Too Much Of A Good Thing The federal government spends billions of dollars each year on equipment and supplies. To make room for new purchases, old property is labeled "surplus" and sold to the public at cut-rate prices. The General Services Administration (GSA) and the Department of Defense, the two major purveyors of surplus property, dispose of more than $120 million worth of merchandise each year. These surplus sales allow individuals and businesses to buy items the federal government no longer needs. Among the types of surplus property the government sells: * Autos * Trucks * Hardware * Plumbing and heating equipment * Paper products * Furniture * Medical items * Textiles * Industrial equipment * Typewriters and other office equipment, such as calculators, word processors, printers, desks, shelving, envelope openers, and cash registers. If you're interested in autos, GSA sells large numbers of four-door sedans, primarily Chrysler K cars, Chevrolet Celebrities, and Ford Tempos. Usually, these cars are between three and four years old, with anywhere from 30,000 to 70,000 miles. Depending on model, mileage, and condition, these cars will sell for $3,000 to $5,000, with no warranty. Most auto auctions are held between March and November. Recently, a young couple in the Midwest wanted to buy a secondhand car, so they went to a GSA auction in Detroit. They bought a three-year-old Ford Tempo with air conditioning, power-steering, power brakes, and air bag. The cost: only $3,000. If you've been shopping for a car recently, you know how hard it is to find anything decent for that price. Yet this car had well under 50,000 miles on it. One car dealer commented that such a car would have sold for around $4,500 at a used car lot. In fact, the young couple sold the car shortly thereafter for $3,600, a 20% profit. Of course, buying a car at a government auction is not foolproof. At that same Detroit GSA auction, another couple bought a similar car for $3,400. A good deal? Hardly. The car needed $400 in transmission repairs and quickly became an albatross. If you don't know what you're buying, you'll get burned. The condition of GSA surplus property varies widely. Although some defects are noted, sale items may have other flaws. Don't bid without making a close inspection beforehand. Three For The Money Surplus property from all U.S. civilian agencies is sold by the GSA. Items are sold to the public via three sales methods. * Sealed bids. An "Invitation for Bids" (IFB) and bidding form are provided to prospective buyers. Each IFB describes the property offered for sale, lists special conditions applicable to the sale, indicates when and where the property may be inspected, and specifies when and where bids must be submitted. Then the sealed bids are opened with awards made to the highest bidders. The sales office notifies successful bidders as soon as possible. * Auction. This is the traditional sales method, in which prospective buyers are given a description of the property and bidding instructions. At the auction, the auctioneer presents each item and sells it to the highest bidder. * Spot bid. This is the same as the auction method, except that bids are written instead of called out. In all three types of sales, special conditions and restrictions may apply. Before you bid, study sales invitations or catalogs carefully to make sure you understand the terms of sale. Often, if none of the bids represents what GSA considers a fair price, a sale won't be made; instead, the property will be offered again at a later date. If you make the high bid, you have to pay in full before you can remove any item. Acceptable forms of payment include cash, money orders, traveler's checks, cashier's checks, personal checks accompanied by informal bank letters guaranteeing payment, credit union checks, and government checks. At many sales, Visa and MasterCard are accepted as well. By an "informal bank letter" the GSA means a letter written on your bank's letterhead, saying that the bank will guarantee your checks made out to the GSA. The guarantee must specify a maximum amount, be valid for at least 30 days after the sale date, and be limited to the purchase of U.S. government property. A bank executive must personally sign the guarantee. Spreading The Word Information about GSA sales can be found in radio, TV, or newspaper ads, town halls, and other public buildings. Information is also published in the official government newspaper, Commerce Business Daily, to which you can subscribe by writing to the Superintendent of Documents, U.S. Government Printing Office, Washington DC 20402, Information is also available from the 11 GSA regional Federal Supply Service Bureaus across the country. Send inquiries to Surplus Sales, Federal Supply Service Bureau, GSA, at the appropriate one of the following locations: * National Capital Region (the Washington, D.C. metro area and nearby Maryland and Virginia) 6508 Lousdale Road, Bldg. A Franconia VA 22150 703 557-7796 * Region I (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont) 101 Causeway Street, 9th Floor Boston MA 02222-1076 617 565-7326 * Region 2 (New Jersey, New York, Puerto Rico, Virgin Islands) 26 Federal Plaza New York NY 10278 212 264-4823 * Region 3 (Delaware, Maryland, and Virginia [except Washington metro], Pennsylvania, West Virginia) Ninth and Market Streets Philadelphia PA 19107 215 597-7253 * Region 4 (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee) 75 Spring St. S.W. Atlanta GA 30303 404 331-5177 * Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin) 230 S. Dearborn St. Chicago IL 60604 312 353-0246 * Region 6 (Iowa, Kansas, Missouri, Nebraska) 4400 College Blvd. Overland Park KS 66211 913 236-2565 * Region 7 (Arkansas, Louisiana, New Mexico, Oklahoma, Texas) 819 Taylor St. Ft. Worth TX 76102 817 343-2351 * Region 8 (Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming) Bldg. 41, Denver Federal Center P. O. Box 25506 Denver CO 80225-0506 303 236-7705 * Region 9 (Arizona, California, Commonwealth of the Northern Mariana Islands, Guam, Hawaii, Nevada) 525 Market St. San Francisco CA 94105 415 774-5120 * Region 10 (Alaska, Idaho, Oregon, and Washington) GSA Center Auburn WA 98002 206 931-7566