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Supplying Principles and Practices > USPS Supplying Practices Process Step 6: End of Life
USPS Supplying Practices Process
Step 6: End of Life
Dispose
The Postal Service recognizes that assets will eventually no longer bring
value to the business and will need to be disposed of. Disposal addresses
the methods that will be used to get rid of Postal Service assets, either
internally or externally through redistribution or placement.
Disposal is critical to Process Step 6: End of Life, because it can pose
significant economic and social risks to the Postal Service. These risks arise
from several sources, among which are:
• Many assets contain materials that are considered hazardous
and require special steps for approved disposal; as the original
asset owner, improper disposal of these assets can result in a suit
against the Postal Service. Material safety data sheets (MSDSs)
describe how to properly dispose of items containing hazardous
materials. They can be found at http://hazard.com/msds/
index.php.
• Computer-based assets can contain either information of
proprietary value to the Postal Service or private information
about Postal Service employees, clients, and customers. These
assets require special processing to preclude incidental release
of this information and avoid lawsuits.
• Assets visible to the public that are branded must be handled
carefully to prevent misuse or misrepresentation or the apparent
use of these assets for criminal purposes.
• A number of assets now contain devices designed to provide
integrity or security of the mail, Postal Service employees, and
customers of the Postal Service; these devices must be removed
prior to disposal.
• Mail processing and other equipment have licensed software
systems that must be removed at the time of disposal.
In spite of these risks, assets (especially physical assets) can still offer value
from trade-in, resale, donation, or relocation of the asset within the Postal
Service to where it will provide the most benefit for service use. The Postal
Service environmental policy, as stated in the applicable AS series
Handbooks, must be incorporated into procedures governing material
redistribution, recycling, and disposal.
Before an asset can be disposed of, it is the responsibility of the Life Cycle
Management Team to review and approve the recommended disposal
methods for excess property. The Life Cycle Management Team is a
cross-functional team that comprises members of the Purchase/SCM Team
and members of the areas appropriate to the product. The Life Cycle
Management Team will have previous knowledge of, and working experience
with, the assets being disposed of to determine the most economical and
efficient means of disposal. The Life Cycle Management Team consists of
about 5-10 members and typically includes:
• Market Analysts
• Pricing Analysts
• Item Managers
• Individuals from Quality Assurance, Finance, Sales, Supply
Management, and Engineering
Degrees of management and responsibility in making the disposal decision
will transfer to these different members depending upon the type of asset
being disposed of.
Assets that are disposed of can range from furniture to equipment and
supplies that have a useful life of greater than three years. This does not
include fixed assets such as land, buildings, and machinery. When
considering how to dispose of Postal Service assets, it is important to look at
the reasons why they are being disposed of. Items are commonly disposed of
because:
• They are no longer required because of a change in function or
usage patterns
• They are required to be disposed of
• They are occupying storage space and will not be needed in the
near future
• They are beyond repair
• Other pertinent reasons
Methods for disposal or investment recovery are discussed in the Implement
Investment Recovery Plan topic of the Manage Demand Task of Process
Step 5: Measure and Manage Supply.
A quadrant approach (see Figure 6.1) classifies all Postal Service purchases
into four categories, depending on their impact on Postal Service core
competencies (noncore versus core) and complexities (standard versus
custom). The Quadrant Approach should be used by the Client and the Life
Cycle Management Team to guide their disposal decision to trade in, donate,
recycle, reallocate, resell, or remove.
Figure 6.1
Four Quadrants
Excess and unused items in this quadrant will be either recycled or
reallocated. For the identified surplus that is to be recycled, the Client and
Item Manager must relocate this surplus to an appropriate scrap dealer. For
reallocation, the Client must redeploy and relocate this surplus to the new
Client. The strategic approach regarding Quadrant I calls for supply
continuity, and these items should be used multiple times.
Excess items from Quadrant II play an integral role in the Postal Service's
operations and will be traded in, recycled, reallocated, or resold. For
identified excess that is to be traded in, the Item Manager must contact the
Supplier, and because the transaction is contractual, the Supplier will pay the
Postal Service for the surplus that has been reacquired. For recycling, the
Client and Item Manager must relocate this surplus to an appropriate scrap
dealer. For reallocation, the Client must redeploy and relocate this surplus to
the new Client. For reselling, the Market Analyst must be consulted to
determine the value of a specific product if it will be bought by an external
party. The surplus will then be sold, and the Client can determine how it will
be physically relocated to the new owner.
Excess and surplus items in Quadrant III will be donated, recycled,
reallocated, resold, or removed. These items have many sources and many
options and provide low value to the end Client. For identified items that are
to be donated, the Life Cycle Management Team will determine who the
recipients will be. For identified surplus that is to be recycled, the Client and
Item Manager must relocate this surplus to an appropriate scrap dealer. For
reallocation, the Client must redeploy and relocate this surplus to the new
Client. For identified surplus that will be resold, the Market Analyst must be
consulted, the surplus will then be sold, and the Client can determine how it
will be physically relocated to the new owner. For identified surplus that is to
be removed, the Item Manager must consult the Contracting Officer (because
Supplier involvement is sometimes required) and then ensure that the items
are disposed of or donated.
Excess items in Quadrant IV have created direct value for the Client and are
readily available in the marketplace. Items of this standard nature can have
various functions, and are therefore useful both internally and externally.
These items can be remarketed, donated, recycled, reallocated, or resold.
For identified excess that is to be remarketed, the Item Manager must contact
the Supplier, and because the transaction is contractual, the Supplier will pay
the Postal Service for the surplus that has been reacquired. For donations,
the Client and Life Cycle Management Team will work together to determine
which organization the materials will be donated to. For identified surplus that
is to be recycled, the Client and Item Manager must relocate this surplus to
an appropriate scrap dealer. For identified surplus that is to be reallocated,
the Client must redeploy and relocate this surplus to the new Client. For
reselling, the Market Analyst must be consulted to determine the value of a
specific product if it will be bought by an external party. The surplus will then
be sold, and the Client will determine how it will be physically relocated to the
new owner.
Consider Auctions topic, Develop Sourcing Strategy task, Process Step 2:
Evaluate Sources.
Develop Preliminary Investment Recovery Plan topic, Perform
Solicitation-Related Activities task, Process Step 2: Evaluate Sources
Review and Finalize Request for Proposals (RFP) topic, Perform
Solicitation-Related Activities task, Process Step 2: Evaluate Sources
Finalize Investment Recovery Plan topic, Plan for Contract Administration
task, Process Step 3: Select Suppliers
Stockroom and Storage Space Management topic, Manage Demand task,
Process Step 5: Measure and Manage Supply
Implement Investment Recovery Plan topic, Manage Demand task, Process
Step 5: Measure and Manage Supply
Clarify Data Rights and Intellectual Property Issues topic, Develop Sourcing
Strategy task, Process Step 2: Evaluate Sources
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