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Department of the Treasury
Disposition of Excess & Surplus
Computer Equipment

NO: 00-17-DPP (PC-39-1A

ORIG AGENCY: Treasury, Div of Purchase & Property

EFF DATE: 5/8/00

EXP DATE: Indefinite


SUBJECT: Disposition of Excess & Surplus
Computer Equipment

ATTENTION: All State Agencies

PHONE: (609) 530-8196

Distribution & Support Services (DSS)
Surplus Property Unit

FAX: (609) 530-4582

NOTE: For all forms referenced in this Circular Letter, please call
Henry Karnas @ 609-530-8196.


This Circular sets forth the policy and procedures for the disposition
of excess and surplus computer equipment, including peripherals and
software, and for the preparation of excess and surplus computer
equipment for redistribution and/or donation under the State's Surplus
Computer Donation Program as administered by the Surplus Property Unit
within the Division of Purchase and Property, Distribution and Support
Services (DSS), Surplus Property Unit in compliance with the provisions
of N.J.S.A. 52:27B-1 et seq. and N.J.A.C. 17:12-9.


It is the policy of the State of New Jersey to ensure that the
Departments and Agencies comprising State government achieve the maximum
possible benefit from use of computer and peripheral equipment and
software in conducting its programs and operations. It is also State
policy to achieve maximum benefit from its assets via recycling and re-
use programs and to gain full advantage of any useful life of excess
equipment and software. To that end, it is the responsibility of
individual Departments/Agencies to comply with the procedures set forth
in this Circular to ensure that computer and peripheral equipment and
software not scheduled for use by the Department/Agency and deemed
excess is promptly made available to the Surplus Property Unit for
centralized redistribution, donation, sale or disposal.

The disposition of any and all computer equipment, peripherals and
software by Departments/Agencies, whether for the donation program,
for redistribution to other Departments/Agencies, for sale or for
"demanufacturing"/scrapping, must be coordinated with the Surplus
Property Unit.

The State has received specific authorization to retain Microsoft
operating systems on its excess or surplus computers. However,
proprietary licensing agreements and copyright laws prohibit the re-use
or transfer of applications software without the express consent of the
software manufacturer. Therefore, all hard drives must be degaussed.
If the computer contained a Microsoft operating system, it should be
reinstalled. Application software expressly authorized by the
manufacturer for re-use or transfer must include the original media
and documentation or license. The media, documentation or license
should accompany the computer.

To be eligible for the donation program, excess computers must meet
the following criteria:

  • Be, at a minimum, a Pentium-based (or equivalent) system;
  • Be Year 2000 (Y2K) compliant;
  • Be an intact and functioning unit;
  • Include a Microsoft operating system, if applicable;
  • Be purged of all data; and
  • Include all cards, e.g., a network interface card (NIC), sound
    and video cards, and modem, provided these devices are of no
    use to the Department/Agency.


A. Departments/Agencies shall continue to use their established
procedures for redistributing unused computer assets within the

B. If redistribution within the Department/Agency is not accomplished,
the Department/Agency shall declare the computer equipment to be
excess and offered to other Departments/Agencies in coordination
with the Surplus Property Unit.

C. The Department/Agency shall degauss the computer's hard drive.
(Note: Formatting the hard drive will not ensure that sensitive
data cannot be extracted by an unauthorized person or party.)

If the computer is Pentium-based and originally contained the
Microsoft operating system, the operating system shall be
reinstalled by the Department/Agency.

If application software has been expressly authorized by the
software manufacturer for re-use or transfer, the original media

D. If the computer contains a network interface card (NIC), sound or
video cards or a modem, the Department/Agency shall retain these
devices if they can be utilized by the Department/Agency. If these
devices are not of value to the Department/Agency, they shall
remain with the computer for possible use by the eventual owner.

E. Departments/Agencies will segregate excess computer equipment into
two categories. Category A equipment shall be for functioning
Pentium-based (or equivalent), Y2K compliant central processing
units (CPUs) and shall include peripheral equipment (mouse, keyboard,
monitor, printer) and cables and wires. Category B equipment shall
be for 486-based and older CPUs, dumb terminals, mainframe and mid-
frame equipment, inoperable equipment and any such peripherals.

F. Departments/Agencies shall notify the Surplus Property Unit of the
computer equipment declared excess. Notification shall consist of
completion and forwarding of either Form 160, "Excess/Surplus
Property Notice" (copy attached) or an existing departmental
inventory/asset form. A separate PB160 form or departmental
inventory/asset form must be completed and forwarded for the
equipment in each of the two categories described in item E. above.
The information required by the Surplus Property Unit about the
equipment in both categories includes the following:

  • Item Description
  • Make and Model
  • Quantity
  • Condition (Operable or Inoperable)
  • Location
  • Point of Contact and Telephone Number at Location
  • Certification of Removal of All Data

For Category A equipment, Departments/Agencies shall include the
following additional information with their Form PB160 or
departmental inventory/asset form:

  • Hard Drive Capacity
  • Processor Type/Speed
  • Memory
  • Type CD, NIC, video/sound card(s) and modem (if installed)
  • Serial Number(s)
  • Monitor Size
  • List of Peripherals

G. Upon receipt of notice from the Department/Agency, the Surplus
Property Unit will notify all other Departments/Agencies of
the excess computer items available for transfer from the
owning agency. If the excess is not claimed by another Department/
Agency within 30 calendar days after such notice, the computer
equipment will be declared surplus.

H. The Surplus Property Unit will then coordinate with the owning
Department/Agency to effect either the movement of the surplus
computer equipment to the Unit's designated processing point for
preparation for the donation program or for pick-up by a recycling
vendor. It is the responsibility of the owning Department/Agency
to arrange for the movement of the surplus computer equipment
and to fund any cost associated with transporting equipment to the
designated processing point. If the computer equipment is to be
offered for sale through the sealed bid process, the equipment will
be held by the owning Department/Agency until completion of the
bid process.

I. Any costs associated with the disposal of surplus computer equipment
shall be the responsibility of the owner Department/Agency. Any
disposal costs incurred by the Surplus Property Unit will be charged
back to the owning Department/Agency.

Lana J. Sims, Director
Division of Purchase & Property

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