Date: September 15, 2010

To: Materiel Managers, Fleet Managers

Subject: Disposal of Surplus Crown Vehicles

This information notice clarifies the requirements of the Treasury Board Directive on Disposal of Surplus Materiel on sales of surplus Crown vehicles, and it provides guidance to departments and agencies.

Firstly, on selling surplus materiel assets, including vehicles, paragraph 4.8 of the Directive stipulates that departments must:

• use remarketing standing offers or other contractual arrangements whenever these have been put in place by Public Works and Government Services Canada (PWGSC);
• for direct sales conducted under departmental authorities (granted either by legislation or by the Treasury Board), ensure that as broad and as transparent an opportunity as possible is made available to Canadians to purchase surplus assets; and
• otherwise use the disposal services of PWGSC’s Crown Assets Distribution Directorate (CADC).

The requirement to use remarketing standing offers for the sale of surplus Crown vehicles does not preclude departments from using the disposal services of CADC if they wish to do so. This is reflected in paragraph 6.2.2 of the Guide to Fleet Management, Chapter 1: Light Duty Vehicles where it indicates that the direct disposal services of CADC may also be accessed when deemed appropriate by the department.

Secondly, paragraph 4.13 of the Directive requires that PWGSC endeavour on an ongoing basis to optimize the roles of the private sector and the non-federal public sector in Canada in the disposal of surplus materiel assets.

PWGSC meets this requirement through the award of standing offers (or other contractual arrangements) to remarketing service providers for the sale of surplus Crown vehicles.

And finally, paragraph 4.14 of the Directive requires PWGSC to ensure that as broad and as transparent an opportunity as possible is made available to Canadians to purchase surplus Crown assets.

PWGSC can meet this requirement by offering departments and agencies the option to sell their surplus vehicles through CADC’s direct disposal services or from private sector remarketing service providers. Combined, these options provide Canadians with the opportunity to view, bid and buy surplus government vehicles online or in person at various auction houses across Canada.

Impact of this clarification on the disposal of surplus Crown vehicles:

As the mandatory disposal agent, CADC can now offer departments and agencies the choice of selecting between these two options for the sale of surplus Crown vehicles:

• Direct disposal services through the GCSurplus online bidding system;
   
  and
   
• A remarketing standing offer arrangement that departments can access directly.

Departments and agencies will decide on the preferred option above for the sale of their surplus vehicles.

Additional information or clarifications on the Treasury Board Directive on Disposal of Surplus Materiel can be obtained by contacting the Real Property and Materiel Policy Division of the Treasury Board of Canada Secretariat at: rpmpd@tbs-sct.gc.ca.

Shirley Jen
Senior Director
Real Property and Materiel Policy Division
Acquired Services and Assets Sector
Office of the Comptroller General