Subrecipients will expedite the utilization of new vehicles and dispose of replaced vehicles within sixty (60) days of putting the new vehicles in service. Disposing of a vehicle means it is removed from the fleet inventory, surpluses, transferred, sold, or donated.
Disposition Changes: Subrecipients may dispose of a vehicle different than the one they requested to replace in their funding application if the substitute vehicle was eligible for replacement during the pre‐application planning and the Regional Grant Specialist approves. A Capital Withdrawal/Substitution Form must be completed and submitted to the Integrated Mobility Division (IMD) Procurement Unit to signify which vehicle will be replaced.
Disposition: A vehicle approved for replacement in an application may be disposed after the new vehicle order has been placed and prior to receipt of the new vehicle if approved by the Regional Grant Specialist.
Disposition Options: Using a replaced vehicle as a back‐up vehicle or continuing to use it in regular revenue service is not an option. More information about the disposition of vehicles is provided in Attachment 401‐1. Subrecipients will dispose of replaced vehicles using one of the following options:
- Advertising for sealed bids;
- Local public auction;
- State Surplus;
- Electronic Auctioning;
- Transfer it to another agency for a purpose that does not provide human service transportation with Regional Grant Specialist approval; or,
- Transfer to system owner for use as an administrative vehicle ONLY (non‐transfer or non‐fleet use). Note that a system is only permitted one administrative vehicle.
Disposition Planning and Final Notification: Subrecipients must submit a Disposition Form (Included in the Inspection/Disposition Package sent to subrecipient by IMD) describing how a replaced vehicle will be disposed.
Title Release: Titles will be released to the grantee by IMD after the inspection form for the new vehicle and the disposition form for the replaced vehicle have been submitted to IMD.
Notification to IMD of Sale: Within ninety (90) days after replacement vehicle(s) is received, the system must submit disposition information including:
- Type of Disposition (Select: Sale or Transfer);
- Odometer Reading;
- Buyer/Recipient (Select: Private, State Agency, County, Non-Profit, Transit Agency or Other);
- Sales Receipt Date;
- Sale Amount; and,
- Attachment of bill of sale/sales receipt that contains the following: odometer reading, buyer, sale date and sale amount.
A request for this information will be sent by the IMD Procurement Unit after IMD has received your inspection/disposition checklist. The request will be emailed to the person completing the inspection/disposition checklist and will come in the form of a Smartsheet Update Request. Please contact the Procurement Specialist with any questions related to entering in this information into Smartsheet. The request for information will trigger the beginning of the ninety (90) day timeline. If you cannot submit this information within ninety (90) days of receiving your replacement vehicles, please notify the IMD Procurement Unit of the need for an exception.
Preparing for Disposal: Before a replaced vehicle can be sold or transferred, all markings, lettering or system logos must be removed from the vehicle.
Disposal Without Replacement: The option for disposal of vehicles without replacement requires the approval of the Regional Grant Specialist.
- If a vehicle has met its useful service life, a grantee may request to dispose of it without replacement to reduce their fleet size.
- If a vehicle is at least ten (10) years old, but has not met the useful service life standard, a grantee may request to dispose of it without replacement.
- If a vehicle is less than ten (10) years old and it has not met its useful service life, a grantee may request to dispose of it without replacement. However, a monetary reimbursement for the mileage shortage will be required to be remitted to IMD.
Proceeds from sale of vehicle is to be used for transportation purposes only (driver’s salaries, fuel, tires, local match, etc.). Documentation must be available upon request.