Use Restrictions on Federal Surplus Property

It is suggested that authorized representatives familiarize all personnel within their organization regarding the receipt and use of federal surplus property.
 

PRIVATE OR PERSONAL USE OF ANY FEDERAL SURPLUS PROPERTY IS ILLEGAL AND PROHIBITED.  VIOLATORS MAY BE SUBJECT TO PROSECUTION. 
 

The United States Government use restrictions are described on the reverse side of the Warehouse Application and Delivery Agreement (WADA) form.  Briefly, the restrictions on the use of federal surplus property are as follows:

  1. All items of property must be placed in use for the purpose for which acquired within one year of receipt.
  2. Items with an acquisition cost of less than $5,000, except motor vehicles, shall be used continuously for a period of 12 months.
  3. Items with an acquisition cost over $5,000 and all motor vehicles shall be used continuously for a period of 18 months.
  4. Non-combat aircraft and watercraft exceeding 50 feet in length shall be used continuously for a period of 60 months.


At the expiration of the restriction period, title to the property shall pass from the U.S. Government to the donee, except for combat type aircraft which shall be returned when no longer needed.


Federal surplus property must be used solely for public purposes by public persons, for educational purposes by eligible private educational institutions, and for health purposes by eligible private health institutions.
 

If you have property that you have no further use for and the restrictions are still in effect, please contact the Federal Surplus Property Office for disposal instructions so the property may be removed from your records.
 

Violations of proper use requirements and restrictions are punishable by loss of eligibility, payment reimbursement to the Federal Government for the original acquisition cost of the property, and criminal prosecution of violators.
 

For further information regarding the authorized use of Federal Surplus Property, contact Stephanie Clark of the MI Federal Surplus Property Program at 517-241-3860 or clarks18@michigan.gov.