Most literature on public procurement describes assets’ disposal as the last phase of the public procurement process. The disposal of public assets, irrespective of the method used, is purposed to meet the entity's needs, promote the benefits of asset value recapture, and maintain the entity's path of efficiency, effectiveness, and efficacy.
The urge to dispose of non-beneficial public assets in public organizations is overwhelming and arguably a necessary activity to reduce the cost of holding unwanted public assets and to be more sustainable. Therefore, it is essential to understand how public organizations manage the end-of-life process of public assets use, particularly what key considerations underpin the successful disposal of public assets in public organizations.
The asset disposal as a part of end-of-lifecycle of any asset basically consists of two blocks: the strategic planning for assets disposal and choice of assets disposal mechanism.
Organizations have many methods they use to dispose of assets that no longer generate utility value. Forms such as donations, sale, reuse, redeploy, part exchange, refurbish, return, or destroy/discard are the most popular methods of disposal. This concept is focused on those natures that involve a public (open) method of disposal.
The Open Contracting Data Standard (OCDS) is already used to describe millions of procurement processes around the world relating to goods, services and public works.
The Statistics Division of a UN Department of Economic and Social Affairs defines a classification and the rules of transactions in financial and non-financial assets.
The Public Procurement and Asset Disposal Regulations by the WorldBank define a framework of information related to a disclosure of information on a public asset disposals.
This concept describes how to combine contract level disclosures using OCDS with project-level disclosure based on the data-framework by the WorldBank, Government Financial Statistics Classification of Public Assets and the Classification of the Functions of Government, in order to support scalable disclosure and monitoring of disposal project identification, preparation, implementation and completion.
This Open Contracting for Lease and Sale Data Standards (RC) toolkit will show you how to:
- Publish standardized data on disposal projects and contracts using the GFS classification and OCDS.
- Connect contract and project-level information using OCDS4L&S.
- Make use of data when monitoring disposal projects.