          
          
          
                         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
          
          
