Disposition of Equipment with a fair market value of greater than $5,000 - after the award, and when you  no longer need it.

You may continue to use equipment that has been purchased with federal funds, and to which the university has title, after an award closes out. You must first use it on an original agency's similar federal award, and if there are none, then on other federal awards for research that furthers the subject matter of the original award. However, when you wish to dispose of the equipment, even though we have title to it, you must notify the original granting agency that it is surplus to UAF and request disposition. If you don't get an answer within 120 days, then you can sell the equipment (according to UAF Property Surplus procedures) but must return all proceeds, less $500 or 10%, to the original agency.

(g) When the recipient no longer needs the equipment, the equipment may be used for other activities in accordance with the following standards. For equipment with a current per unit fair market value of $5000 or more, the recipient may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment. If the recipient has no need for the equipment, the recipient shall request disposition instructions from the Federal awarding agency. The Federal awarding agency shall determine whether the equipment can be used to meet the agency's requirements. If no requirement exists within that agency, the availability of the equipment shall be reported to the General Services Administration by the Federal awarding agency to determine whether a requirement for the equipment exists in other Federal agencies. The Federal awarding agency shall issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern.
   (1) If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request, the recipient shall sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the recipient shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for the recipient's selling and handling expenses.
   (2) If the recipient is instructed to ship the equipment elsewhere, the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred.

http://www.access.gpo.gov/nara/cfr/waisidx_05/2cfrv1_05.html#215

[CITE: 2CFR215.34]  
                     TITLE 2--GRANTS AND AGREEMENTS

   CHAPTER II--OFFICE OF MANAGEMENT AND BUDGET CIRCULARS AND GUIDANCE

PART 215_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH
                    Subpart C_Post Award Requirements

Sec. 215.34  Equipment.