Guide to Maximize Vehicle and Equipment Surplus Values

Every state department of transportation (DOT) needs to determine the best way to dispose of aged or obsolete fleet assets. Some states require disposal of assets to be done by another state agency while others perform this function internally. In either case a decision guidance tool is needed to determine various methodologies/strategies to maximize sale proceeds. Subjects to consider may include auction type (local, regional, online, etc.); bidding process (sealed bids, setting a reserve, no minimum bid, etc.); timing and frequency of sales; buyback and trade-in agreements; asset trade-ins; amount of labor and cost to spend to prepare equipment for sale; different strategies appropriate for different equipment types; and opportunities for improving existing operations. Currently DOTs lack comprehensive information to help determine how prepare and schedule equipment for disposal/sale, estimate capital recovery, target the most appropriate bidders, and time the appropriate marketing method. The primary objective of this research is to develop decision guidelines for state DOT fleet management organizations to use when disposing of surplus fleet assets. The end-product(s) will address: (1) Disposal methods by vehicle and equipment types; (2) Disposing of vehicles and equipment that are in various conditions; (3) Disposal methods (auction, buy-back, trade-ins, salvage, etc.); (4) Time or day of week/year and quantity of items offered; (5) Frequency, location, and bundling of items; and (6) Amount of reconditioning/clean-up/repair to perform (if any). Expected tasks include a survey of fleet organizations, including state DOTs, other large public-sector organizations, appropriate private companies, and national equipment marketing companies to catalog information on the relative cost effectiveness of the specific equipment decommissioning and disposal methods they employ; an assessment of the survey results to identify relevant factors that would increase sales values; develop a decision tree.

Language

  • English

Project

  • Status: Proposed
  • Funding: $300000
  • Contract Numbers:

    Project 13-09

  • Sponsor Organizations:

    National Cooperative Highway Research Program

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC  United States  20001

    American Association of State Highway and Transportation Officials (AASHTO)

    444 North Capitol Street, NW
    Washington, DC  United States  20001

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Project Managers:

    Hartell, Ann

  • Start Date: 20200624
  • Expected Completion Date: 0
  • Actual Completion Date: 0

Subject/Index Terms

Filing Info

  • Accession Number: 01739589
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project 13-09
  • Files: TRB, RiP
  • Created Date: May 18 2020 3:06PM