SURPLUS VETERAN-OWNED BUSINESSES

Are you a veteran who owns a business? Surplus can help!

The Department of General Services' Office of Surplus Property Management (OSPM) is accepting applications from veteran-owned businesses that would like to purchase federal and state surplus property. Signing up gives you access to equipment, supplies, computers, and other property that the federal government no longer needs for use in your business for pennies on the dollar.

Eligibility

To qualify, the veteran-owned small business must:

Be certified as a Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOB) through the Veterans Administration (VA)
In "verified" status with the VA's VETS First Verification Program
Be located and operated within the Commonwealth of Virginia (if located in another state, the business must work with that state's surplus property program)
Be unconditionally owned and controlled by one or more eligible veterans, service-disabled veterans, or surviving spouses

To participate, veteran-owned businesses also must:

Put the property into use within one year of acquiring it
Use the property for business, not personal, use
Agree to a compliance period where the property cannot be sold, traded, leased or otherwise disposed of for an amount of time depending upon its value. Property with a cost of less than $5,000 must be used for a minimum of one year before being disposed of; property with an acquisition cost of over $5,000 must be used for at least 18 months. The federal government retains title to the property until the compliance period is over, at which time the veteran-owned business becomes the owner (compliance audits or reports may be required).

*It is important to note that the Federal Surplus Property Program offers personal property, not real property (buildings, land, etc.).

Get started

Qualifying for the Federal Surplus Property Program is a two-step process:

You must be certified as a Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOB) and verified through the Veterans Administration (VA) Vets First Verification Program.

VOSB and SDVOB Certification

Once certified, you can apply for the Federal Surplus Property Program by completing the application below. Email the completed application and verification of your certification to the address located at the top of the application.

Surplus Application

How it works

After receiving access rights, Federal Personal Property items can be viewed online at https://GSAXcess.gov. On this site, you can search for various types of property.

Once you have identified property in which you are interested, contact the Virginia Office of Surplus Property Management at John.Shumate@dgs.virginia.gov or (276) 228-6803 to request the property. NOTE: Only state surplus property programs can request items for its users.

Charges

Please note, the Federal Surplus Property Program requires a service charge for property obtained to cover handling, transportation and administrative expenses. This service charge is based on the Government Acquisition Cost (GAC) and the condition of the property.

Background

The General Services Administration's (GSA) Federal Surplus Personal Property Donation Program enables certain non-federal organizations, such as state government agencies, to obtain personal property the federal government no longer needs. The Veterans Small Business Enhancement Act of 2018 allows qualified veteran-owned small businesses to acquire federal surplus property through their State Agency for Surplus Property (SASP).
Although the law was passed in 2019, property could not be made available until program requirements were established. The National Association of State Agencies for Surplus Property (NASASP) partnered with the U.S. General Services Administration and the Small Business Administration to develop a Memorandum of Agreement (MOA) that would benefit all states. That MOA was released in March 2021.

FAQs

What is surplus property?

The Federal Surplus Personal Property Donation Program enables eligible nonfederal organizations to obtain surplus personal property no longer required by the federal government. These items include anything from furniture and vehicles, to communications and electronic equipment, tools and appliances, to boats, airplanes and other items.

These items include personal property only, not real property such as land or buildings.

Who is eligible?

A variety of government and other entities qualify to receive federal surplus property. The Veterans Small Business Enhancement Act of 2018 allows qualified veteran-owned small businesses to acquire federal surplus property through their State Agency for Surplus Property (SASP).

Is there a charge to obtain federal surplus property?

Yes. A service fee is required to cover the administrative expenses required to secure the property, as well as transportation and warehousing costs, when applicable. On average, the service fee is 10-50 percent of the item's original value, but that will vary depending on the item's condition, type and current value.

How do I pay the service charge?

OSPM accepts Visa and Mastercard. Payment in full is required before property leaves the facility.

Are there rules for what I can do with this property?

Yes. Veteran-owned small businesses are subject to the standard restrictions on the use of federal surplus property. These include:

The property must be used within one year
If the acquisition cost is less than $5,000, it must be used for a minimum of one year
If the acquisition cost is over $5,000, it must be used for at least 18 months
Title to the property remains with the federal government until this compliance period is over, and the property may not be sold, traded, leased or otherwise disposed of during this period.
Personal use of the property is prohibited.
Compliance audits or reports may be required.

How do I know if my veteran-owned small business will qualify to receive federal surplus property?

There are four prerequisites:

Your business must be certified as a Veteran-Owned Small Business or Service-Disabled Veteran-Owned Small Business through the federal government
Your business must be listed on the VA's VETBIZ website under the Vendor Information Pages (VIP) section
Your business must have a physical location and operations in Virginia
Your business must complete a Federal Surplus Property Application

Will my application ever expire and require renewal?

Yes. Your application will expire on the same day as your VA expiration. Federal Surplus Property application renewals will be done in conjunction with your businesses VA recertification.

My business's headquarters is in another state, but I have a location and operations in Virginia. Will I qualify?

Yes, and you may also qualify in the state in which your headquarters is located. However, property obtained from our program must be used in Virginia while it is under restriction.

How do I search for available property?

Once you have completed all steps and been approved into the program, you will receive credentials to search the U.S. General Services Administration's federal surplus website, https://gsaxcess.gov/.

Upon logging in, you may search for property using a variety of factors, including the type of property, the state in which the property resides, keywords, and more. Once you have identified property in which you are interested, you must contact Virginia's Office of Surplus Property Management to request the property.

What if there is a specific item my business needs and it's not currently in your inventory?

Working with the Virginia Office of Surplus Property Management, you can identify items you want them to continue to screen for if it is currently not available.

Whom should I contact if I have questions?

Contact John Shumate at John.Shumate@dgs.virginia.gov or (276) 228-6803.