Disposition
Per 2 CFR 200.313, when equipment has exceeded its useful
life or is no longer needed for the original program or for other
activities, the regulations allow disposition in accordance with
the following procedures:
- If current per-unit fair market value is less than $5,000, it may be retained, sold, or otherwise disposed of with no further obligation to the federal agency.
- If current per-unit fair market value is more than $5,000, it may be retained or sold, and the federal agency shall have a right to an amount calculated by multiplying the current market value or proceeds from the sale by the federal agency’s share of the acquisition cost of the equipment.
If the MPO fails to take appropriate disposition actions,
the federal agency may direct the State or MPO to takes final disposition
action, including remittance of proceeds of sale, assignment of equipment
to another federal project, etc.