Government Surplus Auctions: Your Complete Guide to Buying and Selling Surplus Assets
For informational purposes only. This article does not provide legal, financial, or tax advice. Auctions, eligibility, taxes, and compliance obligations vary by jurisdiction and by auction platform. Always read the official terms for the specific sale and consult your counsel/compliance team as needed.
What “government surplus” means (and how it differs from “seized”)
-
Excess vs. surplus (federal context). “Excess” property is equipment a federal agency no longer needs. After federal screening and donation phases, items that remain become surplus and may be sold to the public under the Federal Management Regulation (FMR) Part 102-38.
-
Donation pathway. Some federal surplus can be donated to eligible nonprofits, schools, and public agencies via state agencies for surplus property under 40 U.S.C. §549 and 41 CFR 102-37.
-
Seized/forfeited is different. Separate programs sell seized or forfeited assets (e.g., by Treasury or U.S. Marshals). These are not “surplus” disposals.
Where surplus is sold
Typical channels include:
-
GSA Auctions (federal surplus/some exchange-sale): online public sales; terms and user guide outline registration, payment, pickup/delivery.
-
GSA Fleet sales (vehicles): sales info and title paperwork details (SF-97).
-
GovDeals (state & local sellers): platform T&Cs describe buyer’s premium, pickup, tax, etc. Policies vary per seller.
-
Public Surplus (state & local sellers): buyer and seller agreements detail bid obligations, tax, and fees.
-
State surplus programs (direct): many states run their own portals; example: California’s program outlines public participation and agency disposal rules.
-
USA.gov keeps a consolidated “Auctions & Sales” overview and links to official sites.
How auctions are conducted (methods you’ll see)
Under the FMR, agencies may use sealed bid, spot bid, auction, or negotiated sales—at a physical site or via publicly accessible electronic media.
-
Sealed bid: bids are confidential until opening at the designated time/place.
-
Spot bid: bids are reviewed and awards are made “on the spot.”
-
Auction (ascending): current high bids are visible as bidding progresses.
Buyer basics: what to expect (policies vary by platform/seller)
-
“As-is, where-is.” Government property is typically sold without warranty or guarantees on condition, title status, or fitness for a particular use. Always read the sale’s General Terms.
-
Registration & eligibility. Platforms require account registration and acceptance of Terms before bidding; some categories may have eligibility checks.
-
Buyer’s premium & taxes. Many state/local platforms add a buyer’s premium to the winning price; state/local sales tax may apply unless properly exempt.
-
Inspection & removal. Listings will state inspection windows, removal deadlines, and pickup requirements. Failure to remove on time can lead to forfeiture under sale terms.
-
Vehicles & titling (SF-97). Federal vehicle buyers are typically issued SF-97 (Certificate to Obtain Title). SF-97 is evidence of title used to apply for state title/registration; it is not a registration itself.
Compliance checkpoints buyers often review
This section lists common compliance topics referenced in official guidance. Requirements depend on the specific item and the jurisdiction.
-
Export controls. Certain items (especially with military/dual-use attributes) may be subject to ITAR (22 CFR 120–130) or the EAR (15 CFR 730-774). Screening end-use/end-users and obtaining any required licenses may be necessary before export or transfer.
-
Defense items & demilitarization. Some DoD property requires demilitarization or an End-Use Certificate (EUC, DLA Form 1822) prior to sale/possession/transfer. Review DLA’s guidance and item DEMIL codes.
-
Electronics & data sanitization. If buying data-bearing devices, consider sanitization aligned to NIST SP 800-88. (A 2025 “Rev. 2” interim/public draft exists; many organizations still reference Rev. 1.)
-
Environmental/hazardous materials. Handling and disposal of certain electronics and components may be governed by federal/state rules (e.g., RCRA framework; CRT management). Check applicable EPA/state guidance.
Step-by-step: participating as a buyer
-
Identify the right channel. Start with official portals (e.g., GSA Auctions; your state’s surplus program). USA.gov maintains a hub of legitimate sales links.
-
Read the specific sale terms. Methods, deposits, premiums, tax, and removal rules are sale-specific and binding.
-
Confirm inspection logistics. Note inspection dates and any site safety requirements.
-
Evaluate compliance implications (export controls, EUC requirements, environmental rules) for the item and your intended use/location.
-
Bid conservatively. Consider transport, repairs, buyer’s premium, tax, and any compliance costs when determining your maximum bid. (Platforms often state these cost elements in the listing or terms.)
-
Complete payment and removal within the stated deadlines to avoid penalties or forfeiture.
-
For vehicles: obtain your SF-97 and follow your state’s title/registration process.
“Selling” in surplus auctions: who can list items where?
-
Federal agencies dispose of personal property under FMR 102-36 (excess) and 102-38 (sale). They may conduct sales directly or via GSA/other agencies.
-
State & local governments typically list via their own programs or third-party platforms such as Public Surplus or GovDeals, subject to state/local procedures.
-
Private companies and individuals generally cannot list on government-only marketplaces; they typically use commercial auction platforms or remarketers outside the government surplus system. (Public Surplus’ seller agreement applies to governmental sellers and sets platform fees/conditions.)
If you’re a public agency building a compliant disposal workflow:
-
Document screening and approvals per your state’s surplus statutes/policies (example: California requires advance notice for IT asset disposal).
-
Choose the sale method that best fits your market, location, and administrative cost profile (as allowed under FMR/state policy).
-
Publish clear terms (inspection, as-is, buyer obligations, removal windows) and ensure tax handling is correct for your jurisdiction/platform.
Fraud-aware bidding: staying on official sites
-
Use USA.gov’s “Auctions & Sales” to find official portals and avoid impostors.
-
Be cautious of imposter scams and “pay-for-list” sites; verify URLs and contact info directly. The FTC and USAGov offer guidance on government impersonation scams.
-
GSA OIG has reported fraud incidents and issues warnings; report suspected online auction fraud to the appropriate authorities.
Glossary (quick reference)
-
As-is, where-is: Standard sale condition—no warranties/guarantees.
-
Buyer’s premium: Percentage added to the winning bid on many state/local platforms.
-
DEMIL (demilitarization): Required destruction/controls for certain defense items; tied to DEMIL codes.
-
EUC (End-Use Certificate): DLA Form 1822 required for some DoD-related items.
-
IFB (Invitation for Bid): Package of sale terms, item details, inspection info, and bid form.
-
SF-97: Certificate to obtain vehicle title after federal sale.
Practical checklist (non-exhaustive)
Before you bid
-
Confirm the marketplace is official and the seller is a public entity.
-
Read the specific sale’s terms and pickup/removal requirements.
-
If the item might be controlled (e.g., night-vision, avionics, specialized comms), review ITAR/EAR implications.
-
For data-bearing assets, plan for sanitization consistent with NIST SP 800-88.
If you win
-
Follow the payment and removal steps exactly as stated by the platform/seller.
-
For vehicles, secure your SF-97 and follow state titling rules.
-
Keep documentation in case of audits (invoice, terms, EUC if applicable).
Additional resources
-
FMR 41 CFR Part 102-38 (Sale of Personal Property) – core federal rules on sales.
-
GSA surplus FAQ & methods of sales – plain-English overviews.
-
DLA demilitarization & EUC – guidance and forms.
-
NIST SP 800-88 (Rev. 1; IPD Rev. 2) – media sanitization.
-
EPA electronics stewardship/CRTs – environmental compliance pointers.
Final note
Government surplus auctions can provide access to varied equipment and materials. Outcomes depend on the specific item, terms, and your ability to meet compliance, transport, and refurbishment needs. Neutral, process-driven due diligence—verifying the site, reading the terms, and understanding regulatory touchpoints—can help keep participation aligned with policy and risk expectations.
