What Is Government Surplus?
Government surplus is excess or seized property that the government offers for sale to the public. Items for sale often include building materials, office equipment, machinery, real estate, tools and vehicles. County and local government agencies often sell surplus through traditional auctions, but the Internet has opened a new venue for sales. The U.S. General Services Administration manages surplus auctions for federal agencies such as NASA and the National Park Service.
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Benefits
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Rather than discard used or unneeded items, government agencies try to generate income from surplus goods. This money provides government agencies with an additional income source, while keeping usable supplies out of landfills and warehouses. Citizens can purchase government surplus through auctions or sealed bids.
Process
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Government agencies work with auction companies to coordinate surplus sales or post bid notices in newspapers. A catalog or listings show all available items, opening prices and bid ending times. Live auctions occur at government warehouses or auction houses on a specific date. Citizens bid on the items they want once the auction opens. Some items may have a minimum, or reserve price, that must be met. After the auction, winning bidders pay for the surplus and then take possession of the items. For sealed bids, citizens mail a letter containing the amount they wish to pay for items. The government agency goes through all the bids, awarding the item to the highest bidder.
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Types
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From food and household cleaning products to jewelry and furniture, government agencies sell a variety of surplus goods. Real estate offerings include vacant land, homes and businesses. Surplus government supplies include cleaning chemicals, plumbing materials and lumber. The government even sells retired military vehicles, including aircraft.
Considerations
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For some government surplus, such as real estate and vehicle auctions, citizens may be able to buy the item at a set price, rather than at auction. This "buy it now" price usually equals the amount of taxes owed on the property or the balance of a loan.
Time Frame
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Government surplus items can often be viewed before purchasing them. Check the listing to see if the agency has a scheduled viewing time. Most auctions require items to be picked up by the buyer, so either set aside time to retrieve the item or hire a freight company to package and ship the item.
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