---
kind: "section"
citation: "40 U.S.C. § 545"
title: "40"
title_heading: "Public Buildings, Property, and Works"
number: "545"
heading: "Procedure for disposal"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/40/545"
units:
  - "Subtitle I — Federal Property and Administrative Services"
  - "Chapter 5 — Property Management"
  - "Subchapter III — Disposing of Property"
---

# §545. Procedure for disposal

- (a) **Public Advertising for Bids.—**
  - (1) **Requirement.—**
    - (A) **In general.—** Except as provided in [subparagraph (B)](#a-1-B), the Administrator of General Services may make or authorize a disposal or a contract for disposal of [surplus property](/usc/40/102.md?p=10) only after public advertising for bids, under regulations the Administrator prescribes.
    - (B) **Exceptions.—** This subsection does not apply to disposal or a contract for disposal of [surplus property](/usc/40/102.md?p=10)—
      - (i) under subsection [(b)](#b) or [(d)](#d); or
      - (ii) by abandonment, destruction, or donation or through a contract broker.
  - (2) **Time, method, and terms.—** The time, method, and terms and conditions of advertisement must permit full and free competition consistent with the value and nature of the [property](/usc/40/102.md?p=9) involved.
  - (3) **Public disclosure.—** Bids must be publicly disclosed at the time and place stated in the advertisement.
  - (4) **Awards.—** An award shall be made with reasonable promptness by notice to the responsible bidder whose bid, conforming to the invitation for bids, is most advantageous to the Federal Government, price and other factors considered. However, all bids may be rejected if it is in the public interest to do so.
- (b) **Negotiated Disposal.—** Under regulations the Administrator prescribes, disposals and contracts for disposal may be negotiated without regard to [subsection (a)](#a), but subject to obtaining competition that is feasible under the circumstances, if—
  - (1) necessary in the public interest—
    - (A) during the period of a national emergency declared by the President or Congress, with respect to a particular lot of personal [property](/usc/40/102.md?p=9); or
    - (B) for a period not exceeding three months, with respect to a specifically described category of personal [property](/usc/40/102.md?p=9) as determined by the Administrator;
  - (2) the public health, safety, or national security will be promoted by a particular disposal of personal [property](/usc/40/102.md?p=9);
  - (3) public exigency will not allow delay incident to advertising certain personal [property](/usc/40/102.md?p=9);
  - (4) the nature and quantity of personal [property](/usc/40/102.md?p=9) involved are such that disposal under [subsection (a)](#a) would impact an industry to an extent that would adversely affect the national economy, and the estimated fair market value of the [property](/usc/40/102.md?p=9) and other satisfactory terms of disposal can be obtained by negotiation;
  - (5) the estimated fair market value of the [property](/usc/40/102.md?p=9) involved does not exceed $15,000;
  - (6) after advertising under [subsection (a)](#a), the bid prices for the [property](/usc/40/102.md?p=9), or part of the [property](/usc/40/102.md?p=9), are not reasonable or have not been independently arrived at in open competition;
  - (7) with respect to real [property](/usc/40/102.md?p=9), the character or condition of the [property](/usc/40/102.md?p=9) or unusual circumstances make it impractical to advertise publicly for competitive bids and the fair market value of the [property](/usc/40/102.md?p=9) and other satisfactory terms of disposal can be obtained by negotiation;
  - (8) the disposal will be to a State, territory, or possession of the United States, or to a political subdivision of, or a tax-supported agency in, a State, territory, or possession, and the estimated fair market value of the [property](/usc/40/102.md?p=9) and other satisfactory terms of disposal are obtained by negotiation; or
  - (9) otherwise authorized by law.
- (c) **Disposal Through Contract Brokers.—** Disposals and contracts for disposal of surplus real and related personal [property](/usc/40/102.md?p=9) through contract realty brokers employed by the Administrator shall be made in the manner followed in similar commercial transactions under regulations the Administrator prescribes. The regulations must require that brokers give wide public notice of the availability of the [property](/usc/40/102.md?p=9) for disposal.
- (d) **Negotiated Sale at Fixed Price.—**
  - (1) **Authorization.—** The Administrator may make a negotiated sale of personal [property](/usc/40/102.md?p=9) at a fixed price, either directly or through the use of a disposal contractor, without regard to [subsection (a)](#a). However, the sale must be publicized to an extent consistent with the value and nature of the [property](/usc/40/102.md?p=9) involved and the price established must reflect the estimated fair market value of the [property](/usc/40/102.md?p=9). Sales under this subsection are limited to categories of personal [property](/usc/40/102.md?p=9) for which the Administrator determines that disposal under this subsection best serves the interests of the Government.
  - (2) **First offer.—** Under regulations and restrictions the Administrator prescribes, an opportunity to purchase [property](/usc/40/102.md?p=9) at a fixed price under this subsection may be offered first to an entity specified in [subsection (b)(8)](#b-8) that has expressed an interest in the [property](/usc/40/102.md?p=9).
- (e) **Explanatory Statements for Negotiated Disposals.—**
  - (1) **Requirement.—**
    - (A) **In general.—** Except as provided in [subparagraph (B)](#e-1-B), an explanatory statement of the circumstances shall be prepared for each disposal by negotiation of—
      - (i) personal [property](/usc/40/102.md?p=9) that has an estimated fair market value in excess of $15,000;
      - (ii) real [property](/usc/40/102.md?p=9) that has an estimated fair market value in excess of $100,000, except that real [property](/usc/40/102.md?p=9) disposed of by lease or exchange is subject only to [clauses (iii)](#e-1-A-iii)–(v) of this subparagraph;
      - (iii) real [property](/usc/40/102.md?p=9) disposed of by lease for a term of not more than 5 years, if the estimated fair annual rent is more than $100,000 for any year;
      - (iv) real [property](/usc/40/102.md?p=9) disposed of by lease for a term of more than 5 years, if the total estimated rent over the term of the lease is more than $100,000; or
      - (v) real [property](/usc/40/102.md?p=9) or real and related personal [property](/usc/40/102.md?p=9) disposed of by exchange, regardless of value, or any [property](/usc/40/102.md?p=9) for which any part of the consideration is real [property](/usc/40/102.md?p=9).
    - (B) **Exception.—** An explanatory statement is not required for a disposal of personal [property](/usc/40/102.md?p=9) under [subsection (d)](#d), or for a disposal of real or personal [property](/usc/40/102.md?p=9) authorized by any other law to be made without advertising.
  - (2) **Transmittal to congress.—** The explanatory statement shall be transmitted to the appropriate committees of Congress in advance of the disposal, and a copy of the statement shall be preserved in the files of the [executive agency](/usc/40/102.md?p=4) making the disposal.
  - (3) **Listing in report.—** A report of the Administrator under [section 126 of this title](/usc/40/126.md) must include a listing and description of any negotiated disposals of [surplus property](/usc/40/102.md?p=10) having an estimated fair market value of more than $15,000, in the case of real [property](/usc/40/102.md?p=9), or $5,000, in the case of any other [property](/usc/40/102.md?p=9), other than disposals for which an explanatory statement has been transmitted under this subsection.
- (f) **Applicability of Other Law.—** [Section 6101(b)](/usc/40/6101.md?p=b)–(d) of [title 41](/usc/41.md) does not apply to a disposal or contract for disposal made under this section.

## Source credit

(Pub. L. 107–217, Aug. 21, 2002, 116 Stat. 1087; Pub. L. 111–350, § 5(l)(10), Jan. 4, 2011, 124 Stat. 3852.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Revised<br>Section | Source (U.S. Code) | Source (Statutes at Large) |
| 545 | 40:484(e). | June 30, 1949, ch. 288, title II, § 203(e), 63 Stat. 386; July 12, 1952, ch. 703, § 1(i), 66 Stat. 593; Aug. 8, 1953, ch. 399, 67 Stat. 521; July 14, 1954, ch. 481, 68 Stat. 474; Aug. 3, 1956, ch. 942, 70 Stat. 1020; Pub. L. 85–486, July 2, 1958, 72 Stat. 288; Pub. L. 100–612, §§ 3, 4, Nov. 5, 1988, 102 Stat. 3180. |

In subsection (e)(3), the words “A report” are substituted for “the annual report” for consistency in the revised title. See the revision note under section 126 of this title.

### Editorial Notes

### Amendments

2011—Subsec. (f). Pub. L. 111–350 substituted “Section 6101(b)–(d) of title 41” for “Section 3709 of the Revised Statutes (41 U.S.C. 5)”.

### Statutory Notes and Related Subsidiaries

### Disposal of Surplus Property to Local Governments and Nonprofit Institutions

Act Oct. 3, 1944, ch. 479, § 13, 58 Stat. 770; Sept. 18, 1945, ch. 368, § 2, 59 Stat. 533; May 3, 1946, ch. 248, § 5, 60 Stat. 169; 1947 Reorg. Plan No. 1, § 501, eff. July 1, 1947, 12 F.R. 4535, 61 Stat. 952; July 30, 1947, ch. 404, 61 Stat. 678; June 10, 1948, ch. 433, §§ 1, 2, 62 Stat. 350; June 29, 1948, ch. 727, 62 Stat. 1103; June 30, 1949, ch. 288, title I, § 105, title VI, § 602(a)(1), formerly title V, § 502(a)(1), 63 Stat. 381, 399, renumbered Sept. 5, 1950, ch. 849, § 6(a), (b), 64 Stat. 583; amended Oct. 1, 1949, ch. 589, §§ 1, 5, 63 Stat. 701; Pub. L. 85–726, title XIV, § 1402(c), Aug. 23, 1958, 72 Stat. 807; Pub. L. 87–90, July 20, 1961, 75 Stat. 211; Pub. L. 91–258, title I, § 52(b)(6), May 21, 1970, 84 Stat. 235; Pub. L. 91–485, § 5, Oct. 22, 1970, 84 Stat. 1085; Pub. L. 92–362, § 2, Aug. 4, 1972, 86 Stat. 504; Pub. L. 97–248, title V, § 524(c), Sept. 3, 1982, 96 Stat. 696; Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379, provided that: to (c) [Repealed. June 30, 1949, ch. 288, title VI, § 602(a)(1), formerly title V, § 502(a)(1), 63 Stat. 399, renumbered Sept. 5, 1950, ch. 849, § 6(a), (b), 64 Stat. 583.] Whenever any State or political subdivision thereof, or any State or Government agency or instrumentality certifies to the Administrator of General Services that any power transmission line determined to be surplus property under the provisions of this Act [former 50 U.S.C. App. 1611 et seq.] is needful for or adaptable to the requirements of any public or cooperative power project, such line and the right-of-way acquired for its construction shall not be sold, leased for more than one year, or otherwise disposed of, except as provided in section 12 [former 50 U.S.C. App. 1621] or this section, unless specifically authorized by Act of Congress., (f) [Repealed. June 30, 1949, ch. 288, title VI, § 602(a)(1), formerly title V, § 502(a)(1), 63 Stat. 399, renumbered Sept. 5, 1950, ch. 849, § 6(a), (b), 64 Stat. 583.] [Repealed. Pub. L. 103–272, § 7(b), July 5, 1994, 108 Stat. 1379.]”