Under what circumstances can property be classified as excess?

Property is classified as excess when it exceeds the unit's current needs or capabilities to maintain. This means that if a unit possesses more equipment, materials, or supplies than it can effectively use or manage within its operational requirements, that surplus becomes excess property. The classification of excess is critical for effective resource management, allowing units to streamline their inventory, optimize their budget, and facilitate the transfer or disposal of unneeded items to ensure resources are used efficiently.

While damage or outdated status may influence decisions about the property, they do not inherently classify it as excess. Additionally, marking property for disposal is a subsequent step that may occur once property has already been classified as excess, and does not influence the initial classification itself. Thus, the focus is primarily on the relationship between the property and the unit's actual operational needs, which is emphasized in the correct answer.