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Equip Your Small Business by Buying Government Surplus

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Equip Your Small Business by Buying Government Surplus

By Caron_Beesley, Contributor
Published: March 26, 2009 Updated: December 30, 2013

As most entrepreneurs soon find out, the cost of starting or expanding

your small business can quickly escalate as you seek to equip your

workforce, office, or other place of business with the tools needed to

operate and grow.

While you may seek to roll these costs into a

business loan and/or recover them at tax time through depreciation,

neither of these actually reduces the upfront cost of procuring

business assets or equipment in the first place.

An alternative,

frequently used by non-profits but often overlooked by for-profit small

business owners, is to buy surplus goods directly from the government.

What is Government Surplus?

Purchasing

government surplus - which includes everything from computer equipment

to medical tools, vehicles and parts, land and property, international

real estate, and more - is an easy and affordable way to equip your new

and expanding business.

Here's how it works: When a federal or

state agency has extra equipment, seized goods, or forecloses on a

piece of property, it is either transferred to another government

agency or sold to the public. Each year the federal government then

sells billions of dollars of surplus, seized, forfeited and

exchange/sale assets at or below cost or fair market value.

These goods are sold 'as is' by auction or negotiated sale, either online, in-person or both.
Online

government auctions work much the same way as other auction sites, such

as EBay. You visit an agency's auction site, register your name, and

place your bid.

Where can I buy Government Surplus?

While each state government has its own individual online auction Web site (find your state’s auction site here), there is no comprehensive single online auction web site in the federal government.

Despite this, the best place to start your search for government surplus is GovSales.gov.

Operated by USA.gov, GovSales.gov aims to provide a single listing of

all surplus items and real estate for sale by the federal government -

and combines online auction procurement tools with a more traditional

non-transactional catalog of assets that can be procured by other

means.

Certain federal agencies do enable the private sector

to conduct business directly with them via their own auction sites,

including General Services Administration (GSA) at gsaauctions.gov

and the Department of Defense (DOD). Federal law enforcement agencies,

such as the U.S. Marshals Service, also run auction sites for seized

business property.

You can find a comprehensive list of all the federal government surplus goods and real estate auction sites on Business.gov here.

How do Government Auctions Work?

Government

auctions tend to operate differently depending on what agency you are

dealing with - some take place in person while others are transacted on

the Internet. Sales can be proffered by sealed bid, spot bid,

first-come first served in a fixed-price sale, or through negotiation

(used frequently in real estate sales).

Be sure to do your

homework before participating in or attending a government auction.

Some companies often charge fees for information about government

auctions - much of which is available for free from the government.

Once you find that government sale or auction, make sure to read this tip sheet from the General Services Administration (GSA) so that you know what to expect and how to buy.

More Information and Advice

You can find more information about government surplus auctions and sales directly from the government at Business.gov’s How to Buy Government Surplus site.

About the Author:

Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley

Comments:

I wish I had this opportunity when I first started my own business. I could have benefited so much.
Gotta love GovSales!
Fantastic advice and a great to save on your business essentials. I'll be taking a look at the suggested sites to save what I can save.
I think youve made some truly interesting points. Not too many people would actually think about this the way you just did. Im really impressed that theres so much about this subject thats been uncovered and you did it so well, with so much class. Good one you, man! Really great stuff here.
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