(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 tax-supported 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.
