Sale of obsolete or surplus CERN Equipment
Procedure Proposal
Version 1.2
1. Abstract
Here is a revised proposal concerning the sale and disposal of obsolete or surplus equipment at
CERN, based on the proposal under reference [3] in Reference Documents. Unlike this proposal,
our suggestion covers all equipment on sale (i.e. computer, mechanical and electrical) with a
value less than 100,000 CHF and with the exception of “scrap”. Items belonging to the category
“scrap” are handled directly by SPL-LS by selling them to suppliers selected on a monthly basis.
The aim of the present proposal is to implement significant simplifications to the procedure in
order to minimize overhead (especially for low value items) while complying with FC
documents and Financial rules.
The priority should be that firstly CERN gets the maximum value for its investment during the
useful lifetime of the equipment; secondly the Member States should get the best return from
their contributions; and thirdly the equipment should be disposed of once its useful lifetime is
over (keeping obsolete equipment in operation often has a cost to CERN in general if not directly
to the owner of the equipment).
2. Legal Preconditions
The Financial Rules state that “the general policy for the sale of the Organization’s property shall
normally be as follows:
a)
not less than three competitive bids should be obtained for any item put on sale;
b)
bids should be sought in the first place from purchasers located within the territories of the
Member States;
c)
contracts of sale should be concluded with the purchaser whose bid is the highest, provided
the guarantees of payment are satisfactory.”
CERN/FC/3169 defines that these items are classed as category A goods, "material or equipment
which is either obsolete or no longer in use, and for which the appropriate procedure (tendering
or otherwise) can immediately be initiated." The estimated value of these goods is above 1,000
CHF. The owner of the goods is considered to be the Division concerned and, whilst the
requesting Division may suggest potential purchasers and participate in negotiations, it may not
make any prior commitments with a potential purchaser.
The three offers referred to above may be obtained verbally where the estimated sales value is
less than 5,000 CHF (though it is recommended that these are noted on the sales file for audit
purposes). (Between 5,000 and 100,000 CHF, offers must be obtained by written Sales Enquiry
and over 100,000 CHF CERN's standard tendering procedures must be applied.)
Following the definitions in CERN/FC/3169, goods where the estimated value is less than 1,000
CHF are considered as small value items and belong to category D. The owner of these goods is
the Logistics Group (Recuperation Service). Small value items are sold with Sales Receipt,
different bids are not foreseen.
In any case, payment for goods should be effected before their removal from the CERN site.
Equipment is sold without guarantee of any kind.
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3. Procedure
3.1 Initiating a Sale and Authorization Procedure
The seller has to fill the form “Demande de vente/Sale Request”. A new form is proposed which
can be used in both electronic and paper formats, depending on certain conditions explained
below. The following information concerning the item on sale has to be entered by the seller of
the item:
· Seller’s Name:
the name of the seller
· Seller’s Division:
the abbreviation for the division and group
· Seller’s Phone:
the telephone number of the seller
· Seller’s ID:
the CERN ID of the seller
· Owner’s Division:
the abbreviation for the division and group
· Owner’s Budget Code:
the budget code of the owner
· Suggested Purchaser:
the seller may provide a list of potential purchasers with
complete address, name of the person to be contacted,
telephone, telex and telefax numbers (optional)
· Category:
we propose to use the categories (highest level only) already
defined in the “classification list” based on MESC
· Quantity:
the quantity of goods on sale with the same description
· Description:
the documentation of the item on sale: detailed description of
the item, technical specification, etc.
· Weight:
the weight of the item (optional)
· Serial Number:
the serial number of the item. Only the main items have to be
detailed with a serial number. Low value items such as
keyboards or mice can be grouped together without serial
number. (optional)
· Inventory Number:
for goods which are registered in the inventory the number shall
be mentioned here. (optional)
· Year of Acquisition:
the year of the acquisition of the item by CERN
· State:
the state of the item (i.e. “works”, “repairable”, “doesn’t work”)
with a detailed description of the trouble and the possibility of
repair. The information about the state is without engagement.
For Items belonging to the category “Informatics”, this field
should also contain which software have been removed.
· Location:
the current location of the equipment (optional)
· Suggested Price:
the price in CHF suggested by the seller (optional)
· Certificate enclosed:
for dangerous goods only: choice of “yes” or “no” (optional)
The form has to be signed by the Division Leader or his delegated representative. We propose
the signature of the Sale Request form to be delegated to the DPO.
The electronic form is sent by e-mail to the DPO who forwards it to the Recuperation Service.
This forward is considered as an approbation of the Sales Request. As the Division selling the
equipment is responsible for maintaining the CERN inventory, it is proposed that when the DPO
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forwards the Sales Request, he/she also copies the person responsible for updating the inventory.
(This procedure should be considered as temporary while no new development is taking place in
EDH.)
Due to the necessary documentation, the Sale Request of a dangerous item can not be handled
electronically. The form is to be printed out and to be sent with the attached annexe by internal
courier. (Before selling a dangerous item, a special visa has to be obtained from TIS.)
The Recuperation Service who receives a Sales Request of a DPO, fixes a price, decides which
sale procedure is to be followed and takes the necessary steps.
3.2 Fixing the Price
The price of the item on sale is fixed by the Recuperation Service.
The price indicated by the seller in the Sale Request form is considered as a suggestion to the
Recuperation Service.
To fix the price the Recuperation Service uses his own experiences and procedures. It may
involve expert’s advice (e.g. Desktop Support team).
A fixed price can only be reduced for goods being on sale at auction. In this case, the mark-down
takes place immediately after the weekly auction on which the concerning item was not sold, but
never during the weekly auction.
The Recuperation Service decides the amount of the price reduction.
3.2.1
Customs and Taxes
The price paid by the purchaser does not include any tax. “The purchaser is responsible for all
costs incurred in removing the goods form CERN site and for all administrative formalities of
whatever nature they may be (export license, customs and transit formalities, etc.).” [2]
In Switzerland neither taxes nor duty is applicable for equipment more than three years old.
In France (and all EU countries) taxes and duty may be payable according to the age, value and
origin of the equipment.
3.3 General Proceeding
Following and interpreting the preconditions mentioned in chapter “Legal Preconditions”, the
equipment should be offered for sale in the following sequence:

During the first period the equipment may only be offered for sale to a CERN Division: the
negotiation, including price, should be conducted between the Divisions with payment by
TID.
The length of the first period shall normally be one month. SPL-LS can reduce or extend the
length of the period, e.g. in case of completely obsolete items or during the holidays. The
length of the period is at least one week and at most six weeks (during the holiday period).

After the first period, the equipment may be sold to another CERN Division or to any of
1. an institute in any Member State
2. an industrial firm in any Member State
3. a member of CERN staff; (this should include retired staff and paid visitors)
or to
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4. an external person. He or she needs an access permit delivered by the reception in
building 33.
The sale should be on the basis of the best price offered.
Small value items are sold only at a weekly auction1. Offers for these items can only be made
at the auction, other kinds of offers are not accepted.
The sale of goods with a value of at least 1,000 CHF can only be authorised when at least
three bids have been submitted. Offers can however be submitted even during the first period
while items are reserved for CERN Divisions. To simplify and to assure the legitimacy of the
procedure, no verbal offers for these items will be accepted (restrictive interpretation of
CERN/FC/3169). All offers must be obtained either by e-mail or by fax or by mail. Offers
shall be binding upon the submitters and cannot be withdrawn.
If after one month of being available for general sale, less than three bids have been made,
the best offer can be chosen. If no bid has been made, for one month the item will be put up
to the weekly auction where it is sold with a Sales Receipt.
In the case no offer is received
- after two months for small value items and
- after three months for the other equipment,
the item can be considered to have negligible value and donation to outside organisations
(local school, suitable charity,…) should be considered. Although equipment which is really
obsolete and seriously out of date should probably rather be destroyed.
The following table shows the general procedure:
Time
Value of the item
Open to
1,000 ≤ Value < 100,000 CHF
< 1,000 CHF
First period
CERN
Only
First CERN-Division gets the item
If the item is still available:
First period
+ 1 month
First period
+ 2 months
If the item is still available:
Sales at every weekly auction during
the month,
until the best tenderer gets the item
CERN
+
Institutes, If the item is still available:
industrial
Donation/Destruction
firms of
Member
States
+
CERN Staff
+
external
persons
Wait until 3 bids, then
Selection of the best offer
If the item is still available:
If at least one bid is made, then
Selection of the only/best offer
Else (no bids)
Sales at every weekly auction
during the month,
until the best tenderer gets the item
If the item is still available:
First period
+ 3 months
Donation/Destruction
Items on sale belonging to the category “Informatics” have to be checked before selling:
Although the hardware is normally directly associated with a licence for the basic operating
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This is already organized by SPL. Once a week on Thursday afternoons from 13.30 to 15.00 sales take place.
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system, all application software, especially commercial software, must be removed from the
discs and media before resale outside CERN or to individuals. This operation should be done by
the seller with help available from the Desktop Support Service if needed. The seller should
indicate in the “State” field of the Sale Request form which software have been removed.
3.4 Publishing of the Equipment on Sale
To provide information concerning the equipment on sale a special Web site is foreseen. This
Web site is public, everybody has access. It contains a list with information about the proposed
goods. The goods reserved for CERN Divisions are shown as well, so on the one hand all CERN
Divisions have at the same time the same information and on the other hand potential purchasers
are informed early about available equipment.
Offers concerning goods with a value of at least 1,000 CHF, that are still reserved for CERN
Divisions, are accepted but only processed, if no CERN Division is interested.
A special Web form for offers by e-mail is foreseen.
The following details of the equipment are given in the list:
· Equipment-No.:
for identification every item has a unique number: a serial
number created by SPL
· Quantity
information from the Sale Request form
· Category:
information from the Sale Request form
· Description:
information from the Sale Request form
· Serial Number:
information from the Sale Request form
· Year of Acquisition:
information from the Sale Request form
· State:
information from the Sale Request form
· Suggested Price:
the price in CHF (calculated following the existing procedure by
the Recuperation Service)
· Announcement on:
the date of the announcement
· CERN Reservation until:
the date until the item is reserved for the CERN Divisions
· How to purchase:
this field contains:
 either the information that the concerning small value item is
still reserved for CERN Divisions (“reserved for CERN”)
 or the date of the next auction at which the concerning item
will be available (“next auction on 17.12.1998”)
 or a hyperlink to a Web form where one can bid for the
concerning item.
· Location:
current location of the equipment: either “Recuperation Service”
or an other office
Contact Person:
a hyperlink giving access to information of the contact person
(XWHO like) for a visit of the item
· Seller:
the field contains a hyperlink giving access to information of the
seller such as name, division, telephone number, e-mail (XWHO
like)
· Owner:
information from the Sale Request form
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· Owner’s Budget Code:
information from the Sale Request form
3.5 Sale’s Credit
In accordance with reference document [2], sales of low value equipment (< 1,000 CHF) are not
credited to the owner’s budget code.
Sales of other equipment’s are periodically credited to the owner’s budget code. An overhead
charge of currently 10% is however deducted by SPL.
4. Reference Documents
[1]
CERN: Règlement financier et Règles financières intérieures/Financial Rules and Internal
Financial Regulations; 1997
[2]
Finance Committee: Sale of CERN Materials; 22 June 1988 (CERN/FC/3169)
[3]
Silverman, Alan: Sales of Obsolete Computer Equipment, Version 4; 9 April 1998
[4]
Procedures Handbook; Procedure 10.11.1 “Sales/salvage of Equipment”; 4 June 1998
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