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Audit Report: IG-0589

March 11, 2003

Transfer of Excess Personal Property From the Nevada Test Site to the Community Reuse Organization

Certain excess personal property transferred by Nevada to the Community Reuse Organization (CRO) was not in the best interest of the taxpayers. For instance, in February 2002, Nevada transferred a drill rig to the CRO, which ultimately sold it to an equipment broker located in Texas. This broker was not involved in local community transition activities. The equipment broker originally sent a request to purchase the equipment to Nevada in June 2001. Before acting on the broker's request, Nevada offered the equipment to other Department sites and other Federal agencies, but did not receive any requests for the equipment. Rather than offer the drill rig competitively through the General Services Administration, however, Nevada instructed the CRO to purchase the drill rig, for future sale to the equipment broker.