Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    May pricing bullish for most bales

    May pricing bullish for most bales

    PP most likely plastic to shift in 2026

    PP most likely plastic to shift in 2026

    CompuCycle brings e-plastic recycling upgrade online

    Quantum expands e-plastics recovery

    Certification Scorecard — Week of May 4, 2026

    Building a cleaner future through digital transformation

    Q1 earnings confirm wave of ITAD decommissioning

    Sundry Photography / Shutterstock

    Iron Mountain puts ITAD at the center of its growth

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
      • All Topics
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    May pricing bullish for most bales

    May pricing bullish for most bales

    PP most likely plastic to shift in 2026

    PP most likely plastic to shift in 2026

    CompuCycle brings e-plastic recycling upgrade online

    Quantum expands e-plastics recovery

    Certification Scorecard — Week of May 4, 2026

    Building a cleaner future through digital transformation

    Q1 earnings confirm wave of ITAD decommissioning

    Sundry Photography / Shutterstock

    Iron Mountain puts ITAD at the center of its growth

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
      • All Topics
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home E-Scrap

Federal purchasing agency to stop acquiring used electronics

byJared Paben
September 6, 2019
in E-Scrap
Federal purchasing agency to stop acquiring used electronics

Photo Caption

The GSA said the move reduces the government’s exposure to electronics that are outdated and don’t meet current standards. | Rena Schild/Shutterstock

This story has been corrected.

The federal government plans to cease buying refurbished and used IT equipment through its main acquisition arm, the General Services Administration. The move could hurt dozens of suppliers.

The U.S. General Services Administration (GSA) announced it will eliminate its purchasing category for used and refurbished computer equipment, called special item number (SIN) 132-9. In addition to federal agencies, local and state governments can also purchase used devices through the GSA supplier contracts.

During the 2018 fiscal year, about $15 million in sales of refurbished and used electronics were conducted through the contracts, according to the GSA.

Over 60 companies hold contracts with GSA to supply used and refurbished electronics. One of those is Alpharetta, Ga. company XSi, which criticized the move to eliminate SIN 132-9.

“Why is the federal government not taking advantage of refurbished equipment to lower costs and just spending the taxpayer dollar on newer equipment?” asked Todd Bone, president and founder of XSi. “They’re not willing to take the time to vet a supplier and get competitive pricing. Even if they don’t buy from the refurbished supplier, they’re absolutely eliminating any competition that the manufacturers have.”

President’s orders drive decision

In late June, the GSA first announced its decision and asked for comments from the public and private sectors. In August, FCW reported on the move and the impetus.

As of Oct. 1, GSA will not sign new contracts – or extend contracts – for the purchasing of used and refurbished electronics. The department estimates a complete end to SIN 132-9 purchases by mid-2024. The retirement of SIN 132-9 is being proposed as part of a larger consolidation of GSA’s purchasing contracts.

In making the decision on used and refurbished electronics, the GSA expressed concerns over supply chain vulnerabilities and counterfeiting. It cited President Trump’s May 2019 Executive Order on Securing the Information and Communications Technology and Services Supply Chain, as well as his April 2019 “Memorandum on Combating Trafficking in Counterfeit and Pirated Goods.” GSA also cited existing federal regulations concerning the risk of adversaries interfering with supply chains to sabotage electronics or use them to spy.

President Trump’s April memo cited a government study that looked at four categories of frequently counterfeited items. From a small sample of those items purchased through third-party online marketplaces, the study determined that over 40% were counterfeit.

GSA also said the move reduces the government’s exposure to electronics that are outdated and don’t meet current standards.

FCW quoted a GSA official as saying the department is considering removing the refurbished products category because “you can’t guarantee the provenance of refurbished products.”

Concerns over counterfeit electronic parts, particularly those coming from China, have also prompted federal consideration of a scrap electronics export ban, under the argument that parts harvested from them in China are sold back into the U.S. as supposedly new items. Last fall, the Department of Commerce announced it was considering a ban. According to the Institute of Scrap Recycling Industries (ISRI), the government agency has since backed away from the idea.

For years, members of Congress have introduced bills to ban e-scrap exports, but none have managed to get enough traction to pass out of the House of Representatives. The latest was introduced just this June.

‘Cuts the knees out of the small businesses’

The Association of Service and Computer Dealers International and the North American Association of Telecommunications Dealers (AscdiNatd) has members that sell used and refurbished electronics. In comments submitted to GSA, AscdiNatd President Joe Marion pushed back on GSA’s reasoning, pointing out the counterfeiting study cited in President Trump’s April memo dealt primarily with cosmetics, not computers. Marion noted that his group has a strict anti-counterfeit policy and its members use systems for determining whether the products they receive are counterfeit.

“The protections in place for determining whether an IT product is counterfeit are far more sophisticated than those relating to hand cream,” he wrote.

AscdiNatd argued the elimination doesn’t just hurt its members, most of which are small- and medium-sized businesses, but it also raises federal procurement costs.

XSi’s Bone, who is on the AscdiNatd board, told E-Scrap News some federal agencies must purchase used equipment because OEMs have discontinued the products they rely on. For example, XSi provides high-performance computers and visualization systems from Silicon Graphics, which failed and was purchased by Hewlett Packard Enterprise, which discontinued the SGI IRIX legacy equipment at the end of 2018, Bone said. The equipment is used to power important defense systems. There needs to be a way for companies like his to continue selling to the federal government, Bone said.

XSi was the first supplier to sell refurbished enterprise equipment through the GSA over two decades ago, Bone said. He estimated that several years ago sales of used electronics through the GSA contract made up roughly one-fifth of his company’s revenue; today, it’s maybe 1%.

Bone, who is on the board of Repair.org and two other industry groups, said OEMs for years have worked to convince federal agencies that the way to avoid counterfeit electronics is to buy new devices through authorized channels. Most government purchases are of new electronics, not used ones. While purchases of refurbished IT equipment via GSA contracts have added up to between $10 million and $20 million a year in recent years, according to GSA data, purchases of new electronics through GSA contracts have totaled between $1 billion and $2 billion a year.

The end of SIN 132-9 “cuts the knees out of the small businesses” by making it harder for them to sell to the federal government, Bone said.

Tiffany Bloomer, president of Atlanta-based Aventis Systems, which holds a GSA contract to sell new and refurbished electronics, told E-Scrap News that if SIN 132-9 is eliminated, “it means that the government will have to replace legacy systems more frequently, thus spending taxpayers’ dollars on more expensive, brand-new equipment sooner than standard refresh cycles are up.”

She said GSA should work with OEMs, secondary market leaders and industry associations to determine ways to identify counterfeit products. The agency can also better screen secondary-market vendors, she said, suggesting agency staff visit vendor facilities or analyze their supply chains. Another option would be to narrow the scope of refurbished electronics to those less at risk of counterfeiting, she said.

“GSA’s elimination of SIN 132-9 doesn’t save the government money, it doesn’t put processes in place to prevent counterfeit, and it doesn’t support environmental goals,” Bloomer said. “It just promotes the manufacture of more new equipment, thus, lining the pockets of the OEM.”

This story has been corrected to make clear Hewlett Packard Enterprise bought Silicon Graphics and discontinued the SGI IRIX legacy equipment at the end of last year. 
 

Tags: Repair & Reuse
TweetShare
Jared Paben

Jared Paben

Related Posts

Google pilots reuse kits to extend device life

byScott Snowden
April 21, 2026

Google, Back Market and Closing the Loop pilot a reuse model pairing ChromeOS Flex with e-scrap recovery, extending device life...

REUSE Act heads to US House for consideration

byAntoinette Smith
February 9, 2026

The bill would require the US EPA to collect data on reuse and refill systems across industries including consumer packaging,...

Electronics on a desk.

New Blancco workflow targets ITAD bottleneck

byDavid Daoud
February 4, 2026

As resale dynamics evolve, Blancco has released a new reimaging tool that aims to improve laptop rebuild quality for ITAD...

VW investing millions in auto recycling in Germany

byAntoinette Smith
January 28, 2026

The German vehicle manufacturer plans to invest up to €90 million in its Zwickau plant, in efforts to supply its...

Server resale values surge in AI-driven markets

Server resale values surge in AI-driven markets

byDavid Daoud
January 22, 2026

Server resale values jumped sharply in 2025 as AI infrastructure demand tightened supply, reshaping secondary IT markets and boosting returns...

Colorado expands repair rights as electronics rules take effect

Colorado expands repair rights as electronics rules take effect

byScott Snowden
January 19, 2026

A new Colorado law expanding consumers’ right to repair electronic devices took effect this month, requiring manufacturers to provide access...

Load More
Next Post
In other news: March 23, 2016

Plastics recycling technology roundup: Sept. 6, 2019

More Posts

Lawsuits hover days after SB 54 approval

Lawsuits hover days after SB 54 approval

May 6, 2026

Origin Materials to shut down, sell PET cap design

May 6, 2026
New version of California EPR regulations released

CalRecycle approves SB 54 regulations

May 2, 2026
Orange County landfill fees to spike 53%

Orange County landfill fees to spike 53%

May 11, 2026
Electronics are the fire risk battery EPR keeps missing

Electronics are the fire risk battery EPR keeps missing

May 4, 2026
PureCycle sees long-term upside from Iran war

PureCycle sees long-term upside from Iran war

May 7, 2026
Sundry Photography / Shutterstock

Iron Mountain puts ITAD at the center of its growth

May 5, 2026
Canadian city walks back fee on paper coffee cups

Recycling access for paper cups hits 20% of US

May 11, 2026

What Netflix’s ‘Plastic Detox’ gets wrong – and right

April 23, 2026
APR, industry groups testify on overcapacity

APR, industry groups testify on overcapacity

May 8, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.