Salvage Credits

General
Salvaged materials associated with a contract must be disposed of in accordance with the state statute requirements located at
Texas Government Code Chapter 2175 – Surplus and Salvage Property
. Texas Facilities Commission rules related to these statutory requirements that must be followed and properly documented are located at
1 TAC Chapter 126
.
Federal Requirement
  1. 2 CFR §1201.317
    – Allows non-state agency grantees to use their own procurement procedures that reflect applicable state and local laws and regulations, provided the procurements conform to applicable federal law and the standards.
  2. FHWA Policy Memorandum dated October 3, 1988 (now referenced in
    FHWA Contract Administration Core Curriculum Manual October 2014, page 100
    ) – Requires a credit for material salvaged from the project unless the state agency has a procedure in place that does not require salvage credit. The process to determine salvage credit is described.
State Requirement
  1. 1 TAC, Chapter 126
    – Describes a process for disposal of surplus property owned by a state agency.
  2. Texas Government Code §2175
    – Describes procedures used by the Texas Facilities Commission for sale of excess state property.
Required Practices
The disposition of property must be made through competitive bidding or auction to the highest bidder. The required practices that must be followed are described in the
LGPM Guide
.