History
In 1944 the Government of Canada created the War Assets
Corporation which was subsequently renamed the Crown
Assets Disposal Corporation. In 1984 the activities
and staff of the Corporation were integrated into the
Department of Supply and Services. The organization
became known as the Crown Assets Distribution Service
Line and has continued its functions within Public Works
and Government Services Canada (PWGSC).
Its mandate is to manage the surplus moveable assets
disposal program for the government, providing quality
service to clients while obtaining best value for the
Crown. The legislative base for its operations is the
Surplus Crown Assets Act along with the Treasury Board
Policy on the Disposal of Surplus Moveable Crown Assets.
With a few exceptions, the legislation and policy require
PWGSC to manage the disposal of surplus assets on behalf
of federal organizations.
What is Crown Assets Distribution?
Crown Assets Distribution (CAD) handles moveable Crown
assets that a federal department or agency has declared
as surplus.
PWGSC operates eight Crown Assets Distribution Centres
(CADC) located across the country to manage the disposal
of moveable federal government surplus material. Acting
as the Government of Canada’s agent, PWGSC provides
client departments with a worry-free disposal service
through direct sales or through the management of contracts
with service providers.
For over 60 years, CADCs have been involved in the
direct sale of surplus materiel ranging from ships and
cars to furniture and clothing as well as seized goods
on behalf of federal government departments and agencies.
Surplus assets are sold directly by CAD or through
contracted service providers. Many assets are sold through
public sales that attract thousands of buyers, and,
in some cases, sales are conducted at CADC warehouses
located in Montreal, Halifax, and Ottawa.
In addition, many transactions also take place through
the CAD Web site, where each item is listed and described
and often accompanied by a photo. The site receives
over 50,000 visitors per month.
CADCs also act as agents for foreign governments in
the sale of their surplus assets located in Canada and
have working arrangements with certain European governments
for disposal of Canadian military surplus located in
their countries.
Its headquarters are located in Gatineau, Que., with
regional offices located in Surrey, B.C. (Pacific Region),
Edmonton, Alta., Regina, Sask., and Winnipeg, Man. (Western
Region), Mississauga, Ont. (Ontario Region), Montreal,
Que. (Quebec Region), Dartmouth, N.S. (Atlantic
Region), and Ottawa, Ont. (National Capital Region).
The Process
Departments or federal bodies notify CAD of their surplus
assets by filling out a Report of Surplus form and sending
it to the nearest CADC. CAD then handles all aspects
of asset disposal from start to finish.
The process can include: organizing sales of assets;
arranging for viewing of assets; conducting sales; evaluating
bids; receiving money; handling all sales-related inquiries
and returning net proceeds to clients. This type of
all-inclusive service offers clients convenience, reliability,
knowledge, prudence, probity, public accessibility,
integrity of process and years of experience.
Once the item is sold, the client receives the net
proceeds from the sale and a transaction report.
What is Government Surplus?
- Moveable equipment and materiel no longer required
- Seized assets
Who sells Government Surplus?
- Eight CADCs across Canada
- Competitively selected private sector service providers
- CADCs acting as agents for foreign governments seeking
to dispose of their surplus items located in Canada
- Agency agreements with service providers abroad
How is surplus sold?
- Public sales:
- advertised in the media, specifying details
of location, commodities on sale and inspection
times;
- goods are inspected on site;
- sealed bids are deposited in a secure bid box
on site;
- after sale closing, offers are tabulated and
the successful bidders are notified.
- Regular Sales:
- potential buyers registered with CAD receive
electronic notification of the availability of
assets of interest and may view assets for sale
on the CAD web site and obtain an Offer to Purchase
form;
- in some cases, Offers to Purchase are mailed
out to interested bidders who have made their
interest in specific commodities known to CAD;
- goods are available for inspection for a specified
period as noted on the Offer to Purchase form;
- completed Offer to Purchase form must be returned
to CAD by the specified closing date and time;
- after the closing date, sealed offers are opened
and the successful bidders are notified.
- Sales through contracted service providers such
as the National Master Standing Offer for vehicles
and other contracts:
- contractors effect sales on behalf of clients.
How can someone buy surplus?
- Access the CAD Web site and submit an Offer to Purchase
- Attend sales events and submit an Offer to Purchase
Who can buy surplus?
Any individual, organization, business or government
body in Canada and abroad
Types of Sales
- Vehicle Sales — conducted by service providers
or through direct sales by CAD
- Auctions — conducted by service providers
- Regular Sales — through the Crown Assets Web
site or through Offers to Purchase issued by mail
- Public Sales — events conducted by CADCs at
CADC or client sites; open to the public
Conditions of Sale
- Payment:
- Payment is required from the successful bidder
within the period of time stated in the Offer
to Purchase document;
- Payment can be made by cash, debit card, certified
cheque, money order and all major credit cards
(VISA, MasterCard and AMEX). Some restrictions
may apply;
- All sales are subject to applicable taxes;
- All sales are final.
- Removal:
- Equipment and materiel cannot be removed from
the sale location until full payment has been
received;
- Removal must occur within a prescribed period
of time.
- Other Conditions:
- Materiel is sold “as is, where is";
- CADC makes no warranty, expressed or implied,
as to the condition of the materiel;
- It is strongly recommended that bidders contact
the custodian to arrange a time for viewing the
materiel;
- General terms and conditions apply for each
sale;
- Special conditions of sale may apply in some
instances, as specified on Offer to Purchase.
What about Donations?
The Treasury Board Policy on Disposal of Surplus Moveable
Crown Assets states that in cases where the estimated
costs of disposal are likely to exceed the proceeds
of a sale, a custodian may choose not to sell the asset,
but instead dispose of it by gratuitous transfer:
- to a Crown corporation or other level
of government;
- to a recognized charitable or non-profit organization;
- for assets located outside of Canada, gratuitous
transfer to a government, charity or non-profit organization
recognized by the host country, by any treaty organization
of which Canada is a member, or by the United Nations;
- A separate section of the policy covers gratuitous
transfer of valuable assets, but which are being donated
to recipients which a custodian minister designates
in order to meet specific or general program purposes
of government. It states that some donations are pre-approved
as part of an on-going government program (ex. Computers
for Schools Program). In all other cases, the donation
must be approved by the minister through whom the
department reports to Parliament.
For further information:
Surplus
Crown Assets Act
Treasury
Board Policy on Disposal of Surplus Moveable Crown Assets
|
