245.7307-2  Justification.

(a)  Conditions justifying non-competitive sales are-

(1)  Scientific equipment allocated to terminated research and development contracts with educational institutions;

(2)  No acceptable bids received under an advertised competitive sale;

(3)  Property value so small that anticipated proceeds would not warrant formal competitive sale;

(4)  Sale to States, territories, possessions, political subdivisions thereof, or taxsupported agencies therein, and the estimated fair market value of the property and other satisfactory terms of disposal are obtained;

(5)  Specialized nature of the property would not create bidder interest;

(6)  Removal of the property would reduce its value or result in disproportionate handling expenses; or

(7)  Such action is essential to the Government's interests.

(b)  The contracting department/agency will provide the contract administration office the sales justification and any special sales provisions when the department/agency decides to sell production equipment to the contractor by non-competitive sale.