goods_and_service_procurement_practice_guide.doc

Undertake valuation valuation can play an important

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Undertake valuation Valuation can play an important part in the effective and efficient disposal of products as it provides an important reference point to help officers select the most appropriate disposal option. The most accurate determination of value is always what the competitive market is prepared to pay. In addition to this, there are a number of agents who provide public authorities with expert valuations to ensure that the seller’s expectations from sales are realistic. However, public authorities should only engage the services of an agent if the products are of sufficient value. It is important to be aware that valuers may apportion a value on a product that is based on their replacement cost (for insurance purposes) and that this value will often be considerably more than what will eventually be realised at sale. Alternatively, valuers can claim that products have ‘nil’ book value after depreciation when in fact they could obtain a considerable sum at sale. It is therefore recommended that public authorities identify an appropriate type of valuation and instruct the valuers accordingly. 71 Ver. December 2017 Appendix
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Identify disposal options The primary aim of disposing of surplus products is to achieve the best net return or outcome for the government. It is therefore important that public authorities consider all disposal options before deciding which is the most appropriate. The disposal methods listed in the SSC policy are not exhaustive and public authorities may nominate other methods more appropriate for the particular disposal. Finance has developed a Common Use Arrangement (CUA) for Waste Disposal and Recycling Services. The CUA includes a category for the disposal of information and communications technology (ICT) equipment. Further information on the Waste Disposal and Recycling Services CUA, including the Buyers’ Guide, is available at: www.contractswa.finance.wa.gov.au . Evaluate disposal options When selecting the most appropriate method of disposal, public authorities should carefully evaluate each option. This can be achieved by identifying the costs and benefits of each option and linking them to the particular requirements of the disposal. Factors to consider include: The type and condition of the surplus products; Whether there have been any offers from other public authorities; The nature of the recipient market; Time and resource issues; and The costs and benefits provided by each disposal option Accountability The disposal of surplus products is an activity that should be accountable and transparent. For this reason, a public authority may be asked to justify decisions it has taken. Public authorities should therefore exercise sound judgement in making disposal decisions to ensure: That methods employed are appropriate; and The result is in the best interests of the taxpayer.
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