The State of Michigan manages an impressive range of surplus property through its Surplus Program, everything from office furniture and vehicles to lawn care equipment and even TSA materials from airports across the state. 

Ron Turner, Department Supervisor, Logistics and Operations Support, explained how the program goal is straightforward but vital:

“The program’s primary goal is to transfer usable property to other state agencies allowing them to meet their operational needs without purchasing new furnishings.” 

That reuse-first philosophy not only promotes sustainability but also saves Michigan taxpayers hundreds of thousands of dollars each year.

When the Michigan Department of Technology, Management & Budget (DTMB) set out to modernize its surplus property operations, its goals were clear: increase accountability, streamline compliance, and deliver greater value to the residents of Michigan. 

The DTMB Surplus Program uses Recoup Ops, the Recoup Donee Portal, and Scan & Validate to operate efficiently across state and federal surplus inventory—transforming what was once a manual, time-consuming process into a model of transparency and savings. 

The Challenge

Before adopting Recoup, the program’s biggest challenge was simple: visibility—or rather, the lack of it. 

“Without a centralized system, it was difficult to track items received from state agencies and monitor transfers to other agencies,” Ron recalled. With compliance handled manually, staff were spending valuable time chasing paperwork, sending reminders, and compiling reports. 

The impact? Slower service for agencies and nonprofits, and a missed opportunity to fully realize cost savings across the state.  

“Time spent on these challenges meant a longer response time when providing requested status updates on property requests, general information or reports to state agencies and federal donees,” Rachelle Schleicher, Analyst, Logistics and Ops Support said.

The Solution 

An audit served as a catalyst for change. The findings made it clear: the state needed an inventory management system that could ensure accurate tracking, accountability, and transparency across surplus property operations. 

“A highlight of the audit was the need for a centralized tool to manage property transfers, improve reporting, and improve the oversight of state assets,” Ron explained. 

Recoup provided a unified system for inventory management, compliance automation, and real-time reporting—all while aligning with state and federal requirements.

Today, DTMB’s Surplus Program uses Recoup Ops and Scan & Validate to manage every stage of the surplus lifecycle. Within Recoup Ops, the team relies daily on modules including WebSurplus, Transfer, Lotting, Counter Sales, and the Donee Portal. 

Together, these tools create a seamless flow of data—from the moment an item is declared surplus to its transfer, sale, or final disposition. Automated notifications keep donees on track with compliance requirements, while customizable reports provide quick insights for state leadership. 

“The automated compliance notifications to our donees along with the extensive static and customizable reports have significantly reduced the amount of time staff spend on these tasks,” said Rachelle. 

The Results

Since implementing Recoup in 2021, the State of Michigan has achieved remarkable results:

• $1.6 million in cumulative cost savings through reutilization of surplus property 
• Average annual savings exceeding $406,000 
• Increased participation from agencies using WebSurplus to view and transfer property 
• Improved accuracy, accountability, and customer experience

“The system has greatly improved accuracy and efficiency in conducting and maintaining inventory by providing oversight and accountability throughout each step in the process,” Rachelle shared. 

Recoup has helped the team transition outdated processes into a streamlined operation that serves more agencies and generates greater savings—all while maintaining full compliance and transparency.