Exchange/Sale of Personal Property

Exchange/Sale is an authority provided by Section 503 of Title 40, United States Code. It allows agencies to exchange or sell non-excess, non-surplus personal property and apply the exchange allowance or sales proceeds towards the acquisition of similar personal property. Using the exchange/sale authority reduces the cost of replacement personal property.

Agencies should consider using the exchange/sale authority before considering other disposal options. Exchange/sale may apply when agencies plan to acquire similar products and other requirements of the authority are satisfied. Agencies should not use the exchange/sale authority if the exchange allowance or estimated sales proceeds for the personal property will be unreasonably low.

The regulations on exchange/sale are contained in the Federal Management Regulation (FMR) at Part 102-39 (41 CFR 102-39). Information on requesting waivers to those regulations can be found here. Guidance on the financial accounting for exchange/sale items may be found in FMR Bulletin B-48 [PDF - 80 KB]

Last Reviewed: 2022-06-06

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