Defense Federal Acquisition Regulation Supplement (DFARS) Part 217, Special Contracting Methods, and related clauses at 252.217

Defense Federal Acquisition Regulation Supplement
Part 217—Special Contracting Methods

SUBPART 217.70--EXCHANGE OF PERSONAL PROPERTY
(Revised June 21, 2005)
217.7000 Scope of subpart.
This subpart prescribes policy and procedures for exchange of nonexcess personal
property concurrent with an acquisition. Section 201(c) of the Federal Property and
Administrative Services Act of 1949, 63 Stat. 384, as amended (40 U.S.C. 481(c))
permits exchange of personal property and application of the exchange allowance to the
acquisition of similar property. This subpart does not authorize the sale of nonexcess
personal property.
217.7001 Definitions.
As used in this subpart—
(a) “Exchange (trade-in) property” means property which—
(1) Is not excess but is eligible for replacement (because of obsolescence,
unserviceability, or other reason); and
(2) Is applied as whole or partial payment toward the acquisition of similar
items (i.e., items designed and constructed for the same purpose).
(b) “Property” means items that fall within one of the generic categories listed in
DoD 4140.1-R, DoD Materiel Management Regulation, Chapter 6.2, Exchange or Sale
of Nonexcess Personal Property.
217.7002 Policy.
DoD policy is to exchange, rather than replace, eligible nonexcess property whenever
exchange promotes economical and efficient program accomplishment. Exchange
policy, authority, and applicability are governed by—
(a) The Federal Property Management Regulations issued by the Administrator of
the General Services Administration; and
(b) DoD 4140.1-R, Chapter 6.2.
217.7003 Purchase request.
Ensure that the requiring activity provides all of the following in support of the
purchase request—
(a) A certification that the property is eligible for exchange and complies with all
conditions and limitations of DoD 4140.1-R, Chapter 6.2.
(b) A written determination of economic advantage indicating—
(1) The anticipated economic advantage to the Government from use of the
exchange authority;
(2) That exchange allowances shall be applied toward, or in partial payment of,
the items to be acquired; and

1998 EDITION

217.70-1

Defense Federal Acquisition Regulation Supplement
Part 217—Special Contracting Methods

(3) That, if required, the exchange property has been rendered safe or
innocuous or has been demilitarized;
(c) All applicable approvals for the exchange; and
(d) A description of the property available for exchange (e.g., nomenclature,
location, serial number, estimated travel value).
217.7004 Solicitation and award.
(a) Solicitations shall include a request for offerors to state prices—
(1) For the new items being acquired without any exchange; and
(2) For the new items with the exchange (trade-in allowance) for the exchange
property listed.
(b) The contracting officer is not obligated to award on an exchange basis. If the
lowest evaluated offer is an offer for the new items without any exchange, the
contracting officer may award on that basis and forgo the exchange.
(c) Exchanges may be made only with the successful offeror. When the successful
offer includes an exchange, award one contract for both the acquisition of the new
property and the trade-in of the exchange property. The only exception is when the
items must be acquired against a mandatory Federal supply schedule contract, in
which case, award a separate contract for the exchange.
217.7005 Solicitation provision.
Use the provision at 252.217-7002, Offering Property for Exchange, when offering
nonexcess personal property for exchange. Allow a minimum of 14 calendar days for
the inspection period in paragraph (b) of the clause if the exchange property is in the
contiguous United States. Allow at least 21 calendar days outside the contiguous
United States.

1998 EDITION

217.70-2