Addendum 1 - Residual Value and Disposition of Existing Boilers.docx
DOCX document 24 KB Posted
- Attached to
- ABSD-BOILER & HOT WATER PUMP UPGRADES PHASE 2
- Solicitation number
- RFP ABS 260000001269 5
- Issued by
- Wayne County, Michigan
About this file
This is an Addendum 1 document issued by the Anchor Bay School District addressing the residual value and disposition of existing boiler equipment scheduled for replacement under a project involving equipment removal and replacement. The addendum establishes requirements for subcontractors to identify, value, and manage existing boilers and associated mechanical components that may retain salvage, resale, reuse, or trade-in value. Subcontractors must provide written estimates of fair market value using transparent valuation methodologies such as third-party appraisals, dealer trade-in quotes, or industry-standard depreciation schedules. Any realized value from equipment disposition must be applied as a direct financial credit to the District, either as a line-item deduction to project costs or as an explicit trade-in allowance documented in proposal pricing. Upon District approval of valuations and asset transfers, the selected subcontractor assumes complete ownership and responsibility for the condition of all equipment, and the District and Centrix are released from further obligations related to the equipment.
The subcontractor is required to provide comprehensive documentation for all removed equipment, including equipment descriptions, serial numbers, and final disposition methods, in a format suitable for audit and asset record updates. All equipment management and disposal activities must comply with District Board of Education policies, applicable Michigan public school business practices, local and state regulations, and environmental regulations. The addendum emphasizes responsible stewardship of public assets and establishes that failure to properly account for residual value equipment may result in proposal rejection. Final disposition of equipment remains subject to District approval throughout the process.
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Text version
Residual Value and Disposition of Existing Boilers & Equipment The Anchor Bay School District has identified certain existing boiler equipment scheduled for replacement under this project that may retain remaining useful life and residual value. The District is committed to responsible stewardship of public assets and requires proposers to address equipment disposition in a manner consistent with applicable Michigan school business practices.
Subcontractor shall clearly identify any existing boilers or associated components that may retain salvage, resale, reuse, or trade-in value and shall describe their proposed method of valuation, removal, disposition, and documentation.
Asset Valuation and Credit to the District For any existing boiler or related mechanical equipment determined to have residual value, the Subcontractor shall:
1. Provide a written estimate of fair market value, salvage value, or trade-in value for each applicable asset.
2. Identify the valuation methodology used (e.g., third-party appraisal, dealer trade-in quote, industry standard depreciation schedule).
3. Apply any realized value as a direct financial credit to the District, either:
· As a line-item deduction to the project cost, or
· As an explicit trade-in allowance documented in the proposal pricing.
All valuation assumptions shall be transparent and subject to District review and approval. Upon approval by the District, Subcontractor shall take responsibility for existing equipment and Subcontractor shall take complete ownership for the condition of all such equipment. No obligations of any kind shall be owned by Centrix or the District once approval is granted.
Final disposition of equipment shall be subject to District approval and shall be conducted in accordance with District policies governing surplus property, asset disposal, and internal controls, consistent with generally accepted Michigan public school business practices.
Documentation and Audit Trail The selected Subcontractor shall provide complete documentation for all removed equipment, including:
· Equipment description and serial numbers (where available)
· Final disposition method (reuse, resale, recycling, scrap, or disposal)
· Credits applied to the District Such documentation shall be provided in a format suitable for audit and fixed-asset record updates.
Compliance with District Policies and Michigan Public School Practices All equipment management and disposal activities shall comply with:
· District Board of Education policies related to asset management and surplus property
· Applicable guidance and best practices commonly recognized by Michigan public school governing and business organizations
· Applicable local, state, and environmental regulations Failure to properly account for residual value equipment may be considered grounds for proposal rejection
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