costs. The following fees will be applied to the above list of disposal methods:
- $500 per vehicle that has a return of $5,000 or more.
- $300 per vehicle that has a return of less than $5,000.
- All proceeds, less the administrative fee, will be returned to the departmental FOAPAL specified on the completed Property and Inventory Management Transaction Form unless the unit was purchased by grant funds. If purchased by grant funds, the terms of the grant will be followed.
- Proceeds will initially be deposited into the Fleet Services account and, once all proceeds for the public sale are received, an entry will be made to provide departments with the funds they are due the month following the surplus sale.
Definitions
Vehicles: Includes cars, trucks, vans, bucket trucks, garbage trucks, utility carts, boats, trailers, etc.
Scope
This policy applies to all University of Alabama employees with department-owned vehicles.