The exchange/sale authority, based on 40 USC § 503, Exchange or sale of similar items lets government agencies save money when buying replacement items. They can trade in or sell their usable but non-excess property and use that credit or money to help pay for new, similar property. This lowers the overall cost of the replacement items.
Agencies should look into using the exchange/sale option before considering other ways to dispose of property. Any money or credit received must be used to buy similar items. Agencies should not use this process if the trade-in credit or estimated sales price for the old item is too low.
You can find the rules for exchange/sale in 41 CFR 102-35, Disposition of Personal Property. If an agency needs an exception to these rules, they can find information on the exchange/sale deviations requests web page. For help with the financial recording of these transactions, check FMR Bulletin B-48, Guidance on Exchange/Sale Financial Accounting for Personal Property. The money an agency gets back from an exchange/sale can be used during the fiscal year the property was sold and for one fiscal year after that. Any money not used must be returned to the U.S. Treasury.