[Title 41 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2001 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

                    41


          Chapters 102 to 200

                         Revised as of July 1, 2001

Public Contracts and Property Management





          Containing a codification of documents of general 
          applicability and future effect
          As of July 1, 2001
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2001



  For sale by the Superintendent of Documents, U.S. Government Printing 
                                  Office
 Internet: bookstore.gpo.gov    Phone: (202) 512-1800    Fax: (202) 512-
                                   2250
                Mail: Stop SSOP, Washington, DC 20402-0001



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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 41:
    Subtitle C--Federal Property Management Regulations System 
      (Continued):
          Chapter 102--Federal management regulation                 5
          Chapters 103-104 [Reserved]
          Chapter 105--General Services Administration             149
          Chapter 109--Department of Energy Property 
          Management Regulations                                   329
          Chapter 114--Department of the Interior                  395
          Chapter 115--Environmental Protection Agency             399
          Chapter 128--Department of Justice                       403
           Chapters 129-200 [Reserved]
    Subtitle D--Other Provisions Relating to Property 
      Management [Reserved]
            
  Finding Aids:
      Table of CFR Titles and Chapters........................     421
      Alphabetical List of Agencies Appearing in the CFR......     439

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      Redesignation Table.....................................     449
      List of CFR Sections Affected...........................     451



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                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 41 CFR 102-2.5 
                       refers to title 41, part 
                       102-2, section .5.

                     ----------------------------

[[Page vi]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, July 1, 2001, consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vii]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I). A list of CFR titles, chapters, 
and parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
info@fedreg.nara.gov.

SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call 202-512-1800, 
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Customer Service call 202-512-1803.

ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, the LSA (List of 
CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers, Weekly Compilation of Presidential 
Documents and the Privacy Act Compilation are available in electronic 
format at www.access.gpo.gov/nara (``GPO Access''). For more 
information, contact Electronic Information Dissemination Services, U.S. 
Government Printing Office. Phone 202-512-1530, or 888-293-6498 (toll-
free). E-mail, gpoaccess@gpo.gov.

[[Page viii]]

    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.nara.gov/fedreg. The NARA 
site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

July 1, 2001.



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                               THIS TITLE

    Title 41--Public Contracts and Property Management consists of 
Subtitle A--Federal Procurement Regulations System [Note]; Subtitle B--
Other Provisions Relating to Public Contracts; Subtitle C--Federal 
Property Management Regulations System; Subtitle D is reserved for other 
provisions relating to property management, Subtitle E--Federal 
Information Resources Management Regulations System and Subtitle F--
Federal Travel Regulation System.

    As of July 1, 1985, the text of subtitle A is no longer published in 
the Code of Federal Regulations. For an explanation of the status of 
subtitle A, see 41 CFR chapters 1--100 (page 3).

    Other government-wide procurement regulations relating to public 
contracts appear in chapters 50 through 100, subtitle B.

    The Federal property management regulations in chapter 101 of 
subtitle C are government-wide property management regulations issued by 
the General Services Administration. In the remaining chapters of 
subtitle C are the implementing and supplementing property management 
regulations issued by individual Government agencies. Those regulations 
which implement chapter 101 are numerically keyed to it.

    The Federal Travel Regulation System in chapters 300-304 of subtitle 
F is issued by the General Services Administration.

    Title 41 is composed of four volumes. The chapters in these volumes 
are arranged as follows: Chapters 1--100, chapter 101, chapters 102--
200, and chapter 201 to End. These volumes represent all current 
regulations codified under this title of the CFR as of July 1, 2001.

    Redesignation tables appear in the finding aids section of the 
volumes containing chapter 101 and chapters 102 to 200.

[[Page x]]





[[Page 1]]



           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT




                (This book contains chapters 102 to 200)

  --------------------------------------------------------------------
                                                                    Part

 SUBTITLE C--Federal Property Management Regulations System (Continued):

chapter  102--Federal Management Regulation.................       102-2

chapters 103-104 [Reserved]

chapter 105--General Services Administration................       105-1

chapter 109--Department of Energy Property Management 
  Regulations...............................................       109-1

chapter 114--Department of the Interior.....................      114-51

chapter 115--Environmental Protection Agency................       115-1

chapter 128--Department of Justice..........................       128-1

chapters 129-200 [Reserved]

 SUBTITLE D--Other Provisions Relating to Property Management [Reserved]

[[Page 3]]

 Subtitle C--Federal Property Management Regulations System (Continued)

[[Page 5]]



               CHAPTER 102--FEDERAL MANAGEMENT REGULATION




  --------------------------------------------------------------------

                          SUBCHAPTER A--GENERAL
Part                                                                Page
102-1           General [Reserved]

102-2           Federal management regulation system........           7
102-3           Advisory committee management [Reserved]

102-4           Nondiscrimination in Federal financial assistance 
                  programs [Reserved]

102-5           Home-to-work transportation.................          11
102-6--102-30   [Reserved]

  

                     SUBCHAPTER B--PERSONAL PROPERTY
102-31          General [Reserved]

102-32          Management of personal property [Reserved]

102-33          Management of aircraft [Reserved]

102-34          Motor vehicle management....................          17
102-35          Disposition of personal property [Reserved]

102-36          Disposition of excess personal property.....          32
102-37--102-41  [Reserved]

  

102-42          Utilization, donation, and disposal of 
                    foreign gifts and decorations...........          55
102-43--102-70  [Reserved]

  

                       SUBCHAPTER C--REAL PROPERTY
102-71          General.....................................          63
102-72          Delegation of authority.....................          64
102-73          Real estate acquisition.....................          67
102-74          Facility management.........................          71
102-75          Real property disposal......................          73
102-76          Design and construction.....................          77
102-77          Art-in-architecture.........................          78
102-78          Historic preservation.......................          79
102-79          Assignment and utilization of space.........          81
102-80          Safety and environmental management.........          84
102-81          Security....................................          87
102-82          Utility services............................          88

[[Page 6]]

102-83          Centralized services in Federal buildings and 
                  complexes [Reserved]

102-84          Annual real property inventories [Reserved]

102-85          Pricing policy for occupancy in GSA space...          88
102-86--102-115 [Reserved]

  

                      SUBCHAPTER D--TRANSPORTATION
102-116         General [Reserved]

102-117         Transportation management...................         104
102-118         Transportation payment and audit............         119
102-119--102-140  [Reserved]

  

                     SUBCHAPTER E--TRAVEL MANAGEMENT
102-141          General [Reserved]

102-142--102-170 [Reserved]

  

                    SUBCHAPTER F--TELECOMMUNICATIONS
102-171          General [Reserved]

102-172          Telecommunications management policy [Reserved]

102-173--102-190 [Reserved]

  

                  SUBCHAPTER G--ADMINISTRATIVE PROGRAMS
102-191          General [Reserved]

102-192          Mail management [Reserved]

102-193          Records management [Reserved]

102-194          Standard and optional forms program [Reserved]

102-195          Interagency reports management program [Reserved]

102-196          Federal facility ridesharing [Reserved]

102-197--102-220 [Reserved]

  

                  SUBCHAPTER H-SUBCHAPTER Z [RESERVED]

[[Page 7]]



                          SUBCHAPTER A--GENERAL



                      PART 102--GENERAL [RESERVED]



PART 102-2--FEDERAL MANAGEMENT REGULATION SYSTEM--Table of Contents




                      Subpart A--Regulation System

                                 General

Sec.
102-2.5  What is the Federal Management Regulation (FMR)?
102-2.10  What is the FMR's purpose?
102-2.15  What is the authority for the FMR system?
102-2.20  Which agencies are subject to the FMR?
102-2.25  When are other agencies involved in developing the FMR?
102-2.30  Where and in what formats is the FMR published?
102-2.35  How is the FMR distributed?
102-2.40  May an agency issue implementing and supplementing regulations 
          for the FMR?

                                Numbering

102-2.45  How is the FMR numbered?
102-2.50  How do I number my agency's implementing regulations?
102-2.55  How do I number my agency's supplementing regulations?

                               Deviations

102-2.60  What is a deviation from the FMR?
102-2.65  When may agencies deviate from the FMR?
102-2.70  What are individual and class deviations?
102-2.75  What timeframes apply to deviations?
102-2.80  What steps must an agency take to deviate from the FMR?
102-2.85  What are the reasons for writing to GSA about FMR deviations?
102-2.90  Where should my agency send its correspondence on an FMR 
          deviation?
102-2.95  What information must agencies include in their deviation 
          letters to GSA?
102-2.100  Must agencies provide GSA with a follow-up analysis of their 
          experience in deviating from the FMR?
102-2.105  What information must agencies include in their follow-up 
          analysis?
102-2.110  When must agencies provide their follow-up analysis?

                         Non-Regulatory Material

102-2.115  What kinds of non-regulatory material does GSA publish 
          outside of the FMR?
102-2.120  How do I know whom to contact to discuss the regulatory 
          requirements of programs addressed in the FMR?
102-2.125  What source of information can my agency use to identify 
          materials that describe how to do business with GSA?

                            Subpart B--Forms

102-2.130  Where are FMR forms prescribed?
102-2.135  How do agencies obtain forms prescribed by the FMR?

               Subpart C--Plain Language Regulatory Style

102-2.140  What elements of plain language appear in the FMR?
102-2.145  To what do pronouns refer when used in the FMR?

    Authority: 40 U.S.C. 486(c).

    Source: 64 FR 39085, July 21, 1999, unless otherwise noted.



                      Subpart A--Regulation System

                                 General



Sec. 102-2.5  What is the Federal Management Regulation (FMR)?

    The Federal Management Regulation (FMR) is the successor regulation 
to the Federal Property Management Regulations (FPMR). It contains 
updated regulatory policies originally found in the FPMR. However, it 
does not contain FPMR material that described how to do business with 
the General Services Administration (GSA). ``How to'' materials on this 
and other subjects are available in customer service guides, handbooks, 
brochures and Internet websites provided by GSA. (See Sec. 102-2.125.)



Sec. 102-2.10  What is the FMR's purpose?

    The FMR prescribes policies concerning property management and 
related administrative activities. GSA issues the FMR to carry out the 
Administrator of General Services' functional responsibilities, as 
established by statutes, Executive orders, Presidential memoranda, 
Circulars and bulletins issued by the Office of Management and Budget 
(OMB), and other policy directives.

[[Page 8]]



Sec. 102-2.15  What is the authority for the FMR system?

    The Administrator of General Services prescribes and issues the FMR 
under the authority of the Federal Property and Administrative Services 
Act of 1949, as amended, 40 U.S.C. 486(c), as well as other applicable 
Federal laws and authorities.



Sec. 102-2.20  Which agencies are subject to the FMR?

    The FMR applies to executive agencies unless otherwise extended to 
Federal agencies in various parts of this chapter. The difference 
between the two terms is that Federal agencies include executive 
agencies plus establishments in the legislative or judicial branch of 
the Government. See paragraphs (a) and (b) of this section for the 
definitions of each term.
    (a) What is an executive agency? An executive agency is any 
executive department or independent establishment in the executive 
branch of the Government, including any wholly-owned Government 
corporation. (See 40 U.S.C. 472(a).)
    (b) What is a Federal agency? A Federal agency is any executive 
agency or any establishment in the legislative or judicial branch of the 
Government (except the Senate, the House of Representatives, and the 
Architect of the Capitol and any activities under that person's 
direction). (See 40 U.S.C. 472(b).)



Sec. 102-2.25  When are other agencies involved in developing the FMR?

    Normally, GSA will ask agencies to collaborate in developing parts 
of the FMR.



Sec. 102-2.30  Where and in what formats is the FMR published?

    Proposed rules are published in the Federal Register. FMR bulletins 
are published in looseleaf format. FMR interim and final rules are 
published in the following formats--
    (a) Federal Register under the ``Rules and Regulations'' section.
    (b) Loose-leaf. (See Sec. 102-2.35.)
    (c) Code of Federal Regulations (CFR), which is an annual 
codification of the general and permanent rules published in the Federal 
Register. The CFR is available on line and in a bound-volume format.
    (d) Electronically on the Internet.



Sec. 102-2.35  How is the FMR distributed?

    (a) A liaison appointed by each agency provides GSA with their 
agency's distribution requirements of the looseleaf version of the FMR. 
Agencies must submit GSA Form 2053, Agency Consolidated Requirements for 
GSA Regulations and Other External Issuances, to--General Services 
Administration, Office of Communications (X), 1800 F Street, NW, 
Washington, DC 20405.
    (b) Order Federal Register and Code of Federal Regulations copies of 
FMR material through your agency's authorizing officer.



Sec. 102-2.40  May an agency issue implementing and supplementing regulations for the FMR?

    Yes, an agency may issue implementing regulations (see Sec. 102-
2.50) to expand upon related FMR material and supplementing regulations 
(see Sec. 102-2.55) to address subject material not covered in the FMR. 
The Office of the Federal Register assigns chapters in Title 41 of the 
Code of Federal Regulations for agency publication of implementing and 
supplementing regulations.

                                Numbering



Sec. 102-2.45  How is the FMR numbered?

    (a) All FMR sections are designated by three numbers. The following 
example illustrates the chapter (it's always 102), part, and section 
designations:

[[Page 9]]

[GRAPHIC] [TIFF OMITTED] TR21JY99.001

    (b) In the looseleaf version, the month, year, and number of FMR 
amendments appear at the bottom of each page.



Sec. 102-2.50  How do I number my agency's implementing regulations?

    The first three-digit number represents the chapter number assigned 
to your agency in Title 41 of the CFR. The part and section numbers 
correspond to FMR material. For example, if your agency is assigned 
Chapter 130 in Title 41 of the CFR and you are implementing Sec. 102-
2.60 of the FMR, your implementing section would be numbered Sec. 130-
2.60.



Sec. 102-2.55  How do I number my agency's supplementing regulations?

    Since there is no corresponding FMR material, number the 
supplementing material ``601'' or higher. For example, your agency's 
supplementing regulations governing special services to states might 
start with Sec. 130-601.5.

                               Deviations



Sec. 102-2.60  What is a deviation from the FMR?

    A deviation from the FMR is an agency action or policy that is 
inconsistent with the regulation. (The deviation policy for the FPMR is 
in 41 CFR part 101-1.)



Sec. 102-2.65  When may agencies deviate from the FMR?

    Because, it consists primarily of set policies and mandatory 
requirements, deviation from the FMR should occur infrequently. However, 
to address unique circumstances or to test the effectiveness of 
potential policy changes, agencies may be able to deviate from the FMR 
after following the steps described in Sec. 102-2.80.



Sec. 102-2.70  What are individual and class deviations?

    An individual deviation is intended to affect only one action. A 
class deviation is intended to affect more than one action (e.g., 
multiple actions, the actions of more than one agency, or individual 
agency actions that are expected to recur).



Sec. 102-2.75  What timeframes apply to deviations?

    Timeframes vary based on the nature of the deviation. However, 
deviations cannot be open-ended. When consulting with GSA about using an 
individual or class deviation, you must set a timeframe for the 
deviation's duration.



Sec. 102-2.80  What steps must an agency take to deviate from the FMR?

    (a) Consult informally with appropriate GSA program personnel to 
learn more about how your agency can work within the FMR's requirements 
instead of deviating from them. The consultation process may also 
highlight reasons why an agency would not be permitted to deviate from 
the FMR; e.g., statutory constraints.
    (b) Formally request a deviation, if consultations indicate that 
your agency needs one. The head of your agency or a designated official 
should write to GSA's Regulatory Secretariat to the attention of a GSA 
official in the program office that is likely to consider the deviation. 
(See the FMR bulletin that lists contacts in GSA's program offices and 
Sec. 102-2.90.) The written request must fully explain the reasons for 
the deviation, including the benefits that the agency expects to 
achieve.



Sec. 102-2.85  What are the reasons for writing to GSA about FMR deviations?

    The reasons for writing are to:

[[Page 10]]

    (a) Explain your agency's rationale for the deviation. Before it can 
adequately comment on a potential deviation from the FMR, GSA must know 
why it is needed. GSA will compare your need against the applicable 
policies and regulations.
    (b) Obtain clarification from GSA as to whether statutes, Executive 
orders, or other controlling policies, which may not be evident in the 
regulation, preclude deviating from the FMR for the reasons stated.
    (c) Establish a timeframe for using a deviation.
    (d) Identify potential changes to the FMR.
    (e) Identify the benefits and other results that the agency expects 
to achieve.



Sec. 102-2.90  Where should my agency send its correspondence on an FMR deviation?

    Send correspondence to: General Services Administration, Regulatory 
Secretariat (MVRS), Office of Governmentwide Policy, 1800 F Street, NW, 
Washington, DC 20405.



Sec. 102-2.95  What information must agencies include in their deviation letters to GSA?

    Agencies must include:
    (a) The title and citation of the FMR provision from which the 
agency wishes to deviate;
    (b) The name and telephone number of an agency contact who can 
discuss the reason for the deviation;
    (c) The reason for the deviation;
    (d) A statement about the expected benefits of using the deviation 
(to the extent possible, expected benefits should be stated in 
measurable terms);
    (e) A statement about possible use of the deviation in other 
agencies or Governmentwide; and
    (f) The duration of the deviation.



Sec. 102-2.100  Must agencies provide GSA with a follow-up analysis of their experience in deviating from the FMR?

    Yes, agencies that deviate from the FMR must also write to the 
relevant GSA program office at the Regulatory Secretariat's address (see 
Sec. 102-2.90) to describe their experiences in using a deviation.



Sec. 102-2.105  What information must agencies include in their follow-up analysis?

    In your follow-up analysis, provide information that may include, 
but should not be limited to, specific actions taken or not taken as a 
result of the deviation, outcomes, impacts, anticipated versus actual 
results, and the advantages and disadvantages of taking an alternative 
course of action.



Sec. 102-2.110  When must agencies provide their follow-up letters?

    (a) For an individual deviation, once the action is complete.
    (b) For a class deviation, at the end of each twelve-month period 
from the time you first took the deviation and at the end of the 
deviation period.

                         Non-Regulatory Material



Sec. 102-2.115  What kinds of non-regulatory material does GSA publish outside of the FMR?

    As GSA converts the FPMR to the FMR, non-regulatory materials in the 
FPMR, such as guidance, procedures, standards, and information, that 
describe how to do business with GSA, will become available in separate 
documents. These documents may include customer service guides, 
handbooks, brochures, Internet websites, and FMR bulletins. GSA will 
eliminate non-regulatory material that is no longer needed.



Sec. 102-2.120  How do I know whom to contact to discuss the regulatory requirements of programs addressed in the FMR?

    Periodically, GSA will issue for your reference an FMR bulletin that 
lists program contacts with whom agencies can discuss regulatory 
requirements. At a minimum, the list will contain organization names and 
telephone numbers for each program addressed in the FMR.



Sec. 102-2.125  What source of information can my agency use to identify materials that describe how to do business with GSA?

    The FMR establishes policy; it does not specify procedures for the 
acquisition of GSA services. However, as a service to users during the 
transition

[[Page 11]]

from the FPMR to the FMR and as needed thereafter, GSA will issue FMR 
bulletins to identify where to find information on how to do business 
with GSA. References include customer service guides, handbooks, 
brochures, Internet websites, etc.



                            Subpart B--Forms



Sec. 102-2.130  Where are FMR forms prescribed?

    In any of its parts, the FMR may prescribe forms and the 
requirements for using them.



Sec. 102-2.135  How do agencies obtain forms prescribed by the FMR?

    For copies of the forms prescribed by in the FMR, do any of the 
following:
    (a) Write to us at: General Services Administration, National Forms 
and Publications Center (7CPN), Warehouse 4, Dock No. 1, 501 West Felix 
Street, Fort Worth, TX 76115.
    (b) Send e-mail messages to: NFPC@gsa-7FDepot.
    (c) Visit our web site at: www.gsa.gov/forms/forms.htm.



               Subpart C--Plain Language Regulatory Style



Sec. 102-2.140  What elements of plain language appear in the FMR?

    The FMR is written in a ``plain language'' regulatory style. This 
style is easy to read and uses a question and answer format directed at 
the reader, active voice, shorter sentences, and, where appropriate, 
personal pronouns.



Sec. 102-2.145  To what do pronouns refer when used in the FMR?

    Throughout its text, the FMR may contain pronouns such as, but not 
limited to, we, you, and I. When pronouns are used, each subchapter of 
the FMR will indicate whether they refer to the reader, an agency, GSA, 
or some other entity. In general, pronouns refer to who or what must 
perform a required action.

          PART 102-3--ADVISORY COMMITTEE MANAGEMENT [RESERVED]

 PART 102-4--NONDISCRIMINATION IN FEDERAL FINANCIAL ASSISTANCE PROGRAMS 
                               [RESERVED]



PART 102-5--HOME-TO-WORK TRANSPORTATION--Table of Contents




                           Subpart A--General

Sec.
102-5.5  Preamble.
102-5.10  What does this part cover?
102-5.15  Who is covered by this part?
102-5.20  Who is not covered by this part?
102-5.25  What additional guidance concerning home-to-work 
          transportation should Federal agencies issue?
102-5.30  What definitions apply to this part?

           Subpart B--Authorizing Home-to-Work Transportation

102-5.35  Who is authorized home-to-work transportation?
102-5.40  May the agency head delegate the authority to make home-to-
          work determinations?
102-5.45  Should determinations be completed before an employee is 
          provided with home-to-work transportation?
102-5.50  May determinations be made in advance for employees who 
          respond to unusual circumstances when they arise?
102-5.55  How do we prepare determinations?
102-5.60  How long are initial determinations effective?
102-5.65  What procedures apply when the need for home-to-work 
          transportation exceeds the initial period?
102-5.70  What considerations apply in making a determination to 
          authorize home-to-work transportation for field work?
102-5.75  What circumstances do not establish a basis for authorizing 
          home-to-work transportation for field work?
102-5.80  What are some examples of positions that may involve field 
          work?
102-5.85  What information should our determination for field work 
          include if positions are identified rather than named 
          individuals?
102-5.90  Should an agency consider whether to base a Government 
          passenger carrier at a Government facility near the employee's 
          home or work rather than authorize the employee home-to-work 
          transportation?
102-5.95  Is the comfort and/or convenience of an employee considered 
          sufficient justification to authorize home-to-work 
          transportation?
102-5.100  May we use home-to-work transportation for other than 
          official purposes?

[[Page 12]]

102-5.105  May others accompany an employee using home-to-work 
          transportation?

           Subpart C--Documenting and Reporting Determinations

102-5.110  Must we report our determinations outside of our agency?
102-5.115   When must we report our determinations?
102-5.120   What are our responsibilities for documenting use of home-
          to-work transportation?

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); 31 U.S.C. 
1344(e)(1).

    Source: 65 FR 54966, Sept. 12, 2000, unless otherwise noted.



                           Subpart A--General



Sec. 102-5.5  Preamble.

    (a) The questions and associated answers in this part are regulatory 
in effect. Thus compliance with the written text of this part is 
required by all to whom it applies.
    (b) The terms ``we,'' ``I,'' ``our,'' ``you,'' and ``your,'' when 
used in this part, mean you as a Federal agency, an agency head, or an 
employee, as appropriate.



Sec. 102-5.10  What does this part cover?

    This part covers the use of Government passenger carriers to 
transport employees between their homes and places of work.



Sec. 102-5.15  Who is covered by this part?

    This part covers Federal agency employees in the executive, 
judicial, and legislative branches of the Government, with the exception 
of employees of the Senate, House of Representatives, Architect of the 
Capitol, and government of the District of Columbia.



Sec. 102-5.20  Who is not covered by this part?

    This part does not cover:
    (a) Employees who are on official travel (TDY); or
    (b) Employees who are on permanent change of station (PCS) travel; 
or
    (c) Employees who are essential for the safe and efficient 
performance of intelligence, counterintelligence, protective services, 
or criminal law enforcement duties when designated in writing as such by 
their agency head.



Sec. 102-5.25  What additional guidance concerning home-to-work transportation should Federal agencies issue?

    Each Federal agency using Government passenger carriers to provide 
home-to-work transportation for employees who are essential for the safe 
and efficient performance of intelligence, counterintelligence, 
protective services, or criminal law enforcement duties should issue 
guidance concerning such use.



Sec. 102-5.30  What definitions apply to this part?

    The following definitions apply to this part:
    Agency head means the highest official of a Federal agency.
    Clear and present danger means highly unusual circumstances that 
present a threat to the physical safety of the employee or their 
property when the danger is:
    (1) Real; and
    (2) Immediate or imminent, not merely potential; and
    (3) The use of a Government passenger carrier would provide 
protection not otherwise available.
    Compelling operational considerations means those circumstances 
where home-to-work transportation is essential to the conduct of 
official business or would substantially increase a Federal agency's 
efficiency and economy.
    Emergency means circumstances that exist whenever there is an 
immediate, unforeseeable, temporary need to provide home-to-work 
transportation for those employees necessary to the uninterrupted 
performance of the agency's mission. (An emergency may occur where there 
is a major disruption of available means of transportation to or from a 
work site, an essential Government service must be provided, and there 
is no other way to transport those employees.)
    Employee means a Federal officer or employee of a Federal agency, 
including an officer or enlisted member of the Armed Forces.
    Federal agency means:

[[Page 13]]

    (1) A department (as defined in section 18 of the Act of August 2, 
1946 (41 U.S.C. 5a));
    (2) An executive department (as defined in 5 U.S.C. 101);
    (3) A military department (as defined in 5 U.S.C. 102);
    (4) A Government corporation (as defined in 5 U.S.C. 103(1));
    (5) A Government controlled corporation (as defined in 5 U.S.C. 
103(2));
    (6) A mixed-ownership Government corporation (as defined in 31 
U.S.C. 9101(2));
    (7) Any establishment in the executive branch of the Government 
(including the Executive Office of the President);
    (8) Any independent regulatory agency (including an independent 
regulatory agency specified in 44 U.S.C. 3502(10));
    (9) The Smithsonian Institution;
    (10) Any nonappropriated fund instrumentality of the United States; 
and
    (11) The United States Postal Service.
    Field work means official work requiring the employee's presence at 
various locations other than his/her regular place of work. (Multiple 
stops (itinerant-type travel) within the accepted local commuting area, 
limited use beyond the local commuting area, or transportation to remote 
locations that are only accessible by Government-provided transportation 
are examples of field work.)
    Home means the primary place where an employee resides and from 
which the employee commutes to his/her place of work.
    Home-to-work transportation means the use of a Government passenger 
carrier to transport an employee between his/her home and place of work.
    Passenger carrier means a motor vehicle, aircraft, boat, ship, or 
other similar means of transportation that is owned (including those 
that have come into the possession of the Government by forfeiture or 
donation), leased, or rented (non-TDY) by the United States Government.
    Work means any place within the accepted commuting area, as 
determined by the Federal agency for the locality involved, where an 
employee performs his/her official duties.



           Subpart B--Authorizing Home-to-Work Transportation



Sec. 102-5.35  Who is authorized home-to-work transportation?

    By statute, certain Federal officials are authorized home-to-work 
transportation, as are employees who meet certain statutory criteria as 
determined by their agency head. The Federal officials authorized by 
statute are the President, the Vice-President, and other principal 
Federal officials and their designees, as provided in 31 U.S.C. 
1344(b)(1) through (b)(7). Those employees engaged in field work, or 
faced with a clear and present danger, an emergency, or a compelling 
operational consideration may be authorized home-to-work transportation 
as determined by their agency head. No other employees are authorized 
home-to-work transportation.



Sec. 102-5.40  May the agency head delegate the authority to make home-to-work determinations?

    No, the agency head may not delegate the authority to make home-to-
work determinations.



Sec. 102-5.45  Should determinations be completed before an employee is provided with home-to-work transportation?

    Yes, determinations should be completed before an employee is 
provided with home-to-work transportation unless it is impracticable to 
do so.



Sec. 102-5.50  May determinations be made in advance for employees who respond to unusual circumstances when they arise?

    Yes, determinations may be made in advance when the Federal agency 
wants to have employees ready to respond to:
    (a) A clear and present danger;
    (b) An emergency; or
    (c) A compelling operational consideration.

    Note to Sec. 102-5.50: Implementation of these determinations is 
contingent upon one of the three circumstances occurring. Thus, these 
may be referred to as ``contingency determinations.''

[[Page 14]]



Sec. 102-5.55  How do we prepare determinations?

    Determinations must be in writing and include the:
    (a) Name and title of the employee (or other identification, if 
confidential);
    (b) Reason for authorizing home-to-work transportation; and
    (c) Anticipated duration of the authorization.



Sec. 102-5.60  How long are initial determinations effective?

    Initial determinations are effective for no longer than:
    (a) Two years for field work, updated as necessary; and
    (b) Fifteen days for other circumstances.



Sec. 102-5.65  What procedures apply when the need for home-to-work transportation exceeds the initial period?

    The agency head may approve unlimited subsequent determinations, 
when the need for home-to-work transportation exceeds the initial 
period, for no longer than:
    (a) Two years each for field work, updated as necessary; and
    (b) Ninety calendar days each for other circumstances.



Sec. 102-5.70  What considerations apply in making a determination to authorize home-to-work transportation for field work?

    Agencies should consider the following when making a determination 
to authorize home-to-work transportation for field work:
    (a) The location of the employee's home in proximity to his/her work 
and to the locations where non-TDY travel is required; and
    (b) The use of home-to-work transportation for field work should be 
authorized only to the extent that such transportation will 
substantially increase the efficiency and economy of the Government.



Sec. 102-5.75  What circumstances do not establish a basis for authorizing home-to-work transportation for field work?

    The following circumstances do not establish a basis for authorizing 
home-to-work transportation for field work:
    (a) When an employee assigned to field work is not actually 
performing field work.
    (b) When the employee's workday begins at his/her work; or
    (c) When the employee normally commutes to a fixed location, however 
far removed from his/her official duty station (for example, auditors or 
investigators assigned to a defense contractor plant).

    Note to Sec. 102-5.75: For instances where an employee is authorized 
home-to-work transportation under the field work provision, but performs 
field work only on an intermittent basis, the agency shall establish 
procedures to ensure that a Government passenger carrier is used only 
when field work is actually being performed. Although some employees' 
daily work station is not located in a Government office, these 
employees are not performing field work. Like all Government employees, 
employees working in a ``field office'' are responsible for their own 
commuting costs.



Sec. 102-5.80  What are some examples of positions that may involve field work?

    Examples of positions that may involve field work include, but are 
not limited to:
    (a) Quality assurance inspectors;
    (b) Construction inspectors;
    (c) Dairy inspectors;
    (d) Mine inspectors;
    (e) Meat inspectors; and
    (f) Medical officers on outpatient service.

    Note to Sec. 102-5.80: The assignment of an employee to such a 
position does not, of itself, entitle an employee to receive daily home-
to-work transportation.



Sec. 102-5.85  What information should our determination for field work include if positions are identified rather than named individuals?

    If positions are identified rather than named individuals, your 
determination for field work should include sufficient

[[Page 15]]

information to satisfy an audit, if necessary. This information should 
include the job title, number, and operational level where the work is 
to be performed (e.g., five recruiter personnel or, positions at the 
Detroit Army Recruiting Battalion).

    Note to Sec. 102-5.85: An agency head may elect to designate 
positions rather than individual names, especially in positions where 
rapid turnover occurs.



Sec. 102-5.90  Should an agency consider whether to base a Government passenger carrier at a Government facility near the employee's home or work rather than authorize the employee home-to-work transportation?

    Yes, situations may arise where, for cost or other reasons, it is in 
the Government's interest to base a Government passenger carrier at a 
Government facility located near the employee's home or work rather than 
authorize the employee home-to-work transportation.



Sec. 102-5.95  Is the comfort and/or convenience of an employee considered sufficient justification to authorize home-to-work transportation?

    No, the comfort and/or convenience of an employee is not considered 
sufficient justification to authorize home-to-work transportation.



Sec. 102-5.100  May we use home-to-work transportation for other than official purposes?

    No, you may not use home-to-work transportation for other than 
official purposes. However, if your agency has prescribed rules for the 
incidental use of Government vehicles (as provided in 31 U.S.C. note), 
you may use the vehicle in accordance with those rules in connection 
with an existing home-to-work authorization.



Sec. 102-5.105  May others accompany an employee using home-to-work transportation?

    Yes, an employee authorized home-to-work transportation may share 
space in a Government passenger carrier with other individuals, provided 
that the passenger carrier does not travel additional distances as a 
result and such sharing is consistent with his/her Federal agency's 
policy. When a Federal agency establishes its space sharing policy, the 
Federal agency should consider its potential liability for and to those 
individuals. Home-to-work transportation does not extend to the 
employee's spouse, other relatives, or friends unless they travel with 
the employee from the same point of departure to the same destination, 
and this use is consistent with the Federal agency's policy.



           Subpart C--Documenting and Reporting Determinations



Sec. 102-5.110  Must we report our determinations outside of our agency?

    Yes, you must submit your determinations to the following 
Congressional Committees:
    (a) Chairman, Committee on Governmental Affairs, United States 
Senate, Suite SD-340, Dirksen Senate Office Building, Washington, DC 
20510-6250; and
    (b) Chairman, Committee on Governmental Reform, United States House 
of Representatives, Suite 2157, Rayburn House Office Building, 
Washington, DC 20515-6143.



Sec. 102-5.115  When must we report our determinations?

    You must report your determinations to Congress no later than 60 
calendar days after approval. You may consolidate any subsequent 
determinations into a single report and submit them quarterly.



Sec. 102-5.120  What are our responsibilities for documenting use of home-to-work transportation?

    Your responsibilities for documenting use of home-to-work 
transportation are that you must maintain logs or other records 
necessary to verify that any home-to-work transportation was for 
official purposes. Each agency may decide the organizational level at 
which the logs should be maintained and kept. The logs or other records 
should be easily accessible for audit and should contain:
    (a) Name and title of employee (or other identification, if 
confidential) using the passenger carrier;

[[Page 16]]

    (b) Name and title of person authorizing use;
    (c) Passenger carrier identification;
    (d) Date(s) home-to-work transportation is authorized;
    (e) Location of residence;
    (f) Duration; and
    (g) Circumstances requiring home-to-work transportation.

                     PARTS 102-6--102-30 [RESERVED]

[[Page 17]]





                     SUBCHAPTER B--PERSONAL PROPERTY



                     PART 102-31--GENERAL [RESERVED]

         PART 102-32--MANAGEMENT OF PERSONAL PROPERTY [RESERVED]

             PART 102-33--MANAGEMENT OF AIRCRAFT [RESERVED]



PART 102-34--MOTOR VEHICLE MANAGEMENT--Table of Contents




Sec.
102-34.5  Preamble.
102-34.10  What definitions apply to motor vehicle management?
102-34.15  What motor vehicles are not covered by this part?
102-34.20  What types of motor vehicle fleets are there?
102-34.25  What sources of supply are available for obtaining motor 
          vehicles?

           Subpart A--Obtaining Fuel Efficient Motor Vehicles

102-34.30  Who must comply with motor vehicle fuel efficiency 
          requirements?
102-34.35  What are the procedures for purchasing and leasing motor 
          vehicles?
102-34.40  How are passenger automobiles classified?
102-34.45  What size motor vehicles may we purchase and lease?
102-34.50  What are fleet average fuel economy standards?
102-34.55  What are the minimum fleet average fuel economy standards?
102-34.60  How do we calculate the average fuel economy for our fleet?
102-34.65  How may we request an exemption from the fuel economy 
          standards?
102-34.70  How does GSA monitor the fuel economy of purchased and leased 
          motor vehicles?
102-34.75  How must we report fuel economy data for passenger 
          automobiles and light trucks we purchase or commercially 
          lease?
102-34.80  Do we report fuel economy data for passenger automobiles and 
          light trucks purchased for our agency by the GSA Automotive 
          Division?
102.-34.85  Do we have to submit a negative report if we don't purchase 
          or lease any motor vehicles in a fiscal year?
102-34.90  Are any motor vehicles exempted from these reporting 
          requirements?
102-34.95  Does fleet average fuel economy reporting affect our 
          acquisition plan?
102-34.100  Where may we obtain help with our motor vehicle acquisition 
          plan?

          Subpart B--Identifying and Registering Motor Vehicles

                      Motor Vehicle Identification

102-34.105  What motor vehicles require motor vehicle identification?
102-34.110  What motor vehicle identification must we put on motor 
          vehicles we purchase or lease?
102-34.115  What motor vehicle identification must the Department of 
          Defense (DOD) put on motor vehicles it purchases or leases?
102-34.120   Where is motor vehicle identification placed on purchased 
          and leased motor vehicles?
102-34.125  Before we sell a motor vehicle, what motor vehicle 
          identification or markings must we remove?

                             License Plates

102-34.130  Must our motor vehicles use Government license plates?
102-34.135  Do we need to register motor vehicles owned or leased by the 
          Government?
102-34.140  Where may we obtain U.S. Government license plates?
102-34.145  How do we display license plates on motor vehicles?
102-34.150  What do we do about a lost or stolen license plate?
102-34.155  What records do we need to keep on U.S. Government license 
          plates?
102-34.160  How are U.S. Government license plates coded and numbered?
102-34.165  How can we get a new license plate code designation?
102-34.170  Are there special licensing procedures for motor vehicles 
          operating in the District of Columbia (DC)?

                        Identification Exemptions

102-34.175  What types of exemptions are there?
102-34.180  May we have a limited exemption from displaying U.S. 
          Government license plates and other motor vehicle 
          identification?
102-34.185  What information must the certification contain?
102-34.190  For how long is a limited exemption valid?
102-34.195  What agencies have an unlimited exemption from displaying 
          U.S. Government license plates and motor vehicle 
          identification?

[[Page 18]]

102-34.200  What agencies have a special exemption from displaying U.S. 
          Government license plates and motor vehicle identification?
102-34.205  What license plates and motor vehicle identification do we 
          use on motor vehicles that are exempt from motor vehicle 
          identification and U.S. Government license plates?
102-34.210  What special requirements apply to exempted motor vehicles 
          operating in the District of Columbia?
102-34.215  Can GSA ask for a listing of exempted motor vehicles?

          Subpart C--Official Use of Government Motor Vehicles

102-34.220  What is official use of a motor vehicle owned or leased by 
          the Government?
102-34.225  May I use a motor vehicle owned or leased by the Government 
          for transportation between my residence and place of 
          employment?
102-34.230  May Government contractors use motor vehicles owned or 
          leased by the Government?
102-34.235  What does GSA do if it learns of unofficial use of a motor 
          vehicle owned or leased by the Government?
102-34.240  How are Federal employees disciplined for misuse of motor 
          vehicles owned or leased by the Government?
102-34.245  How am I responsible for protecting motor vehicles?
102-34.250  Am I bound by State and local traffic laws?
102-34.255  Who pays for parking fees and fines?
102-34.260  Do Federal employees in motor vehicles owned or leased by 
          the Government have to use safety belts?

                Subpart D--Replacement of Motor Vehicles

102-34.265  What are motor vehicle replacement standards?
102-34.270  May we replace a Government-owned motor vehicle sooner?
102-34.275  May we keep a Government-owned motor vehicle even though the 
          standard permits replacement?
102-34.280  How long must we keep a Government-owned motor vehicle?

           Subpart E--Scheduled Maintenance of Motor Vehicles

102-34.285  What kind of maintenance programs must we have?
102-34.290  Must our motor vehicles pass State inspections?
102-34.295  Where can we obtain help in setting up a maintenance 
          program?

               Subpart F--Motor Vehicle Accident Reporting

102-34.300  What forms do I use to report an accident involving a motor 
          vehicle owned or leased by the Government?
102-34.305  To whom do we send accident reports?

                  Subpart G--Disposal of Motor Vehicles

102-34.310  How do we dispose of a motor vehicle in any State, 
          Commonwealth, territory or possession of the United States, or 
          the District of Columbia?
102-34.315  What forms do we use to transfer ownership when selling a 
          motor vehicle?
102-34.320  How do we distribute the completed Standard Form 97?

                    Subpart H--Motor Vehicle Fueling

102-34.325  How do we obtain fuel for motor vehicles?
102-34.330  What Government-issued charge cards may I use to purchase 
          fuel and motor vehicle related services?
102-34.335  What type of fuel do I use in motor vehicles?
102-34.340  Do I have to use self-service fuel pumps?

              Subpart I--Federal Motor Vehicle Fleet Report

102-34.345  What is the Federal Motor Vehicle Fleet Report?
102-34.350  What records do we need to keep?
102-34.355  When and how do we report motor vehicle data?

                            Subpart J--Forms

102-34.360  How do we obtain the forms prescribed in this part?

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

    Source: 64 FR 59593, Nov. 2, 1999, unless otherwise noted.



Sec. 102-34.5  Preamble.

    (a) This part governs the economical and efficient management and 
control of motor vehicles that the Government owns or leases. Agencies 
will incorporate appropriate provisions of this part into contracts 
offering Government-furnished equipment in order to ensure adequate 
control over the use of motor vehicles.
    (b) The questions and associated answers in this part are regulatory 
in effect. Thus compliance with the written text of this part is 
required by all executive agencies.

[[Page 19]]

    (c) The terms ``we,'' ``I,'' ``our,'' ``you,'' and ``your,'' when 
used in this part, mean you as an executive agency, as your agency's 
fleet manager, or as a motor vehicle user or operator, as appropriate.



Sec. 102-34.10  What definitions apply to motor vehicle management?

    The following definitions apply to motor vehicle management:
    Commercial design motor vehicle means a motor vehicle procurable 
from regular production lines and designed for use by the general 
public.
    Domestic fleet (see Sec. 102-34.20(a)).
    Foreign fleet (see Sec. 102-34.20(b)).
    GSA Fleet lease (see Sec. 102-34.25(d)).
    Large fleet (see Sec. 102-34.20(d)).
    Law enforcement motor vehicle means a passenger automobile or light 
truck that is specifically approved in an agency's appropriation act for 
use in apprehension, surveillance, police or other law enforcement work 
or specifically designed for use in law enforcement. If not identified 
in an agency's appropriation language, a motor vehicle qualifies as a 
law enforcement motor vehicle only in the following cases:
    (1) A passenger automobile having heavy duty components for 
electrical, cooling and suspension systems and at least the next higher 
cubic inch displacement or more powerful engine than is standard for the 
automobile concerned.
    (2) A light truck having emergency warning lights and identified 
with markings such as ``police.''
    (3) An unmarked motor vehicle certified by the agency head as 
essential for the safe and efficient performance of intelligence, 
counterintelligence, protective, or other law enforcement duties.
    (4) A motor vehicle seized by a Federal agency that is subsequently 
used for the purpose of performing law enforcement activities.
    Light duty motor vehicle means any motor vehicle with a gross motor 
vehicle weight rating (GVWR) of 8,500 pounds or less.
    Light truck means a motor vehicle on a truck chassis with a gross 
motor vehicle weight rating (GVWR) of 8,500 pounds or less.
    Military design motor vehicle means a motor vehicle (excluding 
general-purpose motor vehicles) designed according to military 
specifications to support directly combat or tactical operations or 
training for such operations.
    Motor vehicle means any vehicle, self-propelled or drawn by 
mechanical power, designed and operated principally for highway 
transportation of property or passengers, but does not include a 
military design motor vehicle or vehicles not covered by this part (see 
Sec. 102-34.15).
    Motor vehicle identification (also referred to as ``motor vehicle 
markings'') means the legends ``For Official Use Only'' and ``U.S. 
Government'' placed on a motor vehicle plus other legends showing the 
full name of the department, agency, establishment, corporation, or 
service by which the motor vehicle is used. This identification is 
usually a decal placed in the rear window or on the side of the motor 
vehicle.
    Motor vehicle lease (see Sec. 102-34.25(b)).
    Motor vehicle markings (see ``Motor vehicle identification'' in this 
section).
    Motor vehicle purchase (see Sec. 102-34.25(a)).
    Motor vehicle rental (see Sec. 102-34.25(c)).
    Motor vehicles transferred from excess (see Sec. 102-34.25(e)).
    Owning agency means the executive agency that holds the vehicle 
title, manufacturer's Certificate of Origin, or is the lessee of a motor 
vehicle lease. This term does not apply to agencies that lease motor 
vehicles from the GSA Fleet.
    Passenger automobile means a sedan or station wagon designed 
primarily to transport people.
    Reportable motor vehicles are vehicles which are reported to GSA as 
outlined in Subpart I of this part:
    (1) Included are sedans, station wagons, buses, ambulances, vans, 
utility motor vehicles, trucks and truck tractors, regardless of fuel 
type.
    (2) Excluded are fire trucks, motorcycles, military-design motor 
vehicles, semi-trailers, trailers and other trailing equipment such as 
pole trailers, dollies, cable reels, trailer coaches and bogies, and 
trucks with permanently mounted equipment such as generators and air 
compressors.
    Small fleet (see Sec. 102-34.20(c)).

[[Page 20]]

    Using agency means a Federal agency that obtains motor vehicles from 
the GSA Fleet, commercial firms or another Federal agency and does not 
hold the vehicle title or manufacturer's Certificate of Origin. However, 
this does not include a Federal agency that obtains a motor vehicle by 
motor vehicle rental.



Sec. 102-34.15  What motor vehicles are not covered by this part?

    Motor vehicles not covered are:
    (a) Designed or used for military field training, combat, or 
tactical purposes;
    (b) Used principally within the confines of a regularly established 
military post, camp, or depot; or
    (c) Used by an agency in the performance of investigative, law 
enforcement, or intelligence duties if the head of such agency 
determines that exclusive control of such vehicle is essential to the 
effective performance of such duties, although such vehicles are subject 
to subpart C and subpart I of this part.



Sec. 102-34.20  What types of motor vehicle fleets are there?

    The types of motor vehicle fleets are:
    (a) Domestic fleet means all reportable agency-owned motor vehicles 
operated in any State, Commonwealth, territory or possession of the 
United States, and the District of Columbia.
    (b) Foreign fleet means all reportable agency-owned motor vehicles 
operated in areas outside any State, Commonwealth, territory or 
possession of the United States, and the District of Columbia.
    (c) Small fleet means a fleet of fewer than 2,000 reportable agency-
owned motor vehicles, worldwide.
    (d) Large fleet means a fleet of 2,000 or more reportable agency-
owned motor vehicles, worldwide.



Sec. 102-34.25  What sources of supply are available for obtaining motor vehicles?

    The following sources of supply are available:
    (a) Motor vehicle purchase means buying a motor vehicle from a 
commercial source, usually a motor vehicle manufacturer or a motor 
vehicle manufacturer's dealership.
    (b) Motor vehicle lease means obtaining a motor vehicle by contract 
or other arrangement from a commercial source for 60 continuous days or 
more.
    (c) Motor vehicle rental means obtaining a motor vehicle by contract 
or other arrangement from a commercial source for less than 60 
continuous days.
    (d) GSA Fleet lease means obtaining a motor vehicle from the General 
Services Administration (GSA Fleet). Where ``lease'' is used alone 
within this part, it refers to ``motor vehicle lease'' in paragraph (b) 
of this section and not GSA Fleet lease.
    (e) Motor vehicles transferred from excess means obtaining a motor 
vehicle reported as excess and transferred with or without cost.



           Subpart A--Obtaining Fuel Efficient Motor Vehicles



Sec. 102-34.30  Who must comply with motor vehicle fuel efficiency requirements?

    Executive agencies located in any State, Commonwealth, territory or 
possession of the United States, and the District of Columbia which 
operate motor vehicles owned or leased by the Government in the conduct 
of official business. This subpart does not apply to motor vehicles 
exempted by law or other regulations, such as law enforcement and motor 
vehicles in foreign areas. Other Federal agencies are encouraged to 
comply so that maximum energy conservation benefits may be realized in 
obtaining, operating, and managing motor vehicles owned or leased by the 
Government.



Sec. 102-34.35  What are the procedures for purchasing and leasing motor vehicles?

    Procedures for purchasing and leasing motor vehicles can be found in 
subpart 101-26.5 of this title.



Sec. 102-34.40  How are passenger automobiles classified?

    Passenger automobiles are classified in the following table:

------------------------------------------------------------------------
                                     Station wagon
            Sedan class                  class        Descriptive name
------------------------------------------------------------------------
I.................................  I               Subcompact.
II................................  II              Compact.

[[Page 21]]

 
III...............................  III             Midsize
IV................................  IV              Large.
V.................................  ..............  Limousine.
------------------------------------------------------------------------



Sec. 102-34.45  What size motor vehicles may we purchase and lease?

    (a) You must select motor vehicles to achieve maximum fuel 
efficiency.
    (b) Limit motor vehicle body size, engine size and optional 
equipment to what is essential to meet your agency's mission.
    (c) With the exception of motor vehicles used by the President and 
Vice President and motor vehicles for security and highly essential 
needs, you must purchase and lease midsize (class III) or smaller 
sedans.
    (d) Purchase and lease large (class IV) sedans only when such motor 
vehicles are essential to your agency's mission.



Sec. 102-34.50  What are fleet average fuel economy standards?

    (a) The minimum miles per gallon that a fleet of motor vehicles 
purchased or leased by an executive agency must obtain. The need to meet 
these standards is set forth in 49 U.S.C. 32917, Standards for Executive 
Agency Automobiles, and Executive Order 12375, Motor Vehicles. These 
standards have two categories:
    (1) Average fuel economy standard for all passenger automobiles.
    (2) Average fuel economy standard for light trucks.
    (b) These standards do not apply to passenger automobiles and light 
trucks designed to perform combat-related missions for the U.S. Armed 
Forces or motor vehicles designed for use in law enforcement or 
emergency rescue work.



Sec. 102-34.55  What are the minimum fleet average fuel economy standards?

    The minimum fleet average fuel economy standards appear in the 
following table:

                Fleet Average Fuel Economy Standards \a\
------------------------------------------------------------------------
                                                 Passsenger      Light
                 Fiscal year                   automobile \1\  truck \2\
------------------------------------------------------------------------
1995.........................................          27.5     20.6 \3\
1996.........................................          27.5     20.7 \3\
1997.........................................          27.5     20.7 \3\
1998.........................................          27.5     20.7 \3\
1999.........................................          27.5     20.7 \3\
2000 & beyond................................          27.5        (\4\)
------------------------------------------------------------------------
\a\ These figures represent miles/gallon.
\1\ Established by section 49 U.S.C. 32902 and the Secretary of
  Transportation.
\2\ Fleet average fuel economy standard set by the Secretary of
  Transportation and mandated by Executive Order 12375 beginning in
  fiscal year 1982.
\3\ Fleet average fuel economy for light trucks is the combined fleet
  average fuel economy for all 4  x  2 and 4  x  4 light trucks.
\4\ Requirements not yet set by the Secretary of Transportation.



Sec. 102-34.60  How do we calculate the average fuel economy for our fleet?

    (a) Due to the variety of motor vehicle configurations, you must 
take an average of all motor vehicles, by category (passenger 
automobiles or light truck) purchased and leased by your agency during 
the fiscal year. This calculation is the sum of passenger automobiles or 
light trucks that your executive agency purchases or leases from 
commercial sources divided by the sum of the fractions representing the 
number of motor vehicles of each category by model divided by the 
unadjusted city/highway mile-per-gallon ratings for that model, 
developed by the Environmental Protection Agency (EPA) for each fiscal 
year. The EPA mile-per-gallon rating for each motor vehicle make, model, 
and model year may be obtained from the: General Services 
Administration, Attn: FFA, Washington, DC 20406.
    (b) An example follows:

    Light trucks: i. 600 light trucks acquired in a specific year. These 
are broken down into:
    A. 200 Six cylinder automatic transmission pick-up trucks, EPA 
rating: 24.3 mpg, plus
    B. 150 Six cylinder automatic transmission mini-vans, EPA rating 
24.8 mpg, plus
    C. 150 Eight cylinder automatic transmission pick-up trucks, EPA 
rating: 20.4 mpg, plus
    D. 100 Eight cylinder automatic transmission cargo vans, EPA rating: 
22.2 mpg.

[[Page 22]]

[GRAPHIC] [TIFF OMITTED] TR02NO99.009

    ii. Fleet average fuel economy for light trucks in this case is 23.0 
mpg.



Sec. 102-34.65  How may we request an exemption from the fuel economy standards?

    (a) You must submit your reasons for the exemption in a written 
request to the: Administrator of General Services, ATTN: MTV, 
Washington, DC 20405.
    (b) GSA will review the request and advise you of the determination 
within 30 days of receipt. Passenger automobiles and light trucks 
exempted under the provisions of this section must not be included in 
calculating your fleet average fuel economy.



Sec. 102-34.70  How does GSA monitor the fuel economy of purchased and leased motor vehicles?

    (a) Executive agencies report to GSA their leases and purchases of 
passenger automobiles and light trucks. GSA keeps a master record of the 
miles per gallon for passenger automobiles and light trucks acquired by 
each agency during the fiscal year. GSA verifies that each agency's 
passenger automobile and light truck leases and purchases achieve the 
fleet average fuel economy for the applicable fiscal year, as required 
by Executive Order 12375.
    (b) The GSA Federal Vehicle Policy Division (MTV) issues information 
about the EPA miles-per-gallon ratings to executive agencies at the 
beginning of each fiscal year to help agencies with their acquisition 
plans.



Sec. 102-34.75  How must we report fuel economy data for passenger automobiles and light trucks we purchase or commercially lease?

    (a) You must send copies or synopses of motor vehicle leases and 
purchases to GSA. Use the unadjusted combined city/highway mile-per-
gallon ratings for passenger automobiles and light trucks developed each 
fiscal year by the Environmental Protection Agency (EPA). All 
submissions for a fiscal year must reach GSA by December 1 of the next 
fiscal year. Submit the information as soon as possible after the 
purchase or effective date of each lease to the: General Services 
Administration, ATTN: MTV, Washington, DC 20405. Email: 
vehicle.policy@gsa.gov.
    (b) Include in your submission to GSA motor vehicles purchased or 
leased by your agency for use in any State, Commonwealth, territory or 
possession of the United States, and the District of Columbia.
    (c) Your submission to GSA must include:
    (1) Number of passenger automobiles and light trucks, by category.
    (2) Year.
    (3) Make.
    (4) Model.
    (5) Transmission type (if manual, number of forward speeds).
    (6) Cubic inch displacement of engine.
    (7) Fuel type (i.e., gasoline, diesel, or type of alternative fuel).
    (8) Monthly lease cost, if applicable.

    Note to Sec. 102-34.75: Do not include passenger automobile and 
light truck lease renewal options as new acquisition motor vehicle 
leases. Do not report passenger automobiles and light trucks exempted 
from fleet

[[Page 23]]

average fuel economy standards (see Sec. 102-34.50(b) and Sec. 102-
34.65).



Sec. 102-34.80  Do we report fuel economy data for passenger automobiles and light trucks purchased for our agency by the GSA Automotive Division?

    No. The GSA Automotive Division provides information for passenger 
automobiles and light trucks it purchases for agencies.



Sec. 102-34.85  Do we have to submit a negative report if we don't purchase or lease any motor vehicles in a fiscal year?

    Yes, you must submit a negative report if you don't purchase or 
lease any motor vehicles in a fiscal year.



Sec. 102-34.90  Are any motor vehicles exempted from these reporting requirements?

    Yes. You do not need to report passenger automobiles and light 
trucks that are:
    (a) Purchased or leased for use outside any State, Commonwealth, 
territory or possession of the United States, or the District of 
Columbia.
    (b) Designed to perform combat-related missions for the U.S. Armed 
Forces.
    (c) Designed for use in law enforcement or emergency rescue work.



Sec. 102-34.95  Does fleet average fuel economy reporting affect our acquisition plan?

    It may. If previous motor vehicle purchases and leases have caused 
your fleet to fail to meet the required fuel economy by the end of the 
fiscal year, GSA may encourage you to adjust future requests to meet 
fuel economy requirements.



Sec. 102-34.100  Where may we obtain help with our motor vehicle acquisition plans?

    For help with your motor vehicle acquisition plan, contact the: 
General Services Administration, Attn: MTV, Washington, DC 20405. Email: 
vehicle.policy@gsa.gov



          Subpart B--Identifying and Registering Motor Vehicles

                      Motor Vehicle Identification



Sec. 102-34.105  What motor vehicles require motor vehicle identification?

    All motor vehicles owned or leased by the Government must display 
motor vehicle identification unless exempted under Sec. 102-34.180, 
Sec. 102-34.195, or Sec. 102-34.200.



Sec. 102-34.110  What motor vehicle identification must we put on motor vehicles we purchase or lease?

    (a) For motor vehicles with rear windows, display:
    (1) ``For Official Use Only,'' in letters \1/2\ to \3/4\ inch high.
    (2) ``U.S. Government'' in letters \3/4\ to 1 inch high; and
    (3) The full name of the department, agency, establishment, 
corporation, or service owning or leasing the motor vehicle (in letters 
1 to 1\1/2\ inch high), or in the alternative, a title that describes 
the activity in which it is operated (if the title readily identifies 
the department, agency, establishment, corporation, or service 
concerned).
    (b) For other than motor vehicle rear windows, display the motor 
vehicle identification in paragraphs (a)(1) through (3) of this section, 
but:
    (1) Use letters 1 to 1\1/2\ inches high in colors contrasting to the 
motor vehicle.
    (2) If you use subsidiary words or titles of subordinate units, use 
letters \1/2\ inch to \3/4\ inch high.
    (c) The preferred material is a decal of elastomeric pigmented film 
type for ease of application and removal.

    Note to Sec. 102-34.110: Each agency or activity is responsible for 
acquiring its own decals. Replace this motor vehicle identification when 
necessary due to damage or wear.



Sec. 102-34.115  What motor vehicle identification must the Department of Defense (DOD) put on motor vehicles it purchases or leases?

    The following must appear on DOD purchased or leased motor vehicles:
    (a) ``For Official Use Only;''
    (b) An appropriate title for the DOD component; and

[[Page 24]]

    (c) The DOD code and registration number assigned by the DOD 
component accountable for the motor vehicle.



Sec. 102-34.120  Where is motor vehicle identification placed on purchased and leased motor vehicles?

    (a) On most motor vehicles. On the left side of the rear window, 
1\1/2\ inches or less from the bottom of the window.
    (b) On motor vehicles without rear windows or where identification 
on the rear window would not be easily seen. Centered on both front 
doors or in any appropriate position on each side of the motor vehicle.
    (c) On trailers. Centered on both sides of the front quarter of the 
trailer in a conspicuous location.



Sec. 102-34.125  Before we sell a motor vehicle, what motor vehicle identification or markings must we remove?

    You must remove all motor vehicle identification before you transfer 
the title or deliver the motor vehicle.

                             License Plates



Sec. 102-34.130  Must our motor vehicles use Government license plates?

    Yes you must use Government license plates, with the exception of 
motor vehicles exempted under Sec. 102-34.180, Sec. 102-34.195, and 
Sec. 102-34.200.



Sec. 102-34.135  Do we need to register motor vehicles owned or leased by the Government?

    For a motor vehicle owned or leased by the Government that is 
regularly based or operated outside the District of Columbia and 
displaying U.S. Government license plates and motor vehicle 
identification, you need not register it in a State, Commonwealth, 
territory or possession of the United States. Motor vehicles exempted 
under Sec. 102-34.180, Sec. 102-34.195, or Sec. 102-34.200 must be 
registered and inspected in accordance with the laws of the State, 
Commonwealth, territory or possession of the United States where the 
motor vehicle is regularly operated.



Sec. 102-34.140  Where may we obtain U.S. Government license plates?

    For detailed instructions and an ordering form to obtain U.S. 
Government license plates, contact the: Superintendent of Industries, 
District of Columbia, Department of Corrections, Lorton, VA 22079.

    Note to Sec. 102-34.140: You may, but are not required to obtain 
license plates from the District of Columbia, Department of Corrections.



Sec. 102-34.145  How do we display license plates on motor vehicles?

    (a) Display official U.S. Government license plates on the front and 
rear of all motor vehicles owned or leased by the Government. The 
exception is two-wheeled motor vehicles, which require rear license 
plates only.
    (b) You must display U.S. Government license plates on the motor 
vehicle to which the license plates were assigned.
    (c) Display the U.S. Government license plates until the motor 
vehicle is removed from Government service or is transferred, or until 
the plates are damaged and require replacement.
    (d) For motor vehicles owned or leased by DOD, follow DOD 
regulations.



Sec. 102-34.150  What do we do about a lost or stolen license plate?

    You should report the loss or theft of license plates as follows:
    (a) U.S. Government license plates. Tell your local security office 
(or equivalent) and local police.
    (b) District of Columbia or State license plates. Tell your local 
security office (or equivalent) and either the District of Columbia, 
Department of Transportation, or the State agency, as appropriate.



Sec. 102-34.155  What records do we need to keep on U.S. Government license plates?

    You must keep a central record of all U.S. Government license plates 
for your agency's motor vehicle purchases and motor vehicle leases. The 
GSA Fleet must keep such a record for GSA Fleet vehicles. The record 
must identify:
    (a) The motor vehicle to which each set of plates is assigned.
    (b) The complete history of any reassigned plates.
    (c) A list of destroyed or voided license plate numbers.

[[Page 25]]



Sec. 102-34.160  How are U.S. Government license plates coded and numbered?

    U.S. Government license plates, except those issued by the District 
of Columbia, Department of Transportation, under Sec. 102-34.170, will 
be numbered serially for each executive agency, beginning with 101, and 
preceded by a letter code that designates the owning agency for the 
motor vehicle as follows:

Agriculture, Department of--A
Air Force, Department of the--AF
Army, Department of the--W
Commerce, Department of--C
Consumer Product Safety Commission--CPSC
Corps of Engineers, Civil Works--CE
Defense, Department of--D
Defense Commissary Agency--DECA
Defense Contract Audit Agency--DA
Defense Logistics Agency--DLA
District of Columbia Redevelopment Land Agency--LA
Energy, Department of--E
Enrichment Corporation, U.S--EC
Environmental Protection Agency--EPA
Executive Office of the President--EO Council of Economic Advisers, 
National Security Council, Office of Management and Budget--EO
Federal Communications Commission--FC
Federal Deposit Insurance Corporation--FD
Federal Emergency Management Agency--FE
Federal Mediation and Conciliation Service--FM
General Services Administration--GS
Government Printing Office--GP
GSA Fleet--G
Health and Human Services, Department of--HHS
Interior, Department of the--I
Judicial Branch of the Government--JB
Justice, Department of--J
Labor, Department of--L
Legislative Branch--LB
Marine Corps--MC
National Aeronautics and Space Administration--NA
National Capital Planning Commission--NP
National Guard Bureau--NG
National Labor Relations Board--NL
National Science Foundation--NS
Navy, Department of the--N
Nuclear Regulatory Commission--NRC
Office of Personnel Management--OPM
Panama Canal Commission--PC
Railroad Retirement Board--RR
Selective Service System--SS
Small Business Administration--SB
Smithsonian Institution, National Gallery of Art--SI
Soldiers' and Airmen's Home, U.S--SH
State, Department of--S
Tennessee Valley Authority--TV
Transportation, Department of--DOT
Treasury, Department of the--T
United States Information Agency--IA
United States Postal Service--P
Veterans Affairs, Department of--VA



Sec. 102-34.165  How can we get a new license plate code designation?

    To get a new license plate code designation, write to the: General 
Services Administration, Attn: MTV, Washington, DC 20405. Email: 
vehicle.policy@gsa.gov



Sec. 102-34.170  Are there special licensing procedures for motor vehicles operating in the District of Columbia (DC)?

    Yes. DC Code, section 40-102(d)(2), requires the issuance of license 
plates, without charge, for all motor vehicles owned or leased by the 
Government at the time the motor vehicle is registered or reregistered.
    (a) You must register motor vehicles that are regularly based or 
operated in DC with the DC Department of Transportation. Your 
application to register must include a manufacturer's Certificate of 
Origin, bill of sale, or other document attesting Government ownership. 
Forms for registering motor vehicles are available from the District of 
Columbia, Department of Transportation.
    (b) Motor vehicles owned or leased by the Government and licensed in 
the District of Columbia may have the letter code designation prescribed 
in Sec. 102-34.160 stenciled in the blank space beside the embossed 
numbers. If you add a letter code designation, stencil it on the license 
plate so that the letters resemble the embossed numbers in size and 
color. License plates issued by the District of Columbia without an 
agency letter code designation will usually have the letter code 
designation ``US''.
    (c) Transfer of U.S. Government license plates issued by the 
District of Columbia between your agency's own motor vehicles requires 
prior approval from the District of Columbia, Department of 
Transportation.
    (d) You must have each registered motor vehicle inspected annually 
according to section 40-204 of the District of Columbia Code and 
applicable regulations. The District of Columbia

[[Page 26]]

issues an inspection verification sticker for each motor vehicle that 
passes inspection. Inspections and stickers are free.
    (e) Return damaged or mutilated license plates to the District of 
Columbia, Department of Transportation, for cancellation. Also return 
license plates when you transfer a motor vehicle regularly based or 
operated in the District of Columbia to operation in a field area, 
another agency, or remove the motor vehicle from Government service.

[64 FR 59593, Nov. 2, 1999; 64 FR 66967, Nov. 30, 2000]

                        Identification Exemptions



Sec. 102-34.175  What types of exemptions are there?

    (a) Limited exemption.
    (b) Unlimited exemption.
    (c) Special exemption.



Sec. 102-34.180  May we have a limited exemption from displaying U.S. Government license plates and other motor vehicle identification?

    Yes. The head of your agency or designee may authorize a limited 
exemption to the display of U.S. Government license plates and motor 
vehicle identification upon written certification. (See Sec. 102-
34.185.) For motor vehicles leased from the GSA Fleet, send an 
information copy of this certification to the: General Services 
Administration, Attn: FFF, Washington, DC 20406.

    Note to Sec. 102-34.180: Not eligible for exemption are motor 
vehicles regularly used for common administrative purposes and not 
directly connected to investigative, law enforcement or intelligence 
duties involving security activities.



Sec. 102-34.185  What information must the certification contain?

    The certification must state either:
    (a) That the motor vehicle is used primarily for investigative, law 
enforcement or intelligence duties involving security activities and 
that identifying the motor vehicle would interfere with those duties; or
    (b) That identifying the motor vehicle would endanger the security 
of the vehicle occupants.



Sec. 102-34.190  For how long is a limited exemption valid?

    An exemption granted in accordance with Sec. 102-34.180 and 
Sec. 102-34.185 may last from one day up to one year. If the requirement 
for exemption still exists at the end of the year, your agency must re-
certify the continued exemption. For a motor vehicle leased from the GSA 
Fleet, send a copy of the re-certification to the: General Services 
Administration, ATTN: FFF, Washington, DC 20406.



Sec. 102-34.195  What agencies have an unlimited exemption from displaying U.S. Government license plates and motor vehicle identification?

    The following Federal agencies, or activities within agencies, are 
granted an unlimited exemption based on ongoing mission requirements and 
do not need to certify:
    (a) Administrative Office of the United States Courts. All motor 
vehicles used by United States probation offices and pretrial services 
agencies of the judicial branch of the U.S. Government.
    (b) Department of Agriculture. Motor vehicles used for investigative 
or law enforcement activities by the Agricultural Marketing Service, 
Animal and Plant Health Inspection Service, Food Safety and Inspection 
Service, Forest Service, Grain Inspection, Packers and Stockyard 
Administration, Packers and Stockyard Program, Food and Consumers 
Service, and Office of the Inspector General.
    (c) Department of Commerce. Motor vehicles used for surveillance and 
other law enforcement activities by the Office of Export Enforcement, 
International Trade Administration, the National Marine Fisheries 
Service, and the National Oceanic and Atmospheric Administration.
    (d) Department of Defense. Motor vehicles used for intelligence, 
investigative, or security activities by the U.S. Army Intelligence 
Agency and the Criminal Investigation Command of the Department of the 
Army; Office of Naval Intelligence of the Department of the Navy; Office 
of Special Investigations of the Department of the Air Force; the 
Defense Criminal Investigation Service, Office of the Inspector

[[Page 27]]

General; and the Defense Logistics Agency.
    (e) District of Columbia. Motor vehicles used by St. Elizabeth's 
Hospital in outpatient work where identifying the motor vehicles would 
be prejudicial to patients.
    (f) Department of Education. Motor vehicles used for investigative 
and law enforcement activities by the Office of the Inspector General.
    (g) Department of Energy. Motor vehicles used for investigative or 
security activities.
    (h) Environmental Protection Agency. Motor vehicles used for 
investigative and law enforcement activities by the Office of Inspector 
General and the Office of Enforcement and Compliance Assurance.
    (i) Federal Communications Commission. Motor vehicles used for 
investigative activities by the Field Operations Bureau.
    (j) General Services Administration. Motor vehicles used for 
investigative, surveillance, and security activities by special agents 
of the Federal Protective Service, and Office of the Inspector General.
    (k) Department of Health and Human Services. Motor vehicles used for 
undercover law enforcement and similar investigative work by the Food 
and Drug Administration; motor vehicles used to transport mentally 
disturbed children by the National Institutes of Health; and motor 
vehicles used for law enforcement and investigative purposes by the 
Office of Investigations and the Office of the Inspector General.
    (l) Department of Housing and Urban Development. Motor vehicles used 
for law enforcement or investigative purposes by the Office of the 
Inspector General.
    (m) Department of the Interior. Motor vehicles used to enforce game 
laws by the U.S. Fish and Wildlife Service; motor vehicles assigned to 
special agents of the Bureau of Land Management who investigate crimes 
against public lands; motor vehicles assigned to special officers of the 
Bureau of Indian Affairs; motor vehicles used for investigating crimes 
against public lands by the National Park Service and assigned to the 
U.S. Park Police; and motor vehicles assigned to the special agents of 
the Office of the Inspector General who investigate possible crimes of 
fraud and abuse by departmental employees, contractors, and grantees.
    (n) Department of Justice. All motor vehicles used for undercover 
law enforcement activities or investigative work by the Department.
    (o) Department of Labor. All motor vehicles used for investigative, 
law enforcement, and compliance activities by the Employment and 
Training Administration, Occupational Safety and Health Administration, 
Employment Standards Administration, and the Mine Safety and Health 
Administration.
    (p) National Aeronautics and Space Administration. Motor vehicles 
used for investigative or law enforcement activities.
    (q) National Labor Relations Board. Motor vehicles used for 
investigative activities by field offices.
    (r) National Security Council. Motor vehicles used by the Central 
Intelligence Agency.
    (s) Nuclear Regulatory Commission. Motor vehicles used for the 
conduct of security operations or in the enforcement of security 
regulations.
    (t) Office of Personnel Management. Motor vehicles used for the 
investigative program of the Office of Personnel Investigations and 
regional investigation activities.
    (u) United States Postal Service. Motor vehicles that the Postal 
Inspection Service uses for investigative and law enforcement 
activities.
    (v) Department of State. Motor vehicles used for protecting domestic 
and foreign dignitaries and investigating passport and visa fraud.
    (w) Department of Transportation. Motor vehicles used for 
intelligence, investigative, or security activities by the Office of the 
Inspector General, the OST Office of Security, the Investigations and 
Security Division and field counterparts in the U.S. Coast Guard, the 
Office of Civil Aviation Security and field counterparts in the Federal 
Aviation Administration, and the Idaho Division Office of Motor Carriers 
in the Federal Highway Administration.

[[Page 28]]

    (x) Department of Treasury. Motor vehicles used by the U.S. Secret 
Service; the Criminal Investigation Division and the Internal Security 
Division of the Internal Revenue Service; motor vehicles used for 
investigative activities by the Collection Division of the Internal 
Revenue Service; motor vehicles used by the Office of Enforcement and 
the Office of Inspection at the Bureau of Alcohol, Tobacco, and 
Firearms; and motor vehicles used by the Office of Enforcement, Office 
of Compliance Operations, and the Office of Internal Affairs at the U.S. 
Customs Service.
    (y) Department of Veterans Affairs. Motor vehicles used for 
investigative activities by the Office of the Inspector General and 
regional Field Examiners and Property Management Inspectors.



Sec. 102-34.200  What agencies have a special exemption from displaying U.S. Government license plates and motor vehicle identification?

    Motor vehicles assigned for the use of the President and the heads 
of executive departments specified in 5 U.S.C. 101 are exempt from the 
requirement to display motor vehicle identification. All motor vehicles, 
other than those assigned for the personal use of the President, will 
display official U.S. Government license plates.



Sec. 102-34.205  What license plates and motor vehicle identification do we use on motor vehicles that are exempt from motor vehicle identification and U.S. Government license plates?

    Display the regular license plates of the State, Commonwealth, 
territory or possession of the United States, or the District of 
Columbia, where the motor vehicle is principally operated.



Sec. 102-34.210  What special requirements apply to exempted motor vehicles operating in the District of Columbia?

    If your agency wants to use regular District of Columbia license 
plates for motor vehicles exempt from displaying U.S. government license 
plates and motor vehicle identification, your agency head must designate 
an official to authorize them. Provide the name and facsimile signature 
of that official to the District of Columbia, Department of 
Transportation, annually.



Sec. 102-34.215  Can GSA ask for a listing of exempted motor vehicles?

    Yes. If asked, the head of each executive agency must submit a 
report concerning motor vehicles exempted under this subpart. This 
report, which has been assigned interagency report control number 1537-
GSA-AR, should be submitted to the: General Services Administration, 
ATTN: MTV, Washington, DC 20405. Email: vehicle.policy@gsa.gov



          Subpart C--Official Use of Government Motor Vehicles



Sec. 102-34.220  What is official use of a motor vehicle owned or leased by the Government?

    Official use of a motor vehicle is using a motor vehicle to perform 
your agency's mission(s), as authorized by your agency.



Sec. 102-34.225  May I use a motor vehicle owned or leased by the Government for transportation between my residence and place of employment?

    No, you may not use a Government motor vehicle for transportation 
between your residence and place of employment unless your agency 
authorizes such use after making the necessary determination under 31 
U.S.C. 1344 and subpart 101-6.4 of this title. Your agency must keep a 
copy of the written authorization within the agency and monitor the use 
of these motor vehicles.



Sec. 102-34.230  May Government contractors use motor vehicles owned or leased by the Government?

    Yes, Government contractors may use Government motor vehicles when 
authorized under applicable procedures and the following conditions:
    (a) Motor vehicles are used for official purposes only and solely in 
the performance of the contract.
    (b) Motor vehicles cannot be used for transportation between 
residence and place of employment, unless authorized in accordance with 
31 U.S.C. 1344 and subpart 101-6.4 of this title.
    (c) Contractors must:

[[Page 29]]

    (1) Establish and enforce suitable penalties against employees who 
use, or authorize the use of, such motor vehicles for unofficial 
purposes or for other than in the performance of the contract; and
    (2) Pay any expenses or cost, without Government reimbursement, for 
using such motor vehicles other than in the performance of the contract.



Sec. 102-34.235  What does GSA do if it learns of unofficial use of a motor vehicle owned or leased by the Government?

    GSA reports the matter to the head of the agency employing the motor 
vehicle operator. The employing agency investigates and may, if 
appropriate, take disciplinary action under 31 U.S.C. 1349 or may report 
the violation to the Attorney General for prosecution under 18 U.S.C. 
641.



Sec. 102-34.240  How are Federal employees disciplined for misuse of motor vehicles owned or leased by the Government?

    If an employee willfully uses, or authorizes the use of, a motor 
vehicle for other than official purposes, the employee is subject to 
suspension of at least one month or, up to and including, removal by the 
head of the agency (31 U.S.C. 1349).



Sec. 102-34.245  How am I responsible for protecting motor vehicles?

    When a Government-owned or -leased motor vehicle is under your 
control, you must:
    (a) Park or store the vehicle in a manner that reasonably protects 
it from theft or damage.
    (b) Lock the unattended motor vehicle. (The only exception to this 
requirement is when fire regulations or other directives prohibit 
locking motor vehicles in closed buildings or enclosures.)



Sec. 102-34.250  Am I bound by State and local traffic laws?

    Yes. You must obey all motor vehicle traffic laws of the State and 
local jurisdiction, except when the duties of your position require 
otherwise. You are personally responsible if you violate State or local 
traffic laws. If you are fined or otherwise penalized for an offense you 
commit while performing your official duties, but which was not required 
as part of your official duties, payment is your personal 
responsibility.



Sec. 102-34.255  Who pays for parking fees and fines?

    You must pay parking fees while operating a motor vehicle owned or 
leased by the Government. However, you can expect to be reimbursed for 
parking fees incurred while performing official duties. Conversely, if 
you are fined for a parking violation while operating a motor vehicle 
owned or leased by the Government, payment is your personal 
responsibility and you will not be reimbursed.



Sec. 102-34.260  Do Federal employees in motor vehicles owned or leased by the government have to use safety belts?

    Yes Federal employees must use safety belts, when there is a safety 
belt.



                Subpart D--Replacement of Motor Vehicles



Sec. 102-34.265  What are motor vehicle replacement standards?

    Motor vehicle replacement standards specify the minimum number of 
years in use or miles traveled at which an executive agency may replace 
a Government-owned motor vehicle (see Sec. 102-34.280) .



Sec. 102-34.270  May we replace a Government-owned motor vehicle sooner?

    Yes. You may replace a Government-owned motor vehicle if it needs 
body or mechanical repairs that exceed the fair market value of the 
motor vehicle. Determine the fair market value by adding the current 
market value of the motor vehicle plus any capitalized motor vehicle 
additions (such as a utility body or liftgate) or repairs. Your agency 
head or designee must review the replacement in advance.



Sec. 102-34.275  May we keep a Government-owned motor vehicle even though the standard permits replacement?

    Yes. The replacement standard is a minimum only, and therefore, you 
may

[[Page 30]]

keep a Government-owned motor vehicle longer than shown in Sec. 102-
34.280 if the motor vehicle can be operated without excessive 
maintenance costs or substantial reduction in resale value.



Sec. 102-34.280  How long must we keep a Government-owned motor vehicle?

    You must keep a motor vehicle owned or leased by the Government for 
at least the years or miles shown in the following table:

                 Table of Minimum Replacement Standards
------------------------------------------------------------------------
                                                                or Miles
                Motor vehicle type                  Years \a\     \a\
------------------------------------------------------------------------
Sedans/Station Wagons.............................          3     60,000
Ambulances........................................          7     60,000
Buses:
  Intercity.......................................        n/a    280,000
  City............................................        n/a    150,000
  School..........................................        n/a     80,000
Trucks:
  Less than 12,500 pounds GVWR....................          6     50,000
  12,500-23,999 pounds GVWR.......................          7     60,000
  24,000 pounds GVWR and over.....................          9     80,000
  4- or 6-wheel drive motor vehicles..............          6     40,000
------------------------------------------------------------------------
\a\ Minimum standards are stated in both years and miles; use whichever
  occurs first.



           Subpart E--Scheduled Maintenance of Motor Vehicles



Sec. 102-34.285  What kind of maintenance programs must we have?

    You must have a scheduled maintenance program for each motor vehicle 
you own or lease. This requirement applies to motor vehicles operated in 
any State, Commonwealth, territory or possession of the United States, 
and the District of Columbia. The GSA Fleet will develop maintenance 
programs for GSA Fleet vehicles. The scheduled maintenance program must:
    (a) Meet Federal, State, and local emission standards;
    (b) Meet manufacturer warranty requirements;
    (c) Ensure the safe and economical operating condition of the motor 
vehicle throughout its life; and
    (d) Ensure that inspections and servicing occur as recommended by 
the manufacturer or more often if local operating conditions require.



Sec. 102-34.290  Must our motor vehicles pass State inspections?

    Yes your motor vehicles must pass State inspections, where mandated.
    (a) Each motor vehicle owned or leased by the Government must pass 
Federally-mandated emission inspections in the jurisdictions in which 
they operate when required by State motor vehicle administrations or 
State environmental departments. You must reimburse State activities for 
the cost of these inspections if the fee is not waived. GSA will pay the 
cost of these inspections for motor vehicles leased from the GSA Fleet.
    (b) Motor vehicles owned or leased by the Government that are 
exempted from the display of U.S. Government license plates and motor 
vehicle identification must comply with emission and mechanical 
inspection programs of the State, Commonwealth, territory or possession 
of the United States or the District of Columbia in which they are 
regularly operated. Your agency must pay for these inspections, unless 
the fee is waived. Payment for these inspections for motor vehicles 
leased from the GSA Fleet are the responsibility of the using agency.



Sec. 102-34.295  Where can we obtain help in setting up a maintenance program?

    For help in setting up a maintenance programs, contact the: General 
Services Administration, Attn: MTV, Washington, DC 20405. Email: 
vehicle.policy@gsa.gov



               Subpart F--Motor Vehicle Accident Reporting



Sec. 102-34.300  What forms do I use to report an accident involving a motor vehicle owned or leased by the Government?

    GSA recommends the following forms for use to report an accident in 
any State, Commonwealth, territory or possession of the United States 
and the District of Columbia. The forms should be carried in any motor 
vehicle owned or leased by the Government.
    (a) Standard Form 91, Motor Vehicle Accident Report. The motor 
vehicle operator should complete this form at the time and scene of the 
accident if possible, even if damage to the motor vehicle is not 
noticeable.

[[Page 31]]

    (b) Standard Form 94, Statement of Witness. This form should be 
completed by any witness to the accident.



Sec. 102-34.305  To whom do we send accident reports?

    Send accident reports as follows:
    (a) If the motor vehicle is owned or leased by your agency, follow 
your internal agency directives.
    (b) If the motor vehicle is managed by the GSA Fleet, report the 
accident to GSA in accordance with subpart 101-39.4 of this title.



                  Subpart G--Disposal of Motor Vehicles



Sec. 102-34.310  How do we dispose of a motor vehicle in any State, Commonwealth, territory or possession of the United States, or the District of Columbia?

    After meeting the replacement standards under subpart D of this 
part, you may dispose of a Government-owned motor vehicle by 
transferring the motor vehicle title, or manufacturer's Certificate of 
Origin, to the new owner. Detailed instructions on the disposal process 
are in parts 101-45 and 101-46 of this title.



Sec. 102-34.315  What forms do we use to transfer ownership when selling a motor vehicle?

    Use the following forms to transfer ownership:
    (a) Standard Form 97, The United States Government Certificate to 
Obtain Title to a Motor Vehicle, if both of the following apply:
    (1) The motor vehicle will be retitled by a State, Commonwealth, 
territory or possession of the United States or the District of 
Columbia; and
    (2) The purchaser intends to operate the motor vehicle on highways.

    Note to Sec. 102-34.315(a)(2):
    Do not use Standard Form 97 if the Government-owned motor vehicle is 
either not designed or not legal for operation on highways. Examples are 
construction equipment, farm machinery, and certain military-design 
motor vehicles. Instead, use an appropriate bill of sale or award 
document. Examples are Optional Form 16, Sales Slip-Sale of Government 
Personal Property, and Standard Form 114, Sale of Government Property--
Bid and Award.

    (b) Standard Form 97 is optional in foreign countries because 
foreign governments may require the use of other forms.

    Note to Sec. 102-34.315: The original Standard Form 97 is printed on 
secure paper to identify readily any attempt to alter the form. The form 
is also pre-numbered to prevent duplicates. State motor vehicle agencies 
may reject certificates showing erasures or strikeovers.



Sec. 102-34.320  How do we distribute the completed Standard Form 97?

    Standard Form 97 is a 4-part set printed on continuous-feed paper. 
Distribute the form as follows:
    (a) Original SF 97 to the purchaser or donee.
    (b) One copy to the owning agency.
    (c) One copy to the contracting officer making the sale or transfer 
of the motor vehicle.
    (d) One copy under owning-agency directives.



                    Subpart H--Motor Vehicle Fueling



Sec. 102-34.325  How do we obtain fuel for motor vehicles?

    You may obtain fuel for any motor vehicle owned or leased by the 
Government by using:
    (a) A Government-issued charge card;
    (b) A Government agency fueling facility; or
    (c) Personal funds and obtaining reimbursement from your agency.



Sec. 102-34.330  What Government-issued charge cards may I use to purchase fuel and motor vehicle related services?

    (a) You may use a fleet charge card specifically issued for this 
purpose. These cards are designed to collect motor vehicle data at the 
time of purchase. Where appropriate, State sales and motor fuel taxes 
are deducted from fuel purchases by the fleet charge card services 
contractor before your agency is billed. The GSA contractor issued fleet 
charge card is the only Government-issued charge card that may be used 
for GSA Fleet motor vehicles. For further information on acquiring these 
fleet charge cards and their use, contact the: General Services 
Administration, Attn: FCX, Washington, DC 20406.

[[Page 32]]

    (b) You may use a Government purchase card if you do not have a 
fleet charge card or if the use of such a government purchase card is 
required by your agency mission. However, the Government purchase card 
does not collect motor vehicle data nor does it deduct State sales and 
motor fuel taxes.



Sec. 102-34.335  What type of fuel do I use in motor vehicles?

    (a) Use the grade (octane rating) of fuel recommended by the motor 
vehicle manufacturer when fueling motor vehicles owned or leased by the 
Government.
    (b) Do not use premium grade gasoline in any motor vehicle owned or 
leased by the Government unless the motor vehicle specifically requires 
premium grade gasoline.
    (c) Use unleaded gasoline in all Government owned or leased motor 
vehicles designed to operate on gasoline and used overseas unless:
    (1) Such use would be in conflict with country-to-country or multi-
national logistics agreements; or
    (2) Such gasoline is not available locally.



Sec. 102-34.340  Do I have to use self-service fuel pumps?

    Yes. You must use self-service fuel pumps to the fullest extent 
possible.



              Subpart I--Federal Motor Vehicle Fleet Report



Sec. 102-34.345  What is the Federal Motor Vehicle Fleet Report?

    The Federal Motor Vehicle Fleet Report is compiled by GSA annually 
from information submitted by Federal agencies on motor vehicle 
inventory, cost, and use data. GSA supplies copies of the report to the 
Congress, Federal agencies, and other organizations upon request.
    Recipients of this report use it to evaluate and analyze operations 
and management of the Federal motor vehicle fleet.



Sec. 102-34.350  What records do we need to keep?

    For owned motor vehicles, you are responsible for developing 
adequate accounting and reporting procedures to ensure accurate 
reporting of inventory, cost, and operational data needed to manage and 
control motor vehicles.



Sec. 102-34.355  When and how do we report motor vehicle data?

    (a) Within 75 calendar days after the end of the fiscal year, use 
Standard Form 82, Agency Report of Motor Vehicle Data, to report motor 
vehicle inventory, cost, and operating information. Send the Standard 
Form 82 to the: General Services Administration, Attn: MTV, Washington, 
DC 20405. Email: vehicle.policy@gsa.gov
    (b) Use separate forms to report data for domestic and foreign 
fleets.
    (1) For motor vehicles lent to another agency during the reporting 
period, the owning agency reports all data.
    (2) For motor vehicles transferred from one owning agency to 
another, each agency reports data for the time it retained 
accountability.
    (c) Detailed instructions are included as part of the form. You can 
also complete the Standard Form 82 electronically using a computerized 
input medium. For further information, contact the: General Services 
Administration, Attn: MTV, Washington, DC 20405. Email: 
vehicle.policy@gsa.gov



                            Subpart J--Forms



Sec. 102-34.360  How do we obtain the forms prescribed in this part?

    See Sec. 102-2.135 of this chapter for how to obtain forms 
prescribed in this part.

        PART 102-35--DISPOSITION OF PERSONAL PROPERTY [RESERVED]



PART 102-36--DISPOSITION OF EXCESS PERSONAL PROPERTY--Table of Contents




                      Subpart A--General Provisions

Sec.
102-36.5  What is the governing authority for this part?
102-36.10  What does this part cover?
102-36.15  Who must comply with the provisions of this part?
102-36.20  To whom do ``we'', ``you'', and their variants refer?

[[Page 33]]

102-36.25  How do we request a deviation from these requirements and who 
          can approve it?
102-36.30  When is personal property excess?
102-36.35  What is the typical process for disposing of excess personal 
          property?

                               Definitions

102-36.40  What definitions apply to this part?

                             Responsibility

102-36.45  What are our responsibilities in the management of excess 
          personal property?
102-36.50  May we use a contractor to perform the functions of excess 
          personal property disposal?
102-36.55  What is GSA's role in the disposition of excess personal 
          property?

      Subpart B--Acquiring Excess Personal Property For Our Agency

                            Acquiring Excess

102-36.60  Who is eligible to acquire excess personal property as 
          authorized by the Property Act?
102-36.65  Why must we use excess personal property instead of buying 
          new property?
102-36.70  What must we consider when acquiring excess personal 
          property?
102-36.75  Do we pay for excess personal property we acquire from 
          another Federal agency under a transfer?
102-36.80  How much do we pay for excess personal property on a transfer 
          with reimbursement?
102-36.85  Do we pay for personal property we acquire when it is 
          disposed of by another agency under the exchange/sale 
          authority, and how much do we pay?

                           Screening of Excess

102-36.90  How do we find out what personal property is available as 
          excess?
102-36.95  How long is excess personal property available for screening?
102-36.100  When does the screening period start for excess personal 
          property?
102-36.105  Who is authorized to screen and where do we go to screen 
          excess personal property on-site?
102-36.110  Do we need authorization to screen excess personal property?
102-36.115  What information must we include in the authorization form 
          for non-Federal persons to screen excess personal property?
102-36.120  What are our responsibilities in authorizing a non-Federal 
          individual to screen excess personal property?

                          Processing Transfers

102-36.125  How do we process a Standard Form 122 (SF 122), Transfer 
          Order Excess Personal Property, through GSA?
102-36.130  What are our responsibilities in processing transfer orders 
          of excess personal property?
102-36.135  How much time do we have to pick up excess personal property 
          that has been approved for transfer?
102-36.140  May we arrange to have the excess personal property shipped 
          to its final destination?

                            Direct Transfers

102-36.145  May we obtain excess personal property directly from another 
          Federal agency without GSA approval?

Subpart C--Acquiring Excess Personal Property for Non-Federal Recipients

102-36.150  For which non-Federal activities may we acquire excess 
          personal property?
102-36.155  What are our responsibilities when acquiring excess personal 
          property for use by a non-Federal recipient?
102-36.160  What additional information must we provide on the SF 122 
          when acquiring excess personal property for non-Federal 
          recipients?

                     Nonappropriated Fund Activities

102-36.165  Do we retain title to excess personal property furnished to 
          a nonappropriated fund activity within our agency?
102-36.170  May we transfer personal property owned by one of our 
          nonappropriated fund activities?

                               Contractors

102-36.175  Are there restrictions to acquiring excess personal property 
          for use by our contractors?

                              Cooperatives

102-36.180  Is there any limitation/condition to acquiring excess 
          personal property for use by cooperatives?

                            Project Grantees

102-36.185  What are the requirements for acquiring excess personal 
          property for use by our grantees?
102-36.190  Must we always pay 25 percent of the original acquisition 
          cost when furnishing excess personal property to project 
          grantees?
102-36.195  What type of excess personal property may we furnish to our 
          project grantees?

[[Page 34]]

102-36.200  May we acquire excess personal property for cannibalization 
          purposes by the grantee?
102-36.205  Is there a limit to how much excess personal property we may 
          furnish to our grantees?

           Subpart D--Disposition of Excess Personal Property

102-36.210  Why must we report excess personal property to GSA?

                   Reporting Excess Personal Property

102-36.215  How do we report excess personal property?
102-36.220  Must we report all excess personal property to GSA?
102-36.225  Must we report excess related personal property?
102-36.230  Where do we send the reports of excess personal property?
102-36.235  What information do we provide when reporting excess 
          personal property?
102-36.240  What are the disposal condition codes?

                  Disposing of Excess Personal Property

102-36.245  Are we accountable for the personal property that has been 
          reported excess, and who is responsible for the care and 
          handling costs?
102-36.250  Does GSA ever take physical custody of excess personal 
          property?
102-36.255  What options do we have when unusual circumstances do not 
          allow adequate time for disposal through GSA?
102-36.260  How do we promote the expeditious transfer of excess 
          personal property?
102-36.265  What if there are competing requests for the same excess 
          personal property?
102-36.270  What if a Federal agency requests personal property that is 
          undergoing donation screening or in the sales process?
102-36.275  May we dispose of excess personal property without GSA 
          approval?
102-36.280  May we withdraw from the disposal process excess personal 
          property that we have reported to GSA?

                      Transfers With Reimbursement

102-36.285  May we charge for personal property transferred to another 
          Federal agency?
102-36.290  How much do we charge for excess personal property on a 
          transfer with reimbursement?

                       Report of Disposal Activity

102-36.295  Is there any reporting requirement on the disposition of 
          excess personal property?
102-36.300  How do we report the furnishing of personal property to non-
          Federal recipients?

                         Abandonment/Destruction

102-36.305  May we abandon or destroy excess personal property without 
          reporting it to GSA?
102-36.310  Who makes the determination to abandon or destroy excess 
          personal property?
102-36.315  Are there any restrictions to the use of the abandonment/
          destruction authority?
102-36.320  May we transfer or donate excess personal property that has 
          been determined appropriate for abandonment/destruction 
          without GSA approval?
102-36.325  What must be done before the abandonment/destruction of 
          excess personal property?
102-36.330  Are there occasions when public notice is not needed 
          regarding abandonment/destruction of excess personal property?

  Subpart E--Personal Property Whose Disposal Requires Special Handling

102-36.335  Are there certain types of excess personal property that 
          must be disposed of differently from normal disposal 
          procedures?

                       Aircraft and Aircraft Parts

102-36.340  What must we do when disposing of excess aircraft?
102-36.345  May we dispose of excess Flight Safety Critical Aircraft 
          Parts (FSCAP)?
102-36.350  How do we identify a FSCAP?
102-36.355  What are the FSCAP Criticality Codes?
102-36.360  How do we dispose of aircraft parts that are life-limited 
          but have no FSCAP designation?

                        Canines, Law Enforcement

102-36.365  May we transfer or donate canines that have been used in the 
          performance of law enforcement duties?

                        Disaster Relief Property

102-36.370  Are there special requirements concerning the use of excess 
          personal property for disaster relief?

                                Firearms

102-36.375  May we dispose of excess firearms?

                    Foreign Excess Personal Property

102-36.380  Who is responsible for disposing of foreign excess personal 
          property?
102-36.385  What are our responsibilities in the disposal of foreign 
          excess personal property?

[[Page 35]]

102-36.390  How may we dispose of foreign excess personal property?
102-36.395  How may GSA assist us in disposing of foreign excess 
          personal property?
102-36.400  Who pays for the transportation costs when foreign excess 
          personal property is returned to the United States?

                                  Gifts

102-36.405  May we keep gifts given to us from the public?
102-36.410  How do we dispose of a gift in the form of money or 
          intangible personal property?
102-36.415  How do we dispose of gifts other than intangible personal 
          property?
102-36.420  How do we dispose of gifts from foreign governments or 
          entities?

                       Hazardous Personal Property

102-36.425  May we dispose of excess hazardous personal property?

      Munitions List Items/Commerce Control List Items (MLIs/CCLIs)

102-36.430  May we dispose of excess Munitions List Items (MLIs)/
          Commerce Control List Items (CCLIs)?
102-36.435  How do we identify Munitions List Items (MLIs)/Commerce 
          Control List Items (CCLIs) requiring demilitarization?

                     Printing Equipment and Supplies

102-36.440  Are there special procedures for reporting excess printing 
          and binding equipment and supplies?

                           Red Cross Property

102-36.445  Do we report excess personal property originally acquired 
          from or through the American National Red Cross?

                            Shelf-Life Items

102-36.450  Do we report excess shelf-life items?
102-36.455  How do we report excess shelf-life items?
102-36.460  Do we report excess medical shelf-life items held for 
          national emergency purposes?
102-36.465  May we transfer or exchange excess medical shelf-life items 
          with other Federal agencies?

                                 Vessels

102-36.470  What must we do when disposing of excess vessels?

                  Subpart F--Miscellaneous Disposition

102-36.475  What is the authority for transfers under ``Computers for 
          Learning''?

    Authority: 40 U.S.C. 486(c).

    Source: 65 FR 31218, May 16, 2000, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 102-36.5  What is the governing authority for this part?

    Section 205(c) of the Federal Property and Administrative Services 
Act of 1949, as amended (the Property Act) (40 U.S.C. 486), authorizes 
the Administrator of General Services to prescribe regulations as he 
deems necessary to carry out his functions under the Property Act. 
Section 202 of the Property Act (40 U.S.C. 483) authorizes the General 
Services Administration (GSA) to prescribe policies to promote the 
maximum use of excess Government personal property by executive 
agencies.



Sec. 102-36.10  What does this part cover?

    This part covers the acquisition, transfer, and disposal, by 
executive agencies, of excess personal property located in the United 
States, the U.S. Virgin Islands, American Samoa, Guam, the Commonwealth 
of Puerto Rico, and the Commonwealth of the Northern Mariana Islands.



Sec. 102-36.15  Who must comply with the provisions of this part?

    All executive agencies must comply with the provisions of this part. 
The legislative and judicial branches are encouraged to report and 
transfer excess personal property and fill their personal property 
requirements from excess in accordance with these provisions.



Sec. 102-36.20  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
part refer to the agency.



Sec. 102-36.25  How do we request a deviation from these requirements and who can approve it?

    See Secs. 102-2.60 through 102-2.110 of this chapter to request a 
deviation from the requirements of this part.

[[Page 36]]



Sec. 102-36.30  When is personal property excess?

    Personal property is excess when it is no longer needed by the 
activities within your agency to carry out the functions of official 
programs, as determined by the agency head or designee.



Sec. 102-36.35  What is the typical process for disposing of excess personal property?

    (a) You must ensure personal property not needed by your activity is 
offered for use elsewhere within your agency. If the property is no 
longer needed by any activity within your agency, your agency declares 
the property excess and reports it to GSA for possible transfer to 
eligible recipients, including Federal agencies for direct use or for 
use by their contractors, project grantees, or cooperative agreement 
recipients. All executive agencies must, to the maximum extent 
practicable, fill requirements for personal property by using existing 
agency property or by obtaining excess property from other Federal 
agencies in lieu of new procurements.
    (b) If GSA determines that there are no Federal requirements for 
your excess personal property, it becomes surplus property and is 
available for donation to State and local public agencies and other 
eligible non-Federal activities. The Property Act requires that surplus 
personal property be distributed to eligible recipients by an agency 
established by each State for this purpose, the State Agency for Surplus 
Property.
    (c) Surplus personal property not selected for donation is offered 
for sale to the public by competitive offerings such as sealed bid 
sales, spot bid sales or auctions. You may conduct or contract for the 
sale of your surplus personal property, or have GSA or another executive 
agency conduct the sale on behalf of your agency in accordance with part 
101-45 of this title. You must inform GSA at the time the property is 
reported as excess if you do not want GSA to conduct the sale for you.
    (d) If a written determination is made that the property has no 
commercial value or the estimated cost of its continued care and 
handling would exceed the estimated proceeds from its sale, you may 
dispose of the property by abandonment or destruction, or donate it to 
public bodies.

                               Definitions



Sec. 102-36.40  What definitions apply to this part?

    The following definitions apply to this part:
    Commerce Control List Items (CCLIs) are dual use (commercial/
military) items that are subject to export control by the Bureau of 
Export Administration, Department of Commerce. These items have been 
identified in the U.S. Export Administration Regulations (15 CFR part 
774) as export controlled for reasons of national security, crime 
control, technology transfer and scarcity of materials.
    Cooperative means the organization or entity that has a cooperative 
agreement with a Federal agency.
    Cooperative agreement means a legal instrument reflecting a 
relationship between a Federal agency and a non-Federal recipient, made 
in accordance with the Federal Grant and Cooperative Agreement Act of 
1977 (31 U.S.C. 6301-6308), under any or all of the following 
circumstances:
    (1) The purpose of the relationship is the transfer, between a 
Federal agency and a non-Federal entity, of money, property, services, 
or anything of value to accomplish a public purpose authorized by law, 
rather than by purchase, lease, or barter, for the direct benefit or use 
of the Federal Government.
    (2) Substantial involvement is anticipated between the Federal 
agency and the cooperative during the performance of the agreed upon 
activity.
    (3) The cooperative is a State or local government entity or any 
person or organization authorized to receive Federal assistance or 
procurement contracts.
    Demilitarization means, as defined by the Department of Defense, the 
act of destroying the military capabilities inherent in certain types of 
equipment or material. Such destruction may include deep sea dumping, 
mutilation, cutting, crushing, scrapping, melting, burning, or 
alteration so as to prevent the further use of the item for its 
originally intended purpose.

[[Page 37]]

    Excess personal property means any personal property under the 
control of any Federal agency that is no longer required for that 
agency's needs, as determined by the agency head or designee.
    Exchange/sale property means property not excess to the needs of the 
holding agency but eligible for replacement, which is exchanged or sold 
under the provisions of part 101-46 of this title in order to apply the 
exchange allowance or proceeds of sale in whole or part payment for 
replacement with a similar item.
    Executive agency means any executive department or independent 
establishment in the executive branch of the Government, including any 
wholly owned Government corporation.
    Fair market value means the best estimate of the gross sales 
proceeds if the property were to be sold in a public sale.
    Federal agency means any executive agency or any establishment in 
the legislative or judicial branch of the Government (except the Senate, 
the House of Representatives, and the Architect of the Capitol and any 
activities under his/her direction).
    Federal Disposal System (FEDS) is GSA's automated excess personal 
property system. For additional information on using FEDS, access http:/
/pub.fss.gsa.gov/property/.
    Flight Safety Critical Aircraft Part (FSCAP) is any aircraft part, 
assembly, or installation containing a critical characteristic whose 
failure, malfunction, or absence could cause a catastrophic failure 
resulting in engine shut-down or loss or serious damage to the aircraft 
resulting in an unsafe condition.
    Foreign excess personal property is any U.S. owned excess personal 
property located outside the United States (U.S.), the U.S. Virgin 
Islands, American Samoa, Guam, the Commonwealth of Puerto Rico, and the 
Commonwealth of the Northern Mariana Islands.
    Grant means a type of assistance award and a legal instrument which 
permits a Federal agency to transfer money, property, services or other 
things of value to a grantee when no substantial involvement is 
anticipated between the agency and the recipient during the performance 
of the contemplated activity.
    Hazardous personal property means property that is deemed a 
hazardous material, chemical substance or mixture, or hazardous waste 
under the Hazardous Materials Transportation Act (HMTA) (49 U.S.C. 
5101), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6901-6981), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 2601-
2609).
    Holding agency means the Federal agency having accountability for, 
and generally possession of, the property involved.
    Intangible personal property means personal property in which the 
existence and value of the property is generally represented by a 
descriptive document rather than the property itself. Some examples are 
patents, patent rights, processes, techniques, inventions, copyrights, 
negotiable instruments, money orders, bonds, and shares of stock.
    Life-limited aircraft part is an aircraft part that has a finite 
service life expressed in either total operating hours, total cycles, 
and/or calendar time.
    Line item means a single line entry, on a reporting form or transfer 
order, for items of property of the same type having the same 
description, condition code, and unit cost.
    Munitions List Items (MLIs) are commodities (usually defense 
articles/defense services) listed in the International Traffic in Arms 
Regulation (22 CFR part 121), published by the U.S. Department of State.
    Nonappropriated fund activity means an activity or entity that is 
not funded by money appropriated from the general fund of the U.S. 
Treasury, such as post exchanges, ship stores, military officers' clubs, 
veterans' canteens, and similar activities. Such property is not Federal 
property.
    Personal property means any property, except real property. For 
purposes of this part, the term excludes records of the Federal 
Government, and naval vessels of the following categories: battleships, 
cruisers, aircraft carriers, destroyers, and submarines.
    Project grant means a grant made for a specific purpose and with a 
specific termination date.

[[Page 38]]

    Property Act means the Federal Property and Administrative Services 
Act of 1949 (63 Stat. 386), as amended.
    Public agency means any State, political subdivision thereof, 
including any unit of local government or economic development district; 
any department, agency, or instrumentality thereof, including 
instrumentalities created by compact or other agreement between States 
or political subdivisions; multijurisdictional substate districts 
established by or pursuant to State law; or any Indian tribe, band, 
group, pueblo, or community located on a State reservation.
    Related personal property means any personal property that is an 
integral part of real property. It is:
    (1) Related to, designed for, or specifically adapted to the 
functional capacity of the real property and removal of this personal 
property would significantly diminish the economic value of the real 
property; or
    (2) Determined by the Administrator of General Services to be 
related to the real property.
    Salvage means property that has value greater than its basic 
material content but for which repair or rehabilitation is clearly 
impractical and/or uneconomical.
    Scrap means property that has no value except for its basic material 
content.
    Screening period means the period in which excess and surplus 
personal property are made available for excess transfer or surplus 
donation to eligible recipients.
    Shelf-life item is any item that deteriorates over time or has 
unstable characteristics such that a storage period must be assigned to 
assure the item is issued within that period to provide satisfactory 
performance. Management of such items is governed by part 101-27, 
subpart 27.2, of this title and by DOD instructions, for executive 
agencies and DOD respectively.
    Surplus personal property (surplus) means excess personal property 
no longer required by the Federal agencies as determined by GSA.
    Surplus release date means the date when Federal screening has been 
completed and the excess property becomes surplus.
    Transfer with reimbursement means a transfer of excess personal 
property between Federal agencies where the recipient is required to 
pay, i.e. reimburse the holding agency, for the property.
    Unit cost means the original acquisition cost of a single item of 
property.
    United States means all the 50 States and the District of Columbia.
    Vessels means ships, boats and craft designed for navigation in and 
on the water, propelled by oars or paddles, sail, or power.

                             Responsibility



Sec. 102-36.45  What are our responsibilities in the management of excess personal property?

    (a) Agency procurement policies should require consideration of 
excess personal property before authorizing procurement of new personal 
property.
    (b) You are encouraged to designate national and regional property 
management officials to:
    (1) Promote the use of available excess personal property to the 
maximum extent practicable by your agency.
    (2) Review and approve the acquisition and disposal of excess 
personal property.
    (3) Ensure that any agency implementing procedures comply with this 
part.
    (c) When acquiring excess personal property, you must:
    (1) Limit the quantity acquired to that which is needed to 
adequately perform the function necessary to support the mission of your 
agency.
    (2) Establish controls over the processing of excess personal 
property transfer orders.
    (3) Facilitate the timely pickup of acquired excess personal 
property from the holding agency.
    (d) While excess personal property you have acquired is in your 
custody, or the custody of your non-Federal recipients and the 
Government retains title, you and/or the non-Federal recipient must do 
the following:
    (1) Establish and maintain a system for property accountability.
    (2) Protect the property against hazards including but not limited 
to fire, theft, vandalism, and weather.

[[Page 39]]

    (3) Perform the care and handling of personal property. ``Care and 
handling'' includes completing, repairing, converting, rehabilitating, 
operating, preserving, protecting, insuring, packing, storing, handling, 
conserving, and transporting excess and surplus personal property, and 
destroying or rendering innocuous property which is dangerous to public 
health or safety.
    (4) Maintain appropriate inventory levels as set forth in part 101-
27 of this title.
    (5) Continuously monitor the personal property under your control to 
assure maximum use, and develop and maintain a system to prevent and 
detect nonuse, improper use, unauthorized disposal or destruction of 
personal property.
    (e) When you no longer need personal property to carry out the 
mission of your program, you must:
    (1) Offer the property for reassignment to other activities within 
your agency.
    (2) Promptly report excess personal property to GSA when it is no 
longer needed by any activity within your agency for further reuse by 
eligible recipients.
    (3) Continue the care and handling of excess personal property while 
it goes through the disposal process.
    (4) Facilitate the timely transfer of excess personal property to 
other Federal agencies or authorized eligible recipients.
    (5) Provide reasonable access to authorized personnel for inspection 
and removal of excess personal property.
    (6) Ensure that final disposition complies with applicable 
environmental, health, safety and national security regulations.



Sec. 102-36.50  May we use a contractor to perform the functions of excess personal property disposal?

    Yes, you may use service contracts to perform disposal functions 
that are not inherently Governmental, such as warehousing or custodial 
duties. You are responsible for ensuring that the contractor conforms 
with the requirements of the Property Act and the Federal Management 
Regulation (41 CFR chapter 102), and any other applicable statutes and 
regulations when performing these functions.



Sec. 102-36.55  What is GSA's role in the disposition of excess personal property?

    In addition to developing and issuing regulations for the management 
of excess personal property, GSA:
    (a) Screens and offers available excess personal property to Federal 
agencies and eligible non-Federal recipients.
    (b) Approves and processes transfers of excess personal property to 
eligible activities.
    (c) Determines the amount of reimbursement for transfers of excess 
personal property when appropriate.
    (d) Conducts sales of surplus and exchange/sale personal property 
when requested by an agency.
    (e) Maintains an automated system, FEDS, to facilitate the reporting 
and transferring of excess personal property.



      Subpart B--Acquiring Excess Personal Property For Our Agency

                            Acquiring Excess



Sec. 102-36.60  Who is eligible to acquire excess personal property as authorized by the Property Act?

    The following are eligible to acquire excess personal property:
    (a) Federal agencies (for their own use or use by their authorized 
contractors, cooperatives, and project grantees).
    (b) The Senate.
    (c) The House of Representatives.
    (d) The Architect of the Capitol and any activities under his 
direction.
    (e) The DC Government.
    (f) Mixed-ownership Government corporations as defined in 31 U.S.C. 
9101.



Sec. 102-36.65  Why must we use excess personal property instead of buying new property?

    Using excess personal property to the maximum extent practicable 
maximizes the return on Government dollars spent and minimizes 
expenditures for new procurement. Before purchasing new property, check 
with the appropriate regional GSA Personal Property Management office or 
access

[[Page 40]]

FEDS for any available excess personal property that may be suitable for 
your needs. You must use excess personal property unless it would cause 
serious hardship, be impractical, or impair your operations.



Sec. 102-36.70  What must we consider when acquiring excess personal property?

    Consider the following when acquiring excess personal property:
    (a) There must be an authorized requirement.
    (b) The cost of acquiring and maintaining the excess personal 
property (including packing, shipping, pickup, and necessary repairs) 
does not exceed the cost of purchasing and maintaining new material.
    (c) The sources of spare parts or repair/maintenance services to 
support the acquired item are readily accessible.
    (d) The supply of excess parts acquired must not exceed the life 
expectancy of the equipment supported.
    (e) The excess personal property will fulfill the required need with 
reasonable certainty without sacrificing mission or schedule.
    (f) You must not acquire excess personal property with the intent to 
sell or trade for other assets.



Sec. 102-36.75  Do we pay for excess personal property we acquire from another Federal agency under a transfer?

    (a) No, except for the situations listed in paragraph (b) of this 
section, you do not pay for the property. However, you are responsible 
for shipping and transportation costs. Where applicable, you may also be 
required to pay packing, loading, and any costs directly related to the 
dismantling of the property when required for the purpose of 
transporting the property.
    (b) You may be required to reimburse the holding agency for excess 
personal property transferred to you (i.e., transfer with reimbursement) 
when:
    (1) Reimbursement is directed by GSA.
    (2) The property was originally acquired with funds not appropriated 
from the general fund of the Treasury or appropriated therefrom but by 
law reimbursable from assessment, tax, or other revenue and the holding 
agency requests reimbursement. It is executive branch policy that 
working capital fund property shall be transferred without 
reimbursement.
    (3) The property was acquired with appropriated funds, but 
reimbursement is required or authorized by law.
    (4) You or the holding agency is the U.S. Postal Service (USPS).
    (5) You are acquiring excess personal property for use by a project 
grantee that is a public agency or a nonprofit organization and exempt 
from taxation under 26 U.S.C. 501.
    (6) You or the holding agency is the DC Government.
    (7) You or the holding agency is a wholly owned or mixed-ownership 
Government corporation as defined in the Government Corporation Control 
Act (31 U.S.C. 9101-9110).



Sec. 102-36.80  How much do we pay for excess personal property on a transfer with reimbursement?

    (a) You may be required to reimburse the holding agency the fair 
market value when the transfer involves any of the conditions in 
Sec. 102-36.75(b)(1) through (b)(4).
    (b) When acquiring excess personal property for your project 
grantees (Sec. 102-36.75(b)(5)), you are required to deposit into the 
miscellaneous receipts fund of the U.S. Treasury an amount equal to 25 
percent of the original acquisition cost of the property, except for 
transfers under the conditions cited in Sec. 102-36.190.
    (c) When you or the holding agency is the DC Government or a wholly 
owned or mixed-ownership Government corporation (Sec. 102-36.75(b)(6) or 
(b)(7)), you are required to reimburse the holding agency using fair 
value reimbursement. Fair value reimbursement is 20 percent of the 
original acquisition cost for new or unused property (i.e., condition 
code 1), and zero percent for other personal property. Where 
circumstances warrant, a higher fair value may be used if the agencies 
concerned agree. Due to special circumstances or the unusual nature of 
the property, the holding agency may use other criteria for establishing 
fair value if approved or directed by GSA. You must refer any 
disagreements to the appropriate regional

[[Page 41]]

GSA Personal Property Management office.



Sec. 102-36.85  Do we pay for personal property we acquire when it is disposed of by another agency under the exchange/sale authority, and how much do we pay?

    Yes, you must pay for personal property disposed of under the 
exchange/sale authority, in the amount required by the holding agency. 
The amount of reimbursement is normally the fair market value.

                           Screening of Excess



Sec. 102-36.90  How do we find out what personal property is available as excess?

    You may use the following methods to find out what excess personal 
property is available:
    (a) Check GSA's automated excess personal property system FEDS. For 
information on FEDS access http://pub.fss.gsa.gov/property/.
    (b) Contact or submit want lists to regional GSA Personal Property 
Management offices.
    (c) Check any available holding agency websites (see http://
www.policyworks.gov/surplus for a list of Federal agency websites.).
    (d) Conduct on-site screening at various Federal facilities.



Sec. 102-36.95  How long is excess personal property available for screening?

    The screening period for excess personal property is normally 21 
calendar days. GSA may extend or shorten the screening period in 
coordination with the holding agency. For screening timeframes for 
Government property in the possession of contractors see the Federal 
Acquisition Regulation (48 CFR part 45).



Sec. 102-36.100  When does the screening period start for excess personal property?

    Screening starts when GSA receives the report of excess personal 
property (see Sec. 102-36.230).



Sec. 102-36.105  Who is authorized to screen and where do we go to screen excess personal property on-site?

    You may authorize your agency employees, contractors, or non-Federal 
recipients that you sponsor to screen excess personal property. You may 
visit Defense Reutilization and Marketing Offices (DRMOs) and DOD 
contractor facilities to screen excess personal property generated by 
the Department of Defense. You may also inspect excess personal property 
at various civilian agency facilities throughout the United States.



Sec. 102-36.110  Do we need authorization to screen excess personal property?

    (a) Yes, when entering a Federal facility, Federal agency employees 
must present a valid Federal ID. Non-Federal individuals will need proof 
of authorization from their sponsoring Federal agency in addition to a 
valid picture identification.
    (b) Entry on some Federal and contractor facilities may require 
special authorization from that facility. Persons wishing to screen 
excess personal property on such a facility must obtain approval from 
that agency. Contact your regional GSA Personal Property Management 
office for locations and accessibility.



Sec. 102-36.115  What information must we include in the authorization form for non-Federal persons to screen excess personal property?

    (a) For non-Federal persons to screen excess personal property, you 
must provide on the authorization form:
    (1) The individual's name and the organization he/she represents;
    (2) The period of time and location(s) in which screening will be 
conducted; and
    (3) The number and completion date of the applicable contract, 
cooperative agreement, or grant.
    (b) An authorized official of your agency must sign the 
authorization form.



Sec. 102-36.120  What are our responsibilities in authorizing a non-Federal individual to screen excess personal property?

    You must do the following:

[[Page 42]]

    (a) Ensure that the non-Federal screener certifies that any and all 
property requested will be used for authorized official purpose(s).
    (b) Maintain a record of the authorized screeners under your 
authority, to include names, addresses and telephone numbers, and any 
additional identifying information such as driver's license or social 
security numbers.
    (c) Retrieve any expired or invalid screener's authorization forms.

                          Processing Transfers



Sec. 102-36.125  How do we process a Standard Form 122 (SF 122), Transfer Order Excess Personal Property, through GSA?

    (a) You must first contact the appropriate regional GSA Personal 
Property Management office to assure the property is available to you. 
Submit your request on a SF 122, Transfer Order Excess Personal 
Property, to the region in which the property is located. For the types 
of property listed in the table in paragraph (b) of this section, submit 
the SF 122 to the corresponding GSA regions. You may submit the SF 122 
manually or transmit the required information by electronic media (FEDS) 
or any other transfer form specified and approved by GSA.
    (b) For the following types of property, you must submit the SF 122 
to the corresponding GSA regions:

------------------------------------------------------------------------
         Type of property             GSA region          Location
------------------------------------------------------------------------
Aircraft.........................  9 FBP            San Francisco, CA
                                                     94102.
Firearms.........................  7 FP-8           Denver, CO 80225.
Foreign Gifts....................  FBP              Washington, DC
                                                     20406.
Forfeited Property...............  3 FP             Washington, DC
                                                     20407.
Standard Forms...................  7 FMP            Ft. Worth, TX 76102.
Vessels, civilian................  4 FD             Atlanta, GA 30365.
Vessels, DOD.....................  3 FPD            Philadelphia, PA
                                                     19107.
------------------------------------------------------------------------


[65 FR 31218, May 16, 2000; 65 FR 33889, May 25, 2000]



Sec. 102-36.130  What are our responsibilities in processing transfer orders of excess personal property?

    Whether the excess is for your use or for use by a non-Federal 
recipient that you sponsor, you must:
    (a) Ensure that only authorized Federal officials of your agency 
sign the SF 122 prior to submission to GSA for approval.
    (b) Ensure that excess personal property approved for transfer is 
used for authorized official purpose(s).
    (c) Advise GSA of names of agency officials that are authorized to 
approve SF 122s, and notify GSA of any changes in signatory authority.



Sec. 102-36.135  How much time do we have to pick up excess personal property that has been approved for transfer?

    When the holding agency notifies you that the property is ready for 
removal, you normally have 15 calendar days to pick up the property, 
unless otherwise coordinated with the holding agency.



Sec. 102-36.140  May we arrange to have the excess personal property shipped to its final destination?

    Yes, when the holding agency agrees to provide assistance in 
preparing the property for shipping. You may be required to pay the 
holding agency any direct costs in preparing the property for shipment. 
You must provide shipping instructions and the appropriate fund code for 
billing purposes on the SF 122.

                            Direct Transfers



Sec. 102-36.145  May we obtain excess personal property directly from another Federal agency without GSA approval?

    Yes, but only under the following situations:
    (a) You may obtain excess personal property that has not yet been 
reported to GSA, provided the total acquisition cost of the excess 
property does not exceed $10,000 per line item. You must ensure that a 
SF 122 is completed for the direct transfer and that an authorized 
official of your agency signs the SF 122. You must provide a copy of the 
SF 122 to the appropriate regional GSA office within 10 workdays from 
the date of the transaction.
    (b) You may obtain excess personal property exceeding the $10,000 
per line item limitation, provided you first contact the appropriate 
regional GSA Personal Property Management office for verbal approval of 
a prearranged transfer. You must annotate the SF 122 with the name of 
the GSA approving official and the date of the verbal approval,

[[Page 43]]

and provide a copy of the SF 122 to GSA within 10 workdays from the date 
of transaction.
    (c) You are subject to the requirement to pay reimbursement for the 
excess personal property under a direct transfer when any of the 
conditions in Sec. 102-36.75(b) applies.
    (d) You may obtain excess personal property directly from another 
Federal agency without GSA approval when that Federal agency has 
statutory authority to dispose of such excess personal property and you 
are an eligible recipient.



Subpart C--Acquiring Excess Personal Property for Non-Federal Recipients



Sec. 102-36.150  For which non-Federal activities may we acquire excess personal property?

    Under the Property Act you may acquire and furnish excess personal 
property for use by your nonappropriated fund activities, contractors, 
cooperatives, and project grantees. You may acquire and furnish excess 
personal property for use by other eligible recipients only when you 
have specific statutory authority to do so.



Sec. 102-36.155  What are our responsibilities when acquiring excess personal property for use by a non-Federal recipient?

    When acquiring excess personal property for use by a non-Federal 
recipient, your authorized agency official must:
    (a) Ensure the use of excess personal property by the non-Federal 
recipient is authorized and complies with applicable Federal regulations 
and agency guidelines.
    (b) Determine that the use of excess personal property will reduce 
the costs to the Government and/or that it is in the Government's best 
interest to furnish excess personal property.
    (c) Review and approve transfer documents for excess personal 
property as the sponsoring Federal agency.
    (d) Ensure the non-Federal recipient is aware of his obligations 
under the FMR and your agency regulations regarding the management of 
excess personal property.
    (e) Ensure the non-Federal recipient does not stockpile the property 
but places the property into use within a reasonable period of time, and 
has a system to prevent nonuse, improper use, or unauthorized disposal 
or destruction of excess personal property furnished.
    (f) Establish provisions and procedures for property accountability 
and disposition in situations when the Government retains title.
    (g) Report annually to GSA excess personal property furnished to 
non-Federal recipients during the year (see Sec. 102-36.295).



Sec. 102-36.160  What additional information must we provide on the SF 122 when acquiring excess personal property for non-Federal recipients?

    Annotate on the SF 122, the name of the non-Federal recipient and 
the contract, grant or agreement number, when applicable, and the 
scheduled completion/expiration date of the contract, grant or 
agreement. If the remaining time prior to the expiration date is less 
than 60 calendar days, you must certify that the contract, grant or 
agreement will be extended or renewed or provide other written 
justification for the transfer.

                     Nonappropriated Fund Activities



Sec. 102-36.165  Do we retain title to excess personal property furnished to a nonappropriated fund activity within our agency?

    Yes, title to excess personal property furnished to a 
nonappropriated fund activity remains with the Federal Government and 
you are accountable for establishing controls over the use of such 
excess property in accordance with Sec. 102-36.45(d). When such property 
is no longer required by the nonappropriated fund activity, you must 
reuse or dispose of the property in accordance with this part.



Sec. 102-36.170  May we transfer personal property owned by one of our nonappropriated fund activities?

    Property purchased by a nonappropriated fund activity is not Federal 
property. A nonappropriated fund activity has the option of making its

[[Page 44]]

privately owned personal property available for transfer to a Federal 
agency, usually with reimbursement. If such reimbursable personal 
property is not transferred to another Federal agency, it may be offered 
for sale. Such property is not available for donation.

[65 FR 31218, May 16, 2000, as amended at 65 FR 33778, May 25, 2000]

                               Contractors



Sec. 102-36.175  Are there restrictions to acquiring excess personal property for use by our contractors?

    Yes, you may acquire and furnish excess personal property for use by 
your contractors subject to the criteria and restrictions in the Federal 
Acquisition Regulation (48 CFR part 45). When such property is no longer 
needed by your contractors or your agency, you must dispose of the 
excess personal property in accordance with the provisions of this part.

                              Cooperatives



Sec. 102-36.180  Is there any limitation/condition to acquiring excess personal property for use by cooperatives?

    Yes, you must limit the total dollar amount of property transfers 
(in terms of original acquisition cost) to the dollar value of the 
cooperative agreement. For any transfers in excess of such amount, you 
must ensure that an official of your agency at a level higher than the 
officer administering the agreement approves the transfer. The Federal 
Government retains title to such property, except when provided by 
specific statutory authority.

                            Project Grantees



Sec. 102-36.185  What are the requirements for acquiring excess personal property for use by our grantees?

    You may furnish excess personal property for use by your grantees 
only when:
    (a) The grantee holds a Federally sponsored project grant;
    (b) The grantee is a public agency or a nonprofit tax-exempt 
organization under section 501 of the Internal Revenue Code of 1986 (26 
U.S.C. 501);
    (c) The property is for use in connection with the grant; and
    (d) You pay 25 percent of the original acquisition cost of the 
excess personal property, such funds to be deposited into the 
miscellaneous receipts fund of the U.S. Treasury. Exceptions to paying 
this 25 percent are provided in Sec. 102-36.190. Title to property vests 
in the grantee when your agency pays 25 percent of the original 
acquisition cost.



Sec. 102-36.190  Must we always pay 25 percent of the original acquisition cost when furnishing excess personal property to project grantees?

    No, you may acquire excess personal property for use by a project 
grantee without paying the 25 percent fee when any of the following 
conditions apply:
    (a) The personal property was originally acquired from excess 
sources by your agency and has been placed into official use by your 
agency for at least one year. The Federal Government retains title to 
such property.
    (b) The property is furnished under section 203 of the Department of 
Agriculture Organic Act of 1944 (16 U.S.C. 580a) through the U.S. Forest 
Service in connection with cooperative State forest fire control 
programs. The Federal Government retains title to such property.
    (c) The property is furnished by the U.S. Department of Agriculture 
to State or county extension services or agricultural research 
cooperatives under 40 U.S.C. 483(d)(2)(E). The Federal Government 
retains title to such property.
    (d) The property is not needed for donation under part 101-44 of 
this title, and is transferred under section 608 of the Foreign 
Assistance Act of 1961, as amended (22 U.S.C. 2358). Title to such 
property transfers to the grantee. (You need not wait until after the 
donation screening period when furnishing excess personal property to 
recipients under the Agency for International Development (AID) 
Development Loan Program.)
    (e) The property is scientific equipment transferred under section 
11(e) of the National Science Foundation (NSF) Act of 1950, as amended 
(42 U.S.C. 1870(e)). GSA will limit such transfers to property within 
Federal Supply

[[Page 45]]

Classification (FSC) groups 12, 14, 43, 48, 58, 59, 65, 66, 67, 68 and 
70. GSA may approve transfers without reimbursement for property under 
other FSC groups when NSF certifies the item is a component of or 
related to a piece of scientific equipment or is a difficult-to-acquire 
item needed for scientific research. Regardless of FSC, GSA will not 
approve transfers of common-use or general-purpose items without 
reimbursement. Title to such property transfers to the grantee.
    (f) The property is furnished in connection with grants to Indian 
tribes, as defined in section 3(c) of the Indian Financing Act (24 
U.S.C. 1452(c)). Title passage is determined under the authorities of 
the administering agency.



Sec. 102-36.195  What type of excess personal property may we furnish to our project grantees?

    You may furnish to your project grantees any property, except for 
consumable items, determined to be necessary and usable for the purpose 
of the grant. Consumable items are generally not transferable to project 
grantees. GSA may approve transfers of excess consumable items when 
adequate justification for the transfer accompanies such requests. For 
the purpose of this section ``consumable items'' are items which are 
intended for one-time use and are actually consumed in that one time; 
e.g., drugs, medicines, surgical dressings, cleaning and preserving 
materials, and fuels.



Sec. 102-36.200  May we acquire excess personal property for cannibalization purposes by the grantees?

    Yes, subject to GSA approval, you may acquire excess personal 
property for cannibalization purposes. You may be required to provide a 
supporting statement that indicates disassembly of the item for 
secondary use has greater benefit than utilization of the item in its 
existing form and cost savings to the Government will result.



Sec. 102-36.205  Is there a limit to how much excess personal property we may furnish to our grantees?

    Yes, you must monitor transfers of excess personal property so the 
total dollar amount of property transferred (in original acquisition 
cost) does not exceed the dollar value of the grant. Any transfers above 
the grant amount must be approved by an official at an administrative 
level higher than the officer administering the grant.



           Subpart D--Disposition of Excess Personal Property



Sec. 102-36.210  Why must we report excess personal property to GSA?

    You must report excess personal property to promote reuse by the 
Government to enable Federal agencies to benefit from the continued use 
of property already paid for with taxpayers' money, thus minimizing new 
procurement costs. Reporting excess personal property to GSA helps 
assure that the information on available excess personal property is 
accessible and disseminated to the widest range of reuse customers.

                   Reporting Excess Personal Property



Sec. 102-36.215  How do we report excess personal property?

    Report excess personal property as follows:
    (a) Electronically submit the data elements required on the Standard 
Form 120 (SF 120), Report of Excess Personal Property, in a format 
specified and approved by GSA; or
    (b) Submit a paper SF 120 to the regional GSA Personal Property 
Management office.



Sec. 102-36.220  Must we report all excess personal property to GSA?

    (a) Generally yes, regardless of the condition code, except as 
authorized in Sec. 102-36.145 for direct transfers or as exempted in 
paragraph (b) of this section. Report all excess personal property, 
including excess personal property to which the Government holds title 
but is in the custody of your contractors, cooperatives, or project 
grantees.
    (b) You are not required to report the following types of excess 
personal property to GSA for screening:
    (1) Property determined appropriate for abandonment/destruction (see 
Sec. 102-36.305).
    (2) Nonappropriated fund property (see Sec. 102-36.165).

[[Page 46]]

    (3) Foreign excess personal property (see Sec. 102-36.380).
    (4) Scrap, except aircraft in scrap condition.
    (5) Perishables, defined for the purposes of this section as any 
personal property subject to spoilage or decay.
    (6) Trading stamps and bonus goods.
    (7) Hazardous waste.
    (8) Controlled substances.
    (9) Nuclear Regulatory Commission-controlled materials.
    (10) Property dangerous to public health and safety.
    (11) Classified items or property determined to be sensitive for 
reasons of national security.
    (c) Refer to part 101-42 of this title for additional guidance on 
the disposition of classes of property under paragraphs (b)(7) through 
(b)(11) of this section.



Sec. 102-36.225  Must we report excess related personal property?

    Yes, you must report excess related personal property to the Office 
of Real Property, GSA, in accordance with part 101-47 of this title.



Sec. 102-36.230  Where do we send the reports of excess personal property?

    (a) You must direct electronic submissions of excess personal 
property to the Federal Disposal System (FEDS) maintained by the 
Property Management Division (FBP), GSA, Washington, DC 20406.
    (b) For paper submissions, you must send the SF 120 to the regional 
GSA Personal Property Management office for the region in which the 
property is located. For the categories of property listed in Sec. 102-
36.125(b), forward the SF 120 to the corresponding regions.



Sec. 102-36.235  What information do we provide when reporting excess personal property?

    (a) You must provide the following data on excess personal property:
    (1) The reporting agency and the property location.
    (2) A report number (6-digit activity address code and 4-digit 
Julian date).
    (3) 4-digit Federal Supply Class (use National Stock Number whenever 
available).
    (4) Description of item, in sufficient detail.
    (5) Quantity and unit of issue.
    (6) Disposal Condition Code (see Sec. 102-36.240).
    (7) Original acquisition cost per unit and total cost (use estimate 
if original cost not available).
    (8) Manufacturer, date of manufacture, part and serial number, when 
required by GSA.
    (b) In addition, provide the following information on your report of 
excess, when applicable:
    (1) Major parts/components that are missing.
    (2) If repairs are needed, the type of repairs.
    (3) Special requirements for handling, storage, or transportation.
    (4) The required date of removal due to moving or space 
restrictions.
    (5) If reimbursement is required, the authority under which the 
reimbursement is requested, the amount of reimbursement and the 
appropriate fund code to which money is to be deposited.
    (6) If you will conduct the sale of personal property that is not 
transferred or donated.



Sec. 102-36.240  What are the disposal condition codes?

    The disposal condition codes are contained in the following table:

------------------------------------------------------------------------
    Disposal condition code                    Definition
------------------------------------------------------------------------
1.............................  New. Property which is in new condition
                                 or unused condition and can be used
                                 immediately without modifications or
                                 repairs.
4.............................  Usable. Property which shows some wear,
                                 but can be used without significant
                                 repair.
7.............................  Repairable. Property which is unusable
                                 in its current condition but can be
                                 economically repaired.
X.............................  Salvage. Property which has value in
                                 excess of its basic material content,
                                 but repair or rehabilitation is
                                 impractical and/or uneconomical.
S.............................  Scrap. Property which has no value
                                 except for its basic material content.
------------------------------------------------------------------------


[[Page 47]]

                  Disposing of Excess Personal Property



Sec. 102-36.245  Are we accountable for the personal property that has been reported excess, and who is responsible for the care and handling costs?

    Yes, you are accountable for the excess personal property until the 
time it is picked up by the designated recipient or its agent. You are 
responsible for all care and handling charges while the excess personal 
property is going through the screening and disposal process.



Sec. 102-36.250  Does GSA ever take physical custody of excess personal property?

    Generally you retain physical custody of the excess personal 
property prior to its final disposition. Very rarely GSA may consider 
accepting physical custody of excess personal property. Under special 
circumstances, GSA may take custody or may direct the transfer of 
partial or total custody to other executive agencies, with their 
consent.



Sec. 102-36.255  What options do we have when unusual circumstances do not allow adequate time for disposal through GSA?

    Contact your regional GSA Personal Property Management office for 
any existing interagency agreements that would allow you to turn in 
excess personal property to a Federal facility. You are responsible for 
any turn-in costs and all costs related to transporting the excess 
personal property to these facilities.



Sec. 102-36.260  How do we promote the expeditious transfer of excess personal property?

    For expeditious transfer of excess personal property you should:
    (a) Provide complete and accurate property descriptions and 
condition codes on the report of excess to facilitate the selection of 
usable property by potential users.
    (b) Ensure that any available operating manual, parts list, diagram, 
maintenance log, or other instructional publication is made available 
with the property at the time of transfer.
    (c) Advise the designated recipient of any special requirements for 
dismantling, shipping/transportation.
    (d) When the excess personal property is located at a facility due 
to be closed, provide advance notice of the scheduled date of closing, 
and ensure there is sufficient time for screening and removal of 
property.



Sec. 102-36.265  What if there are competing requests for the same excess personal property?

    (a) GSA will generally approve transfers on a first-come, first-
served basis. When more than one Federal agency requests the same item, 
and the quantity available is not sufficient to meet the demand of all 
interested agencies, GSA will consider factors such as national defense 
requirements, emergency needs, avoiding the necessity of a new 
procurement, energy conservation, transportation costs, and retention of 
title in the Government. GSA will normally give preference to the agency 
that will retain title in the Government.
    (b) Requests for property for the purpose of cannibalization will 
normally be subordinate to requests for use of the property in its 
existing form.



Sec. 102-36.270  What if a Federal agency requests personal property that is undergoing donation screening or in the sales process?

    Prior to final disposition, GSA will consider requests from 
authorized Federal activities for excess personal property undergoing 
donation screening or in the sales process. Federal transfers may be 
authorized prior to removal of the property under a donation or sales 
action.



Sec. 102-36.275  May we dispose of excess personal property without GSA approval?

    No, you may not dispose of excess personal property without GSA 
approval except under the following limited situations:
    (a) You may transfer to another Federal agency excess personal 
property that has not yet been reported to GSA, under direct transfer 
procedures contained in Sec. 102-36.145.

[[Page 48]]

    (b) You may dispose of excess personal property that is not required 
to be reported to GSA (see Sec. 102-36.220(b)).
    (c) You may dispose of excess personal property without going 
through GSA when such disposal is authorized by law.



Sec. 102-36.280  May we withdraw from the disposal process excess personal property that we have reported to GSA?

    Yes, you may withdraw excess personal property from the disposal 
process, but only with the approval of GSA and to satisfy an internal 
agency requirement. Property that has been approved for transfer or 
donation or offered for sale by GSA may be returned to your control with 
proper justification.

                      Transfers With Reimbursement



Sec. 102-36.285  May we charge for personal property transferred to another Federal agency?

    (a) When any one of the following conditions applies, you may 
require and retain reimbursement for the excess personal property from 
the recipient:
    (1) Your agency has the statutory authority to require and retain 
reimbursement for the property.
    (2) You are transferring the property under the exchange/sale 
authority.
    (3) You had originally acquired the property with funds not 
appropriated from the general fund of the Treasury or appropriated 
therefrom but by law reimbursable from assessment, tax, or other 
revenue. It is current executive branch policy that working capital fund 
property shall be transferred without reimbursement.
    (4) You or the recipient is the U.S. Postal Service.
    (5) You or the recipient is the DC Government.
    (6) You or the recipient is a wholly owned or mixed-ownership 
Government corporation.
    (b) You may charge for direct costs you incurred incident to the 
transfer, such as packing, loading and shipping of the property. The 
recipient is responsible for such charges unless you waive the amount 
involved.
    (c) You may not charge for overhead or administrative expenses or 
the costs for care and handling of the property pending disposition.



Sec. 102-36.290  How much do we charge for excess personal property on a transfer with reimbursement?

    (a) You may require reimbursement in an amount up to the fair market 
value of the property when the transfer involves property meeting 
conditions in Sec. 102-36.285(a)(1) through (a)(4).
    (b) When you or the recipient is the DC Government or a wholly owned 
or mixed-ownership Government corporation (Sec. 102-36.285(a)(5) and 
(a)(6)), you may only require fair value reimbursement. Fair value 
reimbursement is 20 percent of the original acquisition cost for new or 
unused property (i.e., condition code 1), and zero percent for other 
personal property. A higher fair value may be used if you and the 
recipient agency agree. Due to special circumstances or the nature of 
the property, you may use other criteria for establishing fair value if 
approved or directed by GSA. You must refer any disagreements to the 
appropriate regional GSA Personal Property Management office.

                       Report of Disposal Activity



Sec. 102-36.295  Is there any reporting requirement on the disposition of excess personal property?

    Yes, you must report annually to GSA personal property furnished in 
any manner in that year to any non-Federal recipients, with respect to 
property obtained as excess or as property determined to be no longer 
required for the purposes of the appropriation from which it was 
purchased. GSA will subsequently submit a summary of these Non-Federal 
Recipients Reports to Congress.



Sec. 102-36.300  How do we report the furnishing of personal property to non-Federal recipients?

    (a) Submit your annual report of personal property furnished to non-
Federal recipients, in letter form, to GSA, Personal Property Management 
Policy Division (MTP), 1800 F Street, NW, Washington, DC 20405, within 
90 calendar days after the close of each fiscal

[[Page 49]]

year. The report must cover personal property disposed during the fiscal 
year in all areas within the United States, the U.S. Virgin Islands, 
American Samoa, Guam, the Commonwealth of Puerto Rico, and the 
Commonwealth of the Northern Mariana Islands. Negative reports are 
required.
    (b) The report (interagency report control number 0154--GSA--AN) 
must reference this part and contain the following:
    (1) Names of the non-Federal recipients.
    (2) Status of the recipients (contractor, cooperative, project 
grantee, etc.).
    (3) Total original acquisition cost of excess personal property 
furnished to each type of recipient, by type of property (two-digit FSC 
groups).

                         Abandonment/Destruction



Sec. 102-36.305  May we abandon or destroy excess personal property without reporting it to GSA?

    Yes, you may abandon or destroy excess personal property when you 
have made a written determination that the property has no commercial 
value or the estimated cost of its continued care and handling would 
exceed the estimated proceeds from its sale. An item has no commercial 
value when it has neither utility nor monetary value (either as an item 
or as scrap).



Sec. 102-36.310  Who makes the determination to abandon or destroy excess personal property?

    To abandon or destroy excess personal property, an authorized 
official of your agency makes a written finding that must be approved by 
a reviewing official who is not directly accountable for the property.



Sec. 102-36.315  Are there any restrictions to the use of the abandonment/destruction authority?

    Yes, the following restrictions apply:
    (a) You must not abandon or destroy property in a manner which is 
detrimental or dangerous to public health or safety. Additional 
guidelines for the abandonment/destruction of hazardous materials are 
prescribed in part 101-42 of this title.
    (b) If you become aware of an interest from an entity in purchasing 
the property, you must implement sales procedures in lieu of 
abandonment/destruction.



Sec. 102-36.320  May we transfer or donate excess personal property that has been determined appropriate for abandonment/destruction without GSA approval?

    In lieu of abandonment/destruction, you may donate such excess 
personal property only to a public body without going through GSA. A 
public body is any department, agency, special purpose district, or 
other instrumentality of a State or local government; any Indian tribe; 
or any agency of the Federal Government. If you become aware of an 
interest from an eligible non-profit organization (see part 101-44 of 
this title) that is not a public body in acquiring the property, you 
must contact the regional GSA Personal Property Management office and 
implement donation procedures in accordance with part 101-44 of this 
title.



Sec. 102-36.325  What must be done before the abandonment/destruction of excess personal property?

    Except as provided in Sec. 102-36.330, you must provide public 
notice of intent to abandon or destroy excess personal property, in a 
format and timeframe specified by your agency regulations (such as 
publishing a notice in a local newspaper, posting of signs in common use 
facilities available to the public, or providing bulletins on your 
website through the internet). You must also include in the notice an 
offer to sell in accordance with part 101-45 of this title.



Sec. 102-36.330  Are there occasions when public notice is not needed regarding abandonment/destruction of excess personal property?

    Yes, you are not required to provide public notice when:
    (a) The value of the property is so little or the cost of its care 
and handling, pending abandonment/destruction, is so great that its 
retention for advertising for sale, even as scrap, is clearly not 
economical;

[[Page 50]]

    (b) Abandonment or destruction is required because of health, 
safety, or security reasons; or
    (c) When the original acquisition cost of the item (estimated if 
unknown) is less than $500.

[65 FR 31218, May 16, 2000, as amended at 65 FR 34983, June 1, 2000]



  Subpart E--Personal Property Whose Disposal Requires Special Handling



Sec. 102-36.335  Are there certain types of excess personal property that must be disposed of differently from normal disposal procedures?

    Yes, you must comply with the additional provisions in this subpart 
when disposing of the types of personal property listed in this subpart.

                       Aircraft and Aircraft Parts



Sec. 102-36.340  What must we do when disposing of excess aircraft?

    (a) You must report to GSA all excess aircraft, regardless of 
condition or dollar value, and provide the following information on the 
SF 120:
    (1) Manufacturer, date of manufacture, model, serial number.
    (2) Major components missing from the aircraft (such as engines, 
electronics).
    (3) Whether or not the:
    (i) Aircraft is operational;
    (ii) Dataplate is available;
    (iii) Historical and maintenance records are available;
    (iv) Aircraft has been previously certificated by the Federal 
Aviation Administration (FAA) and/or has been maintained to FAA 
airworthiness standards;
    (v) Aircraft was previously used for non-flight purposes (i.e., 
ground training or static display), and has been subjected to extensive 
disassembly and re-assembly procedures for ground training, or repeated 
burning for fire-fighting training purposes.
    (4) For military aircraft, indicate Category A, B, or C as 
designated by DOD, as follows:

------------------------------------------------------------------------
     Category of aircraft                     Description
------------------------------------------------------------------------
A............................  Aircraft authorized for sale and exchange
                                for commercial use.
B............................  Aircraft previously used for ground
                                instruction and/or static display.
C............................  Aircraft that are combat configured as
                                determined by DOD.
------------------------------------------------------------------------

    Note to Sec. 102-36.340(a)(4): For additional information on 
military aircraft see Defense Materiel Disposition Manual, DOD 4160.21-
M, accessible at www.drms.dla.mil under Publications.
    (b) When the designated transfer or donation recipient's intended 
use is for non-flight purposes, you must remove and return the dataplate 
to GSA Property Management Branch, San Francisco, California prior to 
releasing the aircraft to the authorized recipient. GSA will forward the 
dataplates to FAA.
    (c) You must also submit a report of the final disposition of the 
aircraft to the Federal Aviation Interactive Reporting System (FAIRS) 
maintained by the Aircraft Management Policy Division (MTA), GSA, 1800 F 
Street, NW, Washington, DC 20405. For additional instructions on 
reporting to FAIRS see part 101-37 of this title.



Sec. 102-36.345  May we dispose of excess Flight Safety Critical Aircraft Parts (FSCAP)?

    Yes, you may dispose of excess FSCAP, but first you must determine 
whether the documentation available is adequate to allow transfer, 
donation, or sale of the part in accordance with part 101-37, subpart 
101-37.6, of this title. Otherwise, you must mutilate undocumented FSCAP 
that has no traceability to its original equipment manufacturer and 
dispose of it as scrap. When reporting excess FSCAP, annotate the 
manufacturer, date of manufacture, part number, serial number, and the 
appropriate Criticality Code on the SF 120, and ensure that all 
available historical and maintenance records accompany the part at the 
time of issue.



Sec. 102-36.350  How do we identify a FSCAP?

    Any aircraft part designated as FSCAP is assigned an alpha 
Criticality

[[Page 51]]

Code, and the code is annotated on the original transfer document when 
you acquire the part. You must perpetuate the appropriate FSCAP 
Criticality Code on all personal property records. You may contact the 
Federal agency or Military service that originally owned the part for 
assistance in making this determination, or query DOD's Federal 
Logistics Information System (FLIS) using the National Stock Number 
(NSN) for the part. For assistance in subscribing to the FLIS service 
contact the FedLog Consumer Support Office, 800-351-4381.



Sec. 102-36.355  What are the FSCAP Criticality Codes?

    The FSCAP Criticality Codes are contained in the following table:

------------------------------------------------------------------------
          FSCAP code                          Description
------------------------------------------------------------------------
E............................  FSCAP specially designed to be or
                                selected as being nuclear hardened.
F............................  Flight Safety Critical Aircraft Part.
------------------------------------------------------------------------



Sec. 102-36.360  How do we dispose of aircraft parts that are life-limited but have no FSCAP designation?

    When disposing of life-limited aircraft parts that have no FSCAP 
designation, you must ensure that tags and labels, historical data and 
maintenance records accompany the part on any transfers, donations or 
sales. For additional information regarding the disposal of life-limited 
parts with or without tags or documentation refer to part 101-37 of this 
title.

                        Canines, Law Enforcement



Sec. 102-36.365  May we transfer or donate canines that have been used in the performance of law enforcement duties?

    Yes, under Public Law 105-27 (111 Stat. 244), when the canine is no 
longer needed for law enforcement duties, you may donate the canine to 
an individual who has experience handling canines in the performance of 
those official duties.

                        Disaster Relief Property



Sec. 102-36.370  Are there special requirements concerning the use of excess personal property for disaster relief?

    Yes, upon declaration by the President of an emergency or a major 
disaster, you may loan excess personal property to State and local 
governments, with or without compensation and prior to reporting it as 
excess to GSA, to alleviate suffering and damage resulting from any 
emergency or major disaster (Disaster Relief Act of 1974 (Public Law 93-
288 (42 U.S.C. 5121)) and Executive Orders 11795 (3 CFR, 1971-1975 
Comp., p. 887) and 12148 (3 CFR, 1979 Comp., p. 412), as amended). If 
the loan involves property that has already been reported excess to GSA, 
you may withdraw the item from the disposal process subject to approval 
by GSA. You may also withdraw excess personal property for use by your 
agency in providing assistance in disaster relief. You are still 
accountable for this property and your agency is responsible for 
developing agencywide procedures for recovery of such property.

                                Firearms



Sec. 102-36.375  May we dispose of excess firearms?

    Yes, unless you have specific statutory authority to do otherwise, 
excess firearms may be transferred only to those Federal agencies 
authorized to acquire firearms for official use. GSA may donate certain 
classes of surplus firearms to State and local government activities 
whose primary function is the enforcement of applicable Federal, State, 
and/or local laws and whose compensated law enforcement officers have 
the authority to apprehend and arrest. Firearms not transferred or 
donated must be destroyed and sold as scrap. For additional guidance on 
the disposition of firearms refer to part 101-42 of this title.

[[Page 52]]

                    Foreign Excess Personal Property



Sec. 102-36.380  Who is responsible for disposing of foreign excess personal property?

    Your agency is responsible for disposing of your foreign excess 
personal property, as provided by title IV of the Property Act.



Sec. 102-36.385  What are our responsibilities in the disposal of foreign excess personal property?

    When disposing of foreign excess personal property you must:
    (a) Determine whether it is in the interest of the U.S. Government 
to return foreign excess personal property to the U.S. for further re-
use or to dispose of the property overseas.
    (b) Ensure that any disposal of property overseas conforms to the 
foreign policy of the United States and the terms and conditions of any 
applicable Host Nation Agreement.
    (c) Ensure that, when foreign excess personal property is donated or 
sold overseas, donation/sales conditions include a requirement for 
compliance with U.S. Department of Commerce and Department of 
Agriculture regulations when transporting any personal property back to 
the U.S.
    (d) Inform the U.S. State Department of any disposal of property to 
any foreign governments or entities.



Sec. 102-36.390  How may we dispose of foreign excess personal property?

    To dispose of foreign excess personal property, you may:
    (a) Offer the property for re-use by U.S. Federal agencies overseas;
    (b) Return the property to the U.S. for re-use by eligible 
recipients;
    (c) Sell, exchange, lease, or transfer such property for cash, 
credit, or other property;
    (d) Donate medical materials or supplies to nonprofit medical or 
health organizations, including those qualified under sections 214(b) 
and 607 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 
2174, 2357); or
    (e) Abandon, destroy or donate such property when you determine that 
it has no commercial value or the estimated cost of care and handling 
would exceed the estimated proceeds from its sale, in accordance with 
sec. 402(a) of the Property Act. Abandonment, destruction or donation 
actions must also comply with the laws of the country in which the 
property is located.



Sec. 102-36.395  How may GSA assist us in disposing of foreign excess personal property?

    You may request GSA's assistance in the screening of foreign excess 
personal property for possible re-use by eligible recipients within the 
U.S. GSA may, after consultation with you, designate property for return 
to the United States for transfer or donation purposes.



Sec. 102-36.400  Who pays for the transportation costs when foreign excess personal property is returned to the United States?

    When foreign excess property is to be returned to the U.S. for the 
purpose of an approved transfer or donation under the provisions of 
Sections 202 and 203 of the Property Act, the receiving agency is 
responsible for all direct costs involved in the transfer, which include 
packing, handling, crating, and transportation.

                                  Gifts



Sec. 102-36.405  May we keep gifts given to us from the public?

    If your agency has gift retention authority, you may retain gifts 
from the public. Otherwise, you must report gifts you receive on a SF 
120 to GSA. You must report gifts received from a foreign government in 
accordance with part 101-49 of this title.



Sec. 102-36.410  How do we dispose of a gift in the form of money or intangible personal property?

    Report intangible personal property to GSA, Personal Property 
Management Division (FBP), Washington, D.C. 20406. You must not transfer 
or dispose of this property without prior approval of GSA. The Secretary 
of the Treasury will dispose of money and negotiable instruments such as 
bonds, notes, or other securities under the authority of 31 U.S.C. 324.

[[Page 53]]



Sec. 102-36.415  How do we dispose of gifts other than intangible personal property?

    (a) When the gift is offered with the condition that the property be 
sold and the proceeds used to reduce the public debt, report the gift to 
the regional GSA Personal Property Management office in which the 
property is located. GSA will convert the gift to money upon acceptance 
and deposit the proceeds into a special account of the U.S. Treasury.
    (b) When the gift is offered with no conditions or restrictions, and 
your agency has gift retention authority, you may use the gift for an 
authorized official purpose without reporting to GSA. The property will 
then lose its identity as a gift and you must account for it in the same 
manner as Federal personal property acquired from authorized sources. 
When the property is no longer needed, you must report it as excess 
personal property to GSA.
    (c) When the gift is offered with no conditions or restrictions, but 
your agency does not have gift retention authority, you must report it 
to the regional GSA Personal Property Management office. GSA will offer 
the property for screening for possible transfer to a Federal agency or 
convert the gift to money and deposit the funds with U.S. Treasury. If 
your agency is interested in keeping the gift for an official purpose, 
you must annotate your interest on the SF 120 and also submit a SF 122.



Sec. 102-36.420  How do we dispose of gifts from foreign governments or entities?

    Report foreign gifts on a SF 120 to GSA, Personal Property 
Management Division (FBP), Washington, DC 20406, for possible use by 
your agency, or for transfer, donation or sale in accordance with the 
provisions of part 101-49 of this title.

                       Hazardous Personal Property



Sec. 102-36.425  May we dispose of excess hazardous personal property?

    Yes, but only in accordance with part 101-42 of this title. When 
reporting excess hazardous property to GSA, certify on the SF 120 that 
the property has been packaged and labeled as required. Annotate any 
special requirements for handling, storage, or use, and provide a 
description of the actual or potential hazard.

      Munitions List Items/Commerce Control List Items (MLIs/CCLIs)



Sec. 102-36.430  May we dispose of excess Munitions List Items (MLIs)/Commerce Control List Items (CCLIs)?

    You may dispose of excess MLIs/CCLIs only when you comply with the 
additional disposal and demilitarization (DEMIL) requirements contained 
in part 101-42 of this title. MLIs may require demilitarization when 
issued to any non-DoD entity, and will require appropriate licensing 
when exported from the U.S. CCLIs usually require export licensing when 
transported from the U.S.



Sec. 102-36.435  How do we identify Munitions List Items (MLIs)/Commerce Control List Items (CCLIs) requiring demilitarization?

    You identify MLIs/CCLIs requiring demilitarization by the 
demilitarization code that is assigned to each MLI or CCLI. The code 
indicates the type and scope of demilitarization and/or export controls 
that must be accomplished, when required, before issue to any non-DOD 
activity. For a listing of the codes and additional guidance on DEMIL 
procedures see DOD Demilitarization and Trade Security Control Manual, 
DOD 4160.21-M-1.

                     Printing Equipment and Supplies



Sec. 102-36.440  Are there special procedures for reporting excess printing and binding equipment and supplies?

    Yes, in accordance with 44 U.S.C. 312, you must submit reports of 
excess printing and binding machinery, equipment, materials, and 
supplies to the Public Printer, Government Printing Office (GPO), 
Customer Service Manager, North Capitol and H Streets, NW, Washington, 
DC 20401. If GPO has no requirement for the property, you must then 
submit the report to GSA.

[[Page 54]]

                           Red Cross Property



Sec. 102-36.445  Do we report excess personal property originally acquired from or through the American National Red Cross?

    Yes, when reporting excess personal property which was processed, 
produced, or donated by the American National Red Cross, note ``RED 
CROSS PROPERTY'' on the SF 120 or report document. GSA will offer to 
return this property to the Red Cross if no other Federal agency has a 
need for it. If the Red Cross has no requirement the property continues 
in the disposal process and is available for donation.

                            Shelf-Life Items



Sec. 102-36.450  Do we report excess shelf-life items?

    (a) When there are quantities on hand that would not be utilized by 
the expiration date and cannot be returned to the vendor for credit, you 
must report such expected overage as excess for possible transfer and 
disposal to ensure maximum use prior to deterioration.
    (b) You need not report expired shelf-life items. You may dispose of 
property with expired shelf-life by abandonment/destruction in 
accordance with Sec. 102-36.305 and in compliance with Federal, State, 
and local waste disposal and air and water pollution control standards.



Sec. 102-36.455  How do we report excess shelf-life items?

    You must identify the property as shelf-life items by ``SL'', 
indicate the expiration date, whether the date is the original or an 
extended date, and if the date is further extendable. GSA may adjust the 
screening period based on re-use potential and the remaining useful 
shelf life.



Sec. 102-36.460  Do we report excess medical shelf-life items held for national emergency purposes?

    When the remaining shelf life of any medical materials or supplies 
held for national emergency purposes is of too short a period to justify 
their continued retention, you should report such property excess for 
possible transfer and disposal. You must make such excess determinations 
at such time as to ensure that sufficient time remains to permit their 
use before their shelf life expires and the items are unfit for human 
use. You must identify such items with ``MSL'' and the expiration date, 
and indicate any specialized storage requirements.



Sec. 102-36.465  May we transfer or exchange excess medical shelf-life items with other Federal agencies?

    Yes, you may transfer or exchange excess medical shelf-life items 
held for national emergency purposes with any other Federal agency for 
other medical materials or supplies, without GSA approval and without 
regard to part 101-46 of this title. You and the transferee agency will 
agree to the terms and prices. You may credit any proceeds derived from 
such transactions to your agency's current applicable appropriation and 
use the funds only for the purchase of medical materials or supplies for 
national emergency purposes.

                                 Vessels



Sec. 102-36.470  What must we do when disposing of excess vessels?

    (a) When you dispose of excess vessels you must indicate on the SF 
120 the following information:
    (1) Whether the vessel has been inspected by the Coast Guard.
    (2) Whether testing for hazardous materials has been done. And if 
so, the result of the testing, specifically the presence or absence of 
PCB's and asbestos and level of contamination.
    (3) Whether hazardous materials clean-up is required, and when it 
will be accomplished by your agency.
    (b) In accordance with section 203(i) of the Property Act, the 
Federal Maritime Administration (FMA), Department of Transportation, is 
responsible for disposing of surplus vessels determined to be merchant 
vessels or capable of conversion to merchant use and weighing 1,500 
gross tons or more. The SF 120 for such vessels shall be forwarded to 
GSA for submission to FMA.
    (c) Disposal instructions regarding vessels in this part do not 
apply to battleships, cruisers, aircraft carriers, destroyers, and 
submarines.

[[Page 55]]



                  Subpart F--Miscellaneous Disposition



Sec. 102-36.475  What is the authority for transfers under ``Computers for Learning''?

    (a) The Stevenson-Wydler Technology Innovation Act of 1980, as 
amended (15 U.S.C. 3710(i)), authorizes Federal agencies to transfer 
excess education-related Federal equipment to educational institutions 
or nonprofit organizations for educational and research activities. 
Executive Order 12999 (3 CFR, 1996 Comp., p. 180) requires, to the 
extent permitted by law and where appropriate, the transfer of computer 
equipment for use by schools or non-profit organizations.
    (b) Each Federal agency is required to identify a point of contact 
within the agency to assist eligible recipients, and to publicize the 
availability of such property to eligible communities. Excess education-
related equipment may be transferred directly under established agency 
procedures, or reported to GSA as excess for subsequent transfer to 
potential eligible recipients as appropriate. You must include transfers 
under this authority in the annual Non-Federal Recipients Report (See 
Sec. 102-36.295) to GSA.
    (c) The ``Computers for Learning'' website has been developed to 
streamline the transfer of excess and surplus Federal computer equipment 
to schools and nonprofit educational organizations. For additional 
information about this program access the ``Computers for Learning'' 
website, http://www.computers.fed.gov.

                     PARTS 102-37--102-41 [RESERVED]



PART 102-42--UTILIZATION, DONATION, AND DISPOSAL OF FOREIGN GIFTS AND DECORATIONS--Table of Contents




                      Subpart A--General Provisions

Sec.
102-42.5  What does this part cover?

                               Definitions

102-42.10  What definitions apply to this part?

                     Care, Handling and Disposition

102-42.15  Under what circumstances may an employee retain a foreign 
          gift or decoration?
102-42.20  What is the typical disposition process for gifts and 
          decorations that employees are not authorized to retain?
102-42.25  Who retains custody of gifts and decorations pending 
          disposal?
102-42.30  Who is responsible for the security, care and handling, and 
          delivery of gifts and decorations to GSA, and all costs 
          associated with such functions?
102-42.35  Can the employing agency be reimbursed for transfers of gifts 
          and decorations?

                               Appraisals

102-42.40  When is a commercial appraisal necessary?
102-42.45  Who obtains a commercial appraisal?
102-42.50  Is there a special format for a commercial appraisal?
102-42.55  What does the employing agency do with the appraisal?

                            Special Disposals

102-42.60  Who is responsible for gifts and decorations received by 
          Senators and Senate employees?
102-42.65  What happens if the Commission on Art and Antiquities does 
          not dispose of a gift or decoration?
102-42.70  Who handles gifts and decorations received by the President 
          or a member of the President's family?
102-42.75  How are gifts containing hazardous materials handled?

         Subpart B--Utilization of Foreign Gifts and Decorations

102-42.80  To whom do ``we'', ``you'', and their variants refer?
102-42.85  What gifts or decorations must we report to GSA?
102-42.90  What is the requirement for reporting gifts or decorations 
          that were retained for official use but are no longer needed?
102-42.95  How do we report gifts and decorations as excess personal 
          property?
102-42.100  How can we obtain an excess gift or decoration from another 
          agency?
102-42.105  What special information must be included on the transfer 
          request (SF 122)?
102-42.110  How must we justify a transfer request?
102-42.115  What must we do when the transferred gifts and decorations 
          are no longer required for official use?

[[Page 56]]

          Subpart C--Donation of Foreign Gifts and Decorations

102-42.120  When may gifts or decorations be donated to State agencies?
102-42.125  How is donation of gifts or decorations accomplished?
102-42.130  Are there special requirements for the donation of gifts and 
          decorations?

     Subpart D--Sale or Destruction of Foreign Gifts and Decorations

102-42.135  Whose approval must be obtained before a foreign gift or 
          decoration is offered for public sale?
102-42.140  How is a sale of a foreign gift or decoration to an employee 
          conducted?
102-42.145  When is public sale of a foreign gift or decoration 
          authorized?
102-42.150  What happens to proceeds from sales?
102-42.155  Can foreign gifts or decorations be destroyed?

    Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); sec. 515, 
91 Stat. 862 (5 U.S.C. 7342).

    Source: 65 FR 45539, July 24, 2000, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 102-42.5  What does this part cover?

    This part covers the acceptance, utilization, donation, and disposal 
of gifts and decorations from foreign governments under 5 U.S.C. 7342. 
If you receive gifts other than from a foreign government you should 
refer to Sec. 102-36.405.

                               Definitions



Sec. 102-42.10  What definitions apply to this part?

    The following definitions apply to this part:
    Decoration means an order, device, medal, badge, insignia, emblem, 
or award offered by or received from a foreign government.
    Employee means:
    (1) An employee as defined by 5 U.S.C. 2105 and an officer or 
employee of the United States Postal Service or of the Postal Rate 
Commission;
    (2) An expert or consultant who is under contract under 5 U.S.C. 
3109 with the United States or any agency, department, or establishment 
thereof, including, in the case of an organization performing services 
under that section, any individual involved in the performance of such 
services;
    (3) An individual employed by or occupying an office or position in 
the government of a territory or possession of the United States or the 
government of the District of Columbia;
    (4) A member of a uniformed service as specified in 10 U.S.C 101;
    (5) The President and the Vice President;
    (6) A Member of Congress as defined by 5 U.S.C. 2106 (except the 
Vice President) and any Delegate to the Congress; and
    (7) The spouse of an individual described in paragraphs (1) through 
(6) of this definition of employee (unless this individual and his or 
her spouse are separated) or a dependent (within the meaning of section 
152 of the Internal Revenue Code of 1986 (26 U.S.C. 152)) of this 
individual, other than a spouse or dependent who is an employee under 
paragraphs (1) through (6) of this definition of employee.
    Employing agency means:
    (1) The department, agency, office, or other entity in which an 
employee is employed, for other legislative branch employees and for all 
executive branch employees;
    (2) The Committee on Standards of Official Conduct of the House of 
Representatives, for Members and employees of the House of 
Representatives, except that those responsibilities specified in 5 
U.S.C. 7342(c)(2)(A), (e)(1), and (g)(2)(B) must be carried out by the 
Clerk of the House;
    (3) The Select Committee on Ethics of the Senate, for Senators and 
employees of the Senate, except that those responsibilities (other than 
responsibilities involving approval of the employing agency) specified 
in 5 U.S.C. 7342(c)(2), (d), and (g)(2)(B) must be carried out by the 
Secretary of the Senate; and
    (4) The Administrative Offices of the United States Courts, for 
judges and judicial branch employees.
    Foreign government means:
    (1) Any unit of foreign government, including any national, State, 
local, and municipal government and their foreign equivalents;

[[Page 57]]

    (2) Any international or multinational organization whose membership 
is composed of any unit of a foreign government; and
    (3) Any agent or representative of any such foreign government unit 
or organization while acting as such.
    Gift means a monetary or non-monetary present (other than a 
decoration) offered by or received from a foreign government. A monetary 
gift includes anything that may commonly be used in a financial 
transaction, such as cash or currency, checks, money orders, bonds, 
shares of stock, and other securities and negotiable financial 
instruments.
    Minimal value means a retail value in the United States at the time 
of acceptance of $260 or less, except that:
    (1) GSA will adjust the definition of minimal value in regulations 
prescribed by the Administrator of General Services every three years, 
in consultation with the Secretary of State, to reflect changes in the 
consumer price index for the immediately preceding 3-year period; and
    (2) Regulations of an employing agency may define minimal value for 
its employees to be less, but not more than, the value provided under 
this definition.

                     Care, Handling and Disposition



Sec. 102-42.15  Under what circumstances may an employee retain a foreign gift or decoration?

    Employees, with the approval of their employing agencies, may accept 
and retain:
    (a) Gifts of minimal value received as souvenirs or marks of 
courtesy. When a gift of more than minimal value is accepted, the gift 
becomes the property of the U.S. Government, not the employee, and must 
be reported.
    (b) Decorations that have been offered or awarded for outstanding or 
unusually meritorious performance. If the employing agency disapproves 
retention of the decoration by the employee, the decoration becomes the 
property of the U.S. Government.



Sec. 102-42.20  What is the typical disposition process for gifts and decorations that employees are not authorized to retain?

    (a) Non-monetary gifts or decorations. When an employee receives a 
non-monetary gift above the minimal value or a decoration that he/she is 
not authorized to retain:
    (1) The employee must report the gift or decoration to his/her 
employing agency within 60 days after accepting it.
    (2) The employing agency determines if it will keep the gift or 
decoration for official use.
    (3) If it does not return the gift or decoration to the donor or 
keep it for official use, the employing agency reports it as excess 
personal property to GSA for Federal utilization screening under 
Sec. 102-42.95.
    (4) If GSA does not transfer the gift or decoration during
    Federal utilization screening, the employee may purchase the gift or 
decoration (see Sec. 102-42.140).
    (5) If the employee declines to purchase the gift or decoration, and 
there is no Federal requirement for either, GSA may offer it for 
donation through State Agencies for Surplus Property (SASP) under part 
101-44 of this title.
    (6) If no SASP requests the gift or decoration for donation, GSA may 
offer it for public sale, with the approval of the Secretary of State, 
or will authorize the destruction of the gift or decoration under part 
101-45 of this title.
    (b) Monetary gifts. When an employee receives a monetary gift above 
the minimal value:
    (1) The employee must report the gift to his/her employing agency 
within 60 days after accepting it.
    (2) The employing agency must:
    (i) Report a monetary gift with possible historic or numismatic 
(i.e., collectible) value to GSA; or
    (ii) Deposit a monetary gift that has no historic or numismatic 
value with the Department of the Treasury.



Sec. 102-42.25  Who retains custody of gifts and decorations pending disposal?

    (a) The employing agency retains custody of gifts and decorations 
that

[[Page 58]]

employees have expressed an interest in purchasing.
    (b) GSA will accept physical custody of gifts above the minimal 
value, which employees decline to purchase, or decorations that are not 
retained for official use or returned to donors.

    Note to Sec. 102-42.25(b): GSA will not accept physical custody of 
foreign gifts of firearms. Firearms reported by the agency as excess 
must be disposed of in accordance with part 101-42 of this title.



Sec. 102-42.30  Who is responsible for the security, care and handling, and delivery of gifts and decorations to GSA, and all costs associated with such           functions?

    The employing agency is responsible for the security, care and 
handling, and delivery of gifts and decorations to GSA, and all costs 
associated with such functions.



Sec. 102-42.35  Can the employing agency be reimbursed for transfers of gifts and decorations?

    No, all transfers of gifts and decorations to Federal agencies or 
donation through SASPs will be without reimbursement. However, the 
employing agency may require the receiving agency to pay all or part of 
the direct costs incurred by the employing agency in packing, 
preparation for shipment, loading, and transportation.

                               Appraisals



Sec. 102-42.40  When is a commercial appraisal necessary?

    (a) A commercial appraisal is necessary when an employee indicates 
an interest in purchasing a gift or decoration and must be obtained 
before the gift or decoration is reported to GSA for screening.
    (b) GSA may also require the employing agency to obtain a commercial 
appraisal of a gift or decoration that the agency no longer needs before 
accepting the agency's report of the item as excess personal property.



Sec. 102-42.45  Who obtains a commercial appraisal?

    The employing agency obtains a commercial appraisal.



Sec. 102-42.50  Is there a special format for a commercial appraisal?

    There is no special format for a commercial appraisal, but it must 
be:
    (a) On official company letterhead;
    (b) Prepared in the United States;
    (c) Dated; and
    (d) Expressed in U.S. dollars.



Sec. 102-42.55  What does the employing agency do with the appraisal?

    The employing agency must attach the commercial appraisal to a 
Standard Form (SF) 120, Report of Excess Personal Property.

                            Special Disposals



Sec. 102-42.60  Who is responsible for gifts and decorations received by Senators and Senate employees?

    Gifts and decorations received by Senators and Senate employees are 
deposited with the Secretary of the Senate for disposal by the 
Commission on Art and Antiquities of the United States Senate under 5 
U.S.C. 7342(e)(2). GSA is responsible for disposing of gifts or 
decorations received by Members and employees of the House of 
Representatives.



Sec. 102-42.65  What happens if the Commission on Art and Antiquities does not dispose of a gift or decoration?

    If the Commission on Art and Antiquities does not dispose of a gift 
or decoration, then it must be reported to GSA for disposal. If GSA does 
not dispose of a gift or decoration within one year of the Commission's 
reporting, the Commission may:
    (a) Request that GSA return the gift or decoration and dispose of it 
itself; or
    (b) Continue to allow GSA to dispose of the gift or decoration in 
accordance with this part.



Sec. 102-42.70  Who handles gifts and decorations received by the President or a member of the President's family?

    The National Archives and Records Administration normally handles 
gifts and decorations received by the President or a member of the 
President's family.

[[Page 59]]



Sec. 102-42.75  How are gifts containing hazardous materials handled?

    Gifts containing hazardous materials are handled in accordance with 
the requirements and provisions of this part and part 101-42 of this 
title.



         Subpart B--Utilization of Foreign Gifts and Decorations



Sec. 102-42.80  To whom do ``we'', ``you'', and their variants refer?

    Use of pronouns ``we'', ``you'', and their variants throughout this 
subpart refers to the employing agency.



Sec. 102-42.85  What gifts or decorations must we report to GSA?

    You must report to GSA gifts of more than minimal value, except for 
monetary gifts that have no historic or numismatic value (see Sec. 102-
42.20), or decorations the employee is not authorized to retain that 
are:
    (a) Not being retained for official use or have not been returned to 
the donor; or
    (b) Received by a Senator or a Senate employee and not disposed of 
by the Commission on Art and Antiquities of the United States Senate.



Sec. 102-42.90  What is the requirement for reporting gifts or decorations that were retained for official use but are no longer needed?

    Non-monetary gifts or decorations that were retained for official 
use must be reported to GSA as excess property within 30 days after 
termination of the official use.



Sec. 102-42.95  How do we report gifts and decorations as excess personal property?

    You must complete a Standard Form (SF) 120, Report of Excess 
Personal Property, and send it to the General Services Administration, 
Property Management Division (FBP), Washington, DC 20406. Conspicuously 
mark the SF 120, ``FOREIGN GIFTS AND/OR DECORATIONS'', and include the 
following information:

------------------------------------------------------------------------
               Entry                             Description
------------------------------------------------------------------------
(a) Identity of Employee..........  Give the name and position of the
                                     employee.
------------------------------------------------------------------------
(b) Description of Item...........  Give a full description of the gift
                                     or decoration, including the title
                                     of the decoration.
------------------------------------------------------------------------
(c) Identity of Foreign Government  Give the identity of the foreign
                                     government (if known) and the name
                                     and position of the individual who
                                     presented the gift or decoration.
------------------------------------------------------------------------
(d) Date of Acceptance............  Give the date the gift or decoration
                                     was accepted by the employee.
------------------------------------------------------------------------
(e) Appraised Value...............  Give the appraised value in United
                                     States dollars of the gift or
                                     decoration, including the cost of
                                     the appraisal. (The employing
                                     agency must obtain a commercial
                                     appraisal before the gift is
                                     offered for sale to the employee.)
------------------------------------------------------------------------
(f) Current Location of Item......  Give the current location of the
                                     gift or decoration.
------------------------------------------------------------------------
(g) Employing Agency Contact        Give the name, address, and
 Person.                             telephone number of the accountable
                                     official in the employing agency.
------------------------------------------------------------------------

[[Page 60]]

 
(h) Purchase Interest or Donation   Indicate whether the employee wants
 Recommendation.                     to buy the gift, or whether the
                                     employee wants the gift or
                                     decoration donated to an eligible
                                     donee through GSA's surplus
                                     donation program. Document this
                                     interest in a letter outlining any
                                     special significance of the gift or
                                     decoration to the proposed donee.
                                     Also provide the mailing address
                                     and telephone number of both the
                                     employee and the proposed donee.
------------------------------------------------------------------------
(i) Administration................  Give the Administration in which the
                                     gift or decoration was received
                                     (for example, Clinton
                                     Administration).
------------------------------------------------------------------------
(j) Multiple Items................  Identify each gift or decoration as
                                     a separate line item. Report
                                     multiple gift items that make up a
                                     set (for example, a tea set, a
                                     necklace and matching earrings) as
                                     a single line item.
------------------------------------------------------------------------



Sec. 102-42.100  How can we obtain an excess gift or decoration from another agency?

    To obtain an excess gift or decoration from another agency, you 
would complete a Standard Form (SF) 122, Transfer Order Excess Personal 
Property, or any other transfer order form approved by GSA, for the 
desired item(s) and submit the form to the General Services 
Administration, Property Management Division (FBP), Washington, DC 
20406.



Sec. 102-42.105  What special information must be included on the SF 122?

    Conspicuously mark the SF 122, ``FOREIGN GIFTS AND/OR DECORATIONS'', 
and include all information furnished by the employing agency as 
specified in Sec. 102-42.95. Also, include on the form the following 
statement: ``At such time as these items are no longer required, they 
will be reported to the General Services Administration, Property 
Management Division (FBP), Washington, DC 20406, and will be identified 
as foreign gift items and cross-referenced to this transfer order 
number.''



Sec. 102-42.110  How must we justify a transfer request?

    You may only request excess gifts and decorations for public display 
or other bona fide agency use and not for the personal benefit of any 
individual. GSA may require that transfer orders be supported by 
justifications for the intended display or official use of requested 
gifts and decorations. Jewelry and watches that are transferred for 
official display must be displayed with adequate provisions for 
security.



Sec. 102-42.115  What must we do when the transferred gifts and decorations are no longer required for official use?

    When transferred gifts and decorations are no longer required for 
official use, report these gifts and decorations to the GSA as excess 
property on a SF 120, including the original transfer order number or a 
copy of the original transfer order.



          Subpart C--Donation of Foreign Gifts and Decorations



Sec. 102-42.120  When may gifts or decorations be donated to State agencies?

    If there is no Federal requirement for the gifts or decorations, and 
if gifts were not sold to the employee, GSA may make the gifts or 
decorations available for donation to State agencies under this subpart 
and part 101-44 of this title.



Sec. 102-42.125  How is donation of gifts or decorations accomplished?

    The State Agencies for Surplus Property (SASP) must initiate the 
process on behalf of a prospective donee (e.g., units of State or local 
governments

[[Page 61]]

and eligible non-profit organizations) by:
    (a) Completing a Standard Form (SF) 123, Transfer Order Surplus 
Personal Property, and submitting it to General Services Administration, 
Property Management Division (FBP), Washington, DC 20406. Conspicuously 
mark the SF 123 with the words, ``FOREIGN GIFTS AND/OR DECORATIONS.''
    (b) Attaching an original and two copies of a letter of intent to 
each SF 123 submitted to GSA. An authorized representative of the 
proposed donee must sign and date the letter, setting forth a detailed 
plan for use of the property. The letter of intent must provide the 
following information:
    (1) Identifying the donee applicant, including its legal name and 
complete address, its status as a public agency or as an eligible 
nonprofit tax-exempt activity, and the name, title, and telephone number 
of its authorized representative;
    (2) A description of the gift or decoration requested, including the 
gift's commercially appraised value or estimated fair market value if no 
commercial appraisal was performed; and
    (3) Details on the planned use of the gift or decoration, including 
where and how it will be used and how it will be safeguarded.



Sec. 102-42.130  Are there special requirements for the donation of gifts and decorations?

    Yes, GSA imposes special handling and use limitations on the 
donation of gifts and decorations. The SASP distribution document must 
contain or incorporate by reference the following:
    (a) The donee must display or use the gift or decoration in 
accordance with its GSA-approved letter of intent.
    (b) There must be a period of restriction which will expire after 
the gift or decoration has been used for the purpose stated in the 
letter of intent for a period of 10 years, except that GSA may restrict 
the use of the gift or decoration for such other period when the 
inherent character of the property justifies such action.
    (c) The donee must allow the right of access to the donee's premises 
at reasonable times for inspection of the gift or decoration by duly 
authorized representatives of the SASP or the U.S. Government.
    (d) During the period of restriction, the donee must not:
    (1) Sell, trade, lease, lend, bail, encumber, cannibalize or 
dismantle for parts, or otherwise dispose of the property;
    (2) Remove it permanently for use outside the State;
    (3) Transfer title to the gift or decoration directly or indirectly; 
or
    (4) Do or allow anything to be done that would contribute to the 
gift or decoration being seized, attached, lost, stolen, damaged, or 
destroyed.
    (e) If the gift or decoration is no longer suitable, usable, or 
needed by the donee for the stated purpose of donation during the period 
of restriction, the donee must promptly notify the General Services 
Administration, Property Management Division (FBP), Washington, DC 
20406, through the SASP, and upon demand by GSA, title and right to 
possession of the gift or decoration reverts to the U.S. Government. In 
this event, the donee must comply with transfer or disposition 
instructions furnished by GSA through the SASP, and pay the costs of 
transportation, handling, and reasonable insurance during 
transportation.
    (f) The donee must comply with all additional conditions covering 
the handling and use of any gift or decoration imposed by GSA.
    (g) If the donee fails to comply with the conditions or limitations 
during the period of restriction, the SASP may demand return of the gift 
or decoration and, upon such demand, title and right to possession of 
the gift or decoration reverts to the U.S. Government. In this event, 
the donee must return the gift or decoration in accordance with 
instructions furnished by the SASP, with costs of transportation, 
handling, and reasonable insurance during transportation to be paid by 
the donee or as directed by the SASP.
    (h) If the gift or decoration is lost, stolen, or cannot legally be 
recovered or returned for any other reason, the donee must pay to the 
U.S. Government the fair market value of the gift or decoration at the 
time of its loss, theft, or at the time that it became unrecoverable as 
determined by GSA. If

[[Page 62]]

the gift or decoration is damaged or destroyed, the SASP may require the 
donee to:
    (1) Return the item and pay the difference between its former fair 
market value and its current fair market value; or
    (2) Pay the fair market value, as determined by GSA, of the item had 
it not been damaged or destroyed.



     Subpart D--Sale or Destruction of Foreign Gifts and Decorations



Sec. 102-42.135  Whose approval must be obtained before a foreign gift or decoration is offered for public sale?

    The Secretary of State or the Secretary's designee must approve any 
sale of foreign gifts or decorations (except sale of foreign gifts to 
the employee, that is approved in this part).



Sec. 102-42.140  How is a sale of a foreign gift or decoration to an employee conducted?

    Foreign gifts and decorations must be offered first through 
negotiated sales to the employee who has indicated an interest in 
purchasing the item. The sale price must be the commercially appraised 
value of the gift plus the cost of the appraisal. Sales must be 
conducted and documented in accordance with part 101-45 of this title.



Sec. 102-42.145  When is public sale of a foreign gift or decoration authorized?

    A public sale is authorized if a foreign gift or decoration:
    (a) Survives Federal utilization screening;
    (b) Is not purchased by the employee;
    (c) Survives donation screening; and
    (d) Is approved by the Secretary of State or designee.



Sec. 102-42.150  What happens to proceeds from sales?

    The proceeds from the sale of foreign gifts or decorations must be 
deposited in the Treasury as miscellaneous receipts, unless otherwise 
authorized.



Sec. 102-42.155  Can foreign gifts or decorations be destroyed?

    Yes, foreign gifts or decorations that are not sold under this part 
may be destroyed and disposed of as scrap or for their material content 
under part 101-45 of this title.

[[Page 63]]





                       SUBCHAPTER C--REAL PROPERTY



PART 102-71--GENERAL--Table of Contents




Sec.
102-71.5  What are the scope and philosophy of the General Services 
          Administration's (GSA) real property policies?
102-71.10  How are these policies organized?
102-71.15  What happens if the policy statements in this part and parts 
          102-72 through 102-82 of this chapter conflict with policy 
          statements in 41 CFR parts 101-6, 101-17 through 101-20, 101-
          33, and 101-47?
102-71.20  What definitions apply to GSA's real property policies?
102-71.25  Who must comply with GSA's real property policies?
102-71.30  How must these real property policies be implemented?
102-71.35  Are agencies allowed to deviate from GSA's real property 
          policies?

    Authority: 40 U.S.C. 486(c).

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-71.5  What are the scope and philosophy of the General Services Administration's (GSA) real property policies?

    GSA's real property policies contained in this part and parts 102-72 
through 102-82 of this chapter apply to Federal agencies, including the 
GSA/Public Buildings Service (PBS), operating under, or subject to, the 
authorities of the Administrator of General Services. These policies 
cover the acquisition, management, and utilization and disposal of real 
property by Federal agencies that initiate and have decisionmaking 
authority over actions for real property services. The detailed guidance 
implementing these policies is contained in separate customer service 
guides.



Sec. 102-71.10  How are these policies organized?

    GSA has divided its real property policies into the following 
functional areas:
    (a) Delegation of authority;
    (b) Real estate acquisition;
    (c) Facility management;
    (d) Real property disposal;
    (e) Design and construction;
    (f) Art-in-architecture;
    (g) Historic preservation;
    (h) Assignment and utilization of space;
    (i) Safety and environmental management;
    (j) Security; and
    (k) Utility services.



Sec. 102-71.15  What happens if the policy statements in this part and parts 102-72 through 102-82 of this chapter conflict with policy statements in 41 CFR parts 101-6, 101-17 through 101-20, 101-33, and 101-47?

    The policies in this part and parts 102-72 through 102-82 of this 
chapter apply to 41 CFR parts 101-17 through 101-20, 101-33, and 101-47. 
To the extent that any policy statements elsewhere in 41 CFR parts 101-
17 through 101-20, 101-33, and 101-47 are inconsistent with the policy 
statements in this part and parts 102-72 through 102-82 of this chapter, 
the policy statements in this chapter are controlling.



Sec. 102-71.20  What definitions apply to GSA's real property policies?

    The following definitions apply to GSA's real property policies:
    Executive agency means any Executive department or independent 
establishment in the Executive branch of the Government, including any 
wholly owned Government corporation.
    Federal agency means any Executive agency or any establishment in 
the legislative or judicial branch of the Government (except the Senate, 
the House of Representatives, and the Architect of the Capitol and any 
activities under his or her direction).
    Federal Government real property services provider means any Federal 
Government entity operating under, or subject to, the authorities of the 
Administrator of General Services, that provides real property services 
to Federal agencies. This definition also includes private sector firms 
under contract with Federal agencies that deliver real property services 
to Federal agencies. This definition excludes any entity operating 
under, or subject to, authorities other than those of the Administrator 
of General Services.

[[Page 64]]

    Public building means:
    (1) Any building which is suitable for office and/or storage space 
for the use of one or more Federal agencies or mixed ownership 
corporations, such as Federal office buildings, post offices, 
customhouses, courthouses, border inspection facilities, warehouses, and 
any such building designated by the President. It also includes 
buildings of this sort that are acquired by the Federal Government under 
the Administrator's installment-purchase, lease-purchase, and purchase-
contract authorities.
    (2) Public building does not include buildings:
    (i) On the public domain.
    (ii) In foreign countries.
    (iii) On Indian and native Eskimo properties held in trust by the 
United States.
    (iv) On lands used in connection with Federal programs for 
agricultural, recreational, and conservation purposes.
    (v) On or used in connection with river, harbor, flood control, 
reclamation or power projects, or for chemical manufacturing or 
development projects, or for nuclear production, research, or 
development projects.
    (vi) On or used in connection with housing and residential projects.
    (vii) On military installations.
    (viii) On Department of Veteran's Affairs' installations used for 
hospital or domiciliary purposes.
    (ix) Excluded by the President.



Sec. 102-71.25  Who must comply with GSA's real property policies?

    Federal agencies operating under, or subject to, the authorities of 
the Administrator of General Services must comply with these policies.



Sec. 102-71.30  How must these real property policies be implemented?

    Each Federal Government real property services provider must provide 
services that are in accord with the policies presented in parts 102-71 
through 102-82 of this chapter. Also, Federal agencies must make the 
provisions of any contract with private sector real property services 
providers conform to the policies in parts 102-71 through 102-82 of this 
chapter.



Sec. 102-71.35  Are agencies allowed to deviate from GSA's real property policies?

    Yes, see Sec. Sec. 102-2.60 through 102-2.110 of this chapter to 
request a deviation from the requirements of these real property 
policies.



PART 102-72--DELEGATION OF AUTHORITY--Table of Contents




Sec.
102-72.5  What is the scope of this part?
102-72.10  What basic policy governs delegation of authority to Federal 
          agencies?
102-72.15  What criteria must a delegation meet?
102-72.20  Are there limitations on this delegation of authority?
102-72.25  What are the different types of delegations of authority?
102-72.30  What are the different types of delegations related to real 
          estate leasing?
102-72.35  What are the requirements for obtaining an ACO delegation 
          from GSA?
102-72.40  What are facility management delegations?
102-72.45  What are the different types of delegations related to 
          facility management?
102-72.50  What are Executive agencies' responsibilities under a 
          delegation of real property management and operation authority 
          from GSA?
102-72.55  What are the requirements for obtaining a delegation of real 
          property management and operation authority from GSA?
102-72.60  What are Executive agencies' responsibilities under a 
          delegation of individual repair and alteration project 
          authority from GSA?
102-72.65  What are the requirements for obtaining a delegation of 
          individual repair and alteration project authority from GSA?
102-72.70  What are Executive agencies' responsibilities under a 
          delegation of lease management authority (contracting officer 
          representative authority) from GSA?
102-72.75  What are the requirements for obtaining a delegation of lease 
          management authority (contracting officer representative 
          authority) from GSA?
102-72.80  What are Executive agencies' responsibilities under a 
          disposal of real property delegation of authority from GSA?
102-72.85  What are the requirements for obtaining a disposal of real 
          property delegation of authority from GSA?
102-72.90  What are Executive agencies' responsibilities under a 
          security delegation of authority from GSA?

[[Page 65]]

102-72.95  What are the requirements for obtaining a security delegation 
          of authority from GSA?
102-72.100  What are Executive agencies' responsibilities under a 
          utility service delegation of authority from GSA?
102-72.105  What are the requirements for obtaining a utility services 
          delegation of authority from GSA?

    Authority: 40 U.S.C. 486(c), (d) and (e).

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-72.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-72.10  What basic policy governs delegation of authority to Federal agencies?

    The Administrator of General Services may delegate and may authorize 
successive redelegations of the real property authority vested in the 
Administrator to any Federal agency.



Sec. 102-72.15  What criteria must a delegation meet?

    Delegations must be in the Government's best interest, which means 
that GSA must evaluate such factors as whether a delegation would be 
cost effective for the Government in the delivery of space.



Sec. 102-72.20  Are there limitations on this delegation of authority?

    Federal agencies must exercise delegated real property authority and 
functions according to the parameters described in each delegation of 
authority document, and Federal agencies may only exercise the authority 
of the Administrator that is specifically provided within the delegation 
of authority document.



Sec. 102-72.25  What are the different types of delegations of authority?

    The basic types of GSA Delegations of Authority are:
    (a) Delegation of Leasing Authority;
    (b) Delegation of Real Property Management and Operation Authority;
    (c) Delegation of Individual Repair and Alteration Project 
Authority;
    (d) Delegation of Lease Management Authority (Contracting Office 
Representative Authority);
    (e) Delegation of Administrative Contracting Officer (ACO) 
Authority;
    (f) Delegation of Real Property Disposal Authority;
    (g) Security Delegation of Authority; and
    (h) Utility Services Delegation of Authority.



Sec. 102-72.30  What are the different types of delegations related to real estate leasing?

    Delegations related to real estate leasing include the following:
    (a) Categorical space delegations, Agency special purpose space 
delegations, and delegations to specific agencies for certain space and 
lands outside urban areas (see Sec. 101-18.104 of this title).
    (b) The Administrator of General Services has issued a standing 
delegation of authority (under a program known as ``Can't Beat GSA 
Leasing'') to the heads of all Federal agencies to accomplish all 
functions relating to leasing of general purpose space for terms of up 
to 20 years regardless of geographic location. This delegation includes 
some conditions Federal agencies must meet when conducting the 
procurement themselves, such as training in lease contracting and 
reporting data to GSA.
    (c) An Administrative Contracting Officer (ACO) delegation, in 
addition to lease management authority, provides Federal agencies with 
limited contracting officer authority to perform such duties as paying 
and withholding lessor rent and modifying lease provisions that don't 
change the lease term length or the amount of space under lease.



Sec. 102-72.35  What are the requirements for obtaining an ACO delegation from GSA?

    When Federal agencies don't exercise the delegation of authority for 
general purpose space mentioned in Sec. 102-72.30(b), GSA may consider 
granting an ACO delegation when Federal agencies:
    (a) Occupy at least 90 percent of the building's GSA-controlled 
space or

[[Page 66]]

Federal agencies have the written concurrence of 100 percent of rent-
paying occupants covered under the lease; and
    (b) Have the technical capability to perform the leasing function.



Sec. 102-72.40  What are facility management delegations?

    Facility management delegations give Executive agencies authority to 
operate and manage buildings day to day, to perform individual repair 
and alteration projects and manage real property leases.



Sec. 102-72.45  What are the different types of delegations related to facility management?

    The principal types of delegations involved in the management of 
facilities are:
    (a) Real property management and operation authority;
    (b) Individual repair and alteration project authority; and
    (c) Lease management authority (contracting officer representative 
authority).



Sec. 102-72.50  What are Executive agencies' responsibilities under a delegation of real property management and operation authority from GSA?

    With this delegation, Executive agencies have the authority to 
operate and manage buildings day to day. Delegated functions may include 
building operations, maintenance, recurring repairs, minor alterations, 
historic preservation, concessions, and energy management of specified 
buildings subject to the conditions in the delegation document.



Sec. 102-72.55  What are the requirements for obtaining a delegation of real property management and operation authority from GSA?

    An Executive agency may be delegated real property management and 
operation authority when it:
    (a) Occupies at least 90 percent of the space in the Government-
controlled facility or has the concurrence of 100 percent of the rent-
paying occupants to perform these functions; and
    (b) Demonstrates that it can perform the delegated real property 
management and operation responsibilities.



Sec. 102-72.60  What are Executive agencies' responsibilities under a delegation of individual repair and alteration project authority from GSA?

    With this delegation of authority, Executive agencies have the 
responsibility to perform individual repair and alterations projects. 
Executive agencies are delegated repair and alterations authority for 
reimbursable space alteration projects up to the simplified acquisition 
threshold, under Sec. 101-20.106 of this title.



Sec. 102-72.65  What are the requirements for obtaining a delegation of individual repair and alteration project authority from GSA?

    Executive agencies may be delegated repair and alterations authority 
for other individual alteration projects when they demonstrate the 
ability to perform the delegated repair and alterations responsibilities 
and when such a delegation promotes efficiency and economy.



Sec. 102-72.70  What are Executive agencies' responsibilities under a delegation of lease management authority (contracting officer representative authority) 
          from GSA?

    When an Executive agency does not exercise the delegation of 
authority mentioned in Sec. 102-72.30(b) to lease general purpose space 
itself, it may be delegated, upon request, lease management authority to 
manage the administration of one or more lease contracts awarded by GSA.



Sec. 102-72.75  What are the requirements for obtaining a delegation of lease management authority (contracting officer representative authority) from GSA?

    An Executive agency may be delegated lease management authority when 
it:
    (a) Occupies at least 90 percent of the building's GSA-controlled 
space or has the written concurrence of 100 percent of rent-paying 
occupants covered under the lease to perform this function; and
    (b) Demonstrates the ability to perform the delegated lease 
management responsibilities.

[[Page 67]]



Sec. 102-72.80  What are Executive agencies' responsibilities under a disposal of real property delegation of authority from GSA?

    With this delegation, Executive agencies have the authority to 
utilize and dispose of excess or surplus real and related personal 
property and to grant approvals and make determinations subject to the 
conditions in the delegation document.



Sec. 102-72.85  What are the requirements for obtaining a disposal of real property delegation of authority from GSA?

    While disposal delegations to Executive agencies are infrequent, GSA 
may delegate authority to them based on situations involving certain 
low-value properties and when they can demonstrate that they have the 
technical expertise to perform the disposition functions. GSA may grant 
special delegations of authority to Executive agencies for the 
utilization and disposal of certain real property through the procedures 
set forth in part 101-47, subpart 101-47.6, of this title.



Sec. 102-72.90  What are Executive agencies' responsibilities under a security delegation of authority from GSA?

    With a security delegation, Executive agencies have the authority 
and responsibility to protect persons and property at the locations 
identified in the delegation document.



Sec. 102-72.95  What are the requirements for obtaining a security delegation of authority from GSA?

    Executive agencies may be delegated security authority when any of 
the following conditions exist:
    (a) A clear and unique security requirement;
    (b) A critical national security issue;
    (c) An intelligence or law enforcement mission; or
    (d) The current security contractor is ineffective.



Sec. 102-72.100  What are Executive agencies' responsibilities under a utility service delegation of authority from GSA?

    With this delegation, Executive agencies have the authority to 
negotiate and execute utility services contracts for periods over one 
year but not exceeding ten years for their use and benefit. Agencies 
also have the authority to intervene in utility rate proceedings to 
represent the consumer interests of the Federal Government, if so 
provided in the delegation of authority.



Sec. 102-72.105  What are the requirements for obtaining a utility services delegation of authority from GSA?

    Executive agencies may be delegated utility services authority when 
they have the technical expertise and adequate staffing.



PART 102-73--REAL ESTATE ACQUISITION--Table of Contents




Sec.
102-73.5  What is the scope of this part?
102-73.10  What is the basic real estate acquisition policy?
102-73.15  What real estate acquisition and related services must 
          Federal agencies provide?
102-73.20  When may Federal agencies consider leases of privately owned 
          land and buildings to satisfy their space needs?
102-73.25  Are Federal agencies required to give priority consideration 
          to space in buildings under the custody and control of the 
          United States Postal Service in fulfilling Federal agency 
          space needs?
102-73.30  On what basis must Federal agencies acquire leases?
102-73.35  Are Executive agencies required to acquire leased space by 
          negotiation?
102-73.40  Is the CICA applicable to lease acquisition?
102-73.45  What policy must Executive agencies comply with in locating 
          Federal facilities?
102-73.50  What historic preservation provisions must Federal agencies 
          comply with when acquiring space by lease?
102-73.55  With whom may Federal agencies enter into lease agreements?
102-73.60  Are there any limitations on leasing certain space?
102-73.65  When may Federal agencies consider acquiring leases with 
          purchase options?
102-73.70  What scoring rules must Federal agencies follow when 
          considering leases and leases with purchase options?
102-73.75  When may Federal agencies consider purchase of buildings?
102-73.80  What factors must Executive agencies consider when purchasing 
          sites?
102-73.85  What land acquisition policy must Federal agencies follow?

[[Page 68]]

102-73.90  What relocation assistance policy must Federal agencies 
          follow?
102-73.95  Is a prospectus required for all acquisition, construction or 
          alteration projects?
102-73.100  What happens if the project exceeds the prospectus 
          threshold?

    Authority: 40 U.S.C. 486(c); Sec. 3(c), Reorganization Plan No. 18 
of 1950 (40 U.S.C. 490 note); Sec. 1-201(b), E.O. 12072, 43 FR 36869, 3 
CFR, 1978 Comp., p. 213.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-73.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-73.10  What is the basic real estate acquisition policy?

    If suitable Government-controlled space is unavailable, Executive 
agencies must acquire real estate and related services in an efficient 
and cost effective manner.



Sec. 102-73.15  What real estate acquisition and related services must Federal agencies provide?

    Federal agencies, upon approval from GSA, may provide real estate 
and related services, including leases (with and without purchase 
options), building purchase, purchase of sites, condemnation, and 
relocation assistance.



Sec. 102-73.20  When may Federal agencies consider leases of privately owned land and buildings to satisfy their space needs?

    Federal agencies may consider leases of privately owned land and 
buildings only when needs cannot be satisfactorily met in Government-
controlled space and one or more of the following conditions exist:
    (a) Leasing is more advantageous to the Government than constructing 
a new building, or more advantageous than altering an existing Federal 
building;
    (b) New construction or alteration is unwarranted because demand for 
space in the community is insufficient, or is indefinite in scope or 
duration; or
    (c) Federal agencies cannot provide for the completion of a new 
building within a reasonable time.



Sec. 102-73.25  Are Federal agencies required to give priority consideration to space in buildings under the custody and control of the United States Postal Service in fulfilling Federal agency space needs?

    Yes, after considering the availability of GSA-controlled space, 
Federal agencies must extend priority consideration to available space 
in buildings under the custody and control of the United States Postal 
Service (USPS) in fulfilling Federal agency space needs.



Sec. 102-73.30  On what basis must Federal agencies acquire leases?

    Federal agencies must acquire leases on the most favorable basis to 
the Federal Government, with due consideration to maintenance and 
operational efficiency, and at charges consistent with prevailing market 
rates for comparable facilities in the community.



Sec. 102-73.35  Are Executive agencies required to acquire leased space by negotiation?

    Yes, Executive agencies must acquire leased space by negotiation, 
except where the sealed bid procedure is required by the Competition in 
Contracting Act of 1984 (CICA), as amended (41 U.S.C. 253(a)). See also 
40 U.S.C. 618(b) with respect to the use of competitive procedures for 
the acquisition of leaseholds in buildings constructed for Federal 
Government use.



Sec. 102-73.40  Is the CICA applicable to lease acquisition?

    Yes, Executive agencies must obtain full and open competition among 
suitable locations meeting minimum Government requirements, except as 
otherwise provided by CICA.



Sec. 102-73.45  What policy must Executive agencies comply with in locating Federal facilities?

    When acquiring space by lease, Executive agencies must comply with 
the location policies in Sec. 101-17.205 and Sec. 102-79.90 (E.O. 13006 
(61 FR 26071, 3 CFR, 1996 Comp., p. 195)) of this title.

[[Page 69]]



Sec. 102-73.50  What historic preservation provisions must Federal agencies comply with when acquiring space by lease?

    When acquiring space by lease, Federal agencies must comply with the 
provisions of section 110(a) of the National Historic Preservation Act 
of 1966, as amended, (16 U.S.C. 470h-2(a)), regarding the use of 
historic properties.



Sec. 102-73.55  With whom may Federal agencies enter into lease agreements?

    Federal agencies, upon approval from GSA, may enter into lease 
agreements with any person, copartnership, corporation, or other public 
or private entity, which do not bind the Government for periods in 
excess of twenty years (40 U.S.C. 490(h)(1)). This policy does not 
include persons who might otherwise be barred from contracting with the 
Federal Government (e.g., debarred or suspended contractors or Members 
of Congress).



Sec. 102-73.60  Are there any limitations on leasing certain space?

    Yes, the limitations on leasing certain space are as follows:
    (a) In general, Federal agencies may not lease any space to 
accommodate computer and telecommunications operations; secure or 
sensitive activities related to the national defense or security; or a 
permanent courtroom, judicial chamber, or administrative office for any 
United States court, if the average annual net rental cost of leasing 
such space would exceed the prospectus threshold (40 U.S.C. 606(e)).
    (b) Federal agencies may lease such space only if the Administrator 
of General Services first determines that leasing such space is 
necessary to meet requirements which cannot be met in public buildings 
and submits such reasons to the Committee on Environment and Public 
Works of the Senate and the Committee on Public Works and Transportation 
of the House of Representatives in accordance with 40 U.S.C. 606(e).



Sec. 102-73.65  When may Federal agencies consider acquiring leases with purchase options?

    Agencies may consider leasing with a purchase option at or below 
fair market value when one or more of the following conditions exist:
    (a) The purchase option offers economic and other advantages to the 
Government and is consistent with the Government's goals;
    (b) The Government is the sole or major tenant of the building, and 
has a long-term need for the property; or
    (c) Leasing with a purchase option is otherwise in the best interest 
of the Government.



Sec. 102-73.70  What scoring rules must Federal agencies follow when considering leases and leases with purchase options?

    All Federal agencies must follow the budget scorekeeping rules for 
leases, capital leases, and lease-purchases identified in appendices A 
and B of OMB Circular A-11 (For availability, see 5 CFR 1310.3).



Sec. 102-73.75  When may Federal agencies consider purchase of buildings?

    Agencies may consider purchase of buildings on a case-by-case basis 
when one or more of the following conditions exist:
    (a) It is economically more beneficial to own and manage the 
property;
    (b) There is a long-term need for the property;
    (c) The property is an existing building, or a building nearing 
completion, that can be purchased and occupied within a reasonable time; 
or
    (d) When otherwise in the best interests of the Government.



Sec. 102-73.80  What factors must Executive agencies consider when purchasing sites?

    Agencies must locate proposed Federal buildings on sites that are 
most advantageous to the United States. Executive agencies must consider 
factors such as whether the site will contribute to economy and 
efficiency in the construction, maintenance and operation of the 
individual building, and how the proposed site relates to the

[[Page 70]]

Government's total space needs in the community. Prior to acquiring, 
constructing or leasing buildings (or sites for such buildings), Federal 
agencies must use, to the maximum extent feasible, historic properties 
available to the agency. In site selections, Executive agencies must 
consider Executive Orders 12072 (3 CFR, 1978 Comp., p. 213) and 13006 
(40 U.S.C. 601a note). In addition, Executive agencies must consider all 
of the following:
    (a) Maximum utilization of Government-owned land (including excess 
land) whenever it is adequate, economically adaptable to requirements 
and properly located, where such use is consistent with the provisions 
of part 101-47, subpart 101-47.8, of this title.
    (b) A site adjacent to or in the proximity of an existing Federal 
building which is well located and is to be retained for long-term 
occupancy.
    (c) The environmental condition of proposed sites prior to purchase: 
The sites must be free from contamination, unless it is otherwise 
determined to be in the best interests of the Government to purchase a 
contaminated site (e.g., reuse of a site under an established 
``Brownsfields'' program).
    (d) Purchase options to secure the future availability of a site.
    (e) All applicable policies concerning the location of Federal 
facilities (e.g., to give first priority to locating facilities in rural 
areas under the Rural Development Act (7 U.S.C. 2204b-1)).



Sec. 102-73.85  What land acquisition policy must Federal agencies follow?

    Federal agencies must follow a land acquisition policy that:
    (a) Encourages and expedites the acquisition of real property by 
agreements with owners;
    (b) Avoids litigation, including condemnation actions, where 
possible and relieves congestion in the courts;
    (c) Provides for consistent treatment of owners; and
    (d) Promotes public confidence in Federal land acquisition 
practices.



Sec. 102-73.90  What relocation assistance policy must Federal agencies follow?

    Federal agencies, upon approval from GSA, must provide appropriate 
relocation assistance under the Uniform Relocation Assistance and Real 
Property Acquisition Policies Act (42 U.S.C. 4651-4655) to eligible 
owners and tenants of property purchased for use by Federal agencies. 
Appropriate relocation assistance means that the Federal agency must pay 
the displaced person for actual reasonable moving expenses (in moving 
himself, his family, business, etc.); actual direct losses of tangible 
personal property as a result of moving or discontinuing a business; 
actual reasonable expenses in searching for a replacement business or 
farm; and actual reasonable expenses necessary to reestablish a 
displaced farm, nonprofit organization, or small business at its new 
site, but not to exceed $10,000. The implementing regulations are found 
in 49 CFR part 24 (see Sec. 105-51.000 of this title).



Sec. 102-73.95  Is a prospectus required for all acquisition, construction or alteration projects?

    (a) No, a prospectus is not required if the dollar value of a 
project does not exceed the prospectus threshold. The Public Buildings 
Act of 1959, as amended, 40 U.S.C. 601-619, establishes a prospectus 
threshold, applicable to Federal agencies operating under, or subject 
to, the authorities of the Administrator of General Services, for the 
construction, alteration, purchase, and acquisition of any building to 
be used as a public building, and establishes a prospectus threshold to 
lease any space for use for public purposes. (Because of the important 
role the prospectus approval process plays in the budget preparation and 
planning process and with Congressional oversight responsibilities, 
Federal agencies must continue to prepare and submit prospectuses for 
all projects that exceed the prospectus threshold identified in 
Sec. 102-73.55. All GSA delegations of leasing, alteration, and 
construction authority are subject to this policy.)
    (b) Public Law 104-66, 109 Stat. 734, eliminated the prospectus 
submission requirement of the Public Buildings Act of 1959 (40 U.S.C. 
606(a) and 610(b)).

[[Page 71]]



Sec. 102-73.100  What happens if the project exceeds the prospectus threshold?

    Such projects require approval by the Senate and the House of 
Representatives if the dollar value exceeds the prospectus threshold. In 
order to obtain this approval, prospectuses for such projects must be 
submitted to GSA and the Administrator of General Services will transmit 
the proposed prospectuses to Congress for consideration by the Senate 
and the House of Representatives.



PART 102-74--FACILITY MANAGEMENT--Table of Contents




Sec.
102-74.5  What is the scope of this part?
102-74.10  What is the basic facility management policy?
102-74.15  What are occupancy services?
102-74.20  What responsibilities do Executive agencies have regarding 
          occupancy services?
102-74.25  What standard in providing occupancy services must Executive 
          agencies follow?
102-74.30  What building services must Executive agencies provide?
102-74.35  What are concessions services?
102-74.40  When must Federal agencies provide concessions services?
102-74.45  Are Federal agencies required to give blind vendors priority 
          in operating vending facilities?
102-74.50  What are conservation programs?
102-74.55  What are asset services?
102-74.60  What asset services must Executive agencies provide?
102-74.65  What standard in providing asset services must Executive 
          agencies follow?
102-74.70  What Federal facility ridesharing policy must Executive 
          agencies follow?
102-74.75  What steps must Executive agencies take to promote 
          ridesharing at Federal facilities?
102-74.80  What specific ridesharing information must Executive agencies 
          report to the Administrator of General Services?
102-74.85  Where should Executive agencies send their Federal Facility 
          Ridesharing Reports?
102-74.90  Are there any exceptions to these ridesharing reporting 
          requirements?

    Authority: 40 U.S.C. 486(c); E.O. 12191, 45 FR 7997, 3 CFR, 1980 
Comp., p 138.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-74.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-74.10  What is the basic facility management policy?

    Executive agencies must manage, operate, and maintain Government-
owned and leased buildings in a manner that provides for quality space 
and services consistent with their operational needs and that accomplish 
overall Government objectives. The management, operation, and 
maintenance of buildings and building systems must:
    (a) Be cost effective and energy efficient;
    (b) Be adequate to meet the agencies' missions;
    (c) Meet nationally recognized standards; and
    (d) Be at an appropriate level to maintain and preserve the physical 
plant assets, consistent with available funding.



Sec. 102-74.15  What are occupancy services?

    Occupancy services are:
    (a) Building services (see Sec. 102-74.30);
    (b) Concession services; and
    (c) Conservation programs.



Sec. 102-74.20  What responsibilities do Executive agencies have regarding occupancy services?

    Executive agencies, upon approval from GSA, must manage, administer, 
and enforce the requirements of agreements (such as Memoranda of 
Understanding, etc.) and contracts that provide for the delivery of 
occupancy services.



Sec. 102-74.25  What standard in providing occupancy services must Executive agencies follow?

    Executive agencies must provide occupancy services that 
substantially conform to nationally recognized standards. As needed, 
Executive agencies may adopt other standards for buildings and services 
in Federally-

[[Page 72]]

controlled facilities in order to conform to statutory requirements and 
to implement cost-reduction efforts.



Sec. 102-74.30  What building services must Executive agencies provide?

    Executive agencies, upon approval from GSA, must provide:
    (a) Building services such as custodial, solid waste management 
(including recycling), heating and cooling, landscaping and grounds 
maintenance, tenant alterations, minor repairs, building maintenance, 
integrated pest management, signage, parking, and snow removal, at 
appropriate levels to support Federal agency missions; and
    (b) Arrangements for raising and lowering the United States flags at 
appropriate times. In addition, agencies must display P.O.W. and M.I.A. 
flags at locations specified in 36 U.S.C. 189a on P.O.W./M.I.A. flag 
display days.



Sec. 102-74.35  What are concessions services?

    Concessions services are services such as dry cleaners, gift shops, 
vending facilities (onsite preparation facilities, prepackaged 
facilities, sundry facilities, and vending machines), cafeterias, 
employee health units, and public pay telephones.



Sec. 102-74.40  When must Federal agencies provide concessions services?

    Federal agencies, upon approval from GSA, must provide concessions 
services where building population supports such services and when the 
availability of existing commercial services is insufficient to meet 
Federal agency needs. See the Randolph-Sheppard Act, as amended, 20 
U.S.C. 107 et seq., and part 101-20, subpart 101-20.2, of this title.



Sec. 102-74.45  Are Federal agencies required to give blind vendors priority in operating vending facilities?

    With certain exceptions, the Randolph-Sheppard Act requires that 
blind persons licensed under the provisions of the Act be authorized to 
operate vending facilities on any Federal property, including leased 
buildings. The Act imposes a positive obligation on Federal agencies to 
have suitable sites for vending facilities in buildings that they 
acquire.



Sec. 102-74.50  What are conservation programs?

    Conservation programs are programs that improve energy and water 
efficiency and promote the use of solar and other renewable energy. 
These programs must promote and maintain an effective source reduction 
activity (reducing consumption of resources such as energy, water and 
paper), resource recovery activity (obtaining materials from the waste 
stream that can be recycled into new products), and reuse activity 
(reusing same product before disposition, such as reusing unneeded memos 
for scratch paper).



Sec. 102-74.55  What are asset services?

    Asset services include repairs (as opposed to those minor repairs 
identified in Sec. 102-74.30(a)), alterations, and modernizations for 
real property assets. Typically, these are the type of repairs and 
alterations necessary to preserve or enhance the value of the real 
property asset.



Sec. 102-74.60  What asset services must Executive agencies provide?

    Executive agencies, upon approval from GSA, must provide asset 
services such as repairs (in addition to those minor repairs identified 
in Sec. 102-74.30(a)), alterations, and modernizations for real property 
assets. Federal agencies must follow the prospectus submission and 
approval policy identified in Sec. Sec. 102-73.95 and 102-73.100.



Sec. 102-74.65  What standard in providing asset services must Executive agencies follow?

    Executive agencies must provide asset services that maintain 
continuity of Government operations, continue efficient building 
operations, extend the useful life of buildings and related building 
systems, and provide a quality workplace environment that enhances 
employee productivity.

[[Page 73]]



Sec. 102-74.70  What Federal facility ridesharing policy must Executive agencies follow?

    Executive agencies must actively promote the use of ridesharing 
(carpools, vanpools, privately leased buses, public transportation, and 
other multi-occupancy modes of travel) by personnel working at Federal 
facilities to conserve energy, reduce congestion, improve air quality, 
and provide an economical way for Federal employees to commute to work.



Sec. 102-74.75  What steps must Executive agencies take to promote ridesharing at Federal facilities?

    Agencies must:
    (a) Establish an annual ridesharing goal for each facility.
    (b) Report to the Administrator of General Services by June 1 of 
each year the goals established, the means developed to achieve those 
goals, and the progress achieved.
    (c) Cooperate with State and local ridesharing agencies where such 
agencies exist.



Sec. 102-74.80  What specific ridesharing information must Executive agencies report to the Administrator of General Services?

    The head of each agency must submit to GSA by June 1 of each year a 
report which includes all of the following:
    (a) The name, address, title, and telephone number of the agencywide 
Employee Transportation Coordinator (ETC).
    (b) A narrative on actions taken and barriers encountered in 
promoting ridesharing within the agency.
    (c) Information on any noticeable facility achievements.
    (d) A copy of instructions issued to the agency's facility ETC's for 
implementing the Federal Facility Ridesharing Program.



Sec. 102-74.85  Where should Executive agencies send their Federal Facility Ridesharing Reports?

    Agencies must send their Federal Facility Ridesharing Reports to the 
Real Property Policy Division (MPR), General Services Administration, 
1800 F Street, NW., Washington, DC 20405.



Sec. 102-74.90  Are there any exceptions to these ridesharing reporting requirements?

    Yes, facilities with less than 100 full-time employees or less than 
100 full-time employees on the largest shift are not required to submit 
an annual report. Agencies must not subdivide buildings, groups of 
buildings, or worksites for the purpose of meeting the exception 
standards.



PART 102-75--REAL PROPERTY DISPOSAL--Table of Contents




Sec.
102-75.5  What is the scope of this part?
102-75.10  What basic real property disposal policy governs Executive 
          agencies?
102-75.15  What real property disposal services must Executive agencies 
          provide?
102-75.20  What are Executive agencies' responsibilities concerning the 
          utilization of excess property?
102-75.25  What are Executive agencies' responsibilities concerning real 
          property surveys?
102-75.30  When may landholding Federal agencies grant rights for non-
          Federal interim use of excess property reported to GSA?
102-75.35  What are Executive agencies' responsibilities concerning the 
          disposal of surplus property?
102-75.40  When may Executive agencies dispose of surplus real property 
          by exchange for privately owned property?
102-75.45  When may Executive agencies outlease surplus real property 
          for non-Federal interim use?
102-75.50  What are Federal agencies' reporting responsibilities under 
          the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
          11411)?
102-75.55  What are Executive agencies' responsibilities concerning 
          public benefit conveyances?
102-75.60  When may Executive agencies conduct negotiated sales?
102-75.65  What are Executive agencies' responsibilities concerning 
          negotiated sales?
102-75.70  What can Executive agencies do to eliminate the potential for 
          windfall profits to public agencies in negotiated sales?
102-75.75  What is a negotiated sale for economic development purposes?
102-75.80  What are Executive agencies' responsibilities concerning 
          public sales?
102-75.85  How can Federal agencies obtain related disposal services?
102-75.90  What type of appraisal value must be obtained for real 
          property disposal transactions?

[[Page 74]]

102-75.95  Are appraisals required for all real property disposal 
          transactions?
102-75.100  Who must appraise the real property?

    Authority: 40 U.S.C. 486(c), 483(a), and 484; E.O. 12512, 50 FR 
18453, 3 CFR, 1985 Comp., p. 340.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-75.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-75.10  What basic real property disposal policy governs Executive agencies?

    Executive agencies must provide, in a timely, efficient, and cost 
effective manner, the full range of real estate services necessary to 
support their real property utilization and disposal needs. Landholding 
agencies must make surveys of real property under their jurisdiction to 
identify property that is unutilized, underutilized, or not being put to 
optimum use. Executive agencies must have adequate procedures in place 
to promote the effective utilization and disposal of such real property.



Sec. 102-75.15  What real property disposal services must Executive agencies provide?

    Executive agencies must provide real property disposal services for 
real property assets under their custody and control. These real 
property disposal services include utilization of excess property, 
surveys, disposal of surplus property, public benefit conveyances, 
negotiated sales, public sales, related disposal services, and 
appraisals.



Sec. 102-75.20  What are Executive agencies' responsibilities concerning the utilization of excess property?

    Executive agencies' responsibilities concerning the utilization of 
excess property are to:
    (a) Increase the identification and reporting of their excess real 
property;
    (b) Achieve maximum use of their excess real property, in terms of 
economy and efficiency, to minimize expenditures for the purchase of 
real property;
    (c) Provide for the transfer of excess real property among Federal 
agencies, to mixed-ownership Government corporations, and to the 
municipal government of the District of Columbia; and
    (d) Obtain assistance from GSA in resolving conflicting requests for 
transferring real property that the involved agencies cannot resolve.



Sec. 102-75.25  What are Executive agencies' responsibilities concerning real property surveys?

    A landholding agency's responsibilities concerning real property 
surveys are to:
    (a) Survey real property under its control (i.e., that property 
reported on its financial statements) at least annually to identify 
property that is not needed, underutilized, or not being put to optimum 
use. When other needs for the property are identified or recognized, the 
agency must determine whether continuation of the current use or another 
use would better serve the public interest, considering both the Federal 
agency's needs and the property's location. In conducting annual reviews 
of their property holdings, Sec. 101-47.801(b) of this title and other 
applicable GSA regulations provide guidelines for Executive agencies to 
consider in identifying unneeded Federal real property;
    (b) Maintain its inventory of real property at the absolute minimum 
consistent with economical and efficient conduct of the affairs of the 
agency; and
    (c) Promptly report to GSA real property that it has determined to 
be excess.



Sec. 102-75.30  When may landholding Federal agencies grant rights for non-Federal interim use of excess property reported to GSA?

    Landholding Federal agencies may grant rights for non-Federal 
interim use of excess property reported to GSA, when it is determined 
that such excess property is not required for the needs of any Federal 
agency.

[[Page 75]]



Sec. 102-75.35  What are Executive agencies' responsibilities concerning the disposal of surplus property?

    Executive agencies must obtain from GSA a determination that their 
excess real property is not needed for Federal use and is surplus to the 
needs of the Federal Government. After receiving this determination, 
Executive agencies, upon approval from GSA, must expeditiously make the 
surplus property available for acquisition by State and local 
governmental units and nonprofit institutions (see Sec. 102-75.55) or 
for sale by public advertising, negotiation, or other disposal action. 
Executive agencies must consider the availability of real property for 
public purposes on a case-by-case basis, based on highest and best use 
and estimated fair market value. See Sec. 101-47.202-2(b) of this title 
for the requirements for reporting excess real property. Where hazardous 
substance activity is identified, see Sec. 101-47.304-14 of this title 
for required information that the disposal agency must incorporate into 
Invitation for Bids/Offers to Purchase.



Sec. 102-75.40  When may Executive agencies dispose of surplus real property by exchange for privately owned property?

    Executive agencies may dispose of surplus real property by exchange 
for privately owned property only:
    (a) For property management considerations such as boundary 
realignment or provision of access; or
    (b) Where authorized by law, when the requesting Federal agency 
receives approval from the Office of Management and Budget and the 
appropriate oversight committees, and where the transaction offers 
substantial economic or unique program advantages not otherwise 
obtainable by any other acquisition method.



Sec. 102-75.45  When may Executive agencies outlease surplus real property for non-Federal interim use?

    Executive agencies may outlease surplus real property for non-
Federal interim use, pending its disposition, when both of the following 
conditions exist:
    (a) The lease or permit does not exceed one year and is revocable 
with not more than a 30-day notice by the disposal agency; and
    (b) The use and occupancy will not interfere with, delay, or impede 
the disposal of the property.



Sec. 102-75.50  What are Federal agencies' reporting responsibilities under the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11411)?

    By December 31 of each year, each landholding agency responsible for 
reporting must notify the Department of Housing and Urban Development 
(HUD) regarding the current availability status and classification of 
each property controlled by the agency that:
    (a) Was included in a list of suitable properties published that 
year by HUD; and
    (b) Remains available for application for use to assist the 
homeless, or has become available for application during that year.



Sec. 102-75.55  What are Executive agencies' responsibilities concerning public benefit conveyances?

    Based on a highest and best use analysis, Executive agencies, upon 
approval from GSA, may make surplus real property available to State and 
local governments and certain nonprofit institutions at up to 100 
percent public benefit discount for public benefit purposes. Some 
examples of such purposes are education, health, park and recreation, 
the homeless, historic monuments, public airports, highways, 
correctional facilities, ports, and wildlife conservation. The 
implementing regulations are found at Sec. 101-47.308 of this title.



Sec. 102-75.60  When may Executive agencies conduct negotiated sales?

    Executive agencies may conduct negotiated sales only when:
    (a) The estimated fair market value of the property does not exceed 
$15,000; or
    (b) Bid prices after advertising are unreasonable (for all or part 
of the property) or were not independently arrived at in open 
competition; or
    (c) The character or condition of the property or unusual 
circumstances make it impractical to advertise for competitive bids and 
the fair market

[[Page 76]]

value of the property and other satisfactory terms of disposal are 
obtainable by negotiation; or
    (d) The disposals will be to States, Commonwealth of Puerto Rico, 
possessions, political subdivisions thereof, or tax-supported agencies 
therein, and the estimated fair market value of the property and other 
satisfactory terms of disposal are obtainable by negotiations. Such 
negotiated sales to public bodies must be limited to where a public 
benefit will result from a negotiated sale which would not be realized 
from a competitive sale disposal (some examples of such purposes are 
administrative offices and economic development); or
    (e) Negotiation is otherwise authorized by the Federal Property and 
Administrative Services Act of 1949 or other law, such as disposals of 
power transmission lines for public or cooperative power projects.



Sec. 102-75.65  What are Executive agencies' responsibilities concerning negotiated sales?

    Executive agencies must:
    (a) Obtain such competition as is feasible in all negotiations of 
disposals and contracts for disposal of surplus property; and
    (b) Prepare and transmit an explanatory statement, identifying the 
circumstances of each disposal by negotiation for any real property 
specified in 40 U.S.C. 484(e)(6)(A), to the appropriate committees of 
the Congress in advance of such disposal.



Sec. 102-75.70  What can Executive agencies do to eliminate the potential for windfall profits to public agencies in negotiated sales?

    To eliminate the potential for windfall profits to public agencies, 
Executive agencies must include in negotiated sales to public agencies 
an excess profits clause, which usually runs for 3 years. This clause 
states that, if the purchaser should sell or enter into agreements to 
sell the property within 3 years from the date of title transfer by the 
Federal Government, all proceeds in excess of the purchasers costs will 
be remitted to the Federal Government. (Put the clause found in 
Sec. 101-47.4908 of this title in the offer to purchase and in the 
conveyance document.)



Sec. 102-75.75  What is a negotiated sale for economic development purposes?

    A negotiated sale for economic development purposes means that the 
public body purchasing the property will develop or make substantial 
improvements to the property with the intention of reselling or leasing 
the property in parcels to users to advance the community's economic 
benefit. This type of negotiated sale is acceptable where the expected 
public benefits to the community are greater than the anticipated 
proceeds derived from a competitive public sale.



Sec. 102-75.80  What are Executive agencies' responsibilities concerning public sales?

    Executive agencies must make available by competitive public sale 
any surplus property that is not disposed of by public benefit discount 
conveyance or by negotiated sale. Awards must be made to the responsible 
bidder whose bid will be most advantageous to the Government, price and 
other factors considered.



Sec. 102-75.85  How can Federal agencies obtain related disposal services?

    Federal agencies with independent disposal authority are encouraged 
to obtain disposal related services from those agencies with expertise 
in real property disposal, such as GSA, as allowed by 31 U.S.C. 1535 
(the Economy Act), so that agencies may remain focused on their core 
mission.



Sec. 102-75.90  What type of appraisal value must be obtained for real property disposal transactions?

    For all real property transactions requiring appraisals, Executive 
agencies must in all cases obtain, as appropriate, an appraisal of 
either the fair market value or the fair annual rental value of property 
available for disposal.



Sec. 102-75.95  Are appraisals required for all real property disposal transactions?

    Generally, yes, appraisals are required for all real property 
disposal

[[Page 77]]

transactions. However, appraisals are not required when either of the 
following conditions exist:
    (a) An appraisal will serve no useful purpose (e.g., legislation 
authorizes conveyance without monetary consideration or at a fixed 
price). This exception does not apply to negotiated sales to public 
agencies intending to use the property for a public purpose not covered 
by any of the special disposal provisions in Sec. 101-47.308 of this 
title.
    (b) The estimated fair market value of property to be offered on a 
competitive sale basis does not exceed $50,000.



Sec. 102-75.100  Who must appraise the real property?

    Executive agencies must use only experienced and qualified real 
estate appraisers familiar with types of property to be appraised when 
conducting the appraisal. When an appraisal is required for the purposes 
of disposing of surplus property by negotiation under Sec. 102-75.60(c), 
(d), or (e), contract appraisers that meet this same standard must be 
used. However, Executive agencies may authorize any other method of 
obtaining an estimate of the fair market value or the fair annual rental 
when the cost of obtaining such data from a contract appraiser would be 
out of proportion to the expected recoverable value of the property.



PART 102-76--DESIGN AND CONSTRUCTION--Table of Contents




Sec.
102-76.5  What is the scope of this part?
102-76.10  What basic design and construction policy governs Federal 
          agencies?
102-76.15  What are design and construction services?
102-76.20  What issues must Federal agencies consider in providing site 
          planning and landscape design services?
102-76.25  What standards must Federal agencies meet in providing 
          architectural and interior design services?
102-76.30  Seismic safety. [Reserved]
102-76.35  Flood plains. [Reserved]

    Authority: 40 U.S.C. 486(c) (in furtherance of the Administrator's 
authorities under 40 U.S.C. 601-619 and elsewhere as included under 40 
U.S.C. 490(a) and (c)); E.O. 12411, 48 FR 13391, 3 CFR, 1983 Comp., p. 
155; E.O. 12512, 50 FR 18453, 3 CFR, 1985 Comp., p. 340.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-76.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-76.10  What basic design and construction policy governs Federal agencies?

    Federal agencies, upon approval from GSA, are bound by the following 
basic design and construction policies:
    (a) Provide the highest quality services for designing and 
constructing new Federal facilities and for repairing and altering 
existing Federal facilities. These services must be timely, efficient, 
and cost effective.
    (b) Use a distinguished architectural style and form in Federal 
facilities that reflects the dignity, enterprise, vigor and stability of 
the Federal Government.
    (c) Follow nationally recognized model building codes and other 
applicable nationally recognized codes that govern Federal construction 
to the maximum extent feasible and consider local building code 
requirements. (See 40 U.S.C. 618 and 619.)
    (d) Design Federal buildings to have a long life expectancy and 
accommodate periodic changes due to renovations.
    (e) Make buildings cost effective, energy efficient, and accessible 
to and usable by the physically impaired.
    (f) Provide for building service equipment that is accessible for 
maintenance, repair, or replacement without significantly disturbing 
occupied space.
    (g) Consider ease of operation when selecting mechanical and 
electrical equipment.
    (h) Agencies must follow the prospectus submission and approval 
policy identified in Secs. 102-73.95 and 102-73.100 of this chapter.



Sec. 102-76.15  What are design and construction services?

    Design and construction services are:

[[Page 78]]

    (a) Site planning and landscape design;
    (b) Architectural and interior design; and
    (c) Engineering systems design.



Sec. 102-76.20  What issues must Federal agencies consider in providing site planning and landscape design services?

    In providing site planning and design services, Federal agencies 
must:
    (a) Make the site planning and landscape design a direct extension 
of the building design;
    (b) Make a positive contribution to the surrounding landscape;
    (c) Consider requirements (other than procedural requirements) of 
local zoning laws and laws relating to setbacks, height, historic 
preservation and aesthetic qualities of a building;
    (d) Identify areas for future building expansion in the 
architectural and site design concept for all buildings where an 
expansion need is identified to exist;
    (e) Create a landscape design that is a pleasant, dynamic experience 
for occupants and visitors to Federal facilities and, where appropriate, 
encourage public access to and stimulate pedestrian traffic around the 
facilities. Coordinate the landscape design with the architectural 
characteristics of the building; and
    (f) Comply with the requirements of the National Environmental 
Policy Act of 1969, as amended, 42 U.S.C. 4321 et seq., and the National 
Historic Preservation Act, as amended, 16 U.S.C. 470 et seq., for each 
project.
    (g) Consider the vulnerability of the facility as well as the 
security needs of the occupying agencies.



Sec. 102-76.25  What standards must Federal agencies meet in providing architectural and interior design services?

    Federal agencies must design distinctive and high quality Federal 
facilities that meet all of the following standards:
    (a) Reflect the local architecture in buildings through the use of 
building form, materials, colors, or detail. Express a quality of 
permanence in the building interior similar to the building exterior.
    (b) For new construction and major renovations, provide full access 
to and use of Federally-controlled facilities for physically impaired 
persons. Follow the Architectural Barriers Act of 1968, 42 U.S.C. 4151-
4157 (Uniform Federal Accessibility Standards (UFAS)) or Americans with 
Disabilities Act of 1990, Public Law 101-336, 104 Stat. 327 (ADA 
accessibility guidelines), whichever is more stringent. For minor 
renovations in existing buildings, meet minimum UFAS requirements. A 
more detailed explanation of these standards can be found in part 101-
19, subpart 101-19.6, of this title.
    (c) Use metric specifications in construction where the metric 
system is the accepted industry standard, and to the extent that such 
usage is economically feasible and practical.
    (d) Provide for the design of security systems to protect Federal 
workers and visitors and to safeguard facilities against criminal 
activity and/or terrorist activity. Security design must support the 
continuity of Government operations during civil disturbances, natural 
disasters and other emergency situations.
    (e) Design and construct facilities that meet or exceed the energy 
performance standards applicable to Federal buildings in 10 CFR part 
435.



Sec. 102-76.30  Seismic safety. [Reserved]



Sec. 102-76.35  Flood plains. [Reserved]



PART 102-77--ART-IN-ARCHITECTURE--Table of Contents




Sec.
102-77.5  What is the scope of this part?
102-77.10  What basic Art-in-architecture policy governs Federal 
          agencies?
102-77.15  Who funds the Art-in-architecture efforts?
102-77.20  Who should Federal agencies collaborate with when 
          commissioning and selecting art for Federal buildings?
102-77.25  Do Federal agencies have responsibilities to provide national 
          visibility for Art-in-architecture?

    Authority: 40 U.S.C. 486(c) and 601a.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.

[[Page 79]]



Sec. 102-77.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-77.10  What basic Art-in-architecture policy governs Federal agencies?

    Federal agencies must incorporate fine arts as an integral part of 
the total building concept when designing new Federal buildings, and 
when making substantial repairs and alterations to existing Federal 
buildings, as appropriate. The selected fine arts, including painting, 
sculpture, and artistic work in other media, must reflect the national 
cultural heritage and emphasize the work of living American artists.



Sec. 102-77.15  Who funds the Art-in-architecture efforts?

    To the extent not prohibited by law, Federal agencies must fund the 
Art-in-architecture efforts by allocating a portion of the estimated 
cost of constructing or purchasing new Federal buildings, or of 
completing major repairs and alterations of existing buildings. Funding 
for qualifying projects, including new construction, building purchases, 
other building acquisition, or prospectus-level repair and alteration 
projects, must be in a range determined by the Administrator of General 
Services.



Sec. 102-77.20  Who should Federal agencies collaborate with when commissioning and selecting art for Federal buildings?

    To the maximum extent practicable, Federal agencies should seek the 
support and involvement of local citizens in selecting appropriate 
artwork. Federal agencies should collaborate with the artist and 
community to produce works of art that reflect the cultural, 
intellectual, and historic interests and values of a community. In 
addition, Federal agencies should work collaboratively with the 
architect of the building, art professionals, when commissioning and 
selecting art for Federal buildings. Federal agencies should commission 
artwork that is diverse in style and media.



Sec. 102-77.25  Do Federal agencies have responsibilities to provide national visibility for Art-in-architecture?

    Yes, Federal agencies should provide Art-in-architecture that 
receives appropriate national and local visibility to facilitate 
participation by a large and diverse group of artists representing a 
wide variety of types of artwork.



PART 102-78--HISTORIC PRESERVATION--Table of Contents




Sec.
102-78.5  What is the scope of this part?
102-78.10  What basic historic preservation policy governs Federal 
          agencies?
102-78.15  What are historic properties?
102-78.20  Are Federal agencies required to identify historic 
          properties?
102-78.25  What is an undertaking?
102-78.30  What are consulting parties?
102-78.35  Are Federal agencies required to involve consulting parties 
          in their historic preservation activities?
102-78.40  What responsibilities do Federal agencies have when an 
          undertaking adversely affects a historic or cultural property?
102-78.45  What are Federal agencies' responsibilities concerning 
          nomination of properties to the National Register?
102-78.50  What historic preservation services must Federal agencies 
          provide?
102-78.55  For which properties must Federal agencies assume historic 
          preservation responsibilities?
102-78.60  What are Federal agencies' historic preservation 
          responsibilities when acquiring leased space?
102-78.65  What are Federal agencies' historic preservation 
          responsibilities when disposing of real property under their 
          control?
102-78.70  What are an agency's historic preservation responsibilities 
          when disposing of another Federal agency's real property?

    Authority: 16 U.S.C. 470 h-2; 40 U.S.C. 486(c) and 490(a).

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-78.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings

[[Page 80]]

Service (PBS), operating under, or subject to, the authorities of the 
Administrator of General Services. The policies in this part are in 
furtherance of GSA's preservation program under section 110 of the 
National Historic Preservation Act (16 U.S.C. 470) and apply to 
properties under the jurisdiction or control of the Administrator and to 
any Federal agencies operating, maintaining or protecting such 
properties under a delegation of authority from the Administrator.



Sec. 102-78.10  What basic historic preservation policy governs Federal agencies?

    To protect, enhance and preserve historic and cultural property 
under their control, Federal agencies must consider the effects of their 
undertakings on historic and cultural properties and give the Advisory 
Council on Historic Preservation (Advisory Council), the State Historic 
Preservation Officer (SHPO), and other consulting parties a reasonable 
opportunity to comment regarding the proposed undertakings.



Sec. 102-78.15  What are historic properties?

    Historic properties are those that are included in, or eligible for 
inclusion in, the National Register of Historic Places (National 
Register) as more specifically defined at 36 CFR 800.16.



Sec. 102-78.20  Are Federal agencies required to identify historic properties?

    Yes, Federal agencies must identify all National Register or 
National Register-eligible historic properties under their control. In 
addition, Federal agencies must apply National Register Criteria (36 CFR 
part 63) to properties that have not been previously evaluated for 
National Register eligibility and that may be affected by the 
undertakings of Federally sponsored activities.



Sec. 102-78.25  What is an undertaking?

    The term undertaking means a project, activity, or program under the 
direct or indirect jurisdiction of a Federal agency, including those:
    (a) Carried out by or on behalf of the agency;
    (b) Carried out with Federal financial assistance;
    (c) Requiring a Federal permit, license, or approval; and
    (d) Subject to State or local regulation administered pursuant to a 
delegation or approval by a Federal agency.



Sec. 102-78.30  What are consulting parties?

    As more particularly described in 36 CFR 800.2(c), consulting 
parties are those parties having consultative roles in the Section 106 
process (i.e., Section 106 of the National Historic Preservation Act) 
that requires Federal agencies to take into account the effects of their 
undertakings on historic properties and afford the Council a reasonable 
opportunity to comment on such undertakings. Specifically, consulting 
parties include the State Historic Preservation Officer; Tribal Historic 
Preservation Officer; Indian tribes and Native Hawaiian organizations; 
Representatives of local governments; Applicants for Federal assistance, 
permits, licenses and other approvals; and other individuals and 
organizations with a demonstrated interest in the undertaking.



Sec. 102-78.35  Are Federal agencies required to involve consulting parties in their historic preservation activities?

    Yes, Federal agencies must solicit information from consulting 
parties to carry out their responsibilities under historic and cultural 
preservation laws and regulations. Federal agencies must invite the 
participation of consulting parties through their normal public 
notification processes.



Sec. 102-78.40  What responsibilities do Federal agencies have when an undertaking adversely affects a historic or cultural property?

    Federal agencies must not perform an undertaking that could alter, 
destroy, or modify an historic or cultural property until they have 
consulted with the SHPO and the Advisory Council. Federal agencies must 
minimize all adverse impacts of their undertakings on historic or 
cultural properties to the extent that is feasible and prudent.

[[Page 81]]

Federal agencies must follow the specific guidance on the protection of 
historic and cultural properties in 36 CFR part 800.



Sec. 102-78.45  What are Federal agencies' responsibilities concerning nomination of properties to the National Register?

    Federal agencies must nominate to the National Register all 
properties under their control determined eligible for inclusion in the 
National Register.



Sec. 102-78.50  What historic preservation services must Federal agencies provide?

    Federal agencies must provide the following historic preservation 
services:
    (a) Prepare a Historic Building Preservation Plan for each National 
Register or National Register-eligible property under their control. 
When approved by consulting parties, such plans become a binding 
management plan for the property; and
    (b) Investigate for historic and cultural factors all proposed sites 
for direct and leased construction.



Sec. 102-78.55  For which properties must Federal agencies assume historic preservation responsibilities?

    Federal agencies must assume historic preservation responsibilities 
for real property assets under their custody and control. Federal 
agencies occupying space in buildings under the custody and control of 
other Federal agencies must obtain approval from the agency having 
custody and control of the building.



Sec. 102-78.60  What are Federal agencies historic preservation responsibilities when acquiring leased space?

    In leasing historic property, Federal agencies must give a 
preference to such leasing actions in accordance with hierarchy of 
consideration identified in Sec. 102-79.90 of this chapter.



Sec. 102-78.65  What are Federal agencies' historic preservation responsibilities when disposing of real property under their control?

    Federal agencies must:
    (a) To the extent practicable, establish and implement alternatives 
for historic properties, including adaptive reuse, that are not needed 
for current or projected agency purposes. Agencies are required to get 
the Secretary of Interior's approval of the plans of transferees of 
surplus Federally-owned historic properties.
    (b) Review all proposed excess actions to identify any properties 
listed on or eligible for listing on the National Register. Federal 
agencies must not perform disposal actions that could result in the 
alteration, destruction, or modification of an historic or cultural 
property until Federal agencies have consulted with the SHPO and the 
Advisory Council.



Sec. 102-78.70  What are an agency's historic preservation responsibilities when disposing of another Federal agency's real property?

    Federal agencies must not accept property declared excess by another 
Federal agency nor act as an agent for transfer or sale of such 
properties until the holding agency provides evidence that the Federal 
agency has met its National Historic Preservation Act responsibilities.



PART 102-79--ASSIGNMENT AND UTILIZATION OF SPACE--Table of Contents




Sec.
102-79.5  What is the scope of this part?
102-79.10  What basic assignment and utilization of space policy governs 
          an Executive agency?
102-79.15  What objectives must an Executive agency strive to meet in 
          providing assignment and utilization of space services?
102-79.20  What standard must Executive agencies promote when assigning 
          space?
102-79.25  Can Federal agencies allot space in Federal buildings for the 
          provision of child care services?
102-79.30  Can Federal agencies allot space in Federal buildings for 
          establishing fitness centers?
102-79.35  What elements must Federal agencies address in their planning 
          effort for establishing fitness programs?
102-79.40  Can Federal agencies allot space in Federal buildings to 
          Federal credit unions?
102-79.45  What type of services may Federal agencies provide without 
          charge to Federal credit unions?

[[Page 82]]

102-79.50  What standard must Executive agencies promote in their 
          utilization of space?
102-79.55  Are agencies required to use historic properties available to 
          the agency?
102-79.60  Are Executive agencies required to give first priority to the 
          location of new offices and other facilities in rural areas?
102-79.65  When an agency's mission and program requirements call for 
          the location in an urban area, are Executive agencies required 
          to give first consideration to central business areas?
102-79.70  What is a central business area?
102-79.75  Who is responsible for identifying the delineated area within 
          which a Federal agency wishes to locate specific activities?
102-79.80  Who must approve the final delineated area?
102-79.85  Are Executive agencies required to consider whether the 
          central business area will provide for adequate competition 
          when acquiring leased space?
102-79.90  Are Executive agencies required to give preference to 
          historic properties when acquiring leased space?
102-79.95  Automated external defibrillators. [Reserved]

    Authority: 40 U.S.C. 486(c); E.O. 12411, 48 FR 13391, 3 CFR, 1983 
Comp., p. 155; and E.O. 12512, 50 FR 18453, 3 CFR, 1985 Comp., p. 340.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-79.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-79.10  What basic assignment and utilization of space policy governs an Executive agency?

    Executive agencies must provide a quality workplace environment that 
supports program operations, preserves the value of real property 
assets, meets the needs of the occupant agencies, and provides child 
care and physical fitness facilities in the workplace when adequately 
justified. An Executive agency must promote maximum utilization of 
Federal workspace, consistent with mission requirements, to maximize its 
value to the Government.



Sec. 102-79.15  What objectives must an Executive agency strive to meet in providing assignment and utilization of space services?

    Executive agencies must provide assignment and utilization services 
that will maximize the value of Federal real property resources and 
improve the productivity of the workers housed therein.



Sec. 102-79.20  What standard must Executive agencies promote when assigning space?

    Executive agencies must promote the optimum use of space for each 
assignment at the minimum cost to the Government, provide quality 
workspace that is delivered and occupied in a timely manner, and assign 
space based on mission requirements.



Sec. 102-79.25  Can Federal agencies allot space in Federal buildings for the provision of child care services?

    Yes, in accordance with 40 U.S.C. 490b, Federal agencies can allot 
space in Federal buildings to individuals or entities who will provide 
child care services to Federal employees if:
    (a) Such space is available;
    (b) Such agency determines that such space will be used to provide 
child care services to children of whom at least 50 percent have one 
parent or guardian who is a Federal Government employee; and
    (c) Such agency determines that such individual or entity will give 
priority for available child care services in such space to Federal 
employees.



Sec. 102-79.30  Can Federal agencies allot space in Federal buildings for establishing fitness centers?

    Yes, in accordance with 5 U.S.C. 7901, Federal agencies can allot 
space in Federal buildings for establishing fitness programs.



Sec. 102-79.35  What elements must Federal agencies address in their planning effort for establishing fitness programs?

    Federal agencies must address the following elements in their 
planning effort for establishing fitness programs:
    (a) A survey indicating employee interest in the program;

[[Page 83]]

    (b) A three to five year implementation plan demonstrating long-term 
commitment to physical fitness/health for employees;
    (c) A health related orientation, including screening procedures, 
individualized exercise programs, identification of high-risk 
individuals, and appropriate follow-up activities;
    (d) Identification of a person skilled in prescribing exercise to 
direct the fitness program;
    (e) An approach which will consider key health behavior related to 
degenerative disease, including smoking and nutrition;
    (f) A modest facility that includes only the essentials necessary to 
conduct a program involving cardiovascular and muscular endurance, 
strength activities, and flexibility;
    (g) Provision for equal opportunities for men and women, and all 
employees, regardless of grade level.



Sec. 102-79.40  Can Federal agencies allot space in Federal buildings to Federal credit unions?

    Yes, in accordance with 12 U.S.C. 1770, Federal agencies may allot 
space in Federal buildings to Federal credit unions without charge for 
rent or services if:
    (a) At least 95 percent of the membership of the credit union to be 
served by the allotment of space is composed of persons who either are 
presently Federal employees or were Federal employees at the time of 
admission into the credit union, and members of their families; and
    (b) If space is available.



Sec. 102-79.45  What type of services may Federal agencies provide without charge to Federal credit unions?

    Federal agencies may provide without charge to Federal credit union 
services such as:
    (a) Lighting;
    (b) Heating and cooling;
    (c) Electricity;
    (d) Office furniture;
    (e) Office machines and equipment;
    (f) Telephone service (including installation of lines and equipment 
and other expenses associated with telephone service); and
    (g) Security systems (including installation and other expenses 
associated with security systems).



Sec. 102-79.50  What standard must Executive agencies promote in their utilization of space?

    Executive agencies, acquiring or utilizing Federally owned and 
leased space under the Federal Property and Administrative Services Act 
of 1949, as amended, must promote efficient utilization of space 
according to GSA standards. In order to maximize the use of vacant 
space, use existing GSA-controlled space to the maximum extent 
practical. After considering the availability of GSA-controlled space, 
extend priority consideration to available space in buildings under the 
custody and control of the U.S. Postal Service before acquiring 
additional space. Where there is no Federal agency space need, Executive 
agencies must make every effort to maximize the productive use of vacant 
space through out-granting (for example, outlease, permit, license) to 
non-Federal entities to the extent authorized by law.



Sec. 102-79.55  Are agencies required to use historic properties available to the agency?

    Yes, Federal agencies must assume responsibility for the 
preservation of the historic properties they own or control. Prior to 
acquiring, constructing or leasing buildings, agencies must use, to the 
maximum extent feasible, historic properties already owned or leased by 
the agency (16 U.S.C. 470h-2).



Sec. 102-79.60  Are Executive agencies required to give first priority to the location of new offices and other facilities in rural areas?

    Yes, Executive agencies must give first priority to the location of 
new offices and other facilities in rural areas (7 U.S.C. 2204b-1), 
unless their mission or program requirements call for locations in an 
urban area.

[[Page 84]]



Sec. 102-79.65  When an agency's mission and program requirements call for the location in an urban area, are Executive agencies required to give first           consideration to central business areas?

    Yes, when agency mission and program requirements call for location 
in an urban area and new space must be acquired, constructed or leased, 
Executive agencies must give first consideration to central business 
areas (CBAs) and other areas designated by local officials (Executive 
Order 12072 (43 FR 36869, 3 CFR, 1978 Comp., p. 213.) and Executive 
Order 13006 (61 FR 26071, 3 CFR, 1996 Comp., p. 195)).



Sec. 102-79.70  What is a central business area?

    Central business area means the centralized community business area 
and adjacent areas of similar character, including other specific areas 
which may be recommended by local officials in accordance with Executive 
Order 12072.



Sec. 102-79.75  Who is responsible for identifying the delineated area within which a Federal agency wishes to locate specific activities?

    Each Federal agency is responsible for identifying the delineated 
area within which it wishes to locate specific activities, consistent 
with its mission and program requirements, and in accordance with all 
applicable laws, regulations, and Executive orders.



Sec. 102-79.80  Who must approve the final delineated area?

    Federal agencies conducting the procurement must approve the final 
delineated area for site acquisitions and lease actions and must confirm 
that the final delineated area complies with the requirements of all 
applicable laws, regulations, and Executive orders.



Sec. 102-79.85  Are Executive agencies required to consider whether the central business area will provide for adequate competition when acquiring leased space?

    In accordance with the Competition in Contracting Act of 1984 
(CICA), as amended, (41 U.S.C. 253(a)) Executive agencies must consider 
whether restricting the delineated area for obtaining leased space to 
the central business area will provide for adequate competition when 
acquiring leased space. Where an Executive agency determines that the 
delineated area must be expanded beyond the CBA in order to provide 
adequate competition, the agency may expand the delineated area in 
consultation with local officials. Executive agencies must continue to 
include the CBA in such expanded areas.



Sec. 102-79.90  Are Executive agencies required to give preference to historic properties when acquiring leased space?

    Yes, section 110 of the National Historic Preservation Act of 1966, 
as amended (16 U.S.C. 470h-2), requires that agencies first consider 
historic properties already under agency control. However, the Act also 
provides that prior to acquiring, constructing or leasing new space, and 
subject to the requirements of Section 601 of Title VI of the Rural 
Development Act of 1972, as amended (7 U.S.C. 2204b-1), Executive Order 
13006 and Executive Order 12072, Executive agencies must first consider 
historic properties within historic districts when locating Federal 
facilities. If no such suitable historic property is available, 
Executive agencies must then consider other developed or undeveloped 
sites within historic districts. Finally, Executive agencies must 
consider suitable historic properties outside of historic districts, if 
no suitable site exists within a historic district.



Sec. 102-79.95  Automated external defibrillators. [Reserved]



PART 102-80--SAFETY AND ENVIRONMENTAL MANAGEMENT--Table of Contents




Sec.
102-80.5  What is the scope of this part?
102-80.10  What are the basic safety and environmental management 
          policies for real property?
102-80.15  What are Federal agencies' responsibilities concerning the 
          assessment and management of asbestos?
102-80.20  What are Federal agencies' responsibilities concerning the 
          abatement of radon?
102-80.25  What are Federal agencies' responsibilities concerning the 
          management of indoor air quality?

[[Page 85]]

102-80.30  What are Federal agencies' responsibilities concerning lead?
102-80.35  What are Federal agencies' responsibilities concerning the 
          monitoring of hazardous materials and wastes?
102-80.40  What are Federal agencies' responsibilities concerning the 
          management of underground storage tanks?
102-80.45  What are Federal agencies' responsibilities concerning fire 
          prevention and fire protection engineering?
102-80.50  Are Federal agencies responsible for identifying/estimating 
          risks and for appropriate reduction strategies?
102-80.55  Are Federal agencies responsible for performing facility 
          assessments?
102-80.60  Are Federal agencies responsible for managing the execution 
          of risk reduction projects?
102-80.65  What are Federal agencies' responsibilities concerning the 
          investigation of incidents, such as fires, accidents, 
          injuries, and environmental incidents?
102-80.70  Are Federal agencies responsible for informing their tenants 
          of the condition and management of their facility safety and 
          environment?
102-80.75  Who assesses environmental issues in Federal construction and 
          lease construction projects?

    Authority: 40 U.S.C. 486(c) and 490.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-80.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services. The responsibilities for safety and environmental management 
under this part are intended to apply to GSA or those Federal agencies 
operating in GSA space pursuant to a GSA delegation of authority.



Sec. 102-80.10  What are the basic safety and environmental management policies for real property?

    The basic safety and environmental management policies for real 
property are that Federal agencies must:
    (a) Provide for a safe and healthful work environment for Federal 
employees and the visiting public;
    (b) Protect Federal real and personal property;
    (c) Promote mission continuity;
    (d) Provide reasonable safeguards for emergency forces if an 
incident occurs;
    (e) Assess risk;
    (f) Make decisionmakers aware of risks; and
    (g) Act promptly and appropriately in response to risk.



Sec. 102-80.15  What are Federal agencies' responsibilities concerning the assessment and management of asbestos?

    Federal agencies have the following responsibilities concerning the 
assessment and management of asbestos:
    (a) Inspect and assess buildings for the presence and condition of 
asbestos-containing materials. Space to be leased must be free of all 
asbestos containing materials, except undamaged asbestos flooring in the 
space or undamaged boiler or pipe insulation outside the space, in which 
case an asbestos management program conforming to Environmental 
Protection Agency (EPA) guidance must be implemented;
    (b) Manage in-place asbestos that is in good condition and not 
likely to be disturbed;
    (c) Abate damaged asbestos, and asbestos likely to be disturbed. 
Federal agencies must perform a pre-alteration asbestos assessment for 
activities that may disturb asbestos;
    (d) Not use asbestos in new construction, renovation/modernization 
or repair of their owned or leased space. Unless approved by GSA, 
Federal agencies must not obtain space with asbestos through purchase, 
exchange, transfer, or lease, except as identified in paragraph (a) of 
this section; and
    (e) Communicate all written and oral asbestos information about the 
leased space to tenants.



Sec. 102-80.20  What are Federal agencies' responsibilities concerning the abatement of radon?

    Federal agencies have the following responsibilities concerning the 
abatement of radon in space when radon levels exceed current EPA 
standards:
    (a) Retest abated areas and make lessors retest, as required, abated 
areas to adhere to EPA standards; and
    (b) Test non-public water sources (in remote areas for projects such 
as border stations) for radon according to

[[Page 86]]

EPA guidance. Radon levels that exceed current applicable EPA standards 
must be mitigated. Federal agencies must retest, as required, to adhere 
to EPA standards.



Sec. 102-80.25  What are Federal agencies' responsibilities concerning the management of indoor air quality?

    Federal agencies must assess indoor air quality of buildings as part 
of their safety and environmental facility assessments. Federal agencies 
must respond to tenant complaints on air quality and take appropriate 
corrective action where air quality does not meet applicable standards.



Sec. 102-80.30  What are Federal agencies' responsibilities concerning lead?

    Federal agencies have the following responsibilities concerning lead 
in buildings:
    (a) Test space for lead-based paint in renovation projects that 
require sanding, welding or scraping painted surfaces.
    (b) Not remove lead based paint from surfaces in good condition.
    (c) Test all painted surfaces for lead in proposed or existing child 
care centers.
    (d) Abate lead-based paint found in accordance with Department of 
Housing and Urban Development (HUD) Lead-Based Paint Guidelines, 
available by writing to HUD USER, P.O. Box 6091, Rockville, MD, 20850.
    (e) Test potable water for lead in all drinking water outlets in 
child care centers.
    (f) Take corrective action when lead levels exceed the HUD 
Guidelines.



Sec. 102-80.35  What are Federal agencies' responsibilities concerning the monitoring of hazardous materials and wastes?

    Federal agencies' responsibilities concerning the monitoring of 
hazardous materials and wastes are to:
    (a) Monitor the transport, use, and disposition of hazardous 
materials and waste in buildings to provide for compliance with GSA, 
Occupational Safety and Health Administration (OSHA), Department of 
Transportation, EPA, and applicable State and local requirements. In 
addition to those operating in GSA space pursuant to a delegation of 
authority, tenants in GSA space must comply with these requirements.
    (b) In leased space, include in all agreements with the lessor 
requirements that hazardous materials kept in leased space are kept and 
maintained according to applicable Federal, State, and local 
environmental regulations.



Sec. 102-80.40  What are Federal agencies' responsibilities concerning the management of underground storage tanks?

    Federal agencies have the following responsibilities concerning the 
management of underground storage tanks in real property:
    (a) Register, manage and close underground storage tanks, including 
heating oil and fuel oil tanks, in accordance with GSA, EPA, and 
applicable State and local requirements.
    (b) Require the party responsible for tanks they use but don't own 
to follow these requirements and to be responsible for the cost of 
compliance.



Sec. 102-80.45  What are Federal agencies' responsibilities concerning fire prevention and fire protection engineering?

    Federal agencies must follow accepted fire prevention practices in 
operating and managing buildings. Federally-owned buildings are 
generally exempt from State and local code requirements in fire 
protection; however, in accordance with 40 U.S.C. 619, each building 
constructed or altered by a Federal agency must be constructed or 
altered, to the maximum extent feasible, in compliance with one of the 
nationally recognized model building codes and with other nationally 
recognized codes. Leased buildings are subject to local requirements and 
inspection. Federal agencies must use the National Fire Protection 
Association (NFPA) codes and standards (obtained by writing to NFPA, 11 
Tracy Drive, Avon, MA 02322.) as a guide for their building operations.



Sec. 102-80.50  Are Federal agencies responsible for identifying/estimating risks and for appropriate reduction strategies?

    Yes, Federal agencies must identify and estimate safety and 
environmental

[[Page 87]]

management risks and appropriate reduction strategies for buildings. 
Federal agencies occupying as well as operating buildings must identify 
any safety and environmental management risks and report or correct the 
situation, as appropriate.



Sec. 102-80.55  Are Federal agencies responsible for performing facility assessments?

    Yes, Federal agencies must evaluate facilities to comply with GSA's 
safety and environmental program and applicable Federal, State and local 
environmental laws and regulations. Federal agencies should conduct 
these evaluations in accordance with schedules that are compatible with 
repair and alteration and leasing operations.



Sec. 102-80.60  Are Federal agencies responsible for managing the execution of risk reduction projects?

    Yes, Federal agencies must manage the execution of risk reduction 
projects in buildings they operate. Federal agencies must identify and 
take appropriate action to eliminate hazards and regulatory 
noncompliance.



Sec. 102-80.65  What are Federal agencies' responsibilities concerning the investigation of incidents, such as fires, accidents, injuries, and environmental 
          incidents?

    Federal agencies have the following responsibilities concerning the 
investigation of incidents, such as fires, accidents, injuries, and 
environmental incidents in buildings they operate:
    (a) Investigate all incidents regardless of severity.
    (b) Form Boards of Investigation for incidents resulting in serious 
injury, death, or significant property losses.



Sec. 102-80.70  Are Federal agencies responsible for informing their tenants of the condition and management of their facility safety and environment?

    Yes, Federal agencies must inform their tenants of the condition and 
management of their facility safety and environment. Agencies operating 
GSA buildings must report any significant facility safety or 
environmental concerns to GSA.



Sec. 102-80.75  Who assesses environmental issues in Federal construction and lease construction projects?

    Federal agencies must assess required environmental issues 
throughout planning and project development, so that the environmental 
impacts of a project are considered during the decisionmaking process.



PART 102-81--SECURITY--Table of Contents




Sec.
102-81.5  What is the scope of this part?
102-81.10  What basic security policy governs Federal agencies?
102-81.15  Who is responsible for upgrading and maintaining security 
          standards in each Federally-owned facility?

    Authority: 40 U.S.C. 318a, 486(c) and 490.

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-81.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-81.10  What basic security policy governs Federal agencies?

    Federal agencies on Federal property under the charge and control of 
the Administrator and having a security delegation of authority from the 
Administrator must provide for the security and protection of the real 
estate they occupy, including the protection of persons within the 
property.



Sec. 102-81.15  Who is responsible for upgrading and maintaining security standards in each Federally-owned facility?

    In a June 28, 1995, Presidential Policy Memorandum for Executive 
Departments and Agencies, entitled, ``Upgrading Security at Federal 
Facilities'' (see the Weekly Compilation of Presidential Documents, vol. 
31, p. 1148), the President directed that Executive agencies must, where 
feasible, upgrade and maintain security in facilities they own or lease 
under their own authority to the minimum standards specified in

[[Page 88]]

the Department of Justice's June 28, 1995 study entitled ``Vulnerability 
Assessment of Federal Facilities.'' The study may be obtained by writing 
to the Superintendent of Documents, P. O. Box 371954, Pittsburgh, PA, 
15250-7954.



PART 102-82--UTILITY SERVICES--Table of Contents




Sec.
102-82.5  What is the scope of this part?
102-82.10  What basic utility services policy govern Executive agencies?
102-82.15  What utility services must Executive agencies provide?
102-82.20  What are Executive agencies' rate intervention 
          responsibilities?
102-82.25  What are Executive agencies' responsibilities concerning the 
          procurement of utility services?

    Authority: 40 U.S.C. 481(a) and 486(c).

    Source: 66 FR 5359, Jan. 18, 2001, unless otherwise noted.



Sec. 102-82.5  What is the scope of this part?

    The real property policies contained in this part apply to Federal 
agencies, including the GSA/Public Buildings Service (PBS), operating 
under, or subject to, the authorities of the Administrator of General 
Services.



Sec. 102-82.10  What basic utility services policy govern Executive agencies?

    Executive agencies procuring, managing or supplying utility services 
under the Federal Property and Administrative Services Act of 1949 must 
provide or procure services that promote economy and efficiency with due 
regard to the mission responsibilities of the agencies concerned.



Sec. 102-82.15  What utility services must Executive agencies provide?

    Executive agencies must negotiate with public utilities to procure 
utility services and, where appropriate, provide rate intervention 
services in proceedings (see Sec. Sec. 102-72.100 and 102-72.105 of this 
chapter) before Federal and State utility regulatory bodies.



Sec. 102-82.20  What are Executive agencies' rate intervention responsibilities?

    Where the consumer interests of the Federal Government will be 
significantly affected and upon receiving a delegation of authority from 
GSA, Executive agencies must provide representation in proceedings 
involving utility services before Federal and State regulatory bodies. 
Specifically, these responsibilities include instituting formal or 
informal action before Federal and State regulatory bodies to contest 
the level, structure, or applicability of rates or service terms of 
utility suppliers. The Secretary of Defense is independently authorized 
to take such actions without a delegation from GSA when the Secretary 
determines such actions to be in the best interests of national 
security.



Sec. 102-82.25  What are Executive agencies' responsibilities concerning the procurement of utility services?

    Executive agencies, operating under a utility services delegation 
from GSA, or the Secretary of Defense when the Secretary determines it 
to be in the best interests of national security, must provide for the 
procurement of utility services (such as commodities and utility rebate 
programs), as required, and must procure from sources of supply that are 
the most advantageous to the Federal Government in terms of economy, 
efficiency, reliability, or quality of service. Executive agencies, upon 
receiving a delegation of authority from GSA, may enter into contracts 
for utility services for periods not exceeding ten years (40 U.S.C. 
481).

  PART 102-83--CENTRALIZED SERVICES IN FEDERAL BUILDINGS AND COMPLEXES 
                               [RESERVED]

        PARTS 102-84--ANNUAL REAL PROPERTY INVENTORIES [RESERVED]



PART 102-85--PRICING POLICY FOR OCCUPANCY IN GSA SPACE--Table of Contents




                   Subpart A--Pricing Policy--General

Sec.
102-85.5  By what authority is the pricing policy in this part 
          prescribed?
102-85.10  What is the scope of this part?
102-85.15  What are the basic policies for charging Rent for space and 
          services?

[[Page 89]]

102-85.20  What does an Occupancy Agreement (OA) do?
102-85.25  What is the basic principle governing OAs?
102-85.30  Are there special rules for certain Federal customers?
102-85.35  What definitions apply to this part?
102-85.40  What are the major components of the pricing policy?

                     Subpart B--Occupancy Agreement

102-85.45  When is an Occupancy Agreement required?
102-85.50  When does availability of funding have to be certified?
102-85.55  What are the terms and conditions included in an OA?
102-85.60  Who can execute an OA?
102-85.65  How does an OA obligate the customer agency?
102-85.70  Are the standard OA terms appropriate for non-cancelable 
          space?
102-85.75  When can space assignments be terminated?
102-85.80  Who is financially responsible for expenses resulting from 
          tenant non-performance?
102-85.85  What if a customer agency participates in a consolidation?

                 Subpart C--Tenant Improvement Allowance

102-85.90  What is a tenant improvement allowance?
102-85.95  Who pays for the TI allowance?
102-85.100  How does a customer agency pay for tenant improvements?
102-85.105  How does an agency pay for customer alterations that exceed 
          the TI allowance?
102-85.110  Can the allowance amount be changed?

                         Subpart D--Rent Charges

102-85.115  How is the Rent determined?
102-85.120  What is ``shell Rent''?
102-85.125  What alternate methods may be used to establish Rent in 
          Federally owned space?
102-85.130  How are exemptions from Rent granted?
102-85.135  What if space and services are provided by other executive 
          agencies?
102-85.140  How are changes in Rent reflected in OAs?
102-85.145  When are customer agencies responsible for Rent charges?
102-85.150  How will Rent charges be reflected on the customer agency's 
          Rent bill?
102-85.155  What does a customer agency do if it does not agree with a 
          Rent bill?
102-85.160  How does a customer agency know how much to budget for Rent?

                  Subpart E--Standard Levels of Service

102-85.165  What are standard levels of service?
102-85.170  Can flexitime and other alternative work schedules cost the 
          customer agency more?
102-85.175  Are the standard level services for cleaning, mechanical 
          operation, and maintenance identified in an OA?
102-85.180  Can there be other standard services?
102-85.185  Can space be exempted from the standard levels of service?
102-85.190  Can GSA Rent be adjusted when standard levels of service are 
          performed by other customer agencies?

                       Subpart F--Special Services

102-85.195  Does GSA provide special services?

       Subpart G--Continued Occupancy, Relocation and Forced Moves

102-85.200  Can customer agencies continue occupancy of space or must 
          they relocate at the end of an OA?
102-85.205  What happens if a customer agency continues occupancy after 
          the expiration of an OA?
102-85.210  What if a customer agency has to relocate?
102-85.215  What if another customer agency forces a GSA customer to 
          move?
102-85.220  Can a customer agency forced to relocate waive the 
          reimbursements?
102-85.225  What are the funding responsibilities for relocations 
          resulting from emergencies?

    Authority: 40 U.S.C. 486(c).

    Source: 66 FR 23169, May 8, 2001, unless otherwise noted.



                   Subpart A--Pricing Policy--General



Sec. 102-85.5  By what authority is the pricing policy in this part prescribed?

    (a) General authority is granted in the Federal Property and 
Administrative Services Act of 1949, as amended, Sec. 205(c) and 210(j), 
63 Stat. 390 and 86 Stat. 219; (40 U.S.C. 486(c) and 40 U.S.C. 490(j), 
respectively).
    (b) This part implements the applicable provisions of Federal law, 
including, but not limited to, the:
    (1) Federal Property and Administrative Services Act of 1949, 63 
Stat. 377, as amended;
    (2) Act of July 1, 1898 (40 U.S.C. 285);

[[Page 90]]

    (3) Act of April 28, 1902 (40 U.S.C. 19);
    (4) Act of August 27, 1935 (40 U.S.C. 304c);
    (5) Public Buildings Act of 1959, as amended (40 U.S.C. 601-619);
    (6) Public Buildings Amendments of 1972, Pub. L. 92-313, (86 Stat. 
219);
    (7) Rural Development Act of 1972, Pub. L. 92-419, (86 Stat. 674);
    (8) Reorganization Plan No. 18 of 1950 (40 U.S.C. 490 note);
    (9) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et 
seq.);
    (10) National Environmental Policy Act of 1969, as amended (42 
U.S.C. 4321 et seq.);
    (11) Intergovernmental Cooperation Act of 1968 and the Federal Urban 
Land Use Act (42 U.S.C. 4201-4244; 40 U.S.C. 531-535);
    (12) Public Buildings Cooperative Use Act of 1976, as amended (40 
U.S.C. 490(a)(16)-(19), 601a and 612a);
    (13) Public Buildings Amendments of 1988, Pub. L. 100-678, (102 
Stat. 4049);
    (14) National Historic Preservation Act of 1966 as amended (16 
U.S.C. 461 et seq.);
    (15) Executive Order 12072 of August 16, 1978 (43 FR 36869);
    (16) Executive Order 12411 of March 29, 1983 (48 FR 13391);
    (17) Executive Order 12512 of April 29, 1985 (50 FR 18453);
    (18) Executive Order 13005 of May 21, 1996 (61 FR 26069); and
    (19) Executive Order 13006 of May 21, 1996 (61 FR 26071).



Sec. 102-85.10  What is the scope of this part?

    (a) This part describes GSA policy and principles for the assignment 
and occupancy of space under its control and the rights and obligations 
of GSA and the customer agencies that request or occupy such space 
pursuant to GSA Occupancy Agreements (OA).
    (b) Space managed by agencies under delegation of authority from GSA 
is subject to the provisions of this part.
    (c) This part is not applicable to:
    (1) Licenses, permits or leases with non-Federal entities under the 
Public Buildings Cooperative Use Act (40 U.S.C. 490(a)(16-19)); or
    (2) The disposal of surplus lease space under section 210(h)(2) of 
the Federal Property and Administrative Services Act of 1949, as amended 
(40 U.S.C. 490(h)(2)).



Sec. 102-85.15  What are the basic policies for charging Rent for space and services?

    (a) GSA will charge for space and services furnished by GSA (unless 
otherwise exempted by the Administrator of General Services) a Rent 
charge which will approximate commercial charges for comparable space 
and services. Rent for all assignments for GSA-controlled space will be 
priced according to the principles of the pricing policy in this part. 
These principles are reflected in the following elements of GSA Rent 
charges:
    (1) ``Shell'' Rent based on approximate commercial charges for 
comparable space and services for Federally owned space (accomplished 
using appraisal procedures);
    (2) Rent based on actual cost of the lease, including the costs (if 
any) of services not provided by the lessor, plus a GSA fee;
    (3) Amortization of any tenant improvement allowance used;
    (4) Any applicable real estate taxes, operating costs, parking, 
security and joint use fees; and
    (5) For certain projects involving new construction or major 
renovation of Federally-owned buildings, a return on investment pricing 
approach if an appraisal-determined rental value does not provide a 
minimum return (OMB discount rate for calculating the present value of 
yearly costs plus 2%) on the cost of the prospective capital investment. 
Each specific use of Return on Investment (ROI) pricing must be approved 
by OMB and duly recorded in an Occupancy Agreement (OA) with the 
customer agency. Once the ROI methodology is employed to establish Rent 
for a capital investment, the ROI method must be retained for the 
duration of the OA term.
    (b) Special services not included in the standard levels of service 
may be provided by GSA on a reimbursable basis. GSA may also furnish 
alterations on a reimbursable basis in buildings where GSA is 
responsible for alterations only.
    (c) The financial terms and conditions under which GSA assigns, and 
a

[[Page 91]]

customer agency occupies, each block of GSA-controlled space, shall be 
documented in a written OA.



Sec. 102-85.20  What does an Occupancy Agreement (OA) do?

    An OA defines GSA's relationship with each customer agency and:
    (a) Establishes specific financial terms, provisions, rights, and 
obligations of GSA and its customer for each space assignment;
    (b) Minimizes exposure to future unknown costs for both GSA and 
customer agencies;
    (c) Stabilizes Rent payments to the extent reasonable and desired by 
customers; and
    (d) Allows tailoring of space and related services to meet customer 
agency needs.



Sec. 102-85.25  What is the basic principle governing OAs?

    The basic principle governing OAs is to adopt the private sector 
practice of capturing in a written document the business terms to which 
GSA and a customer agency agree concerning individual space assignments.



Sec. 102-85.30  Are there special rules for certain Federal customers?

    Yes, in lieu of OAs, GSA is able to enter into agreements with 
customer agencies that reflect the parties particular needs. For 
example, the space and services provided to the U.S. House of 
Representatives and the U.S. Senate are governed by existing memoranda 
of agreement (MOA). When there are conflicts between the provisions of 
this part and MOAs, the MOAs prevail.



Sec. 102-85.35  What definitions apply to this part?

    The following definitions apply to this part:
    Accept space or acceptance of space means a commitment from an 
agency to occupy specified GSA-controlled space.
    Agency-controlled and/or operated space means:
    (1) Space that is owned, leased, or otherwise controlled or operated 
by Federal agencies under any authority other than the Federal Property 
and Administrative Services Act of 1949, as amended; and
    (2) it also includes agency-acquired space for which acquisition 
authority has been delegated or otherwise granted to the agency by GSA. 
It does not include space covered by an OA.
    Assign or assignment is defined in the definition for space 
assignment.
    Building shell means the complete enveloping structure, the base-
building systems, and the finished common areas (building common and 
floor common) of a building that bound the tenant areas.
    Customer agency means any department, agency, or independent 
establishment in the Federal Government, including any wholly-owned 
corporation; any executive agency or any establishment in the 
legislative or judicial branch of the Government (except the Senate, the 
House of Representatives, and the Architect of the Capitol, and any 
activities under his direction).
    Emergency relocation is a customer move that results from an 
extraordinary event such as a fire, natural disaster, or immediate 
threat to the health and safety of occupants that renders a current 
space assignment unusable and requires that it be vacated, permanently 
or temporarily.
    Federal Buildings Fund means the fund into which Rent charges and 
other revenues are deposited, and collections cited in section 210(j) of 
the Federal Property and Administrative Services Act of 1949, as amended 
(U.S.C. 490(j)), and from which monies are available for expenditures 
for real property management and related activities in such amounts as 
are specified in annual appropriations acts without regard to fiscal 
year limitations.
    Federally controlled space means workspace for which the United 
States Government has a right of occupancy by ownership, by lease, or by 
any other means, such as by contract, barter, license, easement, permit, 
requisition, or condemnation. Such workspace excludes space owned or 
leased by private sector entities performing work on Government 
contracts.
    Federally owned space means space, the title to which is vested in 
the United States Government or which

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will vest automatically according to an existing agreement.
    Forced move means the involuntary physical relocation, from one 
space assignment to another, of a customer agency housed in GSA-
controlled space initiated by another customer agency or by GSA, before 
the expiration of a lease or an OA term. (See also the definition of 
GSA-initiated move.)
    General use space means all types of space other than ``warehouse,'' 
``parking,'' or ``unique'' space, as defined elsewhere in this part. 
Examples of general use space are:
    (1) Office and office-related space such as file areas, libraries, 
meeting rooms, computer rooms, mail rooms, training and conference, 
automated data processing operations, courtrooms, and judicial chambers; 
and
    (2) Storage space that contains different quality and finishes from 
general use space, but that is within a building where predominantly 
general use space is located.
    GSA-controlled space means Federally controlled space under the 
custody or control of GSA. It includes space for which GSA has delegated 
operational, maintenance, or protection authority to the customer 
agency.
    GSA-delegated space (or GSA delegated building) means GSA-controlled 
space for which GSA has delegated operational, maintenance or protection 
authority to the customer agency.
    GSA-initiated move means any relocation action in GSA-controlled 
space that:
    (1) Is involuntary to the customer agency and required to be 
effective prior to the expiration of an effective OA, or in the case of 
leased space, prior to the expiration of the lease; or
    (2) Is an emergency relocation initiated by GSA.
    Initial space alteration (ISA). See definition of ``tenant 
improvement.''
    Initial space layout means the specific placement of workstations, 
furniture and equipment within new space assignments.
    Inventory means a summary or itemized list of the real property, and 
associated descriptive information, that is under the control of a 
Federal agency.
    Joint-use space means common space within a Federally controlled 
facility, not specifically assigned to any one agency, and available for 
use by multiple agencies, such as cafeterias, auditoriums, conference 
rooms, credit unions, visitor parking spaces, snack bars, certain 
wellness/physical fitness facilities, and child care centers.
    Leased space means space for which the United States Government has 
a right of use and occupancy by virtue of having acquired a leasehold 
interest.
    Non-cancelable space means space that, due to its layout, design, 
location, or other characteristics, is unlikely to be needed by another 
GSA customer agency. Typical conditions that might cause space to be 
defined as non-cancelable are:
    (1) Special space construction features;
    (2) Lack of any realistic Federal need for the space other than by 
the requesting agency; and
    (3) Remote location or unusual term (short or long) desired by the 
agency.
    Occupancy Agreement (OA) means a written agreement descriptive of 
the financial terms and conditions under which GSA assigns, and a 
customer agency occupies, the GSA-controlled space identified therein.
    Parking or parking space means surface land, structures, or areas 
within structures designed and designated for the purpose of parking 
vehicles.
    Personnel means the peak number of persons to be housed during a 
single shift, regardless of how many workstations are provided for them. 
In addition to permanent employees of the agency, personnel includes 
temporaries, part-time, seasonal, and contractual employees, budgeted 
vacancies, and employees of other agencies and organizations who are 
housed in a space assignment.
    Portfolio leases mean long term or ``master'' leases, usually 
negotiated to house several agencies whose individual term requirements 
differ from the terms of the underlying GSA lease with the lessor, and 
from each other. These may also be leases housing single agencies, but 
which entail for GSA responsibilities (burdens and benefits) which mimic 
an ownership position, or equity rights, even though no equity

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interest or ownership liability exists. An example of the latter would 
be long term renewal options on a lease which, in order to enjoy, 
involve substantial capital outlays by GSA to improve the building 
infrastructure. In both these cases, GSA is assuming risks or capital 
expenditures outside of the conventions of single transactions or 
occupancies. Accordingly, for a portfolio lease, it is not appropriate 
merely to pass through to the customer agency(ies) the rental rate of 
the underlying GSA lease. Portfolio leases are treated for pricing 
purposes as owned space, with Rent set by appraisal.
    Predominant use means the use to which the greatest portion of a 
location is put. Predominant use is determined by the Public Buildings 
Service (PBS), GSA, and will typically result in the designation of a 
location as one of four types of space--General Use, Warehouse, Unique, 
or Parking--even though some smaller portions of the space may be used 
for one or more of the other types of uses.
    Rent means the amounts charged by GSA for space and related services 
to the customer agencies with tenancy in GSA-controlled space. The word 
``Rent'' is capitalized to differentiate it from the contract ``rent'' 
that GSA pays lessors.
    Rentable square footage means the amount of space as defined in 
``Building Owners and Managers Association (BOMA)/American National 
Standards Institute (ANSI) Standard Z65.1-1996.'' The BOMA/ANSI standard 
also defines ``gross,'' ``office area,'' ``floor common,'' and 
``building common'' areas. Any references to these terms in this part 
refer to the BOMA/ANSI standard definitions. This standard has been 
adopted in accordance with GSA's interest in conforming its practices to 
nationally recognized industry standards to the extent possible.

    Note to the Definition of Rentable Square Footage: Rentable square 
footage generally includes square footage of areas occupied by customers 
plus a prorated share of floor common areas such as elevator lobbies, 
building corridors, public restrooms, utility closets, and machine 
rooms. Rentable square footage also includes a prorated share of 
building common areas located throughout the building. Examples of 
building common space include ground floor entrance lobby, enclosed 
atrium, loading dock, and mail room.

    Request for space or space request means a written or electronically 
submitted document or an oral request, within which an agency's space 
needs are summarized. A request for space is requisite for development 
of an OA. Thus, it must be submitted to GSA by a duly authorized 
official of the customer agency, and it must be accompanied by 
documentation of the customer agency's ability to fund payment of 
required Rent charges.
    Return on Investment (ROI) pricing is one possible methodology used 
to establish a Rent rate for certain owned space. Typically, ROI pricing 
is a Rent rate that ensures GSA a reasonable return on its cost to 
acquire and improve the asset. ROI pricing may be used where no other 
comparable commercial space is available or no other appraisal method 
would be appropriate. It may also be used in cases in which an 
appraisal-based rental rate will not meet GSA's minimum return 
requirements for the planned level of investment.
    Security fees mean Rent charges for building services provided by 
GSA's Federal Protective Service. Security fees are comprised of basic 
and building specific charges.
    (a) A basic security fee is assessed in all PBS-controlled 
properties where the Federal Protective Service (FPS) provides security 
services. The rate is set annually on a per-square-foot basis. The 
charge includes the following services:
    (1) General law enforcement on PBS-controlled property;
    (2) Physical security assessments;
    (3) Crime prevention and awareness training;
    (4) Advice and assistance to building security committees;
    (5) Intelligence sharing program;
    (6) Criminal investigation;
    (7) Assistance and coordination in Occupancy Emergency Plan 
development;
    (8) Coordination of mobilization and response to terrorist threat or 
civil disturbance;
    (9) Program administration for security guard contracts; and
    (10) Megacenter operations for monitoring building perimeter alarms 
and

[[Page 94]]

dispatching appropriate law enforcement response.
    (b) The building specific security charge is comprised of two 
elements: Operating expenses and amortized capital costs. Building 
specific charges, whether operating expenses or capital costs, are 
distributed overall federal users by building or facility in direct 
proportion to each customer agency's percentage of federal occupancy. As 
with joint use charges, the distribution of building-specific charges 
among customer agencies is not re-adjusted for vacancy.
    Space means a defined area within a building and/or parcel of land. 
(Personal property and furniture are not included.)
    Space allocation standard (SAS) means a standard agreed upon by GSA 
and a customer agency, written in terms that permit nationwide or 
regional application, that is used as a basis for establishing that 
agency's space requirements. An SAS may describe special GSA and 
customer agency funding responsibilities, although such responsibilities 
will be covered in OAs for space assignments. An SAS may also be 
developed between GSA and customer agencies on a regional level to 
standardize or simplify transactions, provided that the terms of a 
regional SAS are consistent with the terms of that agency's national SAS 
and the terms of this part.
    Space assignment or assignments means a transaction between GSA and 
a customer agency that results in a customer agency's right to occupy 
certain GSA-controlled space, usually in return for customer agency 
payment(s) to GSA for use of the space. Space assignment rights, 
obligations, and responsibilities not covered in this part, or in the 
customer guides, are formalized in an OA.
    Space planning means the process of using recognized professional 
techniques of planning, layout and interior design to determine the best 
internal location and the most efficient configuration for satisfying 
agency space needs.
    Space program of requirements means a summary statement of an 
agency's space needs. These requirements will generally include 
information about location, square footage, construction requirements, 
and duration of the agency's space need. They may be identified in any 
format mutually agreeable to GSA and the agency.
    Special space means space which has unusual architectural/
construction features, requires the installation of special equipment, 
or requires disproportionately high or low costs to construct, maintain 
and/or operate as compared to office or storage space. Special space 
generally refers to space which has construction features, finishes, 
services, utilities, or other additional costs beyond those specified in 
the customer general allowance (e.g., courtrooms, laboratories).
    Standard level of service. See Sec. 102-85.165 for the definition of 
standard level of service.
    Telecommunications means electronic processing of information, 
either voice or data or both, over a wide variety of media, (e.g., 
copper wire, microwave, fiber optics, radio frequencies), between 
individuals or offices within a building (e.g., local area networks), 
between buildings, and between cities.
    Tenant improvement (TI) means a finished component of an interior 
block of space. Tenant improvements represent additions to or 
alterations of the building shell that adapt the workspace to the 
specific uses of the customer. If made at initial occupancy, the TIs are 
known as initial space alterations or ISAs.
    Tenant improvement (TI) allowance means the dollar amount, including 
design, labor, materials, contractor costs (if contractors are used), 
management, and inspection, that GSA will spend to construct, alter, and 
finish space for customer occupancy (excluding personal property and 
furniture, which are customer agency responsibilities) at initial 
occupancy. The dollar amounts for the allowances are different for each 
agency and bureau to accommodate agencies' different mission needs. The 
dollar amounts also may vary by locations reflecting different costs in 
different markets. The PBS bill will only reflect the actual amount the 
customers spend, not the allowance. The amount of the TI allowance is 
determined by GSA. Agencies can request that GSA revise the TI allowance

[[Page 95]]

amount by project or categorically for an entire bureau. The cost of 
replacement of tenant improvements is borne by the customer agency.
    Unique space means space for which there is no commercial market 
comparable (e.g., border stations).
    Warehouse or warehouse space means space contained in a structure 
primarily intended for the housing of files, records, equipment, or 
other personal property, and is not primarily intended for housing 
personnel and office operations. Warehouse space generally is designed 
and constructed to lower specifications than office buildings, with 
features such as exposed ceilings, unfinished perimeter and few dividing 
partitions. Warehouse space also is usually heated to a lesser degree 
but not air-conditioned, and is cleaned to lesser standards than office 
space.
    Workspace means Federally controlled space in buildings and 
structures (permanent, semi-permanent, or temporary) that provides an 
acceptable environment for the performance of agency mission 
requirements by employees or by other persons occupying it.



Sec. 102-85.40  What are the major components of the pricing policy?

    The major components of the pricing policy are:
    (a) An OA between a customer agency and GSA;
    (b) Tenant improvement allowance; and
    (c) The establishment of Rent the agency pays to GSA based on the OA 
for:
    (1) Leased space, a pass-through to the customer agency of the 
underlying GSA lease contract costs, and a PBS fee; or
    (2) GSA-owned space, Rent determined by appraisal.



                     Subpart B--Occupancy Agreement



Sec. 102-85.45  When is an Occupancy Agreement required?

    An Occupancy Agreement (OA) is required for each customer agency's 
space assignment. The OA must be agreed to by GSA and the customer 
agency prior to GSA's commitment of funds for occupancy and formal 
assignment of space.



Sec. 102-85.50  When does availability of funding have to be certified?

    The customer agency must sign an OA prior to GSA's making any major 
contractual commitments associated with the space request. Typically, 
this should occur at the earliest possible opportunity-i.e., when funds 
become available. However, in no event shall certification occur later 
than just prior to the award of the contract to a design architect in 
the case of Federal construction or renovation in Federally owned space 
or prior to the award of a lease. This serves as a customer agency's 
funding commitment unless certification is provided on another document.



Sec. 102-85.55  What are the terms and conditions included in an OA?

    The terms and conditions are modeled after commercial practice. They 
are intended to reflect a full mutual understanding of the financial 
terms and agreement of the parties. The OA describes the actual space 
and services to be provided and all associated actual costs to the 
customer during the term of occupancy. The OA does not include any 
general provisions or terms contained in this part. OAs typically 
describe the following, depending on whether the space is leased or 
Federally owned:
    (a) Assigned square footage;
    (b) Shell Rent and term of occupancy;
    (c) Amortized amount of customer allowance used;
    (d) Operating costs and escalations;
    (e) One time charges; e.g., lump sum payments by the customer;
    (f) Real estate tax and escalations;
    (g) Parking and escalations;
    (h) Additional/reduced services;
    (i) Security services and associated Rent;
    (j) Joint use space and associated Rent;
    (k) PBS fee;
    (l) Customer rights and provisions for occupancy after OA 
expiration;
    (m) Cancellation provisions if different from this part or the 
customer service guides;

[[Page 96]]

    (n) Any special circumstances associated with the occupancy, such as 
environmental responsibilities, unusual use restrictions, or agreements 
with local authorities;
    (o) Emergency relocations;
    (p) Clauses specific to the agreement;
    (q) Other Rent, e.g., charges for antenna sites, land;
    (r) Agency standard clauses; and
    (s) General clauses defining the obligations of both parties.



Sec. 102-85.60  Who can execute an OA?

    Authorized GSA and customer agency officials who can commit or 
obligate the funds of their respective agencies can execute an OA. 
Higher level signatories may be appropriate from both agencies for space 
assignments in owned or leased space, that are unusual in size, 
location, duration, public interest, or other factors. Each agency 
decides its appropriate signatory level.



Sec. 102-85.65  How does an OA obligate the customer agency?

    An OA obligates the executing customer agency to fund the current-
year Rent obligation owed GSA, as well as to reimburse GSA for any other 
bona fide obligations that GSA may have incurred on behalf of the 
customer agency. Although the OA is an interagency agreement, 
memorializing the understanding of GSA and its customer agency, the OA 
may not be construed as obligating future year customer agency funds 
until they are legally available. A multi-year OA commitment assumes the 
customer agency will seek the necessary funding through budget and 
appropriations processes.



Sec. 102-85.70  Are the standard OA terms appropriate for non-cancelable space?

    Yes, most of the standard terms apply; however, the right to cancel 
upon a 4-month (120 day) notice is not available. See Sec. 102-85.35 for 
the definition of non-cancelable space.



Sec. 102-85.75  When can space assignments be terminated?

    (a) Customer agencies can terminate any space assignments, except 
those designated as non-cancelable, with the following stipulations:
    (1) The agency must give GSA written notice at least four months 
prior to termination.
    (2) The agency is responsible for reimbursing GSA for the unpaid 
balance of the cost of tenant improvements, generally prior to GSA 
releasing the agency from the space assignment. In the event the 
customer agency received a rent concession (e.g., free rent) at the 
inception of the assignment as part of the consideration for the entire 
lease term, then the amount of the concession applicable to the 
remaining term must be repaid to GSA.
    (3) If the space to be vacated is ready for occupancy by another 
customer and marketable, GSA accepts the termination of assignment.
    (4) If the agency has vacated all of the space and removed all 
personal property and equipment from the space by the cancellation date 
in the written notice, the agency will be released effective that date 
from further Rent payments.
    (5) An agency may terminate a GSA space assignment with less than a 
four-month advance written notice to GSA, if:
    (i) Either GSA or the terminating agency has identified another 
agency customer for the assigned space and that substitute agency wants 
and is able to fully assume the Rent payments due from the terminating 
agency; and
    (ii) The terminating agency continues to pay Rent until the new 
agency starts paying Rent.
    (b) GSA can terminate space assignments according to GSA regulations 
for emergency or forced moves.
    (c) OAs terminate automatically at expiration.



Sec. 102-85.80  Who is financially responsible for expenses resulting from tenant non-performance?

    The customer agencies are financially responsible for expenses 
incurred by the Government as a result of any failure on their part to 
fulfill a commitment outlined in an OA or other written agreements in 
advance of, or in addition to, the OA. Customer agencies

[[Page 97]]

are also financially responsible for revised design costs and any 
additional costs resulting from changes to space requirements or space 
layouts made by the agency after a lease, alteration, design, or 
construction contract has been awarded by GSA.



Sec. 102-85.85  What if a customer agency participates in a consolidation?

    If an agency agrees to participate in a consolidation upon 
expiration of an OA, the relocation expenses will be addressed in the 
new OA negotiated by GSA and the customer agency. The customer agency 
generally pays such costs.



                 Subpart C--Tenant Improvement Allowance



Sec. 102-85.90  What is a tenant improvement allowance?

    A tenant improvement (TI) allowance enables the customer agency to 
design, configure and build out space to support its program operations. 
It is based on local market construction costs and the specific bureau's 
historical use of space. (See also the definition at Sec. 102-85.35.)



Sec. 102-85.95  Who pays for the TI allowance?

    The customer agency pays for the amount of the tenant improvement 
allowance actually used.



Sec. 102-85.100  How does a customer agency pay for tenant improvements?

    To pay for the installation of tenant improvements, the customer 
agency may spend an amount not to exceed the tenant allowance. The 
amount spent by the customer agency for TIs is amortized over a period 
of time specified in the OA, not to exceed the useful life of the 
improvements. This amortization payment is in addition to the shell rent 
and services.



Sec. 102-85.105  How does an agency pay for customer alterations that exceed the TI allowance?

    Amounts exceeding the TI allowance are paid in a one-time lump sum 
and are not amortized over the term of the occupancy. The agency 
certifies lump sum funds are available prior to GSA proceeding with the 
work.



Sec. 102-85.110  Can the allowance amount be changed?

    The GSA schedule of allowances for new assignments is adjusted 
annually for design and construction cost changes. As the need arises, 
GSA may adjust an agency or bureau's TI allowance. GSA may also adjust a 
TI allowance for a specific project, if conditions warrant. This 
decision is solely GSA's. In addition, the customer agency may waive any 
part or all of its customization allowance in the case of a new space 
assignment. In the case of backfill space (also known as relet space), 
the customer agency can also waive any part or all of the tenant general 
allowance, if the customer agency will use the existing tenant 
improvements, with or without modifications.



                         Subpart D--Rent Charges



Sec. 102-85.115  How is the Rent determined?

    Unless an exemption is granted under the authority of the 
Administrator of General Services, the Rent charged approximates 
commercial charges for comparable space and space-related services as 
follows:
    (a) Generally, Rent for Federally owned space provided by GSA is 
based on market appraisals of fully serviced rental values for the 
predominant use to which space in a building is put; e.g., general use, 
warehouse use, and parking use. In cases where market appraisals are not 
practical; e.g., in cases involving unique space or when market 
comparables are not available, GSA may establish Rent on the basis of 
alternate commercial practices. See the discussion of alternate 
valuation methods in Sec. 102-85.125. Amortization of tenant 
improvements, parking fees, and security charges are calculated 
separately and added to the appraised shell Rent to establish the Rent 
charge. Customer agencies also pay for a pro rata share of joint use 
space.
    (b) Generally, Rent for space leased by GSA is based on the actual 
cost of the lease, including the costs (if any) of services not provided 
by the lessor,

[[Page 98]]

plus a GSA fee, and security charges and parking (if not in the lease).
    (1) The Rent is based on the terms and conditions of the OA, 
starting with the shell Rent.
    (2) In addition to the shell Rent, the Rent includes amortization of 
TI allowances used, real estate taxes, operating costs, extra services, 
parking, GSA fee for its services, and charges for security, joint-use, 
and other applicable rental charges (e.g., antenna site, land, 
wareyard).



Sec. 102-85.120  What is shell Rent?

    Shell Rent is that portion of GSA Rent charged for the building 
envelope and land. (See Sec. 102-85.35 for the definition of building 
shell.)



Sec. 102-85.125  What alternate methods may be used to establish Rent in Federally-owned space?

    Alternate methods of establishing Rent are based on private sector 
models. They include, but are not limited to:
    (a) Return on investment (ROI) approach or a similar cost recovery 
method used when market comparables are not available and/or GSA must 
``build to suit'' to fulfill customer agency requirements; e.g., border 
stations; and
    (b) Rent schedules for the right to use rooftops and other floor 
areas not suitable for workspace; e.g., antenna sites and signage.



Sec. 102-85.130  How are exemptions from Rent granted?

    Exemptions from Rent are rare. However, the Administrator of General 
Services may exempt any GSA customer from Rent after a determination 
that application of Rent would not be feasible or practical. Customer 
agency requests for exemptions must be addressed to the Administrator of 
General Services and submitted in accordance with GSA Order PBS 4210.1, 
``Rent Exemption Procedures,'' dated December 20, 1991, or in accordance 
with any superseding GSA order. A copy of the order may be obtained from 
the Office of Portfolio Management, General Services Administration, 
1800 F Street, NW., Washington, DC 20405.



Sec. 102-85.135  What if space and services are provided by other executive agencies?

    Any executive agency other than GSA providing space and services is 
authorized to charge the occupant for the space and services at rates 
approved by the Administrator of General Services and the Director of 
the Office of Management and Budget. If space and services are of the 
type provided by the Administrator of General Services, the executive 
agency providing the space and services must credit the monies derived 
from any fees or charges to the appropriation or fund initially charged 
for providing the space or services, as prescribed by Subsection 210(k) 
of the Federal Property and Administrative Services Act of 1949, as 
amended (40 U.S.C. 490(k)).



Sec. 102-85.140  How are changes in Rent reflected in OAs?

    (a) If Rent changes in ways that are identified in the OA, then no 
change to the OA is required. Typically, OAs state that certain 
components of Rent are subject to annual escalation; e.g., operating 
expenses, real estate taxes, parking charges, the basic security charge, 
and building-specific security operating and amortized capital expenses 
which do not entail a change in service level. Also, in Federally-owned 
space, OAs state that the shell rent is re-marked to market every five 
years. In leased space, the OA will identify any programmed changes in 
the lease contract rent (such as pre-set increases or steps in the 
contract rent rate) that will translate into a change in the customer 
agency's Rent. Changes in Rent specified in OAs will serve as notice to 
agencies of future Rent changes for budgeting purposes. For a discussion 
of budgeting for Rent, see Sec. 102-85.160.
    (b) Changes to Rent other than those identified in paragraph (a) of 
this section typically require an amended OA. There are many events that 
might occasion a change in Rent, and an amended OA, such as:
    (1) An agency expands or contracts at an existing location;
    (2) PBS agrees to fund additional tenant improvements that are then 
amortized over the remaining OA term, or over an extended OA term;

[[Page 99]]

    (3) Upon physical re-measurement, the true square footage of the 
space assignment is found to be different from the square footage of 
record;
    (4) The amount of joint use space in the building changes;
    (5) The level of building-specific security services changes; or
    (6) PBS undertakes new capital expenditures for new or enhanced 
security countermeasures.



Sec. 102-85.145  When are customer agencies responsible for Rent charges?

    (a) When a customer agency occupies cancelable space, it is 
responsible for Rent charges until:
    (1) The date of release specified in the OA, or until the date space 
is actually vacated, whichever occurs later; or
    (2) Four months after having provided GSA written notice of release; 
or
    (3) The date space is actually vacated, whenever occupancy extends 
beyond the date agreed upon under either paragraph (a)(1) or (2) of this 
section.
    (b) When a customer agency releases non-cancelable space, it is 
responsible for all attributable Rent and other space charges until the 
OA expires. This responsibility is mitigated to the extent that GSA is 
able to assign the space to another user or dispose of it. (See 
Sec. 102-85.65 How does an OA obligate the customer agency?)
    (c) When a customer agency commits to occupy space in an OA or other 
binding document, but never occupies that space, that agency is 
responsible for:
    (1) Non-cancelable space: Rent payments due for the space until the 
OA expires, unless GSA can mitigate; or
    (2) All other space: Either GSA's space charges for 4 months plus 
the cost of tenant improvements or GSA's actual costs, whichever is 
less.



Sec. 102-85.150  How will Rent charges be reflected on the customer agency's Rent bill?

    Rent charges are billed monthly, in arrears, based on an annual rate 
which is divided by 12. Billing commences the first month in which the 
agency occupies the space for more than half of the month, and ends in 
the last month the agency occupies the space.



Sec. 102-85.155  What does a customer agency do if it does not agree with a Rent bill?

    (a) If a customer agency does not agree with the way GSA has 
determined its Rent obligation (e.g., the agency does not agree with 
GSA's space classification, appraised Rent, or the allocation of space), 
the agency may appeal its Rent bill to GSA.
    (b) GSA will not increase or otherwise change Rent for any 
assignment, except as agreed in an OA, in the case of errors, or when 
the OA is amended. However, customer agencies may at any time request a 
regional review of the measurement, classification, service levels 
provided, or charges assessed that pertain to the space assignment 
without resorting to formal procedures. Such requests do not constitute 
appeals and should be directed to the appropriate GSA Regional 
Administrator.
    (c) If a customer agency still wants to pursue a formal appeal of 
Rent charges, they may do so, but with the following limitations:
    (1) Terms, including rates, to which the parties agree in an OA are 
not appealable;
    (2) In leased space, the contract rent passed through from the 
underlying lease cannot be appealed;
    (3) In GSA-owned space, when the fully-serviced shell Rent is 
established through appraisal, the appraised rate must exceed comparable 
commercial square foot rates by 20 percent. When shell Rent in owned 
space is established on the basis of ROI at the inception of an OA, and 
the customer agency executes the OA, then the ROI rate cannot later be 
appealed. Other components of Rent that are established on the basis of 
actual cost--eg., amortization of TIs and building specific security 
charges--also cannot be appealed.
    (4) Additionally, the customer agency is required to compare its 
assigned space with other space in the surrounding community that:
    (i) Is available in similar size block of space in a comparable 
location;
    (ii) Is comparable in quality to the space provided by GSA;
    (iii) Provides similar service levels as part of the charges;

[[Page 100]]

    (iv) Contains similar contractual terms, conditions, and escalations 
clauses; and
    (v) Represents a lease transaction completed at a similar point in 
time.
    (5) Data from at least three comparable locations will be necessary 
to demonstrate a market trend sufficient to warrant revising an 
appraised Rent charge.
    (d) A customer agency filing an appeal for a particular location or 
building must develop documentation supporting the appeal and file the 
appeal with the appropriate Regional Administrator. The GSA regional 
office will verify all pertinent information and documentation 
supporting the appeal. The GSA Regional Administrator will accept or 
deny the appeal and will notify the appealing agency of his or her 
ruling.
    (e) A further appeal may be filed by the customer agency's 
headquarters level officials with the Commissioner, Public Buildings 
Service, if equitable resolution has not been obtained from the initial 
appeal. A head of a customer agency may further appeal to the 
Administrator of the General Services. Documentation of the procedures 
followed for prior resolution must accompany an appeal to the 
Administrator. Decisions made by the Administrator are final.
    (f) Adjustments of Rent resulting from reviews and appeals will be 
effective in the month that the agency submitted a properly documented 
appeal. Adjustments in Rent made under this section remain in effect for 
the remainder of the 5-year period in which the charges cited in the OA 
were applicable.



Sec. 102-85.160  How does a customer agency know how much to budget for Rent?

    GSA normally provides customer agencies an estimate of Rent 
increases approximately 2 months prior to the agencies' Office of 
Management and Budget (OMB) submission for the fiscal year in which GSA 
will charge Rent. This gives the affected customer agencies an 
opportunity to budget for an increase or decrease. However, GSA must 
obtain the concurrence of OMB for such changes prior to notifying 
customer agencies. In the event GSA is unable to provide timely notice 
of a future Rent increase, customer agencies are nonetheless obligated 
to pay the increased Rent amount. For existing assignments in owned 
buildings, GSA charges for fully serviced shell Rent, in aggregate, 
shall not exceed the bureau level budget estimates provided to the 
customer agencies annually. This provision does not apply to:
    (a) New assignments;
    (b) Changes in current assignments;
    (c) Leased space;
    (d) New tenant improvement amortization;
    (e) Building specific security costs; and
    (f) New amortization of capital expenditures under ROI pricing due 
to changes in scope of proposed projects or repair and/or replacement of 
building components



                  Subpart E--Standard Levels of Service



Sec. 102-85.165  What are standard levels of service?

    (a) The standard levels of service covered by GSA Rent are 
comparable to those furnished in commercial practice. They are based on 
the effort required to service the customer agency's space for a 5-day 
week (Monday to Friday), one-shift regular work schedule. GSA will 
provide adequate building startup services, before the beginning of the 
customer's regular one-shift work schedule, and shutdown services after 
the end of this schedule.
    (b) Without additional charge, GSA customers may use their assigned 
space and supporting automatic elevator systems, lights and small office 
and business machines including personal computers on an incidental 
basis, unless specified otherwise in the OA.



Sec. 102-85.170  Can flexitime and other alternative work schedules cost the customer agency more?

    Yes, GSA customers who extend their regular work schedule by a 
system of flexible hours shall reimburse GSA for its approximate cost of 
the additional services required.

[[Page 101]]



Sec. 102-85.175  Are the standard level services for cleaning, mechanical operation, and maintenance identified in an OA?

    Unless specified otherwise in the OA, standard level services for 
cleaning, mechanical operation, and maintenance shall be provided in 
accordance with the GSA standard level of services as defined in 
Sec. 102-85.165, and in the PBS Customer Guide to Real Property. A copy 
of the guide may be obtained from the General Services Administration, 
Office of Business Performance (PX), 1800 F Street, NW., Washington, DC 
20405.



Sec. 102-85.180  Can there be other standard services?

    GSA may provide additional services to its customers at the levels 
and times deemed by the Administrator of General Services to be 
necessary for efficient operations and proper servicing of space under 
the assignment responsibility of GSA.



Sec. 102-85.185  Can space be exempted from the standard levels of service

    Yes, customer agencies may be excused from paying for standard 
service levels for space assignments when:
    (a) In GSA-delegated space, the customer agency provides for these 
services itself and thus pays Rent minus charges for these services; or
    (b) In rare instances, standard service levels may be waived by the 
Administrator of General Services in instances where charging for such 
standard services would not be feasible or practical, e.g., in 
assignments of limited square footage or functional use.



Sec. 102-85.190  Can GSA Rent be adjusted when standard levels of service are performed by other customer agencies?

    Customer agencies that arrange and pay separately for the costs of 
standard level services normally covered by GSA Rent will receive a Rent 
credit or other type of reimbursement by GSA for the amount GSA would 
have charged for such services. The type of reimbursement is at GSA's 
discretion. The reimbursement is limited to the amount included for the 
services in GSA Rent. Approval to perform or contract for such services 
must be obtained in advance by the customer agency from the appropriate 
GSA regional office.



                       Subpart F--Special Services



Sec. 102-85.195  Does GSA provide special services?

    Yes, GSA provides special services on a cost-reimbursable basis:
    (a) In GSA-controlled space, GSA may provide for special services 
that cannot be separated from the building or space costs (inseparable 
services, such as utilities, which are not individually metered). GSA's 
estimate of the special service cost is the basis for the bill amount. 
The bill amount for separable special services is either based on a 
previously agreed upon fixed price or the actual cost, including a fee 
for GSA's services.
    (b) GSA can also provide special services to other Federal agencies 
in agency-controlled and operated space on a cost-reimbursable basis.



       Subpart G--Continued Occupancy, Relocation and Forced Moves



Sec. 102-85.200  Can customer agencies continue occupancy of space or must they relocate at the end of an OA?

    The answer is contingent upon whether the customer agency is in 
Federally owned or leased space.
    (a) Unless stated otherwise in the OA, a customer agency within a 
GSA controlled, Federally owned building has automatic occupancy rights 
at the end of the OA term for occupied space. However, a new OA must be 
negotiated.
    (b) In leased space, the OA generally reflects the provisions of the 
underlying lease and will specify whether or not renewal options are 
available. If the OA does not include a renewal option, customer 
agencies should assume relocation would be necessary upon OA expiration, 
and budget for it. Further, renewal options are not, in themselves, a 
guarantee of continued occupancy at that location. In some cases, the 
renewal rate is substantially above market or the option was not part of 
the

[[Page 102]]

initial price evaluation for the occupancy. In such cases, GSA may be 
required to run a competition for the replacement lease, and a 
relocation may ensue. Nonetheless, it is also possible that GSA may 
execute a succeeding lease with the incumbent lessor, in which case 
there is no move.
    (c) GSA and customer agencies should initiate discussions at least 
18-20 months in advance of OA expiration to address an action for the 
replacement or continued occupancy of the existing space assignment. 
This allows both agencies time to budget for the work and the cost.



Sec. 102-85.205  What happens if a customer agency continues occupancy after the expiration of an OA?

    A mutual goal of GSA and its customers is to have current OAs in 
place for all space assignments. However, provisions are necessary to 
cover the GSA and customer relationship if an OA expires prior to 
execution of a mutually desired succeeding agreement. Because the risks, 
liabilities, and consequences of a customer's continued occupancy depend 
on whether the assigned space is leased or Federally owned, different 
provisions in the following table apply:

   Holdover Tenancy--Customer Agency Responsibilities in the Event of
                     Tenant Delay in Vacating Space
------------------------------------------------------------------------
              In leased space                 In federally owned space
------------------------------------------------------------------------
To pay those costs associated with lease    To pay Rent as determined by
 contract, GSA fee, and damages/claims,      GSA's pricing policy, as
 arising from changes in GSA contract        described in this part, and
 costs which are caused by the tenant's      those added costs to GSA
 delay.                                      (claims, damages, changes,
                                             etc.) resulting from the
                                             tenant-caused delay.
------------------------------------------------------------------------



Sec. 102-85.210  What if a customer agency has to relocate?

    If the agency or GSA determines relocation is necessary at the 
expiration of an OA for either Federally owned or leased space, the 
customer agency is responsible for all costs associated with relocation 
at that time.



Sec. 102-85.215  What if another customer agency forces a GSA customer to move?

    If a GSA customer agency, or GSA, forces the relocation of another 
GSA customer agency prior to the expiration of the customer's OA, the 
``forcing'' agency is responsible:
    (a) For all reasonable costs associated with the relocation of the 
agency being ``forced'' to move, including architectural-engineering 
design, move coordination and physical relocation, telecommunications 
and ADP equipment relocation and installation;
    (b) To GSA for all of the relocated agency's unpaid tenant 
improvements, if any; and
    (c) To the customer agency for the undepreciated amount of any lump 
sum payment that was already made by the agency for alterations.



Sec. 102-85.220  Can a customer agency forced to relocate waive the reimbursements?

    Yes, a customer agency forced to relocate can waive some or all of 
the reimbursements from the forcing agency that are prescribed in 
Sec. 102-85.215. However, a relocated customer agency cannot waive the 
requirement for the forcing customer agency to reimburse GSA for unpaid 
tenant improvements. If GSA is the ``forcing'' agency, it is responsible 
for the same costs as any other forcing customer agency.



Sec. 102-85.225  What are the funding responsibilities for relocations resulting from emergencies?

    (a) In emergencies, swift remedies, including the possible 
relocation of a customer agency to alternate space, are required. The 
remedies may include requests for funding authorizations from OMB and 
Congress. GSA may serve as the central coordinator of such remedies.
    (b) Funding responsibility will vary by situation. If a customer 
agency is only temporarily displaced from its space, GSA typically 
covers the cost of temporary set-up in a provisional location. If the 
agency is obliged to relocate permanently, an OA will be prepared which 
will address all terms of

[[Page 103]]

the occupancy. In such cases, new tenant improvements will be 
constructed which can be amortized over the life of a new occupancy 
term, and a new Rent rate will be developed.

                     PART 102-86--102-115 [RESERVED]

[[Page 104]]





                      SUBCHAPTER D--TRANSPORTATION



                    PART 102-116--GENERAL [RESERVED]



PART 102-117--TRANSPORTATION MANAGEMENT--Table of Contents




                           Subpart A--General

Sec.
102-117.5  What is transportation management?
102-117.10  What is the scope of this part?
102-117.15  To whom does this part apply?
102-117.20  Are any agencies exempt from this part?
102-117.25  What definitions apply to this part?

         Subpart B--Acquiring Transportation or Related Services

102-117.30  What choices do I have when acquiring transportation or 
          related services?
102-117.35  What are the advantages and disadvantages to using GSA's 
          tender of service?
102-117.40  When is it advantageous for me to use another agency's 
          contract or rate tender for transportation services?
102-117.45  What other factors must I consider when using another 
          agency's contract or rate tender?
102-117.50  What are the advantages and disadvantages of contracting 
          directly with a TSP under FAR?
102-117.55  What are the advantages and disadvantages of using a rate 
          tender?
102-117.60  What is the importance of the terms and conditions in a rate 
          tender or other transportation document?
102-117.65  What terms and conditions must all rate tenders or contracts 
          include?
102-117.70  Where do I find more information on terms and conditions?
102-117.75  How do I reference the rate tender on transportation 
          documents?
102-117.80  How are rate tenders filed?
102-117.85  What is the difference between a Government bill of lading 
          (GBL) and a bill of lading?
102-117.90  May I use U.S. Government bill of lading (GBL) (Optional 
          Forms 1103 and 1203), to acquire freight, household goods or 
          other related transportation services?
102-117.95  After the GBLs retire for domestic shipments, what 
          transportation documents must I use to acquire freight, 
          household goods or other transportation services?

    Subpart C--Business Rules To Consider Before Shipping Freight or 
                             Household Goods

102-117.100  What business rules must I consider before acquiring 
          transportation or related services?
102-117.105  What does best value mean when routing a shipment?
102-117.110  What is satisfactory service?
102-117.115  How do I calculate total delivery costs?
102-117.120  To what extent must I equally distribute orders for 
          transportation and related services among TSPs?
102-117.125  How detailed must I describe property for shipment when 
          communicating to a TSP?
102-117.130  Must I select TSPs who use alternative fuels?

  Subpart D--Restrictions That Affect International Transportation of 
                       Freight and Household Goods

102-117.135  What are the international transportation restrictions?
102-117.140  What is cargo preference?
102-117.145  What are coastwise laws?
102-117.150  What do I need to know about coastwise laws?
102-117.155  Where do I go for further information about coastwise laws?

                       Subpart E--Shipping Freight

102-117.160  What is freight?
102-117.165  What shipping process must I use for freight?
102-117.170  What reference materials are available to ship freight?
102-117.175  What factors do I consider to determine the mode of 
          transportation?
102-117.180  What transportation documents must I use to ship freight?
102-117.185  Where must I send a copy of the transportation documents?
102-117.190  Where do I file a claim for loss or damage to property?
102-117.195  Are there time limits affecting filing of a claim?

             Subpart F--Shipping Hazardous Material (HAZMAT)

102-117.200  What is HAZMAT?
102-117.205  What are the restrictions for transporting HAZMAT?
102-117.210  Where can I get guidance on transporting HAZMAT?

[[Page 105]]

                   Subpart G--Shipping Household Goods

102-117.215  What are household goods (HHG)?
102-117.220  What choices do I have to ship HHG?
102-117.225  What is the difference between a contract or rate tender 
          and a commuted rate system?
102-117.230  Must I compare costs between a contract or rate tender and 
          the commuted rate system before choosing which method to use?
102-117.235  How do I get a cost comparison?
102-117.240  What is my agency's financial responsibility to an employee 
          who chooses to move all or part of his/her HHG under the 
          commuted rate system?
102-117.245  What is my responsibility in providing guidance to an 
          employee who wishes to use the commuted rate system?
102-117.250  What are my responsibilities after shipping the household 
          goods?
102-117.255  What actions may I take if the TSP's performance is not 
          satisfactory?
102-117.260  What are my responsibilities to employees regarding the 
          TSP's liability for loss or damage claims?
102-117.265  Are there time limits that affect filing a claim with a TSP 
          for loss or damage?

                     Subpart H--Performance Measures

102-117.270  What are agency performance measures for transportation?

      Subpart I--Transportation Service Provider (TSP) Performance

102-117.275  What performance must I expect from a TSP?
102-117.280  What aspects of the TSP's performance are important to 
          measure?
102-117.285  What are my choices if a TSP's performance is not 
          satisfactory?
102-117.290  What is the difference between temporary nonuse, suspension 
          and debarment?
102-117.295  Who makes the decisions on temporary nonuse, suspension and 
          debarment?
102-117.300  Do the decisions on temporary nonuse, suspension and 
          debarment go beyond the agency?
102-117.305  Where do I go for information on the process for suspending 
          or debarring a TSP?
102-117.310  What records must I keep on temporary nonuse, suspension or 
          debarment of a TSP?
102-117.315  Who must I notify on suspension or debarment of a TSP?

      Subpart J--Representation Before Regulatory Body Proceedings

102-117.320  What is a transportation regulatory body proceeding?
102-117.325  May my agency appear on its own behalf before a 
          transportation regulatory body proceeding?
102-117.330  When, or under what circumstances, would GSA delegate 
          authority to an agency to appear on its own behalf before a 
          transportation regulatory body proceeding?
102-117.335  How does my agency ask for a delegation to represent itself 
          in a regulatory body proceeding?
102-117.340  What other types of assistance may GSA provide agencies in 
          dealing with regulatory bodies?

                           Subpart K--Reports

102-117.345  Is there a requirement for me to report to GSA on my 
          transportation activities?
102-117.350   How will GSA use reports I submit?

     Subpart L--Governmentwide Transportation Policy Council (GTPC)

102-117.355  What is the Governmentwide Transportation Policy Council 
          (GTPC)?
102-117.360  Where can I get more information about the GTPC?

    Authority: 31 U.S.C. 3726; 40 U.S.C. 481, et seq.

    Source: 65 FR 60061, Oct. 6, 2000, unless otherwise noted.



                           Subpart A--General



Sec. 102-117.5  What is transportation management?

    Transportation management is agency oversight of the physical 
movement of commodities, household goods (HHG) and other freight from 
one location to another by a transportation service provider (TSP).



Sec. 102-117.10  What is the scope of this part?

    This part addresses shipping freight and household goods worldwide. 
Freight is property or goods transported as cargo. Household goods are 
not Government property, but are employees' personal property entrusted 
to the Government for shipment.

[[Page 106]]



Sec. 102-117.15  To whom does this part apply?

    This part applies to all agencies and wholly owned Government 
corporations as defined in 5 U.S.C. 101 et seq. and 31 U.S.C. 9101(3), 
except those indicated in Sec. 102-117.20.



Sec. 102-117.20  Are any agencies exempt from this part?

    (a) The Department of Defense is exempted from this part by an 
agreement under the Federal Property and Administrative Services Act of 
1949, as amended (40 U.S.C. 481 et seq.), except for the rules to debar 
or suspend a TSP under the Federal Acquisition Regulation (48 CFR part 
9, subpart 9.4).
    (b) Subpart D of this part, covering household goods, does not apply 
to the uniformed service members, under Title 37 of the United States 
Code, ``Pay and Allowances of the Uniformed Services,'' including the 
uniformed service members serving in civilian agencies such as the U.S. 
Coast Guard, National Oceanic and Atmospheric Administration and the 
Public Health Service.



Sec. 102-117.25  What definitions apply to this part?

    The following definitions apply to this part:
    Accessorial charges are charges for services other than line-haul 
charges. Examples of accessorial charges are:
    (1) Inside delivery, redelivery, reconsignment, and demurrage or 
detention for freight; and
    (2) Packing, unpacking, appliance servicing, blocking and bracing, 
and special handling for household goods.
    Agency is any executive agency, but does not include:
    (1) A Government Controlled Corporation;
    (2) The Tennessee Valley Authority;
    (3) The Virgin Islands Corporation;
    (4) The Nuclear Regulatory Commission;
    (5) The Central Intelligence Agency;
    (6) The Panama Canal Commission; and
    (7) The National Security Agency, Department of Defense.
    Bill of lading, sometimes referred to as a commercial bill of lading 
(but includes GBLs), is the document used as a receipt of goods and 
documentary evidence of title.
    Cargo preference is the legal requirement for all, or a portion of 
all, ocean-borne cargo to be transported on U.S. flag vessels.
    Commuted rate system is the system under which an agency may allow 
its employees to make their own household goods shipping arrangements, 
and apply for reimbursement.
    Consignee is the person or agent to whom freight or household goods 
are delivered.
    Consignor is the person or firm that ships freight or household 
goods to a consignee.
    Contract of carriage is a contract between the TSP and the agency to 
transport freight or household goods.
    Debarment is an action to exclude a TSP, for a period of time, from 
providing services under a rate tender or any contract under the Federal 
Acquisition Regulation (48 CFR part 9, subpart 9.406).
    Demurrage is the penalty charge to an agency for delaying the agreed 
time to load or unload shipments by rail or ocean TSPs.
    Detention is the penalty charge to an agency for delaying the agreed 
time to load or unload shipments by truck TSPs.
    Electronic commerce is an electronic technique for carrying out 
business transactions (ordering and paying for goods and services), 
including electronic mail or messaging, Internet technology, electronic 
bulletin boards, charge cards, electronic funds transfers, and 
electronic data interchange.
    Foreign flag vessel is any vessel of foreign registry including 
vessels owned by U.S. citizens but registered in a foreign country.
    Freight is property or goods transported as cargo.
    Government bill of lading (GBL) is the Optional Form 1103 or 1203, 
the transportation document used as a receipt of goods, evidence of 
title, and a contract of carriage.
    Governmentwide Transportation Policy Council (GTPC) is an 
interagency forum to help GSA formulate policy. It provides agencies 
managing transportation programs a forum to exchange information and 
ideas to solve common

[[Page 107]]

problems. For further information on this council, see web site: http://
www.policyworks.gov/transportation.
    Hazardous material is a substance or material the Secretary of 
Transportation determines to be an unreasonable risk to health, safety, 
and property when transported in commerce, and labels as hazardous under 
section 5103 of the Federal Hazardous Materials Transportation Law (49 
U.S.C. 5103 et seq.). When transported internationally hazardous 
material may be classified as ``Dangerous Goods.'' All such freight must 
be marked in accordance with applicable regulations and the carrier must 
be notified in advance.
    Household goods (HHG) are the personal effects of Government 
employees and their dependents.
    Line-Haul is the movement of freight between cities excluding pickup 
and delivery service.
    Mode is a method of transportation, such as rail, motor, air, water, 
or pipeline.
    Rate schedule is a list of freight rates, taxes, and charges 
assessed against non-household goods cargo.
    Rate tender is an offer a TSP sends to an agency, containing service 
rates and charges.
    Receipt is a written or electronic acknowledgment by the consignee 
or TSP as to when and where a shipment was received.
    Release/declared value is stated in dollars and is considered the 
assigned value of the cargo for reimbursement purposes, not necessarily 
the actual value of the cargo. Released value may be more or less than 
the actual value of the cargo. The released value is the maximum amount 
that could be recovered by the agency in the event of loss or damage for 
the shipments of freight and household goods. The statement of released 
value must be shown on any applicable tariff, tender, or other document 
covering the shipment.
    Reparation is a payment to or from an agency to correct an improper 
transportation billing involving a TSP. Improper routing, overcharges or 
duplicate payments may cause such improper billing. This is different 
from a payment to settle a claim for loss and damage.
    Suspension is an action taken by an agency to disqualify a TSP from 
receiving orders for certain services under a contract or rate tender 
(48 CFR part 9, subpart 9.407).
    Transportation document is any executed agreement for transportation 
service, such as bill of lading, Government bill of lading (GBL), 
Government travel request (GTR) or transportation ticket.
    Transportation service provider (TSP) is any party, person, agent or 
carrier that provides freight or passenger transportation and related 
services to an agency. For a freight shipment this would include 
packers, truckers and storers. For passenger transportation this would 
include airlines, travel agents and travel management centers.
    U.S. flag air carrier is an air carrier holding a certificate issued 
by the United States under 49 U.S.C. 41102 (49 U.S.C. 40118, 48 CFR part 
47, subpart 47.4).
    U.S. flag vessel is a commercial vessel, registered and operated 
under the laws of the U.S., owned and operated by U.S. citizens, and 
used in commercial trade of the United States.

[65 FR 60060, Oct. 6, 2000; 65 FR 81405, Dec. 26, 2000]



         Subpart B--Acquiring Transportation or Related Services



Sec. 102-117.30  What choices do I have when acquiring transportation or related services?

    When you acquire transportation or related services you may:
    (a) Use the GSA tender of service;
    (b) Use another agency's contract or rate tender with a TSP only if 
allowed by the terms of that agreement or if the Administrator of 
General Services delegates authority to another agency to enter an 
agreement available to other Executive agencies;
    (c) Contract directly with a TSP using the acquisition procedures 
under the Federal Acquisition Regulation (FAR) (48 CFR chapter 1); or
    (d) Negotiate a rate tender under a Federal transportation 
procurement statute, 49 U.S.C. 10721 or 13712.

[[Page 108]]



Sec. 102-117.35  What are the advantages and disadvantages of using GSA's tender of service?

    (a) It is an advantage to use GSA's tender of service when you want 
to:
    (1) Use GSA's authority to negotiate on behalf of the Federal 
Government and take advantage of the lower rates and optimum service 
that result from a larger volume of business;
    (2) Use a uniform tender of service; and
    (3) Obtain assistance with loss and damage claims.
    (b) It is a disadvantage to use GSA's tender of service when:
    (1) You want an agreement that is binding for a longer term than the 
GSA tender of service;
    (2) You have sufficient time to follow FAR contracting procedures; 
and
    (3) You do not want to pay for the GSA administrative service charge 
as a participant in the GSA rate tender programs.



Sec. 102-117.40  When is it advantageous for me to use another agency's contract or rate tender for transportation services?

    It is advantageous to use another agency's contract or rate tender 
for transportation services when the contract or rate tender offers 
better or equal value than otherwise available to you.



Sec. 102-117.45  What other factors must I consider when using another agency's contract or rate tender?

    When using another agency's contract or rate tender, you must:
    (a) Assure that the contract or rate tender meets any special 
requirements unique to your agency;
    (b) Pay any other charges imposed by the other agency for external 
use of their contract or rate tender; and
    (c) Ensure the terms of the other agency's contract or rate tender 
allow you to use it.



Sec. 102-117.50  What are the advantages and disadvantages of contracting directly with a TSP under the FAR?

    (a) The FAR is an advantage to use when:
    (1) You ship consistent volumes in consistent traffic lanes;
    (2) You have sufficient time to follow FAR contracting procedures; 
and
    (3) Your contract office is able to handle the requirement.
    (b) The FAR may be a disadvantage when you:
    (1) Cannot prepare and execute a FAR contract within your time 
frame; or
    (2) Have recurring shipments between designated places, but do not 
expect sufficient volume to obtain favorable rates.



Sec. 102-117.55  What are the advantages and disadvantages of using a rate tender?

    (a) Using a rate tender is an advantage when you:
    (1) Have a shipment that must be made within too short a time frame 
to identify or solicit for a suitable contract; or
    (2) Have shipments recurring between designated places, but do not 
expect sufficient volume to obtain favorable rates.
    (b) Using a rate tender may be a disadvantage when:
    (1) You have sufficient time to use the FAR and this would achieve 
better results;
    (2) You require transportation service for which no rate tender 
currently exists; or
    (3) A TSP may revoke or terminate the tender on short notice.



Sec. 102-117.60  What is the importance of terms and conditions in a rate tender or other transportation document?

    Terms and conditions are important to protect the Government's 
interest and establish the performance and standards expected of the 
TSP. It is important to remember that terms and conditions are:
    (a) Negotiated between the agency and the TSP before movement of any 
item; and
    (b) Included in all contracts and rate tenders listing the services 
the TSP is offering to perform at the cost presented in the rate tender 
or other transportation document.

    Note to Sec. 102-117.60: You must reference the negotiated contract 
or rate tender on all transportation documents. For further information 
see Sec. 102-117.65.

[[Page 109]]



Sec. 102-117.65  What terms and conditions must all rate tenders or contracts include?

    All rate tenders and contracts must include, at a minimum, the 
following terms and conditions:
    (a) Charges cannot be prepaid.
    (b) Charges are not paid at time of delivery.
    (c) Interest shall accrue from the voucher payment date on 
overcharges made and shall be paid at the same rate in effect on that 
date as published by the Secretary of the Treasury according to the Debt 
Collection Act of 1982, 31 U.S.C. 3717.
    (d) To qualify for the rates specified in a rate tender filed under 
the provisions of the Federal transportation procurement statutes (49 
U.S.C. 10721 or 13712), property must be shipped by or for the 
Government and the rate tender must indicate the Government is either 
the consignor or the consignee and include the following statement:

    Transportation is for the (agency name) and the total charges paid 
to the transportation service provider by the consignor or consignee are 
for the benefit of the Government.

    (e) When using a rate tender for transportation under a cost-
reimbursable contract, include the following statement in the rate 
tender:

    Transportation is for the (agency name), and the actual total 
transportation charges paid to the transportation service provider by 
the consignor or consignee are to be reimbursed by the Government 
pursuant to cost reimbursable contract (number). This may be confirmed 
by contacting the agency representative at (name, address and telephone 
number).

    (f) Other terms and conditions that may be specific to your agency 
or the TSP such as specialized packaging requirements or HAZMAT. For 
further information see the ``U.S. Government Freight Transportation 
Handbook,'' available by contacting:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://www.fss.gsa.gov/transtrav



Sec. 102-117.70  Where do I find more information on terms and conditions?

    You may find more information about terms and conditions in part 
102-118 of this chapter, or the ``U.S. Government Freight Transportation 
Handbook'' (see Sec. 102-117.65(f)).



Sec. 102-117.75  How do I reference the rate tender on transportation documents?

    To ensure proper reference of a rate tender on all shipments, you 
must show the applicable rate tender number and carrier identification 
on all transportation documents, such as, section 13712 quotation, ``ABC 
Transportation Company, Tender Number * * *''.



Sec. 102-117.80  How are rate tenders filed?

    (a) The TSP must file a written rate tender with your agency.
    (b) You must send two copies of the rate tender to:

General Services Administration
Federal Supply Service, Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://www.fss.gsa.gov/transtrav



Sec. 102-117.85  What is the difference between a Government bill of lading (GBL) and a bill of lading?

    (a) A Government bill of lading (GBL), Optional Forms 1103 and 1203, 
is a controlled document that conveys specific terms and conditions to 
protect the Government interest and serves as the contract of carriage.
    (b) A bill of lading, sometimes referred to as a commercial bill of 
lading, is the document used as a receipt of goods and documentary 
evidence of title.
    (c) Use a bill of lading for Government shipments if the specific 
terms and conditions of a GBL are included in any contract or rate 
tender (see Sec. 102-117.65) and the bill of lading makes reference to 
that contract or rate tender (see Sec. 102-117.75 and the ``U.S. 
Government Freight Transportation Handbook'').

[[Page 110]]



Sec. 102-117.90  May I use U.S. Government bill of lading (GBL) (Optional Forms 1103 and 1203), to acquire freight, household goods or other related 
          transportation services?

    You may use the GBL, Optional Forms 1103 or 1203, to acquire 
transportation services offered under a contract or rate tender until 
September 30, 2001. The GBL will completely phase out for domestic 
shipments on September 30, 2001, and be replaced by commercial bills of 
lading. After September 30, 2001, you may use the GBL only for 
international shipments (including domestic offshore shipments).



Sec. 102-117.95  After the GBLs retire for domestic shipments, what transportation documents must I use to acquire freight, household goods or other transportation services?

    Bills of lading and purchase orders are the transportation documents 
you use to acquire freight, household goods and other transportation 
services after the GBLs retire for domestic shipments. Terms and 
conditions in Sec. 102-117.65 and the ``U.S. Government Freight 
Transportation Handbook'' will still be required. For further 
information on payment methods, see part 102-118 of this chapter.



    Subpart C--Business Rules To Consider Before Shipping Freight or 
                             Household Goods



Sec. 102-117.100  What business rules must I consider before acquiring transportation or related services?

    When acquiring transportation or related services you must:
    (a) Use the mode or individual transportation service provider (TSP) 
that provides the overall best value to the agency. For more 
information, see Secs. 102-117.105 through 102-117.130;
    (b) Demonstrate no preferential treatment to any TSP when arranging 
for transportation services except on international shipments. 
Preference on international shipments must be given to United States 
registered commercial vessels and aircraft;
    (c) Ensure that small businesses receive equal opportunity to 
compete for all business they can perform to the maximum extent 
possible, consistent with the agency's interest (see 48 CFR part 19);
    (d) Encourage minority-owned businesses and women-owned businesses, 
to compete for all business they can perform to the maximum extent 
possible, consistent with the agency's interest (see 48 CFR part 19);
    (e) Review the need for insurance. Generally, the Government is 
self-insured; however, there are instances when the Government will 
purchase insurance coverage for Government property. An example may be 
cargo insurance for international air cargo shipments to cover losses 
over those allowed under the International Air Transport Association 
(IATA) or for ocean freight shipments; and
    (f) Consider the added requirements on international transportation 
found in subpart D of this part.



Sec. 102-117.105  What does best value mean when routing a shipment?

    Best value to your agency when routing a shipment means using the 
mode or individual TSP providing the best combination of satisfactory 
service factors.



Sec. 102-117.110  What is satisfactory service?

    You should consider the following factors in assessing whether a TSP 
offers satisfactory service:
    (a) Availability and suitability of the TSP's equipment;
    (b) Adequacy of shipping and receiving facilities at origin and 
destination;
    (c) Adequacy of pickup and/or delivery service;
    (d) Availability of accessorial and special services;
    (e) Estimated time in transit;
    (f) Record of past performance of the TSP including accuracy of 
billing;
    (g) Capability of warehouse equipment and storage space; and
    (h) Experience of company, management, and personnel to perform the 
requirements.



Sec. 102-117.115  How do I calculate total delivery costs?

    You calculate total delivery costs for a shipment by considering all 
costs related to the shipping or receiving process, such as packing, 
blocking, bracing,

[[Page 111]]

drayage, loading and unloading, and transporting.



Sec. 102-117.120  To what extent must I equally distribute orders for transportation and related services among TSPs?

    You must assure that small businesses, socially or economically 
disadvantaged and women-owned TSPs have equal opportunity to provide the 
transportation or related services.



Sec. 102-117.125  How detailed must I describe property for shipment when communicating to a TSP?

    You must describe property in enough detail for the TSP to determine 
the type of equipment or any special precautions necessary to move the 
shipment. Details might include weight, volume, measurements, routing, 
hazardous cargo, or special handling designations.



Sec. 102-117.130  Must I select TSPs who use alternative fuels?

    No, but, whenever possible, you are encouraged to select TSPs that 
use alternative fuel vehicles and equipment, under policy in the Clean 
Air Act Amendments of 1990 (42 U.S.C. 7612) or the Energy Policy Act of 
1992 (42 U.S.C. 13212).



  Subpart D--Restrictions That Affect International Transportation of 
                       Freight and Household Goods



Sec. 102-117.135  What are the international transportation restrictions?

    Several statutes mandate the use of U.S. flag carriers for 
international shipments (see 48 CFR part 47, subparts 47.4 and 47.5). 
For example:
    (a) Arrangements for international air transportation services must 
follow the Fly America Act (International Air Transportation Fair 
Competitive Practices Act of 1974) (49 U.S.C. 40118); and
    (b) International movement of property by water is subject to the 
cargo preference laws (see 46 CFR part 381 and 48 CFR part 47, subpart 
47.5), which require the use of a U.S. flag carrier when service is 
available. The Maritime Administration (MARAD) monitors agency 
compliance of these laws. All Government shippers must send a rated copy 
of the ocean carrier's bill of lading to MARAD within 30 days of loading 
aboard a vessel to:

Department of Transportation
Maritime Commission
Office of Cargo Preference
400 7th Street, SW.
Washington, DC 20590
http://www.marad.dot.gov/
Tel. 1-800-9US-FLAG
E-mail: cargo@marad.dot.gov

    Note to Sec. 102-117.135(b): Non-vessel Operations Common Carrier 
(NVOCC) or freight forwarder bills of lading are not acceptable (see 48 
CFR part 47).



Sec. 102-117.140  What is cargo preference?

    Cargo preference is the statutory requirement that all, or a portion 
of all, ocean-borne cargo that moves internationally be transported on 
U.S. flag vessels. Deviations or waivers from the cargo preference laws 
must be approved by:

Department of Transportation
Maritime Administration
Office of Cargo Preference
400 7th Street, SW.
Washington, DC 20590
http://www.marad.dot.gov/
Tel. 1-800-9US-FLAG
e-mail: cargo@marad.dot.gov

[65 FR 60060, Oct. 6, 2000; 65 FR 81405, Dec. 26, 2000]



Sec. 102-117.145  What are coastwise laws?

    Coastwise laws refer to laws governing shipment of freight, 
household goods and passengers by water between points in the United 
States or its territories. The purpose of these laws is to assure 
reliable shipping service and the existence of a maritime capability in 
times of war or national emergency (see section 27 of the Merchant 
Marine Act of 1920, 46 App. U.S.C. 883, 19 CFR 4.80).



Sec. 102-117.150  What do I need to know about coastwise laws?

    You need to know that:
    (a) Goods transported entirely or partly by water between U.S. 
points, either directly or via a foreign port, must travel in U.S. 
Maritime Administration (MARAD) authorized U.S. Flag vessels;

[[Page 112]]

    (b) There are exceptions and limits for the U.S. Island territories 
and possessions in the Atlantic and Pacific Oceans (see Sec. 102-
117.155); and
    (c) The Secretary of the Treasury is empowered to impose monetary 
penalties against agencies that violate the coastwise laws.



Sec. 102-117.155  Where do I go for further information about coastwise laws?

    You may refer to 46 App. U.S.C. 883, 19 CFR 4.80, DOT MARAD, the 
U.S. Coast Guard or U.S. Customs Service for further information on 
exceptions to the coastwise laws.



                       Subpart E--Shipping Freight



Sec. 102-117.160  What is freight?

    Freight is property or goods transported as cargo.



Sec. 102-117.165  What shipping process must I use for freight?

    Use the following shipping process for freight:
    (a) For domestic shipments you must:
    (1) Identify what you are shipping;
    (2) Decide if the cargo is HAZMAT, classified, or sensitive that may 
require special handling or placards;
    (3) Decide mode;
    (4) Check for applicable contracts or rate tenders within your 
agency or other agencies, including GSA;
    (5) Select the most efficient and economical TSP that gives the best 
value;
    (6) Prepare shipping documents; and
    (7) Schedule pickup, declare released value and ensure prompt 
delivery with a fully executed receipt, and oversee shipment.
    (b) For international shipments you must follow all the domestic 
procedures and, in addition, comply with the cargo preference laws. For 
specific information, see subpart D of this part.



Sec. 102-117.170  What reference materials are available to ship freight?

    (a) The following is a partial list of handbooks and guides 
available from GSA:
    (1) U.S. Government Freight Transportation Handbook;
    (2) Limited Authority to Use Commercial Forms and Procedures;
    (3) Submission of Transportation Documents; and
    (4) Things to be Aware of When Routing or Receiving Freight 
Shipments.
    (b) For the list in paragraph (a) of the section and other reference 
materials, contact:
    (1) General Services Administration, Federal Supply Service, Audit 
Division (FBA), 1800 F Street, NW. Washington, DC 20405, http://
www.fss.gsa.gov/transtrav; or
    (2) General Services Administration, Federal Supply Service, 1500 
Bannister Road, Kansas City, MO 64131, http://www.kc.gsa.gov/fsstt.

[65 FR 60060, Oct. 6, 2000; 65 FR 81405, Dec. 26, 2000]



Sec. 102-117.175  What factors do I consider to determine the mode of transportation?

    Your shipping urgency and any special handling requirements 
determine which mode of transportation you select. Each mode has unique 
requirements for documentation, liability, size, weight and delivery 
time. HAZMAT, radioactive, and other specialized cargo may require 
special permits and may limit your choices.



Sec. 102-117.180  What transportation documents must I use to ship freight?

    To ship freight:
    (a) By land (domestic shipments), use a bill of lading;
    (b) By land (international shipments), use the GBL;
    (c) By ocean, use an ocean bill of lading, when suitable, along with 
the GBL; and
    (d) By air, use a bill of lading.



Sec. 102-117.185  Where must I send a copy of the transportation documents?

    (a) You must forward an original copy of all transportation 
documents to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405

    (b) For all property shipments subject to the cargo preference laws 
(see Sec. 102-117.140), a copy of the ocean carrier's bill of lading, 
showing all freight

[[Page 113]]

charges, must be sent to MARAD within 30 days of vessel loading.



Sec. 102-117.190  Where do I file a claim for loss or damage to property?

    You must file a claim for loss or damage to property with the TSP.



Sec. 102-117.195  Are there time limits affecting filing of a claim?

    Yes, several statutes limit the time for administrative or judicial 
action against a TSP. Refer to part 102-118 of this chapter for more 
information and the time limit tables.



             Subpart F--Shipping Hazardous Material (HAZMAT)



Sec. 102-117.200  What is HAZMAT?

    HAZMAT is a substance or material the Secretary of Transportation 
determines to be an unreasonable risk to health, safety and property 
when transported in commerce. Therefore, there are restrictions on 
transporting HAZMAT (49 U.S.C. 5103 et seq.).



Sec. 102-117.205  What are the restrictions for transporting HAZMAT?

    Agencies that ship HAZMAT are subject to the Environmental 
Protection Agency and the Department of Transportation regulations, as 
well as applicable State and local government rules and regulations.



Sec. 102-117.210  Where can I get guidance on transporting HAZMAT?

    The Secretary of Transportation prescribes regulations for the safe 
transportation of HAZMAT in intrastate, interstate, and foreign commerce 
in 49 CFR parts 171 through 180. The Environmental Protection Agency 
also prescribes regulations on transporting HAZMAT in 40 CFR parts 260 
through 266. You may also call the HAZMAT information hotline at 1-800-
467-4922 (Washington, DC area, call 202-366-4488).



                   Subpart G--Shipping Household Goods



Sec. 102-117.215  What are household goods (HHG)?

    Household goods (HHG) are the personal effects of Government 
employees and their dependents.



Sec. 102-117.220  What choices do I have to ship HHG?

    (a) You may choose to ship HHG by:
    (1) Using the commuted rate system;
    (2) GSA's Centralized Household Goods Traffic Management Program 
(CHAMP);
    (3) Contracting directly with a TSP, (including a relocation company 
that offers transportation services) using the acquisition procedures 
under the Federal Acquisition Regulation (FAR) (see Sec. 102-117.35);
    (4) Using another agency's contract with a TSP (see Sec. Sec. 102-
117.40 and 102-117.45);
    (5) Using a rate tender under the Federal transportation procurement 
statutes (49 U.S.C. 10721 or 13712) (see Sec. 102-117.35).
    (b) As an alternative to the choices in paragraph (a) of this 
section, you may request the Department of State to assist with 
shipments of HHG moving to, from, and between foreign countries or 
international shipments originating in the continental United States. 
The nearest U.S. Embassy or Consulate may assist with arrangements of 
movements originating abroad. For further information contact:

Department of State
Transportation Operations
2201 C Street, NW.
Washington, DC 20520

    Note to Sec. 102-117-220: Agencies must use the commuted rate system 
for civilian employees who transfer between points inside the 
continental United States unless it is evident from the cost comparison 
that the Government will incur a savings ($100 or more) using another 
choice listed. The use of household goods rate tenders is not authorized 
when household goods are shipped under the commuted rate system.

[65 FR 60060, Oct. 6, 2000; 65 FR 81405, Dec. 26, 2000]

[[Page 114]]



Sec. 102-117.225  What is the difference between a contract or a rate tender and a commuted rate system?

    (a) Under a contract or a rate tender, the agency prepares the bill 
of lading and books the shipment. The agency is the shipper and pays the 
TSP the applicable charges. If loss or damage occurs, the agency may 
either file a claim on behalf of the employee directly with the TSP, or 
help the employee in filing a claim against the TSP.
    (b) Under the commuted rate system an employee arranges for shipping 
HHG and is reimbursed by the agency for the resulting costs. Use this 
method only within the continental United States (not Hawaii or Alaska). 
The agency reimburses the employee according to the Commuted Rate 
Schedule published by the GSA. The Commuted Rate Schedule (without rate 
table) is available on the Internet at http://www.policyworks.gov.
    (c) For rate table information or a subscription for the Commercial 
Relocation Tariff contact:

American Moving and Storage Association
1611 Duke Street
Alexandria, VA 22314-3482
Tel. 703-683-7410

    (d) For further information or assistance, you may contact:

General Services Administration
National Customer Service Center
1500 Bannister Road
Kansas City, MO 64131
http://www.kc.gsa.gov/fsstt



Sec. 102-117.230  Must I compare costs between a contract or a rate tender and the commuted rate system before choosing which method to use?

    Yes, you must compare the cost between a contract or a rate tender, 
and the commuted rate system before you make a decision.



Sec. 102-117.235  How do I get a cost comparison?

    (a) You may calculate a cost comparison internally according to 41 
CFR 302-8.3.
    (b) You may request GSA to perform the cost comparison if you 
participate in the CHAMP program by sending GSA the following 
information as far in advance as possible (preferably 30 calendar days):
    (1) Name of employee;
    (2) Origin city, county and State;
    (3) Destination city, county, and State;
    (4) Date of household goods pick up;
    (5) Estimated weight of shipments;
    (6) Number of days storage-in-transit (if applicable); and
    (7) Other relevant data.
    (c) For more information on cost comparisons contact:

General Services Administration
Federal Supply Service
1500 Bannister Road
Kansas City, MO 64131
http://www.kc.gsa.gov/fsstt

    Note to Sec. 102-117.235(c): GSA may charge an administrative fee 
for agencies not participating in the CHAMP program.



Sec. 102-117.240  What is my agency's financial responsibility to an employee who chooses to move all or part of his/her HHG under the commuted rate system?

    (a) Your agency is responsible for reimbursing the employee what it 
would cost the Government to ship the employee's HHG by the most cost-
effective means available or the employee's actual moving expenses, 
whichever is less.
    (b) The employee is liable for the additional cost when the cost of 
transportation arranged by the employee is more than what it would cost 
the Government.
    Note to Sec. 102-117.240: For more information on how to ship 
household goods, refer to 41 CFR 302-8.3.



Sec. 102-117.245  What is my responsibility in providing guidance to an employee who wishes to use the commuted rate system?

    You must counsel employees that they may be liable for all costs 
above the amount reimbursed by the agency if they select a TSP that 
charges more than provided under the Commuted Rate Schedule.



Sec. 102-117.250  What are my responsibilities after shipping the household goods?

    (a) Each agency should develop an evaluation survey for the employee 
to complete following the move.
    (b) Under the CHAMP program, you must counsel employees to fill out

[[Page 115]]

their portion of the GSA Form 3080, Household Goods Carrier Evaluation 
Report. This form reports the quality of the TSP's performance. After 
completing the appropriate sections of this form, the employee must send 
it to the bill of lading issuing officer who in turn will complete the 
form and forward it to:

General Services Administration
National Customer Service Center
1500 Bannister Rd.
Kansas City, MO 64131
http://www.kc.gsa.gov/fsstt

[65 FR 60060, Oct. 6, 2000; 65 FR 81405, Dec. 26, 2000]



Sec. 102-117.255  What actions may I take if the TSP's performance is not satisfactory?

    If the TSP's performance is not satisfactory, you may place a TSP in 
temporary nonuse, suspended status, or debarred status. For more 
information on doing this, see subpart I of this part and the FAR (48 
CFR 9.406-3 and 9.407-3).



Sec. 102-117.260  What are my responsibilities to employees regarding the TSP's liability for loss or damage claims?

    Regarding the TSP's liability for loss or damage claims, you must:
    (a) Advise employees on the limits of the TSP's liability for loss 
of and damage to their HHG so the employee may evaluate the need for 
added insurance;
    (b) Inform the employee about the procedures to file claims for loss 
and damage to HHG with the TSP; and
    (c) Counsel employees, who have a loss or damage to their HHG that 
exceeds the amount recovered from a TSP, on procedures for filing a 
claim against the Government for the difference. Agencies may compensate 
employees up to $40,000 on claims for loss and damage under 31 U.S.C. 
3721, 3723 (41 CFR 302-8.2(f)).



Sec. 102-117.265  Are there time limits that affect filing a claim with a TSP for loss or damage?

    Yes, several statutes limit the time for filing claims or taking 
other administrative or judicial action against a TSP. Refer to part 
102-118 of this chapter for information on claims.



                     Subpart H--Performance Measures



Sec. 102-117.270  What are agency performance measures for transportation?

    (a) Agency performance measures are indicators of how you are 
supporting your customers and doing your job. By tracking performance 
measures you can report specific accomplishments and your success in 
supporting the agency mission. The Government Performance and Results 
Act (GPRA) of 1993 (31 U.S.C. 1115) requires agencies to develop 
business plans and set up program performance measures.
    (b) Examples of performance measurements in transportation would 
include how well you:
    (1) Increase the use of electronic commerce;
    (2) Adopt industry best practices and services to meet your agency 
requirements;
    (3) Use TSPs with a track record of successful past performance or 
proven superior ability;
    (4) Take advantage of competition in moving agency freight and 
household goods;
    (5) Assure that delivery of freight and household goods is on time 
against measured criteria; and
    (6) Create simplified procedures to be responsive and adaptive to 
the customer needs and concerns.



      Subpart I--Transportation Service Provider (TSP) Performance



Sec. 102-117.275  What performance must I expect from a TSP?

    You must expect the TSP to provide consistent and satisfactory 
service to meet your agency transportation needs.



Sec. 102-117.280  What aspects of the TSP's performance are important to measure?

    Important TSP performance measures may include, but are not limited 
to the:
    (a) TSP's percentage of on-time deliveries;
    (b) Percentage of shipments that include overcharges or 
undercharges;

[[Page 116]]

    (c) Percentage of claims received in a given period;
    (d) Percentage of returns received on-time;
    (e) Percentage of shipments rejected;
    (f) Percentage of billing improprieties;
    (g) Average response time on tracing shipments;
    (h) TSP's safety record (accidents, losses, damages or misdirected 
shipments) as a percentage of all shipments;
    (i) TSP's driving record (accidents, traffic tickets and driving 
complaints) as a percentage of shipments; and
    (j) Percentage of customer satisfaction reports on carrier 
performance.



Sec. 102-117.285  What are my choices if a TSP's performance is not satisfactory?

    You may choose to place a TSP in temporary nonuse, suspension, or 
debarment if performance is unsatisfactory.



Sec. 102-117.290  What is the difference between temporary nonuse, suspension and debarment?

    (a) Temporary nonuse is limited to your agency and initiated by the 
agency transportation officers for a period not to exceed 90 days for:
    (1) Willful violations of the terms of the rate tender;
    (2) Persistent or willful failure to meet requested packing and 
pickup service;
    (3) Failure to meet required delivery dates;
    (4) Violation of Department of Transportation (DOT) hazardous 
material regulations;
    (5) Mishandling of freight, damaged or missing transportation seals, 
improper loading, blocking, packing or bracing of property;
    (6) Improper routing of property;
    (7) Subjecting your shipments to unlawful seizure or detention by 
failing to pay debts;
    (8) Operating without legal authority;
    (9) Failure to settle claims according to Government regulations; or
    (10) Repeated failure to comply with regulations of DOT, Surface 
Transportation Board, State or local governments or other Government 
agencies.
    (b) Suspension is disqualifying a TSP from receiving orders for 
certain services under a contract or rate tender pending an 
investigation or legal proceeding. A TSP may be suspended on adequate 
evidence of:
    (1) Fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a contract for transportation;
    (2) Violation of Federal or State antitrust statutes;
    (3) Embezzlement, theft, forgery, bribery, falsification or 
destruction of records, making false statements, or receiving stolen 
property; and
    (4) Any other offense indicating a lack of business integrity or 
business honesty that seriously and directly affects the present 
responsibility of the TSP as a transporter of the Government's property 
or the HHG of its employees relocated for the Government.
    (c) Debarment means action taken to exclude a contractor from 
contracting with all Federal agencies. The seriousness of the TSP's acts 
or omissions and the mitigating factors must be considered in making any 
debarment decisions. A TSP may be debarred for the following reasons:
    (1) Failure of a TSP to take the necessary corrective actions within 
the period of temporary nonuse; or
    (2) Conviction of or civil judgment for any of the causes for 
suspension.



Sec. 102-117.295  Who makes the decisions on temporary nonuse, suspension and debarment?

    (a) The transportation officer may place a TSP in temporary nonuse 
for a period not to exceed 90 days.
    (b) The serious nature of suspension and debarment requires that 
these sanctions be imposed only in the public interest for the 
Government's protection and not for purposes of punishment. Only the 
agency head or his/her designee may suspend or debar a TSP.



Sec. 102-117.300  Do the decisions on temporary nonuse, suspension and debarment go beyond the agency?

    (a) Temporary nonuse does not go beyond the agency.
    (b) GSA compiles and maintains a current list of all suspended or

[[Page 117]]

debarred TSPs and periodically distributes the list to all agencies and 
the General Accounting Office.



Sec. 102-117.305  Where do I go for information on the process for suspending or debarring a TSP?

    Refer to the Federal Acquisition Regulation (48 CFR part 9, subpart 
9.4) for policies and procedures governing suspension and debarment of a 
TSP.



Sec. 102-117.310  What records must I keep on temporary nonuse, suspension or debarment of a TSP?

    (a) You must set up a program consistent with your agency's internal 
record retention procedures to document the placement of TSPs in a 
nonuse, suspended or debarred status.
    (b) For temporary nonuse, your records must contain the following 
information:
    (1) Name, address, and Standard Carrier Alpha Code and Taxpayer 
Identification Number of each TSP placed in temporary nonuse status;
    (2) The duration of the temporary nonuse status;
    (3) The cause for imposing temporary nonuse, and the facts showing 
the existence of such a cause;
    (4) Information and arguments in opposition to the temporary nonuse 
period sent by the TSP or its representative; and
    (5) The reviewing official's determination about keeping or removing 
temporary nonuse status.
    (c) For suspended or debarred TSPs, your records must include the 
same information as paragraph (b) of this section and you must:
    (1) Assure your agency does not award contracts to a suspended or 
debarred TSP; and
    (2) Notify GSA (see Sec. 102-117.315).



Sec. 102-117.315  Who must I notify on suspension or debarment of a TSP?

    Agencies must report monthly any suspension or debarment actions to:

General Services Administration
Office of Acquisition Policy (MV)
1800 F Street, NW.
Washington, DC 20405
http://www.epls.arnet.gov;



      Subpart J--Representation Before Regulatory Body Proceedings



Sec. 102-117.320  What is a transportation regulatory body proceeding?

    A transportation regulatory body proceeding is a hearing before a 
transportation governing entity, such as a State public utility 
commission, the Surface Transportation Board, or the Federal Maritime 
Commission. The proceeding may be at the Federal or State level 
depending on the activity regulated.



Sec. 102-117.325  May my agency appear on its own behalf before a transportation regulatory body proceeding?

    Generally, no executive agency may appear on its own behalf in any 
proceeding before a transportation regulatory body, unless the 
Administrator of General Services delegates the authority to the agency. 
The statutory authority for the Administrator of General Services to 
participate in regulatory proceedings on behalf of all Federal agencies 
is in section 201(a)(4) of the Federal Property and Administrative 
Services Act of 1949, as amended (40 U.S.C. 481(a)(4)).



Sec. 102-117.330  When, or under what circumstances, would GSA delegate authority to an agency to appear on its own behalf before a transportation regulatory body proceeding?

    GSA will delegate authority when it does not have the expertise, or 
when it is outside of GSA's purview, to make a determination on an issue 
such as a protest of rates, routings or excessive charges.



Sec. 102-117.335  How does my agency ask for a delegation to represent itself in a regulatory body proceeding?

    You must send your request for delegation with enough detail to 
explain the circumstances surrounding the need for delegation of 
authority for representation to:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405

[[Page 118]]



Sec. 102-117.340  What other types of assistance may GSA provide agencies in dealing with regulatory bodies?

    (a) GSA has oversight of all public utilities used by the Federal 
Government including transportation. There are specific regulatory 
requirements a TSP must meet at the State level, such as the requirement 
to obtain a certificate of public convenience and necessity.
    (b) GSA has a list of TSPs, which meet certain criteria regarding 
insurance and safety, approved by DOT. You must furnish GSA with an 
affidavit to determine if the TSP meets the basic qualification to 
protect the Government's interest. As an oversight mandate, GSA 
coordinates this function. For further information contact:

General Services Administration
Federal Supply Service
Office of Transportation and Property Management
Travel and Transportation Management Division (FBL)
Crystal Mall Bldg. 4, Room 814
Washington, DC 20406



                           Subpart K--Reports



Sec. 102-117.345  Is there a requirement for me to report to GSA on my transportation activities?

    (a) Currently, there is no requirement for reporting to GSA on your 
transportation activities. However, GSA will work with your agency and 
other agencies to develop reporting requirements and procedures. In 
particular, GSA will develop a Governmentwide transportation reporting 
system by October 1, 2002.
    (b) Preliminary reporting requirements may include an electronic 
formatted report on the quantity shipped, locations (from and to) and 
cost of transportation. The following categories are examples:
    (1) Dollar amount spent for transportation;
    (2) Volume of weight shipped;
    (3) Commodities shipped;
    (4) HAZMAT shipped;
    (5) Mode used for shipment;
    (6) Location of items shipped (international or domestic); and
    (7) Domestic subdivided by East and West (Interstate 85).



Sec. 102-117.350  How will GSA use reports I submit?

    (a) Reporting on transportation and transportation related services 
will provide GSA with:
    (1) The ability to assess the magnitude and key characteristics of 
transportation within the Government (e.g., how much agencies spend; 
what type of commodity is shipped; etc.);
    (2) Data to analyze and recommend changes to policies, standards, 
practices, and procedures to improve Government transportation; and
    (3) A better understanding of how your activity relates to other 
agencies and your influence on the Governmentwide picture of 
transportation services.
    (b) In addition, this information will assist you in showing your 
management the magnitude of your agency's transportation program and the 
effectiveness of your efforts to control cost and improve service.



     Subpart L--Governmentwide Transportation Policy Council (GTPC)



Sec. 102-117.355  What is the Governmentwide Transportation Policy Council (GTPC)?

    The Office of Governmentwide Policy sponsors a Governmentwide 
Transportation Policy Council (GTPC) to help agencies establish, 
improve, and maintain effective transportation management policies, 
practices and procedures. The council:
    (a) Collaborates with private and public stakeholders to develop 
valid performance measures and promote solutions that lead to effective 
results; and
    (b) Provides assistance in developing the Governmentwide 
transportation reporting system (see Sec. 102-117.345).



Sec. 102-117.360  Where can I get more information about the GTPC?

    For more information about the GTPC, contact:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
http://www.policyworks.gov/transportation

[[Page 119]]



PART 102-118--TRANSPORTATION PAYMENT AND AUDIT--Table of Contents





                           Subpart A--General

                              Introduction

Sec.
102-118.5  What is the purpose of this part?
102-118.10  What is a transportation audit?
102-118.15  What is a transportation payment?
102-118.20  Who is subject to this part?
102-118.25  Does GSA still require my agency to submit its overall 
          transportation policies for approval?
102-118.30  Are Government corporations bound by this part?

                               Definitions

102-118.35  What definitions apply to this part?

  Subpart B--Ordering and Paying for Transportation and Transportation 
                                Services

102-118.40  How does my agency order transportation and transportation 
          services?
102-118.45  How does a transportation service provider (TSP) bill my 
          agency for transportation and transportation services?
102-118.50  How does my agency pay for transportation services?
102-118.55  What administrative procedures must my agency establish for 
          payment of freight, household goods, or other transportation 
          services?
102-118.60  To what extent must my agency use electronic commerce?
102-118.65  Can my agency receive electronic billing for payment of 
          transportation services?
102-118.70  Must my agency make all payments via electronic funds 
          transfer?
102-118.75  What if my agency or the TSP does not have an account with a 
          financial institution or approved payment agent?
102-118.80  Who is responsible for keeping my agency's electronic 
          commerce transportation billing records?
102-118.85  Can my agency use a Government contractor issued charge card 
          to pay for transportation services?
102-118.90  If my agency orders transportation and/or transportation 
          services with a Government contractor issued charge card or 
          charge account citation, is this subject to prepayment audit?
102-118.95  What forms can my agency use to pay transportation bills?
102-118.100  What must my agency ensure is on each SF 1113?
102-118.105  Where can I find the rules governing the use of a 
          Government Bill of Lading?
102-118.110  Where can I find the rules governing the use of a 
          Government Transportation Request?
102-118.115  Must my agency use a GBL?
102-118.120  Must my agency use a GTR?
102-118.125  What if my agency uses a TD other than a GBL?
102-118.130  Must my agency use a GBL for express, courier, or small 
          package shipments?
102-118.135  Where are the mandatory terms and conditions governing the 
          use of bills of lading?
102-118.140  What are the major mandatory terms and conditions governing 
          the use of GBLs and bills of lading?
102-118.145  Where are the mandatory terms and conditions governing the 
          use of passenger transportation documents?
102-118.150  What are the major mandatory terms and conditions governing 
          the use of passenger transportation documents?
102-118.155  How does my agency handle supplemental billings from the 
          TSP after payment of the original bill?
102-118.160  Who is liable if my agency makes an overpayment on a 
          transportation bill?
102-118.165  What must my agency do if it finds an error on a TSP bill?
102-118.170  Will GSA continue to maintain a centralized numbering 
          system for Government transportation documents?

             Subpart C--Use of Government Billing Documents

 Terms and Conditions Governing Acceptance and Use of a Government Bill 
 of Lading (GBL) or Government Transportation Request (GTR) (Until Form 
                               Retirement)

102-118.175  Must my agency prepare for the GBL retirement?
102-118.180  Must my agency prepare for the GTR retirement?
102-118.185  When buying freight transportation, must my agency 
          reference the applicable contract or tender on the bill of 
          lading (including GBLs)?
102-118.190  When buying passenger transportation, must my agency 
          reference the applicable contract?
102-118.195  What documents must a transportation service provider (TSP) 
          send to receive payment for a transportation billing?
102-118.200  Can a TSP demand advance payment for the transportation 
          charges submitted on a bill of lading (including GBL)?
102-118.205  May my agency pay an agent functioning as a warehouseman 
          for the TSP providing service under the bill of lading?

[[Page 120]]

102-118.210  May my agency use bills of lading other than the GBL for a 
          transportation shipment?
102-118.215  May my agency pay a TSP any extra fees to pay for the 
          preparation and use of the GBL or GTR?
102-118.220  If a transportation debt is owed to my agency by a TSP 
          because of loss or damage to property, does my agency report 
          it to GSA?
102-118.225  What constitutes final receipt of shipment?
102-118.230  What if my agency creates or eliminates a field office 
          approved to prepare transportation documents?

Agency Responsibilities When Using Government Bills of Lading (GBLs) or 
                Government Transportation Requests (GTRs)

102-118.235  Must my agency keep physical control and accountability of 
          the GBL and GTR forms or GBL and GTR numbers?
102-118.240  How does my agency get GBL and GTR forms?
102-118.245  How does my agency get an assigned set of GBL or GTR 
          numbers?
102-118.250  Who is accountable for the issuance and use of GBL and GTR 
          forms?
102-118.255  Are GBL and GTR forms numbered and used sequentially?

                    Quotations, Tenders or Contracts

102-118.260  Must my agency send all quotations, tenders, or contracts 
          with a TSP to GSA?

         Subpart D--Prepayment Audits of Transportation Services

                Agency Requirements for Prepayment Audits

102-118.265  What is a prepayment audit?
102-118.270  Must my agency establish a prepayment audit program?
102-118.275  What must my agency consider when designing and 
          implementing a prepayment audit program?
102-118.280  What advantages does the prepayment audit offer my agency?
102-118.285  What options for performing a prepayment audit does my 
          agency have?
102-118.290  Must every electronic and paper transportation bill undergo 
          a prepayment audit?
102-118.295  What are the limited exceptions to every bill undergoing a 
          prepayment audit?
102-118.300  How does my agency fund its prepayment audit program?
102-118.305  Must my agency notify the TSP of any adjustment to the 
          TSP's bill?
102-118.310  Must my agency prepayment audit program establish appeal 
          procedures whereby a TSP may appeal any reduction in the 
          amount billed?
102-118.315  What must my agency do if the TSP disputes the findings and 
          my agency cannot resolve the dispute?
102-118.320  What information must be on transportation bills which have 
          completed my agency's prepayment audit?

                     Maintaining an Approved Program

102-118.325  Must I get approval for my agency's prepayment audit 
          program?
102-118.330  What are the elements of an acceptable prepayment audit 
          program?
102-118.335  What does the GSA Audit Division consider when verifying an 
          agency prepayment audit program?
102-118.340  How does my agency contact the GSA Audit Division?
102-118.345  If my agency chooses to change an approved prepayment audit 
          program, does the program need to be re-approved?

            Liability for Certifying and Disbursing Officers

102-118.350  Does establishing a prepayment audit system or program 
          change the responsibilities of the certifying officers?
102-118.355  Does a prepayment audit waiver, change any liabilities of 
          the certifying officer?
102-118.360  What relief from liability is available for the certifying 
          official under a postpayment audit?
102-118.365  Do the requirements of a prepayment audit change the 
          disbursing official's liability for overpayment?
102-118.370  Where does relief from prepayment audit liability for 
          certifying, accountable, and disbursing officers reside in my 
          agency?

                 Waivers From Mandatory Prepayment Audit

102-118.375  Who has the authority to grant a waiver of the prepayment 
          audit requirement?
102-118.380  How does my agency apply for a waiver from the prepayment 
          audit requirement?
102-118.385  What must a waiver request include?
102-118.390  On what basis does GSA grant a waiver to the prepayment 
          audit requirement?
102-118.395  How long will GSA take to respond to a waiver request?
102-118.400  Must my agency renew a waiver of the prepayment audit 
          requirements?
102-118.405  Are my agency's prepayment audited transportation bills 
          subject to periodic postpayment audit oversight from the GSA 
          Audit Division?

[[Page 121]]

             Suspension of Agency Prepayment Audit Programs

102-118.410  Can GSA suspend my agency's prepayment audit program?

              Subpart E--Postpayment Transportation Audits

102-118.415  Will the widespread mandatory use of prepayment audits 
          eliminate postpayment audits?
102-118.420  Can the Administrator of General Services waive the 
          postpayment auditing provisions of this subpart?
102-118.425  Is my agency allowed to perform a postpayment audit on our 
          transportation bills?
102-118.430  What information must be on my agency's transportation 
          bills submitted for a postpayment audit?
102-118.435  What procedures does GSA use to perform a postpayment 
          audit?
102-118.440  What are the postpayment audit responsibilities and roles 
          of the GSA Audit Division?
102-118.445  Must my agency pay for a postpayment audit when using the 
          GSA Audit Division?

                 Subpart F--Claims and Appeal Procedures

                General Agency Information for All Claims

102-118.450  Can a TSP file a transportation claim against my agency?
102-118.445  What is the time limit for a TSP to file a transportation 
          claim against my agency?
102-118.460  What is the time limit for my agency to file a court claim 
          with a TSP for freight charges, reparations, and loss or 
          damage to the property?
102-118.465  Must my agency pay interest on a disputed amount claimed by 
          a TSP?
102-118.470  Are there statutory time limits for a TSP on filing an 
          administrative claim with the GSA Audit Division?
102-118.475  Does interest apply after certification of payment of 
          claims?
102-118.480  How does my agency settle disputes with a TSP?
102-118.485  Is there a time limit for my agency to issue a decision on 
          disputed claims?
102-118.490  What if my agency fails to settle a dispute within 30 days?
102-118.495  May my agency appeal a decision by the General Services 
          Board of Contract Appeals (GSBCA)?
102-118.500  How does my agency handle a voluntary refund submitted by a 
          TSP?
102-118.505  Must my agency send a voluntary refund to the Treasurer of 
          the United States?
102-118.510  Can my agency revise or alter a GSA Form 7931, Certificate 
          of Settlement?
102-118.515  Does my agency have any recourse not to pay a Certificate 
          of Settlement?
102-118.520  Who is responsible for determining the standards for 
          collection, compromise, termination, or suspension of 
          collection action on any outstanding debts to my agency?
102-118.525  What are my agency's responsibilities for verifying the 
          correct amount of transportation charges?
102-118.530  Will GSA instruct my agency's disbursing offices to offset 
          unpaid TSP billings?
102-118.535  Are there principles governing my agency's TSP debt 
          collection procedures?
102-118.540  Who has the authority to audit, settle accounts, and/or 
          start collection action for all transportation services 
          provided for my agency?

        Transportation Service Provider (TSP) Filing Requirements

102-118.545  What information must a TSP claim include?
102-118.550  How does a TSP file an administrative claim using EDI or 
          other electronic means?
102-118.555  Can a TSP file a supplemental administrative claim?
102-118.560  What is the required format that a TSP must use to file an 
          administrative claim?
102-118.565  What documentation is required when filing an 
          administrative claim?

 Transportation Service Provider (TSP) and Agency Appeal Procedures for 
                            Prepayment Audits

102-118.570  If my agency denies the TSP's challenge to the Statement of 
          Difference, may the TSP appeal?
102-118.575  If a TSP disagrees with the decision of my agency, can the 
          TSP appeal?
102-118.580  May a TSP appeal a prepayment audit decision of the GSA 
          Audit Division?
102-118.585  May a TSP appeal a prepayment audit decision of the GSBCA?
102-118 .590  May my agency appeal a prepayment audit decision of the 
          GSA Audit Division?
102-118.595  May my agency appeal a prepayment audit decision by the 
          GSBCA?

 Transportation Service Provider (TSP) and Agency Appeal Procedures for 
                           Postpayment Audits

102-118.600  When a TSP disagrees with a Notice of Overcharge resulting 
          from a postpayment audit, what are the appeal procedures?

[[Page 122]]

102-118.605  What if a TSP disagrees with the Notice of Indebtedness?
102-118.610  Is a TSP notified when GSA allows a claim?
102-118.615  Will GSA notify a TSP if they internally offset a payment?
102-118.620  How will a TSP know if the GSA Audit Division disallows a 
          claim?
102-118.625  Can a TSP request a reconsideration of a settlement action 
          by the GSA Audit Division?
102-118.630  How must a TSP refund amounts due to GSA?
102-118.635  Can the Government charge interest on an amount due from a 
          TSP?
102-118.640  If a TSP fails to pay or to appeal an overcharge, what 
          actions will GSA pursue to collect the debt?
102-118.645  Can a TSP file an administrative claim on collection 
          actions?
102-118.650  Can a TSP request a review of a settlement action by the 
          Administrator of General Services?
102-118.655  Are there time limits on a TSP request for an 
          administrative review by the GSBCA?
102-118.660  May a TSP appeal a postpayment audit decision of the GSBCA?
102-118.665  May my agency appeal a postpayment audit decision by the 
          GSBCA?

      Transportation Service Provider (TSP) Non-Payment of a Claim

102-118.670  If a TSP cannot immediately pay a debt, can they make other 
          arrangements for payment?
102-118.675  What recourse does my agency have if a TSP does not pay a 
          transportation debt?

    Authority: 31 U.S.C. 3726; and 40 U.S.C. 481, et seq.

    Source: 65 FR 24569, Apr. 26, 2000, unless otherwise noted.



                           Subpart A--General

                              Introduction



Sec. 102-118.5  What is the purpose of this part?

    The purpose of this part is to interpret statutes and other policies 
that assure that payment and payment mechanisms for agency 
transportation services are uniform and appropriate. This part 
communicates the policies clearly to agencies and transportation service 
providers (TSPs). (See Sec. 102-118.35 for the definition of TSP.)



Sec. 102-118.10  What is a transportation audit?

    A transportation audit is a thorough review and validation of 
transportation related bills. The audit must examine the validity, 
propriety, and conformity of the charges with tariffs, quotations, 
agreements, or tenders, as appropriate. Each agency must ensure that its 
internal transportation audit procedures prevent duplicate payments and 
only allow payment for authorized services, and that the TSP's bill is 
complete with required documentation.



Sec. 102-118.15  What is a transportation payment?

    A transportation payment is a payment made by an agency to a TSP for 
the movement of goods or people and/or transportation related services.



Sec. 102-118.20  Who is subject to this part?

    All agencies and TSPs defined in Sec. 102-118.35 are subject to this 
part. Your agency is required to incorporate this part into its internal 
regulations.



Sec. 102-118.25  Does GSA still require my agency to submit its overall transportation policies for approval?

    GSA no longer requires your agency to submit its overall 
transportation policies for approval. However, as noted in Sec. 102-
118.325, agencies must submit their prepayment audit plans for approval. 
In addition, GSA may from time to time request to examine your agency's 
transportation policies to verify the correct performance of the 
prepayment audit of your agency's transportation bills.



Sec. 102-118.30  Are Government corporations bound by this part?

    No, Government corporations are not bound by this part. However, 
they may choose to use it if they wish.

                               Definitions



Sec. 102-118.35  What definitions apply to this part?

    The following definitions apply to this part:
    Agency means Executive agency, but does not include:

[[Page 123]]

    (1) A Government Controlled Corporation;
    (2) The Tennessee Valley Authority;
    (3) The Virgin Islands Corporation;
    (4) The Atomic Energy Commission;
    (5) The Central Intelligence Agency;
    (6) The Panama Canal Commission; and
    (7) The National Security Agency, Department of Defense.
    Note to the definition of Agency: All agencies' payments for 
transportation services are subject to the transportation audit 
provisions of section 322 of the Transportation Act of 1940, as amended 
(31 U.S.C. 3726).
    Agency claim means any demand by an agency upon a TSP for the 
payment of overcharges, ordinary debts, fines, penalties, administrative 
fees, special charges, and interest.
    Bill of lading, sometimes referred to as a commercial bill of lading 
(but includes GBLs), is the document used as a receipt of goods, and 
documentary evidence of title. It is also a contract of carriage when 
movement is under 49 U.S.C. 10721 and 49 U.S.C. 13712.
    Document reference number means the unique number on a bill of 
lading, Government Bill of Lading, Government Transportation Request, or 
transportation ticket, used to track the movement of shipments and 
individuals.
    EDI signature means a discrete authentication code which serves in 
place of a paper signature and binds parties to the terms and conditions 
of a contract in electronic communication.
    Electronic commerce means electronic techniques for performing 
business transactions (ordering, billing, and paying for goods and 
services), including electronic mail or messaging, Internet technology, 
electronic bulletin boards, charge cards, electronic funds transfers, 
and electronic data interchange.
    Electronic data interchange means electronic techniques for carrying 
out transportation transactions using electronic transmissions of the 
information between computers instead of paper documents. These 
electronic transmissions must use established and published formats and 
codes as authorized by the applicable Federal Information Processing 
Standards.
    Electronic funds transfer means any transfer of funds, other than 
transactions initiated by cash, check, or similar paper instrument, that 
is initiated through an electronic terminal, telephone, computer, or 
magnetic tape, for the purpose of ordering, instructing, or authorizing 
a financial institution to debit or credit an account. The term includes 
Automated Clearinghouse transfers, Fed Wire transfers, and transfers 
made at automatic teller machines and point of sale terminals.
    Government Bill of Lading (GBL) means Optional Forms 1103 and 1203, 
the transportation documents issued by GSA and used as a receipt of 
goods, evidence of title, and generally a contract of carriage.
    Government contractor-issued charge card means both an individually 
billed travel card, which the individual is required to pay, and a 
centrally billed account for paying travel expenses, which the agency is 
required to pay.
    Government Transportation Request (GTR) means Optional Form 1169, 
the Government document used to buy transportation services. The 
document normally obligates the Government to pay for the transportation 
services provided.
    Offset means agency use of money owed by the agency to a 
transportation service provider (TSP) to cover a previous debt incurred 
to the agency by the TSP.
    Ordinary debt means an amount that a TSP owes an agency other than 
for the repayment of an overcharge. Ordinary debts include, but are not 
limited to, payments for transportation services ordered and not 
provided (including unused transportation tickets), duplicate payments, 
and amounts for which a TSP is liable because of loss and/or damage to 
property it transported.
    Overcharge means those charges for transportation and travel 
services that exceed those applicable under the contract for carriage. 
This also includes charges more than those applicable under rates, fares 
and charges established pursuant to section 13712 and 10721 of the 
Revised Interstate Commerce Act, as amended (49 U.S.C. 13712 and 10721), 
or other equivalent contract, arrangement or exemption from regulation.

[[Page 124]]

    Postpayment audit means an audit of transportation billing documents 
after payment to decide their validity, propriety, and conformity with 
tariffs, quotations, agreements, or tenders. This process may also 
include subsequent adjustments and collections actions taken against a 
TSP by the Government.
    Prepayment audit means an audit of transportation billing documents 
before payment to determine their validity, propriety, and conformity 
with tariffs, quotations, agreements, or tenders.
    Privately Owned Personal Property Government Bill of Lading, 
Optional Form 1203, means the agency transportation document used as a 
receipt of goods, evidence of title, and generally a contract of 
carriage. It is only available for the transportation of household 
goods. Use of this form is mandatory for Department of Defense, but 
optional for other agencies.
    Rate authority means the document that establishes the legal charges 
for a transportation shipment. Charges included in a rate authority are 
those rates, fares, and charges for transportation and related services 
contained in tariffs, tenders, and other equivalent documents.
    Released value is stated in dollars and is considered the assigned 
value of the cargo for reimbursement purposes, not necessarily the 
actual value of the cargo. Released value may be more or less than the 
actual value of the cargo. The released value is the maximum amount that 
could be recovered by the agency in the event of loss or damage for the 
shipments of freight and household goods. In return, when negotiating 
for rates and the released value is proposed to be less than the actual 
value of the cargo, the TSP should offer a rate lower than other rates 
for shipping cargo at full value. The statement of released value may be 
shown on any applicable tariff, tender, contract, transportation 
document or other documents covering the shipment.
    Reparation means the payment involving a TSP to or from an agency of 
an improper transportation billing as determined by a postpayment audit. 
Improper routing, overcharges, or duplicate payments may cause such 
improper billing. This is different from payments to settle a claim for 
loss and damage to items shipped under those rates.
    Standard carrier alpha code (SCAC) means an unique four-letter code 
assigned to each TSP by the National Motor Freight Traffic Association, 
Inc.
    Statement of difference means a statement issued by an agency or its 
designated audit contractor during a prepayment audit when they 
determine that a TSP has billed the agency for more than the proper 
amount for the services. This statement tells the TSP on the invoice, 
the amount allowed and the basis for the proper charges. The statement 
also cites the applicable rate references and other data relied on for 
support. The agency issues a separate statement of difference for each 
transportation transaction.
    Statement of difference rebuttal means a document used by the agency 
to respond to a TSP's claim about an improper reduction made against the 
TSP's original bill by the paying agency.
    Supplemental bill means a bill for services that the TSP submits to 
the agency for additional payment after reimbursement for the original 
bill. The need to submit a supplemental bill may occur due to an 
incorrect first bill or due to charges which were not included on the 
original bill.
    Taxpayer identification number (TIN) means the number required by 
the Internal Revenue Service to be used by the TSP in reporting income 
tax or other returns. For a TSP, the TIN is an employer identification 
number.
    Transportation document (TD) means any executed agreement for 
transportation service, such as a bill of lading (including a Government 
Bill of Lading), a Government Transportation Request, or transportation 
ticket.
    Transportation service means service involved in the physical 
movement (from one location to another) of products, people, household 
goods, and any other objects by a TSP for an agency as well as 
activities directly relating to or supporting that movement. Examples of 
this are storage, crating, or connecting appliances.

[[Page 125]]

    Transportation service provider (TSP) means any party, person, 
agent, or carrier that provides freight or passenger transportation and 
related services to an agency. For a freight shipment this would include 
packers, truckers, and storers. For passenger transportation this would 
include airlines, travel agents and travel management centers.
    Transportation service provider claim means any demand by the TSP 
for amounts not included in the original bill that the TSP believes an 
agency owes them. This includes amounts deducted or offset by an agency; 
amounts previously refunded by the TSP, which they now believe they are 
owed; and any subsequent bills from the TSP resulting from a transaction 
that was pre- or postpayment audited by the GSA Audit Division.
    Virtual GBL (VGBL) means the use of a unique GBL number on a 
commercial document, which binds the TSP to the terms and conditions of 
a GBL.

    Note to Sec. 102-118.35: 49 U.S.C. 13102, et seq., defines 
additional transportation terms not listed in this section.



  Subpart B--Ordering and Paying for Transportation and Transportation 
                                Services



Sec. 102-118.40  How does my agency order transportation and transportation services?

    Your agency orders:
    (a) Transportation of freight and household goods and related 
transportation services (e.g., packing, storage) with a charge card, 
bill of lading, purchase order (or electronic equivalent), or for 
domestic shipments until September 30, 2001, a Government Bill of Lading 
(GBL). GBLs will continue to be available after that date, if needed, 
for international shipments (including domestic overseas shipments).
    (b) Transportation of people through the purchase of transportation 
tickets with a Government issued charge card (or centrally billed travel 
account citation), Government issued individual travel charge card, 
personal charge card, cash (in accordance with Department of the 
Treasury regulations), or in limited prescribed situations, a Government 
Transportation Request (GTR). See the ``U.S. Government Passenger 
Transportation--Handbook,'' obtainable from:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.45  How does a transportation service provider (TSP) bill my agency for transportation and transportation services?

    The manner in which your agency orders transportation and 
transportation services determines the manner in which a TSP bills for 
service. This is shown in the following table:

                 Transportation Service Provider Billing
------------------------------------------------------------------------
          (a) Ordering method                   (b) Billing method
------------------------------------------------------------------------
(1)(i) Government issued agency charge   (1) Bill from charge card
 card,.                                   company (may be electronic).
(ii) Centrally billed travel account
 citation.
------------------------------------------------------------------------
(2)(i) Purchase order,.................  (2) Bill from TSP (may be
                                          electronic).
(ii) Bill of lading,
(iii) Government Bill of Lading,
(iv) Government Transportation Request.
------------------------------------------------------------------------
(3)(i) Contractor issued individual      (3) Voucher from employee (may
 travel charge card.                      be electronic).

[[Page 126]]

 
(ii) Personal charge card,
(iii) Personal cash.
------------------------------------------------------------------------



Sec. 102-118.50  How does my agency pay for transportation services?

    Your agency may pay for transportation services in three ways:
    (a) Electronic funds transfer (EFT) (31 U.S.C. 3332, et seq.). Your 
agency is required by statute to make all payments by EFT unless your 
agency receives a waiver from the Department of the Treasury.
    (b) Check. For those situations where EFT is not possible and the 
Department of the Treasury has issued a waiver, your agency may make 
payments by check.
    (c) Cash. In very unusual circumstances and as a last option, your 
agency payments may be made in cash in accordance with Department of the 
Treasury regulations (31 CFR part 208).



Sec. 102-118.55  What administrative procedures must my agency establish for payment of freight, household goods, or other transportation services?

    Your agency must establish administrative procedures which assure 
that the following conditions are met:
    (a) The negotiated price is fair and reasonable;
    (b) A document of agreement signifying acceptance of the 
arrangements with terms and conditions is filed with the participating 
agency by the TSP;
    (c) The terms and conditions are included in all transportation 
agreements and referenced on all transportation documents (TDs);
    (d) Bills are only paid to the TSP providing service under the bill 
of lading to your agency and may not be waived;
    (e) All fees paid are accounted for in the aggregate delivery costs;
    (f) All payments are subject to applicable statutory limitations;
    (g) Procedures (such as an unique numbering system) are established 
to prevent and detect duplicate payments, properly account for 
expenditures and discrepancy notices;
    (h) All transactions are verified with any indebtedness list. On 
charge card transactions, your agency must consult any indebtedness list 
if the charge card contract provisions allow for it; and
    (i) Procedures are established to process any unused tickets.



Sec. 102-118.60  To what extent must my agency use electronic commerce?

    Your agency should use electronic commerce (i.e., electronic methods 
for ordering, receiving bills, and paying for transportation and 
transportation services) to the maximum extent possible.



Sec. 102-118.65  Can my agency receive electronic billing for payment of transportation services?

    Yes, when mutually agreeable to the agency and the GSA Audit 
Division, your agency is encouraged to use electronic billing for the 
procurement and billing of transportation services.



Sec. 102-118.70  Must my agency make all payments via electronic funds transfer?

    Yes, under 31 U.S.C. 3332, et seq., your agency must make all 
payments for goods and services via EFT (this includes goods and 
services ordered using charge cards).



Sec. 102-118.75  What if my agency or the TSP does not have an account with a financial institution or approved payment agent?

    Under 31 U.S.C. 3332, et seq., your agency must obtain an account 
with a financial institution or approved payment agent in order to meet 
the statutory requirements to make all Federal payments via EFT unless 
your agency receives a waiver from the Department

[[Page 127]]

of the Treasury. To obtain a waiver, your agency must contact:

The Commissioner
Financial Management Service
Department of the Treasury
401 Fourteenth Street, SW.
Washington, DC 20227
http://www.fms.treas.gov/



Sec. 102-118.80  Who is responsible for keeping my agency's electronic commerce transportation billing records?

    Your agency's internal financial regulations will identify 
responsibility for recordkeeping. In addition, the GSA Audit Division 
keeps a central repository of electronic transportation billing records 
for legal and auditing purposes. Therefore, your agency must forward all 
relevant electronic transportation billing documents to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.85  Can my agency use a Government contractor issued charge card to pay for transportation services?

    Yes, your agency may use a Government contractor issued charge card 
to purchase transportation services if permitted under the charge card 
contract or task order. In these circumstances your agency will receive 
a bill for these services from the charge card company.



Sec. 102-118.90  If my agency orders transportation and/or transportation services with a Government contractor issued charge card or charge account citation, 
          is this subject to prepayment audit?

    Generally, no transportation or transportation services ordered with 
a Government contractor issued charge card or charge account citation 
can be prepayment audited because the bank or charge card contractor 
pays the TSP directly, before your agency receives a bill that can be 
audited from the charge card company. However, if your agency contracts 
with the charge card or charge account provider to provide for a 
prepayment audit, then, as long as your agency is not liable for paying 
the bank for improper charges (as determined by the prepayment audit 
verification process), a prepayment audit can be used. As with all 
prepayment audit programs, the charge card prepayment audit must be 
approved by the GSA Audit Division prior to implementation. If the 
charge card contract does not provide for a prepayment audit, your 
agency must submit the transportation line items on the charge card to 
the GSA Audit Division for a postpayment audit.



Sec. 102-118.95  What forms can my agency use to pay transportation bills?

    Your agency must use commercial payment practices and forms to the 
maximum extent possible; however, when viewed necessary by your agency, 
your agency may use the following Government forms to pay transportation 
bills:
    (a) Standard Form (SF) 1113, Public Voucher for Transportation 
Charges, and SF 1113-A, Memorandum Copy;
    (b) Optional Form (OF) 1103, Government Bill of Lading and OF 1103A 
Memorandum Copy (used for movement of things, both privately owned and 
Government property for official uses);
    (c) OF 1169, Government Transportation Request (used to pay for 
tickets to move people); and
    (d) OF 1203, Privately Owned Personal Property Government Bill of 
Lading, and OF 1203A, Memorandum Copy (used by the Department of Defense 
to move private property for official transfers).

    Note to Sec. 102-118.95: By September 30, 2001, your agency may no 
longer use the GBLs (OF 1103 and OF 1203) for domestic shipments. After 
September 30, 2000, your agency should minimize the use of GTRs (OF 
1169).



Sec. 102-118.100  What must my agency ensure is on each SF 1113?

    Your agency must ensure during its prepayment audit of a TSP bill 
that the TSP filled out the Public Vouchers, SF 1113, completely 
including the taxpayer identification number (TIN), and standard carrier 
alpha code (SCAC). An SF 1113 must accompany all billings.

[[Page 128]]



Sec. 102-118.105  Where can I find the rules governing the use of a Government Bill of Lading?

    The ``U.S. Government Freight Transportation--Handbook'' contains 
information on how to prepare this GBL form. To get a copy of this 
handbook, you may write to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.110  Where can I find the rules governing the use of a Government Transportation Request?

    The ``U.S. Government Passenger Transportation--Handbook'' contains 
information on how to prepare this GTR form. To get a copy of this 
handbook, you may write to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.115  Must my agency use a GBL?

    No, your agency is not required to use a GBL and must use commercial 
payment practices to the maximum extent possible. Effective September 
30, 2001, your agency must phase out the use of the Optional Forms 1103 
and 1203 for domestic shipments. After this date, your agency may use 
the GBL solely for international shipments.



Sec. 102-118.120  Must my agency use a GTR?

    No, your agency is not required to use a GTR. Your agency must adopt 
commercial practices and eliminate GTR use to the maximum extent 
possible.



Sec. 102-118.125  What if my agency uses a TD other than a GBL?

    If your agency uses any other TD for shipping under its account, the 
requisite and the named safeguards must be in place (i.e., terms and 
conditions found herein and in the ``U.S. Government Freight 
Transportation--Handbook,'' appropriate numbering, etc.).



Sec. 102-118.130  Must my agency use a GBL for express, courier, or small package shipments?

    No, however, in using commercial forms all shipments must be subject 
to the terms and conditions set forth for use of a bill of lading for 
the Government. Any other non-conflicting applicable contracts or 
agreements between the TSP and an agency involving buying transportation 
services for Government traffic remain binding. This purchase does not 
require a SF 1113. When you are using GSA's schedule for small package 
express delivery, the terms and conditions of that contract are binding.



102-118.135  Where are the mandatory terms and conditions governing the use of bills of lading?

    The mandatory terms and conditions governing the use of bills of 
lading are contained in this part and the ``U.S. Government Freight 
Transportation Handbook.''



102-118.140  What are the major mandatory terms and conditions governing the use of GBLs and bills of lading?

    The mandatory terms and conditions governing the use of GBLs and 
bills of lading are:
    (a) Unless otherwise permitted by statute, the TSP must not demand 
prepayment or collect charges from the consignee. The TSP, providing 
service under the bill of lading, must present the original, properly 
certified GBL or bill of lading attached to an SF 1113, Public Voucher 
for Transportation Charges, to the paying office for payment;
    (b) The shipment must be made at the restricted or limited valuation 
specified in the tariff or classification or limited contract, 
arrangement or exemption at or under which the lowest rate is available, 
unless indicated on the GBL or bill of lading. (This is commonly 
referred to as an alternation of rates);
    (c) Receipt for the shipment is subject to the consignee's 
annotation of loss, damage, or shrinkage on the delivering TSP's 
documents and the consignee's copy of the same documents. If

[[Page 129]]

loss or damage is discovered after delivery or receipt of the shipment, 
the consignee must promptly notify the nearest office of the last 
delivering TSP and extend to the TSP the privilege of examining the 
shipment;
    (d) The rules and conditions governing commercial shipments for the 
time period within which notice must be given to the TSP, or a claim 
must be filed, or suit must be instituted, shall not apply if the 
shipment is lost, damaged or undergoes shrinkage in transit. Only with 
the written concurrence of the Government official responsible for 
making the shipment is the deletion of this item considered to valid;
    (e) Interest shall accrue from the voucher payment date on the 
overcharges made and shall be paid at the same rate in effect on that 
date as published by the Secretary of the Treasury pursuant to the Debt 
Collection Act of 1982 31 U.S.C. 3717); and
    (f) Additional mandatory terms and conditions are in this part and 
the ``U.S. Government Freight Transportation--Handbook.''



102-118.145  Where are the mandatory terms and conditions governing the use of passenger transportation documents?

    The mandatory terms and conditions governing the use of passenger 
transportation documents are contained in this part and the ``U.S. 
Government Passenger Transportation--Handbook.''



102-118.150  What are the major mandatory terms and conditions governing the use of passenger transportation documents?

    The mandatory terms and conditions governing the use of passenger 
transportation documents are:
    (a) Government travel must be via the lowest cost available, that 
meets travel requirements; e.g., Government contract, fare, through, 
excursion, or reduced one way or round trip fare. This should be done by 
entering the term ``lowest coach'' on the Government travel document if 
the specific fare basis is not known;
    (b) The U.S. Government is not responsible for charges exceeding 
those applicable to the type, class, or character authorized in 
transportation documents;
    (c) The U.S. Government contractor-issued charge card must be used 
to the maximum extent possible to procure passenger transportation 
tickets. GTRs must be used minimally;
    (d) Government passenger transportation documents must be in 
accordance with Federal Travel Regulation Chapters 300 and 301 (41 CFR 
chapters 300 and 301), and the ``U.S. Government Passenger 
Transportation--Handbook'';
    (e) Interest shall accrue from the voucher payment date on 
overcharges made hereunder and shall be paid at the same rate in effect 
on that date as published by the Secretary of the Treasury pursuant to 
the Debt Collection Act of 1982;
    (f) The TSP must insert on the TD any known dates on which travel 
commenced;
    (g) The issuing official or traveler, by signature, certifies that 
the requested transportation is for official business;
    (h) The TSP must not honor any request containing erasures or 
alterations unless the TD contains the authentic, valid initials of the 
issuing official; and
    (i) Additional mandatory terms and conditions are in this part and 
the ``U. S. Government Passenger Transportation--Handbook.''



Sec. 102-118.155  How does my agency handle supplemental billings from the TSP after payment of the original bill?

    Your agency must process, review, and verify supplemental billings 
using the same procedures as on an original billing. If the TSP disputes 
the findings, your agency must attempt to resolve the disputed amount.



Sec. 102-118.160  Who is liable if my agency makes an overpayment on a transportation bill?

    If the agency conducts prepayment audits of its transportation 
bills, agency transportation certifying and disbursing officers are 
liable for any overpayments made. If GSA has granted a waiver to the 
prepayment audit requirement and the agency performs a postpayment audit 
(31 U.S.C. 3528 and 31 U.S.C. 3322) neither the certifying

[[Page 130]]

nor disbursing officers are liable for the reasons listed in these two 
cited statutes.



Sec. 102-118.165  What must my agency do if it finds an error on a TSP bill?

    Your agency must advise the TSP via statement of difference of any 
adjustment that you make either electronically or in writing within 7 
days of receipt of the bill, as required by the Prompt Payment Act (31 
U.S.C. 3901, et seq.). This notice must include the TSP's taxpayer 
identification number, standard carrier alpha code, bill number and 
document reference number, agency name, amount requested by the TSP, 
amount paid, payment voucher number, complete tender or tariff 
authority, the applicable rate authority and the complete fiscal 
authority including the appropriation.



Sec. 102-118.170  Will GSA continue to maintain a centralized numbering system for Government transportation documents?

    Yes, GSA will maintain a numbering system for GBLs and GTRs. For 
commercial TDs, each agency must create a unique numbering system to 
account for and prevent duplicate numbers. The GSA Audit Division must 
approve this system. Write to:

General Services Administration
Federal supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



             Subpart C--Use of Government Billing Documents

 Terms and Conditions Governing Acceptance and Use of a Government Bill 
 of Lading (GBL) or Government Transportation Request (GTR) (Until Form 
                               Retirement)



Sec. 102-118.175  Must my agency prepare for the GBL retirement?

    Yes, your agency must prepare for the GBL retirement. Effective 
September 30, 2001, your agency must phase out the use of the SF 1103, 
Government Bill of Lading, GBL, and SF 1203, Privately Owned Personal 
Property Government Bill of Lading (PPGBLs), for domestic shipments. 
After September 30, 2001, your agency may use the GBL or PPGBL solely 
for international shipments (including domestic overseas shipments).



Sec. 102-118.180  Must my agency prepare for the GTR retirement?

    Yes, your agency must use the GTR only in situations that do not 
lend themselves to the use of commercial payment methods.



Sec. 102-118.185  When buying freight transportation, must my agency reference the applicable contract or tender on the bill of lading (including a GBL)?

    Yes, your agency must reference the applicable contract or tender 
when buying transportation on a bill of lading (including GBLs). 
However, the referenced information on a GBL or bill of lading does not 
limit an audit of charges.



Sec. 102-118.190  When buying passenger transportation must my agency reference the applicable contract?

    Yes, when buying passenger transportation, your agency must 
reference the applicable contract on a GTR or passenger transportation 
document (e.g., ticket).



Sec. 102-118.195  What documents must a transportation service provider (TSP) send to receive payment for a transportation billing?

    For shipments bought on a TD, the TSP must submit an original 
properly certified GBL, PPGBL, or bill of lading attached to an SF 1113, 
Public Voucher for Transportation Charges. The TSP must submit this 
package and all supporting documents to the agency paying office.



Sec. 102-118.200  Can a TSP demand advance payment for the transportation charges submitted on a bill of lading (including GBL)?

    No, a TSP cannot demand advance payment for transportation charges 
submitted on a bill of lading (including GBL), unless authorized by law.

[[Page 131]]



Sec. 102-118.205  May my agency pay an agent functioning as a warehouseman for the TSP providing service under the bill of lading?

    No, your agency may only pay the TSP with whom it has a contract. 
The bill of lading will list the TSP with whom the Government has a 
contract.



Sec. 102-118.210  May my agency use bills of lading other than the GBL for a transportation shipment?

    Yes, as long as the mandatory terms and conditions contained in this 
part (as also stated on a GBL) apply. The TSP must agree in writing to 
the mandatory terms and conditions (also found in the ``U.S. Government 
Freight Transportation Handbook'') contained in this part.



Sec. 102-118.215  May my agency pay a TSP any extra fees to pay for the preparation and use of the GBL or GTR?

    No, your agency must not pay any additional charges for the 
preparation and use of the GBL or GTR. Your agency may not pay a TSP a 
higher rate than comparable under commercial procedures for 
transportation bought on a GBL or GTR.



Sec. 102-118.220  If a transportation debt is owed to my agency by a TSP because of loss or damage to property, does my agency report it to GSA?

    No, if your agency has administratively determined that a TSP owes a 
debt resulting from loss or damage, follow your agency regulations.



Sec. 102-118.225  What constitutes final receipt of shipment?

    Final receipt of the shipment occurs when the consignee or a TSP 
acting on behalf of the consignee with the agency's permission, fully 
signs and dates both the delivering TSP's documents and the consignee's 
copy of the same documents indicating delivery and/or explaining any 
delay, loss, damage, or shrinkage of shipment.



Sec. 102-118.230  What if my agency creates or eliminates a field office approved to prepare transportation documents?

    Your agency must tell the GSA Audit Division whenever it approves a 
new or existing agency field office to prepare transportation documents 
or when an agency field office is no longer authorized to do so. This 
notice must show the name, field office location of the bureau or 
office, and the date on which your agency granted or canceled its 
authority to schedule payments for transportation service.

Agency Responsibilities When Using Government Bills of Lading (GBLs) or 
                Government Transportation Requests (GTRs)



Sec. 102-118.235  Must my agency keep physical control and accountability of the GBL and GTR forms or GBL and GTR numbers?

    Yes, your agency is responsible for the physical control and 
accountability of the GBL and GTR stock and must have procedures in 
place and available for inspection by GSA. Your agency must consider 
these Government transportation documents to be the same as money.



Sec. 102-118.240  How does my agency get GBL and GTR forms?

    Your agency can get GBL and GTR forms, in either blank or 
prenumbered formats, from:

General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102



Sec. 102-118.245  How does my agency get an assigned set of GBL or GTR numbers?

    If your agency does not use prenumbered GBL and GTR forms, you may 
get an assigned set of numbers from:

General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102



Sec. 102-118.250  Who is accountable for the issuance and use of GBL and GTR forms?

    Agencies and employees are responsible for the issuance and use of 
GBL

[[Page 132]]

and GTR forms and are accountable for their disposition.



Sec. 102-118.255  Are GBL and GTR forms numbered and used sequentially?

    Yes, GBL and GTR forms are always sequentially numbered when printed 
and/or used. No other numbering of the forms, including additions or 
changes to the prefixes or additions of suffixes, is permitted.

                    Quotations, Tenders or Contracts



Sec. 102-118.260  Must my agency send all quotations, tenders, or contracts with a TSP to GSA?

    (a) Yes, your agency must send two copies of each quotation, tender, 
or contract of special rates, fares, charges, or concessions with TSPs 
including those authorized by 49 U.S.C. 10721 and 13712, upon execution 
to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    (b) When this information is in an electronic format approved by the 
GSA Audit Division, your agency will transfer the information 
electronically.



         Subpart D--Prepayment Audits of Transportation Services

                Agency Requirements for Prepayment Audits



Sec. 102-118.265  What is a prepayment audit?

    A prepayment audit is a review of a transportation service provider 
(TSP) bill that occurs prior to your agency making payment to a TSP. 
This review compares the charges on the bill against the charge 
permitted under the contract, rate tender, or other agreement under 
which the TSP provided the transportation and/or transportation related 
services.



Sec. 102-118.270  Must my agency establish a prepayment audit program?

    (a) Yes, under 31 U.S.C. 3726, your agency is required to establish 
a prepayment audit program. Your agency must send a preliminary copy of 
your prepayment audit program to:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
http://policyworks.gov/org/main/MT

    (b) The final plan must be approved and in place by April 20, 2000.



Sec. 102-118.275  What must my agency consider when designing and implementing a prepayment audit program?

    As shown in Sec. 102-118.45, the manner in which your agency orders 
transportation services determines how and by whom the bill for those 
services will be presented. Your agency's prepayment audit program must 
consider all of the methods that you use to order and pay for 
transportation services. With each method of ordering transportation 
services, your agency should ensure that each TSP bill or employee 
travel voucher contains enough information for the prepayment audit to 
determine which contract or rate tender is used and that the type and 
quantity of any additional services are clearly delineated. Each method 
of ordering transportation and transportation services may require a 
different kind of prepayment audit.



Sec. 102-118.280  What advantages does the prepayment audit offer my agency?

    Prepayment auditing will allow your agency to detect and eliminate 
billing errors before payment and will eliminate the time and cost of 
recovering agency overpayments.



Sec. 102-118.285  What options for performing a prepayment audit does my agency have?

    Your agency may perform a prepayment audit by:
    (a) Creating an internal prepayment audit program;
    (b) Contracting directly with a prepayment audit service provider; 
or
    (c) Using the services of a prepayment audit contractor under GSA's 
multiple award schedule covering audit and financial management 
services.


[[Page 133]]


    Note to Sec. 102-118.285: Either of the choices in paragraph (a), 
(b) or (c) of this section might include contracts with charge card 
companies that provide prepayment audit services.



Sec. 102-118.290  Must every electronic and paper transportation bill undergo a prepayment audit?

    Yes, all transportation bills and payments must undergo a prepayment 
audit unless your agency's prepayment audit program uses a statistical 
sampling technique of the bills or the Administrator of General Services 
grants a specific waiver from the prepayment audit requirement. If your 
agency chooses to use statistical sampling, all bills must be at or 
below the Comptroller General specified limit of $2,500.00 (31 U.S.C. 
3521(b) and General Accounting Office Policy and Procedures Manual 
Chapter 7, obtainable from:

U.S. General Accounting Office
P.O. Box 6015
Gaithersburg, MD 20884-6015
http://www.gao.gov



Sec. 102-118.295  What are the limited exceptions to every bill undergoing a prepayment audit?

    The limited exceptions to bills undergoing a prepayment audit are 
those bills subject to a waiver from GSA (which may include bills 
determined to be below your agency's threshold). The waiver to 
prepayment audit requirements may be for bills, mode or modes of 
transportation or for an agency or subagency.



Sec. 102-118.300  How does my agency fund its prepayment audit program?

    Your agency must pay for the prepayment audit from those funds 
appropriated for transportation services.



Sec. 102-118.305  Must my agency notify the TSP of any adjustment to the TSP's bill?

    Yes, your agency must notify the TSP of any adjustment to the TSP's 
bill either electronically or in writing within 7 days of receipt of the 
bill. This notice must refer to the TSP's bill number, agency name, 
taxpayer identification number, standard carrier alpha code, document 
reference number, amount billed, amount paid, payment voucher number, 
complete tender or tariff authority, including item or section number.



Sec. 102-118.310  Must my agency prepayment audit program establish appeal procedures whereby a TSP may appeal any reduction in the amount billed?

    Yes, your agency must establish an appeal process that directs TSP 
appeals to an agency official who is able to provide adequate 
consideration and review of the circumstances of the claim. Your agency 
must complete the review of the appeal within 30 days.



Sec. 102-118.315  What must my agency do if the TSP disputes the findings and my agency cannot resolve the dispute?

    (a) If your agency is unable to resolve the disputed amount with the 
TSP, your agency should forward all relevant documents including a 
complete billing history, and the appropriation or fund charged, to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    (b) The GSA Audit Division will review the appeal of an agency's 
final, full or partial denial of a claim and issue a decision. A TSP 
must submit claims within 3 years under the guidelines established in 
Sec. 102-118.460.



Sec. 102-118.320  What information must be on transportation bills that have completed my agency's prepayment audit?

    (a) The following information must be annotated on all 
transportation bills that have completed a prepayment audit:
    (1) The date received from a TSP;
    (2) A TSP's bill number;
    (3) Your agency name;
    (4) A Document Reference Number (DRN);
    (5) The amount billed;
    (6) The amount paid;
    (7) The payment voucher number;
    (8) Complete tender or tariff authority, including item or section 
number;

[[Page 134]]

    (9) The TSP's taxpayer identification number (TIN);
    (10) The TSP's standard carrier alpha code (SCAC);
    (11) The auditor's authorization code or initials; and
    (12) A copy of any statement of difference sent to the TSP.
    (b) Your agency can find added guidance in the ``U.S. Government 
Freight Transportation--Handbook,'' obtainable from:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

                     Maintaining an Approved Program



Sec. 102-118.325  Must I get approval for my agency's prepayment audit program?

    Yes, your agency must get approval for your prepayment audit 
program. The highest level budget or financial official of each agency, 
such as the Chief Financial Officer, initially approves your agency's 
prepayment audit program. After internal agency approval, your agency 
submits the plan in writing to the GSA Audit Division for final 
approval.



Sec. 102-118.330  What are the elements of an acceptable prepayment audit program?

    An acceptable prepayment audit program must:
    (a) Verify all transportation bills against filed rates and charges 
before payment;
    (b) Comply with the Prompt Payment Act (31 U.S.C. 3901, et seq.);
    (c) Allow for your agency to establish minimum dollar thresholds for 
transportation bills subject to audit;
    (d) Require your agency's paying office to offset debts from amounts 
owed to the TSP within the 3 years as per 31 U.S.C. 3726(b);
    (e) Be approved by the GSA Audit Division. After the initial 
approval, the agency may be subject to periodic program review and 
reapproval;
    (f) Complete accurate audits of transportation bills and notify the 
TSP of any adjustment within 7 calendar days of receipt;
    (g) Create accurate notices to the TSPs that describe in detail the 
reasons for any full or partial rejection of the stated charges on the 
invoice. An accurate notice must include the TSP's invoice number, the 
billed amount, TIN, standard carrier alpha code, the charges calculated 
by the agency, and the specific reasons including applicable rate 
authority for the rejection;
    (h) Forward documentation monthly to the GSA Audit Division, which 
will store paid transportation bills under the General Records Schedule 
9, Travel and Transportation (36 CFR Chapter XII, 1228.22) which 
requires keeping records for 3 years. GSA will arrange for storage of 
any document requiring special handling (e.g., bankruptcy, court case, 
etc.). These bills will be retained pursuant to 44 U.S.C. 3309 until 
claims have been settled;
    (i) Establish procedures in which transportation bills not subject 
to prepayment audit (i.e., bills for unused tickets and charge card 
billings) are handled separately and forwarded to the GSA Audit 
Division; and
    (j) Implement a unique agency numbering system to handle commercial 
paper and practices (see Sec. 102-118.55).



Sec. 102-118.335  What does the GSA Audit Division consider when verifying an agency prepayment audit program?

    The GSA Audit Division bases verification of agency prepayment audit 
programs on objective cost-savings, paperwork reductions, current audit 
standards and other positive improvements, as well as adherence to the 
guidelines listed in this part.



Sec. 102-118.340  How does my agency contact the GSA Audit Division?

    Your agency may contact the GSA Audit Division by writing to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

[[Page 135]]



Sec. 102-118.345  If my agency chooses to change an approved prepayment audit program, does the program need to be reapproved?

    Yes, you must receive approval of any changes in your agency's 
prepayment audit program from the GSA Audit Division.

            Liability for Certifying and Disbursing Officers



Sec. 102-118.350  Does establishing a prepayment audit system or program change the responsibilities of the certifying officers?

    Yes, in a prepayment audit environment, an official certifying a 
transportation voucher is held liable for verifying transportation 
rates, freight classifications, and other information provided on a 
transportation billing instrument or transportation request undergoing a 
prepayment audit (31 U.S.C. 3528).



Sec. 102-118.355  Does a prepayment audit waiver change any liabilities of the certifying officer?

    Yes, a certifying official is not personally liable for verifying 
transportation rates, freight classifications, or other information 
provided on a GBL or passenger transportation request when the 
Administrator of General Services or designee waives the prepayment 
audit requirement and your agency uses postpayment audits.



Sec. 102-118.360  What relief from liability is available for the certifying official under a postpayment audit?

    The agency counsel relieves a certifying official from liability for 
overpayments in cases where postpayment is the approved method of 
auditing and:
    (a) The overpayment occurred solely because the administrative 
review before payment did not verify transportation rates; and
    (b) The overpayment was the result of using improper transportation 
rates or freight classifications or the failure to deduct the correct 
amount under a land grant law or agreement.



Sec. 102-118.365  Do the requirements of a prepayment audit change the disbursing official's liability for overpayment?

    Yes, the disbursing official has a liability for overpayments on all 
transportation bills subject to prepayment audit (31 U.S.C. 3322).



Sec. 102-118.370  Where does relief from prepayment audit liability for certifying, accountable, and disbursing officers reside in my agency?

    Your agency's counsel has the authority to relieve liability and 
give advance opinions on liability issues to certifying, accountable, 
and disbursing officers (31 U.S.C. 3527).

                 Waivers from Mandatory Prepayment Audit



Sec. 102-118.375  Who has the authority to grant a waiver of the prepayment audit requirement?

    Only the Administrator of General Services or designee has the 
authority to grant waivers from the prepayment audit requirement.



Sec. 102-118.380  How does my agency apply for a waiver from a prepayment audit of requirement?

    Your agency must submit a request for a waiver from the requirement 
to perform a prepayment in writing to:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
 http://policyworks.gov/org/main/MT



Sec. 102-118.385  What must a waiver request include?

    A waiver request must explain in detail how the use of a prepayment 
audit increases costs over a postpayment audit, decreases efficiency, 
involves a relevant public interest, adversely affects the agency's 
mission, or is not feasible for the agency. A waiver request must 
identify the mode or modes of transportation, agency or subagency to 
which the waiver would apply.

[[Page 136]]



Sec. 102-118.390  On what basis does GSA grant a waiver to the prepayment audit requirement?

    GSA issues waivers to the prepayment audit requirement based on:
    (a) Cost-effectiveness;
    (b) Government efficiency;
    (c) Public interest; or
    (d) Other factors the Administrator of General Services considers 
appropriate.



Sec. 102-118.395  How long will GSA take to respond to a waiver request?

    GSA will respond to a written waiver request within 30 days from the 
receipt of the request.



Sec. 102-118.400  Must my agency renew a waiver of the prepayment audit requirements?

    Yes, your agency waiver to the prepayment audit requirement will not 
exceed 2 years. Your agency must reapply to ensure the circumstances at 
the time of approval still apply.



Sec. 102-118.405  Are my agency's prepayment audited transportation bills subject to periodic postpayment audit oversight from the GSA Audit Division?

    Yes, two years or more after starting prepayment audits, the GSA 
Audit Division (depending on its evaluation of the results) may subject 
your agency's prepayment audited transportation bills to periodic 
postpayment audit oversight rather than blanket postpayment audits. The 
GSA Audit Division will then prepare a report analyzing the success of 
your agency's prepayment audit program. This report will be on file at 
GSA and available for your review.

             Suspension of Agency Prepayment Audit Programs



Sec. 102-118.410  Can GSA suspend my agency's prepayment audit program?

    (a) Yes, the Director of the GSA Audit Division may suspend your 
agency's prepayment audit program based on his or her determination of a 
systematic or frequent failure of the program to:
    (1) Conduct an accurate prepayment audit of your agency's 
transportation bills;
    (2) Abide by the terms of the Prompt Payment Act;
    (3) Adjudicate TSP claims disputing prepayment audit positions of 
the agency regularly within 30 days of receipt;
    (4) Follow Comptroller General decisions, GSA Board of Contract 
Appeals decisions, the Federal Management Regulation and GSA 
instructions or precedents about substantive and procedure matters; and/
or
    (5) Provide information and data or to cooperate with on-site 
inspections necessary to conduct a quality assurance review.
    (b) A systematic or a multitude of individual failures will result 
in suspension. A suspension of an agency's prepayment audit program may 
be in whole or in part for failure to conduct proper prepayment audits.



              Subpart E--Postpayment Transportation Audits



Sec. 102-118.415  Will the widespread mandatory use of prepayment audits eliminate postpayment audits?

    No, the mandatory use of prepayment audits will not eliminate 
postpayment audits because:
    (a) Postpayment audits will continue for those areas which do not 
lend themselves to the prepayment audit; and
    (b) The GSA Audit Division will continue to review and survey the 
progress of the prepayment audit by performing a postpayment audit on 
the bills. The GSA Audit Division has a Congressionally mandated 
responsibility under 31 U.S.C. 3726 to perform oversight on 
transportation bill payments. During the early startup period for 
prepayment audits, transportation bills are subject to a possible 
postpayment audit to discover the effectiveness of the prepayment audit 
process.



Sec. 102-118.420  Can the Administrator of General Services waive the postpayment auditing provisions of this subpart?

    Yes, in certain circumstances, the Administrator of General Services 
or designee may waive the postpayment

[[Page 137]]

audit oversight requirements of this subpart on a case by case basis.



Sec. 102-118.425  Is my agency allowed to perform a postpayment audit on our transportation bills?

    No, your agency must forward all transportation bills to GSA for a 
postpayment audit regardless of any waiver allowing for postpayment 
audit.



Sec. 102-118.430  What information must be on my agency's transportation bills submitted for a postpayment audit?

    Your agency must annotate all of its transportation bills submitted 
for postpayment audit with:
    (a) The date received from a TSP;
    (b) A TSP's bill number;
    (c) Your agency name;
    (d) A Document Reference Number;
    (e) The amount requested;
    (f) The amount paid;
    (g) The payment voucher number;
    (h) Complete tender or tariff authority, including contract price 
(if purchased under the Federal Acquisition Regulation), item or section 
number;
    (i) The TSP's taxpayer identification number; and
    (j) The TSP's standard carrier alpha code (SCAC).



Sec. 102-118.435  What procedures does GSA use to perform a postpayment audit?

    When GSA performs a postpayment audit, the GSA Audit Division has 
the delegated authority to implement the following procedures:
    (a) Audit selected TSP bills after payment;
    (b) Audit selected TSP bills before payment as needed to protect the 
Government's interest (i.e., bankruptcy, fraud);
    (c) Examine, settle, and adjust accounts involving payment for 
transportation and related services for the account of agencies;
    (d) Adjudicate and settle transportation claims by and against 
agencies;
    (e) Offset an overcharge by any TSP from an amount subsequently 
found to be due that TSP;
    (f) Issue a Notice of Overcharge stating that a TSP owes a debt to 
the agency. This notice states the amount paid, the basis for the proper 
charge for the document reference number, and cites applicable tariff or 
tender along with other data relied on to support the overcharge. A 
separate Notice of Overcharge is prepared and mailed for each bill; and
    (g) Issue a GSA Notice of Indebtedness when a TSP owes an ordinary 
debt to an agency. This notice states the basis for the debt, the TSP's 
rights, interest, penalty, and other results of nonpayment. The debt is 
due immediately and subject to interest charges, penalties, and 
administrative cost under 31 U.S.C. 3717.



Sec. 102-118.440  What are the postpayment audit responsibilities and roles of the GSA Audit Division?

    When the GSA Audit Division performs a postpayment audit for your 
agency, GSA will:
    (a) Examine and analyze payments to discover their validity, 
relevance and conformity with tariffs, quotations, contracts, agreements 
or tenders and make adjustments to protect the interest of an agency;
    (b) Examine, adjudicate, and settle transportation claims by and 
against the agency;
    (c) Collect from TSPs by refund, setoff, offset or other means, the 
amounts determined to be due the agency;
    (d) Adjust, terminate or suspend debts due on TSP overcharges;
    (e) Prepare reports to the Attorney General of the United States 
with recommendations about the legal and technical bases available for 
use in prosecuting or defending suits by or against an agency and 
provide technical, fiscal, and factual data from relevant records;
    (f) Provide transportation specialists and lawyers to serve as 
expert witnesses, assist in pretrial conferences, draft pleadings, 
orders, and briefs, and participate as requested in connection with 
transportation suits by or against an agency;
    (g) Review agency policies, programs, and procedures to determine 
their adequacy and effectiveness in the audit of freight or passenger 
transportation payments, and review related fiscal and transportation 
practices;

[[Page 138]]

    (h) Furnish information on rates, fares, routes, and related 
technical data upon request;
    (i) Tell an agency of irregular shipping routing practices, 
inadequate commodity descriptions, excessive transportation cost 
authorizations, and unsound principles employed in traffic and 
transportation management; and
    (j) Confer with individual TSPs or related groups and associations 
presenting specific modes of transportation to resolve mutual problems 
concerning technical and accounting matters and acquainting them with 
agency requirements.



Sec. 102-118.445  Must my agency pay for a postpayment audit when using the GSA Audit Division?

    No, the expenses of postpayment audit contract administration and 
audit-related functions are financed from overpayments collected from 
the TSP's bills previously paid by the agency and similar type of 
refunds.



                 Subpart F--Claims and Appeal Procedures

                General Agency Information for All Claims



Sec. 102-118.450  Can a TSP file a transportation claim against my agency?

    Yes, a TSP may file a transportation claim against your agency under 
31 U.S.C. 3726 for:
    (a) Amounts owed but not included in the original billing;
    (b) Amounts deducted or set off by an agency that are disputed by 
the TSP;
    (c) Requests by a TSP for amounts previously refunded in error by 
that TSP; and/or
    (d) Unpaid original bills requiring direct settlement by GSA, 
including those subject to doubt about the suitability of payment 
(mainly bankruptcy or fraud).



Sec. 102-118.455  What is the time limit for a TSP to file a transportation claim against my agency?

    The time limits on a TSP transportation claim against the Government 
differ by mode as shown in the following table:

                   Time Limits on Actions Taken by TSP
------------------------------------------------------------------------
             Mode                Freight charges          Statute
------------------------------------------------------------------------
(a) Air Domestic..............  6 years..........  28 U.S.C. 2401, 2501.
------------------------------------------------------------------------
(b) Air International.........  6 years..........  28 U.S.C. 2401, 2501.
------------------------------------------------------------------------
(c) Freight Forwarders          3 years..........  49 U.S.C. 14705(f).
 (subject to the IC Act).
------------------------------------------------------------------------
(d) Motor.....................  3 years..........  49 U.S.C. 14705(f).
------------------------------------------------------------------------
(e) Rail......................  3 years..........  49 U.S.C. 14705(f).
------------------------------------------------------------------------
(f) Water (subject to the IC    3 years..........  49 U.S.C. 14705(f).
 Act).
------------------------------------------------------------------------
(g) Water (not subject to the   2 years..........  46 U.S.C. 745.
 IC Act).
------------------------------------------------------------------------
(h) TSPs exempt from            6 years..........  28 U.S.C. 2401, 2501.
 regulation.
------------------------------------------------------------------------


[[Page 139]]



Sec. 102-118.460  What is the time limit for my agency to file a court claim with a TSP for freight charges, reparations, and loss or damage to the property?

    Statutory time limits vary depending on the mode and the service 
involved and may involve freight charges. The following tables list the 
time limits:

                     (A) Time Limits on Actions Taken by the Federal Government Against TSPs
----------------------------------------------------------------------------------------------------------------
                 Mode                      Freight charges            Reparations            Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) Rail.............................  3 years................  3 years................  6 years.
                                       49 U.S.C. 11705........  49 U.S.C. 11705........  28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(2) Motor............................  3 years................  3 years................  6 years.
                                       49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(3) Freight Forwarders subject to the  3 years................  3 years................  6 years.
 IC Act.                               49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(4) Water (subject to the IC Act)....  3 years................  3 years................  6 years.
                                       49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(5) Water (not subject to the IC Act)  6 years 28 U.S.C. 2415.  2 years 46 U.S.C. 821..  1 year.
                                                                                         46 U.S.C.
                                                                                         1303(6) (if subject to
                                                                                          Carriage of Goods by
                                                                                          Sear Act, 46 U.S.C.
                                                                                          1300-1315).
----------------------------------------------------------------------------------------------------------------
(6) Domestic Air.....................  6 years................  .......................  6 years.
                                       28 U.S.C. 2415.........                           28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(7) International Air................  6 years................  .......................  2 years.
                                       28 U.S.C. 2415.........                           49 U.S.C. 40105.
----------------------------------------------------------------------------------------------------------------


         (B) Time Limits on Actions Taken by the Federal Government Against TSPs Exempt From Regulation
----------------------------------------------------------------------------------------------------------------
                 Mode                          Freight                Reparations            Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) All..............................  6 years................  .......................  6 years.
                                       28 U.S.C. 2415.........                           28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------


[[Page 140]]



Sec. 102-118.465  Must my agency pay interest on a disputed amount claimed by a TSP?

    No, interest penalties under the Prompt Payment Act, (31 U.S.C. 
3901, et seq.), are not required when payment is delayed because of a 
dispute between an agency and a TSP.



Sec. 102-118.470  Are there statutory time limits for a TSP on filing an administrative claim with the GSA Audit Division?

    Yes, an administrative claim must be received by the GSA Audit 
Division or its designee (the agency where the claim arose) within 3 
years beginning the day after the latest of the following dates (except 
in time of war):
    (a) Accrual of the cause of action;
    (b) Payment of charges for the transportation involved;
    (c) Subsequent refund for overpayment of those charges; or
    (d) Deductions made to a TSP claim by the Government under 31 U.S.C. 
3726.



Sec. 102-118.475  Does interest apply after certification of payment of claims?

    Yes, interest under the Prompt Payment Act (31 U.S.C. 3901, et seq.) 
begins 30 days after certification for payment by GSA.



Sec. 102-118.480  How does my agency settle disputes with a TSP?

    As a part of the prepayment audit program, your agency must have a 
plan to resolve disputes with a TSP. This program must allow a TSP to 
appeal payment decisions made by your agency.



Sec. 102-118.485  Is there a time limit for my agency to issue a decision on disputed claims?

    Yes, your agency must issue a ruling on a disputed claim within 30 
days of receipt of the claim.



Sec. 102-118.490  What if my agency fails to settle a dispute within 30 days?

    (a) If your agency fails to settle a dispute within 30 days, the TSP 
may appeal to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC 1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    (b) If the TSP disagrees with the administrative settlement by the 
Audit Division, the TSP may appeal to the General Services Board of 
Contract Appeals.



Sec. 102-118.495  May my agency appeal a decision by the General Services Board of Contract Appeals (GSBCA)?

    No, your agency may not appeal a decision made by the GSBCA.



Sec. 102-118.500  How does my agency handle a volunary refund submitted by a TSP?

    (a) An agency must report all voluntary refunds to the GSA Audit 
Division (so that no Notice of Overcharge or financial offset occurs), 
unless other arrangements are made (e.g., charge card refunds, etc.). 
These reports must be addressed to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    (b) Once a Notice of Overcharge is issued by the GSA Audit Division, 
then any refund is no longer considered voluntary and the agency must 
forward the refund to the GSA Audit Division.



Sec. 102-118.505  Must my agency send a voluntary refund to the Treasurer of the United States?

    No, your agency may keep and use voluntary refunds submitted by a 
TSP, if the refund was made prior to a Notice of Overcharge issued by 
the GSA Audit Division.



Sec. 102-118.510  Can my agency revise or alter a GSA Form 7931, Certificate of Settlement?

    Generally, no, an agency must not revise or alter amounts on a GSA 
Form 7931. The only change an agency can make to a GSA Form 7931 is to 
change the agency financial data to a correct cite. Any GSA Form 7931 
that cannot be paid (e.g., an amount previously paid), must be 
immediately returned to

[[Page 141]]

the GSA Audit Division with an explanation.



Sec. 102-118.515  Does my agency have any recourse not to pay a Certificate of Settlement?

    No, a Certificate of Settlement is the final administrative action.



Sec. 102-118.520  Who is responsible for determining the standards for collection, compromise, termination, or suspension of collection action on any 
          outstanding debts to my agency?

    Under the Federal Claims Collection Act of 1966, as amended (31 
U.S.C. 3711, et seq.), the Comptroller General and the Attorney General 
have joint responsibility for issuing standards for your agency.



Sec. 102-118.525  What are my agency's responsibilities for verifying the correct amount of transportation charges?

    Your agency's employees are responsible for diligently verifying the 
correct amount of transportation charges prior to payment (31 U.S.C. 
3527).



Sec. 102-118.530  Will GSA instruct my agency's disbursing offices to offset unpaid TSP billings?

    Yes, GSA will instruct one or more of your agency's disbursing 
offices to deduct the amount due from an unpaid TSP's bill. A 3-year 
limitation applies on the deduction of overcharges from amounts due a 
TSP (31 U.S.C. 3726) and a 10-year limitation applies on the deduction 
of ordinary debts (31 U.S.C. 3716).



Sec. 102-118.535  Are there principles governing my agency's TSP debt collection procedures?

    Yes, the principles governing your agency collection procedures for 
reporting debts to the General Accounting Office (GAO) or the Department 
of Justice are found in 4 CFR parts 101 through 105 and in the GAO 
Policy and Procedures Manual for Guidance of Federal Agencies. The 
manual may be obtained by writing:

Superintendent of Documents
Government Printing Office
Washington, DC 20402
http://www.access.gpo.gov/



Sec. 102-118.540  Who has the authority to audit, settle accounts, and/or start collection action for all transportation services provided for my agency?

    The Director of the GSA Audit Division has the authority and 
responsibility to audit and settle all transportation related accounts 
(31 U.S.C. 3726). The reason for this is that he or she has access to 
Governmentwide data on a TSP's payments and billings with the 
Government. Your agency has the responsibility to correctly pay 
individual transportation claims.

        Transportation Service Provider (TSP) Filing Requirements



Sec. 102-118.545  What information must a TSP claim include?

    Transportation service provider (TSP) claims received by GSA or its 
designee must include one of the following:
    (a) The signature of an individual or party legally entitled to 
receive payment for services on behalf of the TSP;
    (b) The signature of the TSP's agent or attorney accompanied by a 
duly executed power of attorney or other documentary evidence of the 
agent's or attorney's right to act for the TSP; or
    (c) An electronic signature, when mutually agreed upon.



Sec. 102-118.550  How does a TSP file an administrative claim using EDI or other electronic means?

    The medium and precise format of data for an administrative claim 
filed electronically must be approved in advance by the GSA Audit 
Division. GSA will use an authenticating EDI signature to certify 
receipt of the claim. The data on the claim must contain proof of the 
delivery of goods, and an itemized bill reflecting the services 
provided, with the lowest charges available for service. The TSP must be 
able to locate, identify, and reproduce the records in readable form 
without loss of clarity.

[[Page 142]]



Sec. 102-118.555  Can a TSP file a supplemental administrative claim?

    Yes, a TSP may file a supplemental administrative claim. Each 
supplemental claim must cover charges relating to one paid 
transportation document.



Sec. 102-118.560  What is the required format that a TSP must use to file an administrative claim?

    A TSP must bill for charges claimed on a SF 1113, Public Voucher for 
Transportation Charges, in the manner prescribed in the ``U.S. 
Government Freight Transportation--Handbook'' or the ``U.S. Government 
Passenger Transportation--Handbook.'' To get a copy of these handbooks, 
you may write to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.565  What documentation is required when filing an administrative claim?

    An administrative claim must be accompanied by the transportation 
document, payment record, reports and information available to GSA and/
or to the agency involved and the written and documentary records 
submitted by the TSP. Oral presentations supplementing the written 
record are not acceptable.

 Transportation Service Provider (TSP) and Agency Appeal Procedures for 
                            Prepayment Audits



Sec. 102-118.570  If my agency denies the TSP's challenge to the statement of difference, may the TSP appeal?

    Yes, the TSP may appeal if your agency denies its challenge to the 
statement of difference. However, the appeal must be handled at a higher 
level in your agency.



Sec. 102-118.575  If a TSP disagrees with the decision of my agency, can the TSP appeal?

    Yes, the TSP may file a claim with the GSA Audit Division, which 
will review the TSP's appeal of your agency's final full or partial 
denial of a claim. The TSP may also appeal to the GSA Audit Division if 
your agency has not responded to a challenge within 30 days.



Sec. 102-118.580  May a TSP appeal a prepayment audit decision of the GSA Audit Division?

    (a) Yes, the TSP may appeal to the GSA's Board of Contract Appeals 
(GSBCA), under guidelines established in this subpart, or file a claim 
with the United States Court of Federal Claims. The TSP's request for 
review must be received by the GSBCA in writing within 6 months (not 
including time of war) from the date the settlement action was taken or 
within the periods of limitation specified in 31 U.S.C. 3726, as 
amended, whichever is later. The TSP must address requests to:

GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405

    (b) The GSBCA will accept legible submissions via facsimile (FAX) on 
(202) 501-0664.



Sec. 102-118.585  May a TSP appeal a prepayment audit decision of the GSBCA?

    No, a ruling by the GSBCA is the final administrative remedy 
available and the TSP has no statutory right of appeal. This subpart 
governs administrative actions only and does not affect any of the TSP's 
rights. A TSP may still pursue a legal remedy through the courts.



Sec. 102-118.590  May my agency appeal a prepayment audit decision of the GSA Audit Division?

    No, your agency may not appeal. A GSA Audit Division decision is 
administratively final for your agency.



Sec. 102-118.595  May my agency appeal a prepayment audit decision by the GSBCA?

    No, your agency may not appeal a prepayment audit decision. Your 
agency must follow the ruling of the GSBCA.

[[Page 143]]

 Transportation Service Provider (TSP) and Agency Appeal Procedures for 
                           Postpayment Audits



Sec. 102-118.600  When a TSP disagrees with a Notice of Overcharge resulting from a postpayment audit, what are the appeal procedures?

    A TSP who disagrees with the Notice of Overcharge may submit a 
written request for reconsideration to the GSA Audit Division at:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.605  What if a TSP disagrees with the Notice of Indebtedness?

    If a TSP disagrees with an ordinary debt, as shown on a Notice of 
Indebtedness, it may:
    (a) Inspect and copy the agency's records related to the claim;
    (b) Seek administrative review by the GSA Audit Division of the 
claim decision; and/or
    (c) Enter a written agreement for the payment of the claims.



Sec. 102-118.610  Is a TSP notified when GSA allows a claim?

    Yes, the GSA Audit Division will acknowledge each payable claim 
using GSA Form 7931, Certificate of Settlement. The certificate will 
give a complete explanation of any amount that is disallowed. GSA will 
forward the certificate to the agency whose funds are to be charged for 
processing and payment.



Sec. 102-118.615  Will GSA notify a TSP if they internally offset a payment?

    Yes, the GSA Audit Division will inform the TSP if they internally 
offset a payment.



Sec. 102-118.620  How will a TSP know if the GSA Audit Division disallows a claim?

    The GSA Audit Division will furnish a GSA Form 7932, Settlement 
Certificate, to the TSP explaining the disallowance.



Sec. 102-118.625  Can a TSP request a reconsideration of a settlement action by the GSA Audit Division?

    Yes, a TSP desiring a reconsideration of a settlement action may 
request a review by the Administrator of General Services.



Sec. 102-118.630  How must a TSP refund amounts due to GSA?

    (a) TSPs must promptly refund amounts due to GSA, preferably by EFT. 
If an EFT is not used, checks must be made payable to ``General Services 
Administration'', including the document reference number, TSP name, 
bill number(s), taxpayer identification number and standard carrier 
alpha code, then mailed to:

General Services Administration
P.O. Box 93746
Chicago, IL 60673

    (b) If an EFT address is needed, please contact the GSA Audit 
Division at:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    Note to Sec. 102-118.630: Amounts collected by GSA are returned to 
the Treasurer of the United States (31 U.S.C. 3726).



Sec. 102-118.635  Can the Government charge interest on an amount due from a TSP?

    Yes, the Government can charge interest on an amount due from a TSP. 
This procedure is provided for under the Debt Collection Act (31 U.S.C. 
3717), the Federal Claims Collection Standards (4 CFR parts 101 through 
105), and 41 CFR part 105-55.



Sec. 102-118.640  If a TSP fails to pay or to appeal an overcharge, what actions will GSA pursue to collect the debt?

    GSA will pursue debt collection through one of the following 
methods:
    (a) When an indebted TSP files a claim, GSA will apply all or any 
portion of the amount it determines to be due the TSP, to the 
outstanding balance owed by the TSP, under the Federal Claims Collection 
Standards (4 CFR parts 101 through 105) and 41 CFR part 105-55;

[[Page 144]]

    (b) When the action outlined in paragraph (a) of this section cannot 
be taken by GSA, GSA will instruct one or more Government disbursing 
offices to deduct the amount due to the agency from an unpaid TSP's 
bill. A 3-year limitation applies on the deduction of overcharges from 
amounts due a TSP (31 U.S.C. 3726) and a 10-year limitation applies on 
the deduction of ordinary debt (31 U.S.C. 3716);
    (c) When collection cannot be accomplished through either of the 
procedures in paragraph (a) or (b) of this section, GSA normally sends 
two additional demand letters to the indebted TSP requesting payment of 
the amount due within a specified time. Lacking a satisfactory response, 
GSA may place a complete stop order against amounts otherwise payable to 
the indebted TSP by adding the name of that TSP to the Department of the 
Army ``List of Contractors Indebted to the United States''; and/or
    (d) When collection actions, as stated in paragraphs (a) through (c) 
of this section are unsuccessful, GSA may report the debt to the 
Department of Justice for collection, litigation, and related 
proceedings, as prescribed in 4 CFR parts 101 through 105.



Sec. 102-118.645  Can a TSP file an administrative claim on collection actions?

    Yes, a TSP may file an administrative claim involving collection 
actions resulting from the transportation audit performed by the GSA 
directly with the GSA Audit Division. Any claims submitted to GSA will 
be considered ``disputed claims'' under section 4(b) of the Prompt 
Payment Act (31 U.S.C. 3901, et seq.). The TSP must file all other 
transportation claims with the agency out of whose activities they 
arose. If this is not feasible (e.g., where the responsible agency 
cannot be determined or is no longer in existence) claims may be sent to 
the GSA Audit Division for forwarding to the responsible agency or for 
direct settlement by the GSA Audit Division. Claims for GSA processing 
must be addressed to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav



Sec. 102-118.650  Can a TSP request a review of a settlement action by the Administrator of General Services?

    Yes, a TSP desiring a review of a settlement action taken by the 
Administrator of General Services may request a review by the GSA Board 
of Contract Appeals (GSBCA) or file a claim with the United States Court 
of Federal Claims (28 U.S.C. 1491).



Sec. 102-118.655  Are there time limits on a TSP request for an administrative review by the GSBCA?

    (a) Yes, the GSBCA must receive a request for review from the TSP 
within six months (not including time of war) from the date the 
settlement action was taken or within the periods of limitation 
specified in 31 U.S.C. 3726, as amended, whichever is later. The request 
must be addressed to:

GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405

    (b) The GSBCA will accept legible submissions via facsimile (FAX) on 
(202) 501-0664.



Sec. 102-118.660  May a TSP appeal a postpayment audit decision of the GSBCA?

    No, a ruling by the GSBCA is the final administrative remedy and the 
TSP has no statutory right of appeal. This subpart governs 
administrative actions only and does not affect any rights of the TSPs. 
A TSP may still pursue a legal remedy through the courts.



Sec. 102-118.665  May my agency appeal a postpayment audit decision by the GSBCA?

    No, your agency may not appeal a postpayment audit decision and must 
follow the ruling of the GSBCA.

      Transportation Service Provider (TSP) Non-Payment of a Claim



Sec. 102-118.670  If a TSP cannot immediately pay a debt, can they make other arrangements for payment?

    Yes, if a TSP is unable to pay the debt promptly, the Director of 
the GSA

[[Page 145]]

Audit Division has the discretion to enter into alternative arrangements 
for payment.



Sec. 102-118.675  What recourse does my agency have if a TSP does not pay a transportation debt?

    If a TSP does not pay a transportation debt, GSA may refer 
delinquent debts to consumer reporting agencies and Federal agencies 
including the Department of the Treasury and Department of Justice.

                    PARTS 102-119--102-140 [RESERVED]

[[Page 146]]





                     SUBCHAPTER E--TRAVEL MANAGEMENT




                    PART 102-141--GENERAL [RESERVED]


                    PARTS 102-142--102-170 [RESERVED]



                    SUBCHAPTER F--TELECOMMUNICATIONS




                    PART 102-171--GENERAL [RESERVED]


      PART 102-172--TELECOMMUNICATIONS MANAGEMENT POLICY [RESERVED]


                    PARTS 102-173--102-190 [RESERVED]



                  SUBCHAPTER G--ADMINISTRATIVE PROGRAMS




                    PART 102-191--GENERAL [RESERVED]


                PART 102-192--MAIL MANAGEMENT [RESERVED]


               PART 102-193--RECORDS MANAGEMENT [RESERVED]


      PART 102-194--STANDARD AND OPTIONAL FORMS PROGRAM [RESERVED]


     PART 102-195--INTERAGENCY REPORTS MANAGEMENT PROGRAM [RESERVED]


          PART 102-196--FEDERAL FACILITY RIDESHARING [RESERVED]


                    PARTS 102-197--102-220 [RESERVED]



                       SUBCHAPTERS H-Z [RESERVED]



[[Page 147]]



                       CHAPTERS 103-104 [RESERVED]




[[Page 149]]



              CHAPTER 105--GENERAL SERVICES ADMINISTRATION




  --------------------------------------------------------------------
Part                                                                Page
105-1           Introduction................................         151
105-8           Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by General Services 
                    Administration..........................         153
105-50          Provision of special or technical services 
                    to State and local units of government..         164
105-51          Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally assisted programs.............         169
105-53          Statement of organization and functions.....         169
105-54          Advisory committee management...............         176
105-55          Collection of claims owed the United States.         187
105-56          Salary offset for indebtedness of General 
                    Services Adminstration employees to the 
                    United States...........................         191
105-57          Collection of debts by tax refund offset....         196
105-60          Public availability of agency records and 
                    informational materials.................         197
105-62          Document security and declassification......         214
105-64          Regulations implementing the Privacy Act of 
                    1974....................................         219
105-67          Sale of personal property...................         228
105-68          Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................         229
105-69          New restrictions on lobbying................         248
105-70          Implementation of the Program Fraud Civil 
                    Remedies Act of 1986....................         259
105-71          Uniform administrative requirements for 
                    grants and cooperative agreements with 
                    State and local governments.............         274
105-72          Uniform administrative requirements for 
                    grants and agreements with institutions 
                    of higher education, hospitals, and 
                    other non-profit organizations..........         301
105-735         Standards of conduct........................         328

[[Page 151]]



PART 105-1--INTRODUCTION--Table of Contents




Sec.
105-1.000-50  Scope of part.

                   Subpart 105-1.1--Regulations System

105-1.100  Scope of subpart.
105-1.101  General Services Administration Property Management 
          Regulations.
105-1.101-50  Exclusions.
105-1.102  Relationship of GSPMR to FPMR.
105-1.104  Publication of GSPMR.
105-1.106  Applicability.
105-1.109  Numbering.
105-1.109-50  General plan.
105-1.109-51  Arrangement.
105-1.109-52  Cross-references.
105-1.110  Deviation.
105-1.150  Citation.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).

    Source: 39 FR 25231, July 9, 1974, unless otherwise noted.



Sec. 105-1.000-50  Scope of part.

    This part describes the method by which the General Services 
Administration (GSA) implements and supplements the Federal Property 
Management Regulations (FPMR) and implements certain regulations 
prescribed by other agencies. It contains procedures that implement and 
supplement part 101-1 of the FPMR.



                   Subpart 105-1.1--Regulations System



Sec. 105-1.100  Scope of subpart.

    This subpart establishes the General Services Administration 
Property Management Regulations (GSPMR) and provides certain 
introductory material.



Sec. 105-1.101  General Services Administration Property Management Regulations.

    The General Services Administration Property Management Regulations 
(GSPMR) include the GSA property management policies and procedures 
which, together with the Federal Property Management Regulations, 
certain regulations prescribed by other agencies, and various GSA orders 
govern the management of property and records and certain related 
activities of GSA. They may contain policies and procedures of interest 
to other agencies and the general public and are prescribed by the 
Administrator of General Services in this chapter 105.



Sec. 105-1.101-50  Exclusions.

    (a) Certain GSA property management and related policies and 
procedures which come within the scope of this chapter 105 nevertheless 
may be excluded therefrom when there is justification. These exclusions 
may include the following categories:
    (1) Subject matter that bears a security classification;
    (2) Policies and procedures that are expected to be effective for a 
period of less than 6 months;
    (3) Policies and procedures that are effective on an experimental 
basis for a reasonable period;
    (4) Policies and procedures pertaining to other functions of GSA as 
well as property management functions and there is need to make the 
issuance available simultaneously to all GSA employees involved; and
    (5) Where speed of issuance is essential, numerous changes are 
required in chapter 105, and all necessary changes cannot be made 
promptly.
    (b) Property management policies and procedures issued in other than 
the FPMR system format under paragraphs (a)(4) and (5) of this section, 
shall be codified into chapter 105 at the earliest practicable date, but 
in any event not later than 6 months from date of issuance.



Sec. 105-1.102  Relationship of GSPMR to FPMR.

    (a) GSPMR implement and supplement the FPMR and implement certain 
other regulations. They are part of the General Services Administration 
Regulations System. Material published in the FPMR (which has 
Governmentwide applicability) becomes effective throughout GSA upon the 
effective date of the particular FPMR material. In general, the FPMR 
that are implemented and supplemented shall not be repeated, 
paraphrased, or otherwise restated in chapter 105.
    (b) Implementing is the process of expanding upon the FPMR or other 
Government-wide regulations.

[[Page 152]]

Supplementing is the process of prescribing material for which there is 
no counterpart in the Government-wide regulations.
    (c) GSPMR may deviate from the regulations that are implemented when 
a deviation (see Sec. 105-1.110) is authorized in and explicitly 
referenced to such regulations. Where chapter 105 contains no material 
implementing the FPMR, the FPMR shall govern.



Sec. 105-1.104  Publication of GSPMR.

    (a) Most GSPMR are published in the Federal Register. This practice 
helps to ensure that interested business concerns, other agencies, and 
the public are apprised of GSA policies and procedures pertaining to 
property and records management and certain related activities.
    (b) Most GSPMR are published in cumulative form in chapter 105 of 
title 41 of the Code of Federal Regulations. The Federal Register and 
title 41 of the Code of Federal Regulations may be purchased from the 
Superintendent of Documents, Government Printing Office, Washington, 
D.C. 20402.



Sec. 105-1.106  Applicability.

    Chapter 105 applies to the management of property and records and to 
certain other programs and activities of GSA. Unless otherwise 
specified, chapter 105 applies to activities outside as well as within 
the United States.



Sec. 105-1.109  Numbering.



Sec. 105-1.109-50  General plan.

    Chapter 105 is divided into parts, subparts, and further 
subdivisions as necessary.



Sec. 105-1.109-51  Arrangement.

    (a) Parts 105-2 through 105-49 are used for GSPMR that implement 
regulations in the corresponding parts of chapter 101. This practice 
results in comparable grouping by subject area without establishment of 
subchapters.
    (b) Parts 105-50 and above are used for GSPMR that supplement 
regulations in the FPMR and implement regulations of other agencies. 
Part numbers are assigned so as to accomplish a similar subject area 
grouping. Regulations on advisory committee management are recodified as 
part 105-54 to place them in the appropriate subject area category. 
Regulations on standards of conduct remain in part 105-735 because the 
number 735 identifies regulations of the U.S. Civil Service Commission 
and various civil agencies on this subject.



Sec. 105-1.109-52  Cross-references.

    (a) Within chapter 105, cross-references to the FPMR shall be made 
in the same manner as used within the FPMR. Illustrations of cross-
references to the FPMR are:
    (1) Part 101-3;
    (2) Subpart 101-3.1;
    (3) Sec. 101-3.413-5.
    (b) Within chapter 105, cross-references to parts, subparts, 
sections, and subsections of chapter 105 shall be made in a manner 
generally similar to that used in making cross-references to the FPMR. 
For example, this paragraph would be referenced as Sec. 105-1.109-52(b).



Sec. 105-1.110  Deviation.

    (a) In the interest of establishing and maintaining uniformity to 
the greatest extent feasible, deviations; i.e., the use of any policy or 
procedure in any manner that is inconsistent with a policy or procedure 
prescribed in the Federal Property Management Regulations, are 
prohibited unless such deviations have been requested from and approved 
by the Administrator of General Services or his authorized designee. 
Deviations may be authorized by the Administrator of General Services or 
his authorized designee when so doing will be in the best interest of 
the Government. Request for deviations shall clearly state the nature of 
the deviation and the reasons for such special action.
    (b) Requests for deviations from the FPMR shall be sent to the 
General Services Administration for consideration in accordance with the 
following:
    (1) For onetime (individual) deviations, requests shall be sent to 
the address provided in the applicable regulation. Lacking such 
direction, requests shall be sent to the Administrator of General 
Services, Washington, DC 20405.

[[Page 153]]

    (2) For class deviations, requests shall be sent to only the 
Administrator of General Services.

[55 FR 1673, Jan. 18, 1990]



Sec. 105-1.150  Citation.

    (a) In formal documents, such as legal briefs, citations of chapter 
105 material shall include a citation to title 41 of the Code of Federal 
Regulations or other titles as appropriate; e.g., 41 CFR 105-1.150.
    (b) Any section of chapter 105, for purpose of brevity, may be 
informally identified as ``GSPMR'' followed by the section number. For 
example, this paragraph would be identified as ``GSPMR 105-1.150(b).''



PART 105-8--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY GENERAL SERVICES ADMINISTRATION--Table of Contents




Sec.
105-8.101  Purpose.
105-8.102  Application.
105-8.103  Definitions.
105-8.104--105-8.109  [Reserved]
105-8.110  Self-evaluation.
105-8.111  Notice.
105-8.112--105-8.129  [Reserved]
105-8.130  General prohibitions against discrimination.
105-8.131--105-8.139  [Reserved]
105-8.140  Employment.
105-8.141--105-8.147  [Reserved]
105-8.148  Consultation with the Architectural and Transportation 
          Barriers Compliance Board.
105-8.149  Program accessibility: Discrimination prohibited.
105-8.150  Program accessibility: Existing facilities.
105-8.150-1  General.
105-8.150-2  Methods.
105-8.150-3  Time period for compliance.
105-8.150-4  Transition plan.
105-8.151  rogram accessibility: New construction and alterations.
105-8.152  Program accessibility: Assignment of space.
105-8.153  Program accessibility: Interagency cooperation.
105-8.153-1  General.
105-8.153-2  Requests from occupant agencies.
105-8.154  Program accessibility: Exceptions.
105-8.155--105-8.159  [Reserved]
105-8.160  Communications.
105-8.161--105-8.169  [Reserved]
105-8.170  Compliance procedures.
105-8.170-1  Applicability.
105-8.170-2  Employment complaints.
105-8.170-3  Responsible Official.
105-8.170-4  Filing a complaint.
105-8.170-5  Notification to the Architectural and Transportation 
          Barriers Compliance Board.
105-8.170-6  Acceptance of complaint.
105-8.170-7  Investigation/conciliation.
105-8.170-8  Letter of findings.
105-8.170-9  Filing an appeal.
105-8.170-10  Acceptance of appeals.
105-8.170-11  Hearing.
105-8.170-12  Decision.
105-8.170-13  Delegation.
105-8.171  Complaints against an occupant agency.

    Authority: 29 U.S.C. 794.

    Source: 56 FR 9871, Mar. 8, 1991, unless otherwise noted.



Sec. 105-8.101  Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 105-8.102  Application.

    This part applies to all programs or activities conducted by the 
agency, except for programs or activities conducted outside the United 
States that do not involve individuals with handicaps in the United 
States.



Sec. 105-8.103  Definitions.

    For purposes of this part, the term--
    Agency means the General Services Administration (GSA), except when 
the context indicates otherwise.
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in and enjoy the benefits of programs or 
activities conducted by GSA. For example, auxiliary aids useful for 
persons with impaired vision include readers, Brailed materials, audio

[[Page 154]]

recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation program means programs conducted by the agency 
that have preservation of historic properties as a primary purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term ``Physical or mental 
impairment'' includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments, 
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, 
cancer, heart disease, diabetes, mental retardation, emotional illness, 
and drug addiction and alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (a) of this 
definition but is treated by the agency as having such an impairment.
    Official or Responsible Official means the Director of the Civil 
Rights Division of the General Services Administration or his or her 
designee.
    Qualified individual with handicaps means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (2) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation

[[Page 155]]

in, or receipt of benefits from, that program or activity; and
    (3) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this part by Sec. 105-8.140.
    Respondent means the organizational unit in which a complainant 
alleges that discrimination occurred.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810); 
the Civil Rights Restoration Act of 1987 (Pub. L. 100-259, 102 Stat. 
28); and Handicapped Program Technical Amendments Act of 1988 (Pub. L. 
100-630, 102 Stat. 3312). As used in this part, section 504 applies only 
to programs or activities conducted by the agency and not to federally 
assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration of historic properties.



Secs. 105-8.104--105-8.109  [Reserved]



Sec. 105-8.110  Self-evaluation.

    (a) The agency shall, by March 9, 1992, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A list of interested persons consulted;
    (2) A description of the areas examined and any problems identified 
and;
    (3) A description of any modifications made or to be made.



Sec. 105-8.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the Administrator finds 
necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this part.



Secs. 105-8.112--105-8.129  [Reserved]



Sec. 105-8.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (1) The agency, in providing any aid, benefit, or service, may not, 
directly or through contractual, licensing, or other arrangements, on 
the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to

[[Page 156]]

provide qualified individuals with handicaps with aid, benefits, or 
services that are as effective as those provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licenses or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by part.
    (b) The exclusion of persons without handicaps from the benefits of 
a program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this part.
    (c) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Secs. 105-8.131--105-8.139  [Reserved]



Sec. 105-8.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1613, shall apply to employment in federally conducted 
programs or activities.



Secs. 105-8.141--105-8.147  [Reserved]



Sec. 105-8.148  Consultation with the Architectural and Transportation Barriers Compliance Board.

    GSA shall consult with the Architectural and Transportation Barriers 
Compliance Board (ATBCB) in carrying out its responsibilities under this 
part concerning architectural barriers in facilities that are subject to 
GSA control. GSA shall also consult with the ATBCB in providing 
technical assistance to other Federal agencies with respect to 
overcoming architectural barriers in facilities. The agency's Public 
Buildings Service shall implement this section.



Sec. 105-8.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Secs. 105-8.150 and 105-8.154, no 
qualified individual with handicaps shall, because

[[Page 157]]

the agency's facilities are inaccessible to or unusable by individuals 
with handicaps, be denied the benefits of, be excluded from 
participation in, or otherwise be subjected to discrimination under any 
program or activity conducted by the agency.



Sec. 105-8.150  Program accessibility: Existing facilities.



Sec. 105-8.150-1  General.

    The agency shall operate each program or activity so that the 
program or activity, when viewed in its entirety, is readily accessible 
to and usable by individuals with handicaps. This section does not--
    (a) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps; or
    (b) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property.



Sec. 105-8.150-2  Methods.

    (a) General. The agency may comply with the requirements of 
Sec. 105-8.150 through such means as redesign of equipment, reassignment 
of services to accessible buildings, assignment of aides to 
beneficiaries, home visits, delivery of services at alternate accessible 
sites, alteration of existing facilities and construction of new 
facilities, use of accessible rolling stock, or any other methods that 
result in making its programs or activities readily accessible to and 
usable by individuals with handicaps. The agency is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with this section. The agency, in 
making alterations to existing buildings, shall meet accessibility 
requirements to the extent compelled by the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), and any regulations 
implementing it. In choosing among available methods for meeting the 
requirements of this section, the agency shall give priority to those 
methods that offer programs and activities to qualified individuals with 
handicaps in the most integrated setting appropriate.
    (b) Historic preservation programs. In meeting the requirements of 
Sec. 105-8.105-1 in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to a historic 
property is not required because of Secs. 105-8.105-1(b) or 105-8.154 
alternative methods of achieving program accessibility include--
    (1) Using audio-visual materials and devices to depict those 
portions of a historic property that cannot otherwise be made 
accessible;
    (2) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (3) Adopting other innovative methods.



Sec. 105-8.150-3  Time period for compliance.

    The agency shall comply with the obligations established under 
Sec. 105-8.150 by May 7, 1991; except where structural changes in 
facilities are undertaken, such changes shall be made by March 8, 1994, 
but in any event as expeditiously as possible.



Sec. 105-8.150-4  Transition plan.

    In the event that structural changes to facilities will be 
undertaken to achieve program accessibility, the agency shall develop, 
by March 9, 1992; the transition plan setting forth the steps necessary 
to complete such changes. The agency shall provide an opportunity to 
interested persons, including individuals with handicaps or 
organizations representing individuals with handicaps, to participate in 
the development of the transition plan by submitting comments (both oral 
and written). A copy of the transition plan shall be made available for 
public inspection. The plan shall, at a minimum--
    (a) Identify physical obstacles in the facilities occupied by GSA 
that limit the accessibility of its programs or activities to 
individuals with handicaps;

[[Page 158]]

    (b) Describe in detail the methods that will be used to make the 
facilities accessible;
    (c) Specify the schedule for taking the steps necessary to achieve 
compliance with Sec. 105-8.150 and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (d) Indicate the official responsible for implementation of the 
plan.



Sec. 105-8.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, of for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Sec. 105.8.152  Program accessibility: Assignment of space.

    (a) When GSA assigns or reassigns space to an agency, it shall 
consult with the agency to ensure that the assignment or reassignment 
will not result in one or more of the agency's programs or activities 
being inaccessible to individuals with handicaps.
    (b) Prior to the assignment or reassignment of space to an agency, 
GSA shall inform the agency of the accessibility, and/or the absence of 
accessibility features, of the space in which GSA intends to locate the 
agency. If the agency informs GSA that the use of the space will result 
in one or more of the agency's programs being inaccessible, GSA shall 
take one or more of the following actions to make the programs 
accessible:
    (1) Arrange for alterations, improvements, and repairs to buildings 
and facilities;
    (2) Locate and provide alternative space that will not result in one 
or more of the agency's programs being inaccessible; or
    (3) Take any other actions that result in making this agency's 
programs accessible.

The responsibility for payment to make the physical changes in the space 
shall be assigned on a case-by-case basis as agreed to by GSA and the 
user agency, dependent on individual circumstances.
    (c) GSA may not require the agency to accept space that results in 
one or more of the agency's programs being inaccessible.



Sec. 105-8.153  Program accessibility: Interagency cooperation.



Sec. 105-8.153-1  General.

    GSA, upon request from an occupant agency engaged in the development 
of a transition plan under section 504, shall participate with the 
occupant agency in the development and implementation of the transition 
plan and shall provide information and guidance to the occupant agency. 
Upon request, GSA shall conduct space inspections to assist the agency 
in determining whether a current assignment of space results in one or 
more of the occupant agency's programs or activities being inaccessible. 
GSA shall provide the occupant agency with a written summary of 
significant findings and recommendations, together with data concerning 
programmed repairs and alterations planned by GSA and alterations that 
can be effected by the agency.



Sec. 105-8.153-2  Requests from occupant agencies.

    (a) Upon receipt of an occupant agency's request for new space, 
additional space, relocation to accessible space, alterations, or other 
actions under GSA's control that are needed to ensure program 
accessibility in the requesting agency's program(s) as required by the 
agency's section 504 transition plan, GSA shall assist or advise the 
requesting agency in providing or arranging for the requested action 
within the timeframes specified in the requesting agency's transition 
plan.
    (b) If the requested action cannot be completed within the time 
frame specified in an agency's transition plan, GSA shall so advise the 
requesting agency within 30 days of the request by submitting, after 
consultation with the agency, a revised schedule specifying the date by 
which the action shall be

[[Page 159]]

completed. If the delay in completing the action results in or continues 
the inaccessibility of the requesting agency's program, GSA and the 
agency shall, after consultation, take interim measures to make the 
agency's program accessible.
    (c) If GSA determines that it is unable to take the requested 
action, GSA shall--
    (1) Within 30 days, set forth in writing to the requesting agency 
the reasons for denying the agency's request, and
    (2) Within 90 days, propose to the requesting agency other methods 
for making the agency's program accessible.
    (d) Receipt of a copy of an occupant agency's transition plan under 
section 504 shall constitute notice to GSA of the requested actions in 
the transition plan and of the times frames which the actions are 
required to be completed.



Sec. 105-8.154  Program accessibility: Exceptions.

    Sections 105-8.150, 105-8.152, and 105-8.153 do not require GSA to 
take any action that it can demonstrate would result in a fundamental 
alteration in the nature of a program or activity or in undue financial 
and administrative burdens. In those circumstances where GSA personnel 
believe that the proposed action would fundamentally alter the program 
or activity or would result in undue financial and administrative 
burdens, the agency has the burden of proving that compliance would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the Administrator 
or his or her designee after considering all resources available for use 
in the funding and operation of the conducted program or activity, and 
must be accompanied by a written statement of the reasons for reaching 
that conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.



Secs. 105-8.155--105-8.159  [Reserved]



Sec. 105-8.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 150.8.160 would 
result in such alteration or burdens.

[[Page 160]]

The decision that compliance would result in such alteration or burdens 
must be made by the Administrator or his or her designee after 
considering all agency resources available for use in the funding and 
operation of the conducted program or activity and must be accompanied 
by a written statement of the reasons for reaching that conclusion. If 
an action required to comply with Sec. 105-8.160 would result in such an 
alteration or such burdnes, the agency shall take any other action that 
would not result in such an alteration or such burdens but would 
nevertheless ensure that, to the maximum extent possible, individuals 
with handicaps receive the benefits and services of the program or 
activity.



Secs. 105-8.161--105-8.169  [Reserved]



Sec. 105-8.170  Compliance procedures.



Sec. 105-8.170-1  Applicability.

    Except as provided in Sec. 105-8.170-2, Secs. 105-8.170 through 105-
8.170-13 apply to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.



Sec. 105-8.170-2  Employment complaints.

    The agency shall process complaints alleging violations of section 
504 with respect to employment according to the procedures established 
by the Equal Employment Opportunity Commission in 29 CFR part 1613 
pursuant to section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791).



Sec. 105-8.170-3  Responsible Official.

    The Responsible Official shall coordinate implementation of 
Secs. 105-8.170 through 105-8.170-13.



Sec. 105-8.170-4  Filing a complaint.

    (a) Who may file a complaint. Any person who believes that he or she 
has been subjected to discrimination prohibited by this part may by him 
or herself or by his or her authorized representative file a complaint 
with the Official. Any persons who believes that any specific class of 
persons has been subjected to discrimination prohibited by this part and 
who is a member of that class or the authorized representative of a 
member of that class may file a complaint with the Official.
    (b) Confidentiality. The Official shall hold in confidence the 
identity of any person submitting a complaint, unless the person submits 
written authorization otherwise, and except to the extent necessary to 
carry out the purposes of this part, including the conduct of any 
investigation, hearing, or proceeding under this part.
    (c) When to file. Complaints shall be filed within 180 days of the 
alleged act of discrimination. The Official may extend this time limit 
for good cause shown. For purposes of determining when a complaint is 
timely filed under this section, a complaint mailed to the agency shall 
be deemed filed on the date it is postmarked. Any other complaint shall 
be deemed filed on the date it is recevied by the agency.
    (d) How to file. Complaints may be delivered or mailed to the 
Administrator, the Responsibile Official, or other agency officials. 
Complaints should be sent to the Director of Civil Rights, Civil Rights 
Division (AKC), General Services Administration, 18th and F Streets, 
NW., Washington, DC 20405. If any agency official other than the 
Official receives a complaint, he or she shall forward the complaint to 
the Official immediatley.



Sec. 105-8.170-5  Notification to the Architectural and Transportation Barriers Compliance Board.

    The agency shall prepare and forward comprehensive quarterly reports 
to the Architectural and Transportation Barriers Compliance Board 
containing information regarding complaints received alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps. The agency shall not include 
in the report the identity of any complainant.



Sec. 105-8.170-6  Acceptance of complaint.

    (a) The Official shall accept a complete complaint that is filed in 
accordance with Sec. 105-8.170-4 and over which the agency has 
jurisdiction. The Official shall notify the complainant and

[[Page 161]]

the respondent of receipt and acceptance of the complaint.
    (b) If the Official receives a complaint that is not complete, he or 
she shall notify the complainant within 30 days of receipt of the 
incomplete complaint that additional information is needed. If the 
complainant fails to complete the complaint within 30 days of receipt of 
this notice, the Official shall dismiss the complaint without prejudice.
    (c) The Official may reject a complaint, or a position thereof, for 
any of the following reasons:
    (1) It was not filed timely and the extension of the 180-day period 
as provided in Sec. 105-8.170-4(c) is denied;
    (2) It consists of an allegation identical to an allegation 
contained in a previous complaint filed on behalf of the same 
complainant(s) which is pending in the agency or which has been resolved 
or decided by the agency; or
    (3) It is not within the purview of this part.
    (d) If the Official receives a complaint over which the agency does 
not have jurisdiction, the Official shall promptly notify the 
complainant and shall make reasonable efforts to refer the complaint to 
the appropriate Government entity.



Sec. 105-8.170-7  Investigation/conciliation.

    (a) Within 180 days of the receipt of a complete complaint, the 
Official shall complete the investigation of the complaint, attempt 
informal resolution, and if no informal resolution is achieved, issue a 
letter of findings. The 180-day time limit may be extended with the 
permission of the Assistant Attorney General. The investigation should 
include, where appropriate, a review of the practices and policies that 
led to the filing of the complaint, and other circumstances under which 
the possible noncompliance with this part occurred.
    (b) The Official may require agency employees to cooperate in the 
investigation and attempted resolution of complaints. Employees who are 
required by the Official to participate in any investigation under this 
section shall do so as part of their official duties and during the 
course of regular duty hours.
    (c) The Official shall furnish the complainant and the respondent a 
copy of the investigative report promptly after receiving it from the 
investigator and provide the complainant and the respondent with an 
opportunity for informal resolution of the complaint.
    (d) If a complaint is resolved informally, the terms of the 
agreement shall be reduced to writing and signed by the complainant and 
respondent. The agreement shall be made part of the complaint file with 
a copy of the agreement provided to the complainant and the respondent. 
The written agreement may include a finding on the issue of 
discrimination and shall describe any corrective action to which the 
complainant and the respondent have agreed.
    (e) The written agreement shall remain in effect until all 
corrective actions to which the complainant and the respondent have 
agreed upon have been completed. The complainant may reopen the 
complaint in the event that the agreement is not carried out.



Sec. 105-8.170-8  Letter of findings.

    If an informal resolution of the complaint is not reached, the 
Official shall, within 180 days of receipt of the complete complaint, 
notify the complainant and the respondent of the results of the 
investigation in a letter sent by certified mail, return receipt 
requested. The letter shall contain, at a minimum, the following:
    (a) Findings of fact and conclusions of law;
    (b) A description of a remedy for each violation found;
    (c) A notice of the right of the complainant and the respondent to 
appeal to the Special Counsel for Ethics and Civil Rights; and
    (d) A notice of the right of the complainant and the respondent to 
request a hearing.



Sec. 105-8.170-9  Filing an appeal.

    (a) Notice of appeal to the Special Counsel for Ethics and Civil 
Rights, with or without a request for hearing, shall be filed by the 
complainant or the

[[Page 162]]

respondent with the Responsible Official within 30 days of receipt of 
the letter of findings required by

Sec. 105-8.170-7.
    (b) If a timely appeal without a request for hearing is filed by a 
party, any other party may file a written request for a hearing within 
the time limit specified in Sec. 105-8.170-9(a) or within 10 days of the 
date on which the first timely appeal without a request for hearing was 
filed, whichever is later.
    (c) If no party requests a hearing, the Responsible Official shall 
promptly transmit the notice of appeal and investigative record to the 
Special Counsel for Ethics and Civil Rights.
    (d) If neither party files an appeal within the time prescribed in 
Sec. 105-8.170-9(a) the Responsible Official shall certify, at the 
expiration of the time, that the letter of findings is the final agency 
decision on the complaint.



Sec. 105-8.170-10  Acceptance of appeals.

    The Special Counsel shall accept and process any timely appeal. A 
party may appeal to the Deputy Administrator from a decision of the 
Special Counsel that an appeal is untimely. This appeal shall be filed 
within 15 days of receipt of the decision from the Special Counsel.



Sec. 105-8.170-11  Hearing.

    (a) Upon a timely request for a hearing, the Special Counsel shall 
take the necessary action to obtain the services of an Administrative 
law judge (ALJ) to conduct the hearing. The ALJ shall issue a notice to 
all parties specifying the date, time, and place of the scheduled 
hearing. The hearing shall be commenced no earlier than 15 days after 
the notice is issued and no later than 60 days after the request for a 
hearing is filed, unless all parties agree to a different date, or there 
are other extenuating circumstances.
    (b) The complainant and respondent shall be parties to the hearing. 
Any interested person or organization may petition to become a party or 
amicus curiae. The ALJ may, in his or her discretion, grant such a 
petition if, in his or her opinion, the petitioner has a legitimate 
interest in the proceedings and the participation will not unduly delay 
the outcome and may contribute materially to the proper disposition of 
the proceedings.
    (c) The hearing, decision, and any administrative review thereof 
shall be conducted in conformity with 5 U.S.C. 554-557 (sections 5-8 of 
the Administrative Procedure Act). The ALJ shall have the duty to 
conduct a fair hearing, to take all necessary action to avoid delay, and 
to maintain order. He or she shall have all powers necessary to these 
ends, including (but not limited to) the power to--
    (1) Arrange and change the date, time, and place of hearings and 
prehearing conferences and issue notices thereof;
    (2) Hold conferences to settle, simplify, or determine the issue in 
a hearing, or to consider other matters that may aid in the expeditious 
disposition of the hearing;
    (3) Require parties to state their position in writing with respect 
to the various issues in the hearing and to exchange such statements 
with all other parties;
    (4) Examine witnesses and direct witnesses to testify;
    (5) Receive, rule on, exclude, or limit evidence;
    (6) Rule on procedural items pending before him or her; and
    (7) Take any action permitted to the ALJ as authorized by this part, 
or by the provisions of the Administrative Procedure Act (5 U.S.C. 551-
559).
    (d) Technical rules of evidence shall not apply to hearings 
conducted pursuant to Sec. 105-8.170-11, but rules or principles 
designed to assure production of credible evidence available and to 
subject testimony to cross-examination shall be applied by the ALJ 
whenever reasonably necessary. The ALJ may exclude irrelevant, 
immaterial, or unduly repetitious evidence. All documents and other 
evidence offered or taken for the record shall be open to examination by 
the parties and opportunity shall be given to refute facts and arguments 
advanced on either side of the issues. A transcript shall be made of the 
oral evidence except to the extent the substance thereof is stipulated 
for the record. All decisions shall be based upon the hearing record.

[[Page 163]]

    (e) The costs and expenses for the conduct of a hearing shall be 
allocated as follows:
    (1) Persons employed by the agency shall, upon request to the agency 
by the ALJ, be made available to participate in the hearing and shall be 
on official duty status for this purpose. They shall not receive witness 
fees.
    (2) Employees of other Federal agencies called to testify at a 
hearing shall, at the request of the ALJ and with the approval of the 
employing agency, be on official duty status during any period of 
absence from normal duties caused by their testimony, and shall not 
receive witness fees.
    (3) The fees and expenses of other persons called to testify at a 
hearing shall be paid by the party requesting their appearance.
    (4) The ALJ may require the agency to pay travel expenses necessary 
for the complainant to attend the hearing.
    (5) The respondent shall pay the required expenses and charges for 
the ALJ and court reporter.
    (6) All other expenses shall be paid by the party, the intervening 
party, or amicus curiae incurring them.
    (f) The ALJ shall submit in writing recommended findings of fact, 
conclusions of law, and remedies to all parties and the Special Counsel 
for Ethics and Civil Rights within 30 days after receipt of the hearing 
transcripts, or within 30 days after the conclusion of the hearing if no 
transcript is made. This time limit may be extended with the permission 
of the Special Counsel.
    (g) Within 15 days after receipt of the recommended decision of the 
ALJ any party may file exceptions to the decision with the Speical 
Counsel. Thereafter, each party will have ten days to file reply 
exceptions with the Special Counsel.



Sec. 105-8.170-12  Decision.

    (a) The Special Counsel shall make the decision of the agency based 
on information in the investigative record and, if a hearing is held, on 
the hearing record. The decision shall be made within 60 days of receipt 
of the transmittal of the notice of appeal and investitive record 
pursuant to Sec. 105-8.170-9(c) or after the period for filing 
exceptions ends, which ever is applicable. If the Special Counsel for 
Ethics and Civil Rights determines that he or she needs additional 
information from any party, he or she shall request the information and 
provide the other party or parties an opportunity to respond to that 
information. The Special Counsel shall have 60 days from receipt of the 
additional information to render the decision on the appeal. The Special 
Counsel shall transmit his or her decision by letter to the parties. The 
time limits established in this paragraph may be extended with the 
permission of the Assistant Attorney General. The decision shall set 
forth the findings, remedial action required, and reasons for the 
decision. If the decision is based on a hearing record, the Special 
Counsel shall consider the recommended decision of the ALJ and render a 
final decision based on the entire record. The Special Counsel may also 
remand the hearing record to the ALJ for a fuller development of the 
record.
    (b) Any respondent required to take action under the terms of the 
decision of the agency shall do so promptly. The Official may require 
periodic compliance reports specifying--
    (1) The manner in which compliance with the provisions of the 
decision has been achieved;
    (2) The reasons any action required by the final decision has not 
yet been taken; and
    (3) The steps being taken to ensure full compliance. The Official 
may retain responsibility for resolving disagreements that arise between 
the parties over interpretation fo the final agency decision or for 
specific adjudicatory decisions arising out of implementation.



Sec. 105-8.170-13  Delegation.

    The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.



Sec. 105-8.171  Complaints against an occupant agency.

    (a) Upon notification by an occupant agency that it has received a 
complete complaint alleging that the agency's

[[Page 164]]

program is inaccessible because existing facilities under GSA's control 
are not accessible and usable by individuals with handicaps, GSA shall 
be jointly responsible with the agency for resolving the complaint and 
shall participate in making findings of fact and conclusions of law in 
prescribing and implementing appropriate remedies for each violation 
found.
    (b) GSA shall make reasonable efforts to follow the time frames for 
complaint resolution that go into effect under the notifying occupant 
agency's compliance procedures when it receives a complete complaint.
    (c) Receipt of a copy of the complete complaint by GSA shall 
constitute notification to GSA for purposes of Sec. 105-8.171(a).



PART 105-50--PROVISION OF SPECIAL OR TECHNICAL SERVICES TO STATE AND LOCAL UNITS OF GOVERNMENT--Table of Contents




Sec.
105-50.000  Scope of part.
105-50.001  Definitions.
105-50.001-1  State.
105-50.001-2  Political subdivision or local government.
105-50.001-3  Unit of general local government.
105-50.001-4  Special-purpose unit of local government.
105-50.001-5  Specialized or technical services.
105-50.001-6  GSA.

                  Subpart 105-50.1--General Provisions

105-50.101  Purpose.
105-50.102  Applicability.
105-50.103  Policy.
105-50.104  Limitations.
105-50.105  Coordination of requests.
105-50.106  GSA response to requests.

       Subpart 105-50.2--Services Available From General Services 
                             Administration

105-50.201  Agencywide mission.
105-50.202  Specific services.
105-50.202-1  Copies of statistical or other studies.
105-50.202-2  Preparation of or assistance in the conduct of statistical 
          or other studies.
105-50.202-3  Training.
105-50.202-4  Technical assistance incident to Federal surplus personal 
          property.
105-50.202-5  Data processing services.
105-50.202-6  Communications services.
105-50.202-7  Technical information and advice.

      Subpart 105-50.3--Principles Governing Reimbursements to GSA

105-50.301  Established fees.
105-50.302  Special fee schedules.
105-50.303  Cost basis in lieu of fees.
105-50.304  Services provided through revolving funds.
105-50.304a  Deposits.
105-50.305  Exemptions.

                        Subpart 105-50.4--Reports

105-50.401  Reports submitted to the Congress.
105-50.402  Reports submitted to the Office of Management and Budget.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c) and sec. 302, 
82 Stat. 1102; 42 U.S.C. 4222.

    Source: 41 FR 21451, May 26, 1976, unless otherwise noted.



Sec. 105-50.000  Scope of part.

    This part prescribes rules and procedures governing the provision of 
special or technical services to State and local units of government by 
GSA. This part also prescribes principles governing reimbursements for 
such services.



Sec. 105-50.001  Definitions.

    The following definitions are established for terms used in this 
part.



Sec. 105-50.001-1  State.

    State means any of the several States of the United States, the 
District of Columbia, Puerto Rico, any territory or possession of the 
United States, or any agency or instrumentality of a State, but does not 
include the governments of the political subdivisions of the State.



Sec. 105-50.001-2  Political subdivision or local government.

    Political subdivision or local government means a local unit of 
government, including specifically a county, municipality, city, town, 
township, or a school or other special district created by or pursuant 
to State law.

[[Page 165]]



Sec. 105-50.001-3  Unit of general local government.

    Unit of general local government means any city, county, town, 
parish, village, or other general purpose political subdivision of a 
State.



Sec. 105-50.001-4  Special-purpose unit of local government.

    Special-purpose unit of local government means any special district, 
public-purpose corporation, or other strictly limited-purpose political 
subdivision of a State, but shall not include a school district.



Sec. 105-50.001-5  Specialized or technical services.

    Specialized or technical services means statistical and other 
studies and compilations, development projects, technical tests and 
evaluations, technical information, training activities, surveys, 
reports, documents, and any other similar service functions which any 
department or agency of the executive branch of the Federal Government 
is especially equipped and authorized by law to perform.



Sec. 105-50.001-6  GSA.

    GSA means the General Services Administration.



                  Subpart 105-50.1--General Provisions



Sec. 105-50.101  Purpose.

    (a) This part 105-50 implements the provisions of Title III of the 
Intergovernmental Cooperation Act of 1968 (82 Stat. 1102, 42 U.S.C. 
4221-4225), the purpose of which is stated as follows:

    It is the purpose of this title to encourage intergovernmental 
cooperation in the conduct of specialized or technical services and 
provision of facilities essential to the administration of State or 
local governmental activities, many of which are nationwide in scope and 
financed in part by Federal funds; to enable state and local governments 
to avoid unnecessary duplication of special service functions; and to 
authorize all departments and agencies of the executive branch of the 
Federal Government which do not have such authority to provide 
reimbursable specialized or technical services to State and local 
governments.

    (b) This part is consistent with the rules and regulations 
promulgated by the Director, Office of Management and Budget, in the 
Office of Management and Budget Circular No. A-97, dated August 29, 
1969, issued pursuant to section 302 of the cited Act (42 U.S.C. 4222).



Sec. 105-50.102  Applicability.

    This part is applicable to all organizational elements of GSA 
insofar as the services authorized to be performed in subpart 105-50.2 
fall within their designated functional areas.



Sec. 105-50.103  Policy.

    It is the policy of GSA to cooperate to the maximum extent possible 
with State and local units of government in providing the specialized or 
technical services authorized within the limitations set forth in 
Sec. 105-50.104.



Sec. 105-50.104  Limitations.

    The specialized or technical services provided under this part may 
be provided, in the discretion of the Administrator of General Services, 
only under the following conditions:
    (a) Such services will be provided only to the States, political 
subdivisions thereof, and combinations or associations of such 
governments or their agencies and instrumentalities.
    (b) Such services will be provided only upon the written request of 
a State or political subdivision thereof. Requests normally will be made 
by the chief executives of such entities and will be addressed to the 
General Services Administration as provided in Sec. 105-50.105.
    (c) Such services will not be provided unless GSA is providing 
similar services for its own use under the policies set forth in the 
Office of Management and Budget Circular No. A-76 Revised, dated August 
30, 1967, subject: Policies for acquiring commercial or industrial 
products and services for Government use. In addition, in accordance 
with the policies set forth in Circular No. A-76, the requesting entity 
must certify that such services cannot be procured reasonably and 
expeditiously through ordinary business channels.
    (d) Such services will not be provided if they require any additions 
of staff or

[[Page 166]]

involve outlays for additional equipment or other facilities solely for 
the purpose of providing such services, except where the costs thereof 
are charged to the user of such services. Further, no staff additions 
may be made which impede the implementation of, or adherence to, the 
employment ceilings contained in the Office of Management and Budget 
allowance letters.
    (e) Such services will be provided only upon payment or provision 
for reimbursement by the unit of government making the request of 
salaries and all other identifiable direct and indirect costs of 
performing such services. For cost determination purposes, GSA will be 
guided by the policies set forth in the Office of Management and Budget 
Circular No. A-25, dated September 23, 1959, subject: User charges.



Sec. 105-50.105  Coordination of requests.

    (a) All inquiries of a general nature concerning services GSA can 
provide shall be addressed to the General Services Administration (BR), 
Washington, D.C. 20405. The Director of Management Services, Office of 
Administration, shall serve as the central coordinator for such 
inquiries and shall assign them to the appropriate organizational 
element of GSA for expeditious handling.
    (b) Requests for specific services may be addressed directly to 
Heads of Services and Staff Offices and to Regional Administrators. 
Section 105-50.202 describes the specific services GSA can provide.
    (c) If the proper GSA organizational element is not known to the 
State or local unit of government, the request shall be addressed as in 
paragraph (a) of this section to ensure appropriate handling.



Sec. 105-50.106  GSA response to requests.

    (a) Direct response to each request shall be made by the Head of the 
applicable Service or Staff Office or Regional Administrator. He shall 
outline the service to be provided and the fee or reimbursement 
required. Any special conditions concerning time and priority, etc., 
shall be stated. Written acceptance by the authorized State or local 
governmental entity shall constitute a binding agreement.
    (b) Heads of Services and Staff Offices and Regional Administrators 
shall maintain complete records and controls of services provided on a 
calendar year basis to facilitate accurate, annual reporting, as 
required in Sec. 105-50.401.



       Subpart 105-50.2--Services Available From General Services 
                             Administration



Sec. 105-50.201  Agencywide mission.

    (a) In its role as a central property management agency, GSA 
constructs, leases, operates, and maintains office and other space: 
procures and distributes supplies; coordinates and provides for the 
economic and efficient purchase, lease, sharing, and maintenance of 
automatic data processing equipment by Federal agencies; manages 
stockpiles of materials maintained for use in national emergencies; 
transfers excess real and personal property among Federal agencies for 
further use; disposes of surplus real and personal property, by donation 
or otherwise, as well as materials excess to stockpile requirements; 
operates centralized data processing centers and telecommunications and 
motor pool systems; operates the National Archives and Presidential 
libraries; and provides a variety of records management services, 
including the operation of centers for storing and administering 
records, as well as other common services.
    (b) Special or technical services may be provided by many 
organizational elements of GSA with respect to their functional areas, 
but the requesting State or local agency needs only to know that the 
service desired is related to one or more of the functional areas 
described above and direct its request as provided for under Sec. 105-
50.105. State and local units of government are also encouraged to 
consult the ``Catalog of Federal Domestic Assistance'' as a more 
complete guide to the many other Federal assistance programs available 
to them. The catalog, issued annually and updated periodically by the 
Office of Management and Budget, is available through the Superintendent 
of

[[Page 167]]

Documents, Government Printing Office, Washington, DC 20402.



Sec. 105-50.202  Specific services.

    Within the functional areas identified in Sec. 105-50.201, GSA can 
provide the services hereinafter described.



Sec. 105-50.202-1  Copies of statistical or other studies.

    This material includes a copy of any existing statistical or other 
studies and compilations, results of technical tests and evaluations, 
technical information, surveys, reports, and documents, and any such 
materials which may be developed or prepared in the future to meet the 
needs of the Federal Government or to carry out normal program 
responsibilities of GSA.



Sec. 105-50.202-2  Preparation of or assistance in the conduct of statistical or other studies.

    (a) This service includes preparation of statistical or other 
studies and compilations, technical tests and evaluations, technical 
information, surveys, reports, and documents and assistance in the 
conduct of such activities and in the preparation of such materials, 
provided they are of a type similar to those which GSA is authorized by 
law to conduct or prepare and when resources are available.
    (b) Specific areas in which GSA can conduct or participate in the 
conduct of studies include:
    (1) Space management, including assignment and utilization;
    (2) Supply management, including laboratory tests and evaluations;
    (3) Management of motor vehicles;
    (4) Archives and records management;
    (5) Automatic data processing systems; and
    (6) Telecommunications and teleprocessing systems and services.



Sec. 105-50.202-3  Training.

    (a) This training consists of the type which GSA is authorized by 
law to conduct for Federal personnel and others or which is similar to 
such training.
    (b) Descriptions of the specific training courses conducted by GSA 
are published annually in the Interagency Training Programs bulletin, 
copies of which are available from the U.S. Civil Service Commission, 
Washington, D.C. 20415.



Sec. 105-50.202-4  Technical assistance incident to Federal surplus personal property.

    Technical assistance will be provided in the screening and selection 
of surplus personal property under existing laws, provided such aid 
primarily strengthens the ability of the recipient in developing its own 
capacity to prepare proposals.



Sec. 105-50.202-5  Data processing services.

    GSA will develop ADP logistical feasibility studies, software, 
systems analyses, and programs. To the extent that data processing 
capabilities are available, GSA will also assist in securing data 
processing services on a temporary, short term basis from other Federal 
facilities or Federal Data Processing Centers.



Sec. 105-50.202-6  Communications services.

    GSA will continue to make its bulk rate circuit ordering services 
available for use by State and local governments. Under a revised tariff 
effective December 12, 1971, GSA will bill the State and local 
governments for their share of the TEL PAK costs. Services provided 
prior to December 12, 1971, will be billed by the contractors under the 
former arrangements. In addition, certain activities, such as surplus 
property agencies which have frequent communications with Federal 
agencies, will be given access to the Federal Telecommunications System 
switchboards.



Sec. 105-50.202-7  Technical information and advice.

    GSA will provide technical information, personnel management systems 
services, and technical advice on improving logistical and management 
services which GSA normally provides for itself or others under existing 
authorities.

[[Page 168]]



      Subpart 105-50.3--Principles Governing Reimbursements to GSA



Sec. 105-50.301  Established fees.

    Where there is an established schedule of fees for services to other 
Government agencies or the public, the schedule shall be used as the 
basis for reimbursement for like services furnished to State and local 
governments.



Sec. 105-50.302  Special fee schedules.

    Where there is no established schedule of fees for types of service 
which are ordinarily reimbursed on a fee basis, such schedules may be 
developed and promulgated in conjunction with the Office of 
Administration. The fees so established shall cover all direct costs, 
such as salaries of personnel involved plus personnel benefits, travel, 
and other related expenses and all indirect costs such as management, 
supervisory, and staff support expenses determined or estimated from the 
best available records in GSA. Periodically, fees shall be reviewed for 
adequacy of recovery and adjusted as necessary.



Sec. 105-50.303  Cost basis in lieu of fees.

    Where the cost of services is to be recovered on other than a fee 
basis, upon receipt of a request from a State or local government for 
such services, a written reply shall be prepared by the service or staff 
office receiving the request stating the basis for reimbursement for the 
services to be performed. The proposal shall be based on an estimate of 
all direct costs, such as salaries of personnel involved plus personnel 
benefits, travel, and other related expenses and on such indirect costs 
as management, supervisory, and staff support expenses. An appropriate 
surcharge may be developed to recover these indirect costs. The terms 
thereof shall be concurred in by the Director of Administration. 
Acceptance in writing by the requester shall constitute a binding 
agreement between GSA and the requesting governmental unit.



Sec. 105-50.304  Services provided through revolving funds.

    Where the service furnished is of the type which GSA is now billing 
through revolving funds, reimbursement shall be obtained from State and 
local governments on the same basis; i.e., the same pricing method, 
billing forms, and billing support shall be used.



Sec. 105-50.304a  Deposits.

    Reimbursements to GSA for furnishing special or technical services 
to State and local units of government will be deposited to the credit 
of the appropriation from which the cost of providing such services has 
been paid or is to be charged if such reimbursements are authorized. 
Otherwise, the reimbursements will be credited to miscellaneous receipts 
in the U.S. Treasury (42 U.S.C. 4223).



Sec. 105-50.305  Exemptions.

    (a) Single copies of existing reports covering studies and 
statistical compilations and other data or publications for which there 
is no established schedule of fees shall be furnished without charge 
unless significant expense is incurred in reproducing the material, in 
which instance the actual cost thereof shall be charged.
    (b) GSA may, pursuant to section 302 of the Intergovernmental 
Personnel Act of 1970 (42 U.S.C. 4742), admit employees of State and 
local units of government to training programs established for 
professional, administrative, or technical personnel and may waive the 
requirement for reimbursement in whole or in part.



                        Subpart 105-50.4--Reports



Sec. 105-50.401  Reports submitted to the Congress.

    (a) The Administrator of General Services will furnish annually to 
the respective Committees on Government Operations of the Senate and the 
House of Representatives a summary report on the scope of the services 
provided under Title III of the act and this part.
    (b) Heads of Services and Staff Offices and all Regional 
Administrators shall furnish the Director of Management Services, OAD, 
by no later than January 15 of each year, the following information 
concerning services provided during the preceding calendar year to State 
and local units of government:

[[Page 169]]

    (1) A brief description of the services provided, including any 
other pertinent data;
    (2) The State and/or local unit of government involved; and
    (3) The cost of GSA to provide the service, including the amount of 
reimbursement, if any, made by the benefitting government.
    (c) Reports Control Symbol LAW-27-OA is assigned to this report.



Sec. 105-50.402  Reports submitted to the Office of Management and Budget.

    Copies of the foregoing reports will be submitted by the 
Administrator to the Office of Management and Budget not later than 
March 30 of each year.



PART 105-51--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents




    Authority: Sec. 213, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).



Sec. 105-51.001  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (Title IV 
of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) are set forth 
in 49 CFR part 24.

[52 FR 48024, Dec. 17, 1987; 54 FR 8913, Mar. 2, 1989]



PART 105-53--STATEMENT OF ORGANIZATION AND FUNCTIONS--Table of Contents




Sec.
105-53.100  Purpose.

                           Subpart A--General

105-53.110  Creation and authority.
105-53.112  General statement of functions.
105-53.114  General statement of organization.
105-53.116  General regulations.
105-53.118  Locations of material available for public inspection.
105-53.120  Address and telephone numbers.

                       Subpart B--Central Offices

105-53.130  Office of the Administrator.
105-53.130-1  [Reserved]
105-53.130-2  Office of Ethics and Civil Rights.
105-53.130-3  Office of the Executive Secretariat.
105-53.130-4  Office of Small and Disadvantaged Business Utilization.
105-53.131  Office of Inspector General.
105-53.132  GSA Board of Contract Appeals.
105-53.133  Information Security Oversight Office.
105-53.134  Office of Administration.
105-53.135  [Reserved]
105-53.136  Office of Congressional Affairs
105-53.137  Office of Acquisition Policy.
105-53.138  Office of General Counsel.
105-53.139  Office of the Comptroller.
105-53.140  Office of Operations and Industry Relations.
105-53.141  Office of Policy Analysis.
105-53.142  Office of Public Affairs.
105-53.143  Information Resources Management Service.
105-53.144  Federal Property Resources Service.
105-53.145  Federal Supply Service.
105-53.146  [Reserved]
105-53.147  Public Buildings Service.

                       Subpart C--Regional Offices

105-53.150  Organization and functions.
105-53.151  Geographic composition, addresses, and telephone numbers.

    Authority: 5 U.S.C. 552(a)(1), Pub. L. 90-23, 81 Stat. 54 sec. 
(a)(1); 40 U.S.C. 486(c), Pub. L. 81-152, 63 Stat. 390, sec. 205(c).

    Source: 48 FR 25200, June 6, l983, unless otherwise noted.



Sec. 105-53.100  Purpose.

    This part is published in accordance with 5 U.S.C. 552 and is a 
general description of the General Services Administration.



                           Subpart A--General



Sec. 105-53.110  Creation and authority.

    The General Services Administration was established by section 101 
of the Federal Property and Administrative Services Act of 1949 (63 
Stat. 377), effective July 1, 1949. The act consolidated

[[Page 170]]

and transferred to the agency a variety of real and personal property 
and related functions fomerly assigned to various agencies. Subsequent 
laws and Executive orders assigned other related functions and programs.



Sec. 105-53.112  General statement of functions.

    The General Services Administration, as a major policy maker, 
provides guidance and direction to Federal agencies in a number of 
management fields. GSA formulates and prescribes a variety of 
Governmentwide policies relating to procurement and contracting; real 
and personal property management; transportation, public transportation, 
public utilities and telecommunications management; automated data 
processing management; records management; the use and disposal of 
property; and the information security program. In addition to its 
policy role, GSA also provides a variety of basic services in the 
aforementioned areas to other Government agencies. A summary description 
of these services is presented by organizational component in subpart B.

[54 FR 26741, June 26, 1989]



Sec. 105-53.114  General statement of organization.

    The General Services Administration is an independent agency in the 
executive branch of the Government. The work of the agency as a whole is 
directed by the Administrator of General Services, who is assisted by 
the Deputy Administrator. A summary description of each of GSA's major 
functions and organizational components is presented in subparts B and 
C.



Sec. 105-53.116  General regulations.

    Regulations of the General Services Administration and its 
components are codified in the Code of Federal Regulations in title 1, 
chapters I and II; title 32, chapter XX; title 41, chapters 1, 5, 101, 
105, and 201; and title 48, chapters 1 and 5. Titles 1, 32, 41, and 48 
of the Code of Federal Regulations are available for review at most 
legal and depository libraries and at the General Services 
Administration Central Office and regional offices. Copies may be 
purchased from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402.

[49 FR 24995, June 19, 1984]



Sec. 105-53.118  Locations of material available for public inspection.

    GSA maintains reading rooms containing materials available for 
public inspection and copying at the following locations:
    (a) General Services Administration, 18th & F Streets, NW., Library 
(Room 1033), Washington, DC 20405. Telephone 202-535-7788.
    (b) Business Service Center, General Services Administration, 10 
Causeway Street, Boston, MA 02222. Telephone: 617-565-8100.
    (c) Business Service Center, General Services Administration, 26 
Federal Plaza, NY, NY 10278. Telephone: 212-264-1234.
    (d) Business Service Center, General Services Administration, 
Seventh & D Streets, SW., Room 1050, Washington, DC 20407. Telephone: 
202-472-1804.
    (e) Business Service Center, General Services Administration, Ninth 
& Market Streets, Room 5151, Philadelphia, PA 19107. Telephone: 215-597-
9613.
    (f) Business Service Center, General Services Administration, 
Richard B. Russell Federal Building, U.S. Courthouse, 75 Spring Street, 
SW., Atlanta, GA 30303, Telephone: 404/331-5103.
    (g) Business Service Center, General Services Administration, 230 
South Dearborn Street, Chicago, IL 60604. Telephone: 312-353-5383.
    (h) Business Service Center, General Services Administration, 1500 
East Bannister Road, Kansas City, MO 64131. Telephone: 816-926-7203.
    (i) Business Service Center, General Services Administration, 819 
Taylor Street, Fort Worth, TX 76102. Telephone: 817-334-3284.
    (j) Business Service Center, General Services Administration, Denver 
Federal Center, Denver, CO 80225. Telephone: 303-236-7408.
    (k) Business Service Center, General Services Administration, 525 
Market Street, San Francisco, CA 94105. Telephone: 415-974-9000.
    (l) Business Service Center, General Services Administration, 300 
North Los Angeles Street, Room 3259, Los Angeles, CA 90012. Telephone: 
213-688-3210.

[[Page 171]]

    (m) Business Service Center, General Services Administration, GSA 
Center, Auburn, WA 98001. Telephone: 206-931-7957.

[48 FR 25200, June 6, 1983, as amended at 49 FR 24995, June 19, 1984; 50 
FR 26363, June 26, 1985; 51 FR 23229, June 26, 1986; 52 FR 23657, June 
24, 1987; 53 FR 23761, June 24, 1988]



Sec. 105-53.120  Address and telephone numbers.

    The Office of the Administrator; Office of Ethics and Civil Rights; 
Office of the Executive Secretariat; Office of Small and Disadvantaged 
Business Utilization; Office of Inspector General; GSA Board of Contract 
Appeals; Information Security Oversight Office; Office of 
Administration; Office of Congressional Affairs; Office of Acquisition 
Policy; Office of General Counsel; Office of the Comptroller; Office of 
Operations and Industry Relations; Office of Policy Analysis; Office of 
Public Affairs; Information Resources Management Service; Federal 
Property Resources Service; and Public Buildings Service are located at 
18th and F Streets NW., Washington, DC 20405. The Federal Supply Service 
is located at Crystal Mall Building 4, 1941 Jefferson Davis Highway, 
Arlington, VA, however, the mailing address is Washington, DC 20406. The 
telephone number for the above addresses is 202-472-1082. The addresses 
of the eleven regional offices are provided in Sec. 105-53.151.

[54 FR 26741, June 26, 1989]



                       Subpart B--Central Offices



Sec. 105-53.130  Office of the Administrator.

    The Administrator of General Services, appointed by the President 
with the advice and consent of the Senate, directs the execution of all 
programs assigned to the General Services Administration. The Deputy 
Administrator, who is appointed by the Administrator, assists in 
directing agency programs and coordinating activities related to the 
functions of the General Services Administration.



Sec. 105-53.130-1  [Reserved]



Sec. 105-53.130-2  Office of Ethics and Civil Rights.

    The Office of Ethics and Civil Rights, headed by the Special Counsel 
for Ethics and Civil Rights, is responsible for developing, directing, 
and monitoring the agency's programs governing employee standards of 
ethical conduct, equal employment opportunity, and civil rights. It is 
the focal point for the agency's implementation of the Ethics in 
Government Act of 1978. The principal statutes covering the Civil Rights 
Program are Titles VI and VII of the Civil Rights Act of 1964, Title IX 
of the Educational Amendments Act of 1972, sections 501 and 504 of the 
Vocational Rehabilitation Act of 1973, the Age Discrimination in 
Employment Act of 1975, and the Equal Pay Act.

[53 FR 23761, June 24, 1988]



Sec. 105-53.130-3  Office of the Executive Secretariat.

    The Office of the Executive Secretariat, headed by the Director of 
the Executive Secretariat, is responsible for policy coordination, 
correspondence control, and various administrative tasks in support of 
the Administrator and Deputy Administrator.



Sec. 105-53.130-4  Office of Small and Disadvantaged Business Utilization.

    (a) Creation and authority. Public Law 95-507, October 14, 1978, an 
amendment to the Small Business Act and the Small Business Investment 
Act of 1958, established in each Federal agency having procurement 
authority the Office of Small and Disadvantaged Business Utilization. 
Each office is headed by a Director of Small and Disadvantaged Business 
Utilization. The Director is appointed by the head of the agency or 
department.
    (b) Functions. The Director of Small and Disadvantaged Business 
Utilization is responsible for the implementation and execution of the 
functions and duties under Sections 8 and 15 of the Small Business Act 
to include the issuance of policy direction and guidance. The office 
provides information, assistance, and counseling to business concerns, 
including small businesses,

[[Page 172]]

small socially and economically disadvantaged persons, women-owned 
businesses, labor surplus area concerns, and workshops operated by the 
blind and other severely handicapped persons. The office also conducts 
outreach, liaison, source listings, and seminars for small and 
disadvantaged businesses and coordinates and promotes procurement 
programs and policies.



Sec. 105-53.131  Office of Inspector General.

    (a) Creation and authority. Public Law 95-452, known as the 
Inspector General Act of 1978, consolidated existing audit and 
investigation functions and established an Office of Inspector General 
in 11 major domestic departments and agencies, including GSA. Each 
office is headed by an Inspector General appointed by the President with 
the advice and consent of the Senate.
    (b) Functions. The Office of Inspector General is responsible for 
policy direction and conduct of audit, inspection, and investigation 
activities relating to programs and operations of GSA; and maintaining 
liaison with other law enforcement agencies, the Department of Justice, 
and United States Attorneys on all matters relating to the detection and 
prevention of fraud and abuse. The Inspector General reports 
semiannually to the Congress through the Administrator concerning fraud, 
abuses, other serious problems, and deficiencies of agency programs and 
operations; recommends corrective action; and reports on progress made 
in implementing these actions.



Sec. 105-53.132  GSA Board of Contract Appeals.

    (a) Creation and Authority. The GSA Board of Contract Appeals 
(GSBCA), headed by the Chairman, GSA Board of Contract Appeals, was 
established on February 28, 1979, by the Administrator of General 
Services as an independent administrative/judicial tribunal under the 
provisions of the Contract Disputes Act of 1978 (Pub. L. 95-563). The 
Board was granted additional authority pursuant to the Brooks Act, 40 
U.S.C. 759(f) (Pub. L. 99-591).
    (b) Functions. The GSBCA hears, considers, and decides disputes 
between contractors and GSA and other executive departments, agencies, 
and commissions under the provisions of the Contract Disputes Act of 
1978, the ``Disputes'' clause of contracts, and in connection with 
contract related claims. The Board furnishes hearing examiners for the 
Suspension and Debarment Board which serves as the factfinder in 
suspension and proposed debarment matters. The Suspension and Debarment 
Board provides the suspending official with a determination as to 
whether adequate evidence exists to support the cause for suspension, 
delivers written findings of fact to the debarring official which 
resolve any facts in dispute based on a preponderance of the evidence 
and determines whether a cause for debarment exists. The Board also 
serves as an ad hoc body convened to consider any other type of dispute, 
including appeals involving violations of post-Federal employment 
restrictions pursuant to the Ethics in Govenment Act of 1978. 
Additionally, the Board hears, considers, and decides ADP protests by 
interested parties pursuant to the Brooks Act, 40 U.S.C. 759(f).
    (c) Regulations. Regulations pertaining to GSBCA programs are 
published in 41 CFR part 5A-60. Information on availability of the 
regulations is provided in Sec. 105-53.116.

[48 FR 25200, June 6, 1983, as amended at 53 FR 23761, June 24, 1988]



Sec. 105-53.133  Information Security Oversight Office.

    (a) Creation and authority. The Information Security Oversight 
Office (ISOO), headed by the Director of ISOO, who is appointed by the 
Administrator with the approval of the President, was established by the 
Administrator on November 20, 1978, under the provisions of Executive 
Order 12065. Effective August 1, 1982, this authority is based upon 
Executive Order 12356, which superseded E.O. 12065.
    (b) Functions. ISOO oversees and ensures, under the general policy 
direction of the National Security Council, Government-wide 
implementation of the information security program established by 
Executive order.

[[Page 173]]

    (c) Regulations. Regulations pertaining to ISOO Programs are 
published in 32 CFR chapter XX, part 2000 et seq.



Sec. 105-53.134  Office of Administration.

    The Office of Administration, headed by the Associate Administrator 
for Administration, participates in the executive leadership of the 
agency; providing advice on the formulation of major policies and 
procedures, particularly those of a critical or controversial nature, to 
the Administrator and Deputy Administrator. The Office plans and 
administers programs in organization, productivity improvement, position 
management, training, staffing, position classification and pay 
administration, employee relations, workers' compensation, career 
development, GSA internal security, reporting requirements, regulations, 
internal directives, records correspondence procedures, Privacy and 
Freedom of Information Acts, printing and duplicating, mail, 
telecommunications, graphic design, cooperative administrative support, 
and support for congressional field offices. The office also serves as 
the central point of control for audit and inspection reports from the 
Inspector General and the Comptroller General of the United States; and 
manages the GSA internal controls evaluation, improvement, and reporting 
program. In addition, the office includes a secretariat to oversee 
Federal advisory committees.

[54 FR 26741, June 26, 1989]



Sec. 105-53.135  [Reserved]



Sec. 105-53.136  Office of Congressional Affairs.

    The Office of Congressional Affairs, headed by the Associate 
Administrator for Congressional Affairs, is responsible for directing 
and coordinating the legislative and congressional activities of GSA.

[54 FR 26742, June 26, 1989]



Sec. 105-53.137  Office of Acquisition Policy.

    (a) Functions. The Office of Acquisition Policy (OAP), headed by the 
Associate Administrator for Acquisition Policy, serves as the single 
focal point for GSA acquisition and contracting matters and is 
responsible for ensuring that the GSA procurement process is executed in 
compliance with all appropriate public laws and regulations and is based 
on sound business judgment. Also, OAP exercises Governmentwide 
acquisition responsibilities through its participation with the 
Department of Defense and the National Aeronautics and Space 
Administration in the development and publication of the Federal 
Acquisition Regulation.
    (b) Regulations. Regulations pertaining to OAP programs are 
published in 48 CFR chapter 1, Federal Acquisition Regulation (FAR), and 
in 48 CFR chapter 5, General Services Acquisition Regulation (GSAR). 
Information on availability of the regulations is provided in Sec. 105-
53.116.

[52 FR 23657, June 24, 1987]



Sec. 105-53.138  Office of General Counsel.

    Functions. The Office of General Counsel (OGC), headed by the 
General Counsel, is responsible for providing all legal services to the 
services, programs offices, staff offices, and regions of GSA with the 
exception of certain legal activities of the Office of Inspector General 
and legal activities of the Board of Contract Appeals; drafts 
legislation proposed by GSA; furnishes legal advice required in 
connection with reports on legislation proposed by other agencies; 
provides liaison on legal matters with other Federal agencies; 
coordinates with the Department of Justice in litigation matters; and 
reviews and gives advice on matters of contract policy and contract 
operations.



Sec. 105-53.139  Office of the Comptroller.

    (a) Functions. The Office of the Comptroller, headed by the 
Comptroller, is responsible for centralized agencywide budget and 
accounting functions; overall allocation and administrative control of 
agencywide resources and financial management programs; planning, 
developing, and directing GSA's executive management information system; 
and overseeing implementation of OMB Circular A-76 agencywide.
    (b) Regulations. Regulations pertaining to the Office of the 
Comptroller's programs are published in 41 CFR

[[Page 174]]

part 101-2. Information on availability of the regulations is provided 
in Sec. 105-53.116.

[51 FR 23230, June 26, 1986, as amended at 53 FR 23762, June 24, 1988; 
54 FR 26742, June 26, 1989]



Sec. 105-53.140  Office of Operations and Industry Relations.

    The Office of Operations and Industry Relations, headed by the 
Associate Administrator for Operations and Industry Relations, is 
responsible for formulating GSA-wide policy that relates to regional 
operations, supervising GSA's Regional Administrators, and planning and 
coordinating GSA business and industry relations and customer liaison 
activities.

[54 FR 26742, June 26, 1989]



Sec. 105-53.141  Office of Policy Analysis.

    The Office of Policy Analysis, headed by the Associate Administrator 
for Policy Analysis, is responsible for providing analytical support, 
independent, objective information concerning management policies and 
programs, and technical and analytical assistance in the areas of policy 
analysis and resource allocation to the Administrator, senior officials, 
and organizations in GSA.

[51 FR 23230, June 26, 1986]



Sec. 105-53.142  Office of Public Affairs.

    The Office of Public Affairs, headed by the Associate Administrator 
for Public Affairs, is responsible for the planning, implementation, and 
coordination of GSA public information and public events and employee 
communication activities, and managing and operating the Consumer 
Information Center.

[51 FR 23230, June 26, 1986]



Sec. 105-53.143  Information Resources Management Service.

    (a) Creation and authority. The Information Resources Management 
Service (IRMS), headed by the Commissioner, Information Resources 
Management Service, was established as the Office of Information 
Resources Management on August 17, 1982 and subsequently redesignated as 
IRMS on November 17, 1985, by the Administrator of General Services. The 
Information Resources Management Service was assigned responsibility for 
administering the Governmentwide information resources management 
program, including records management, and procurement, management, and 
use of automatic data processing and telecommunications resources.
    (b) Functions. IRMS is responsible for directing and managing 
Governmentwide programs for the procurement and use of automatic data 
processing (ADP), office information systems, and telecommunications 
equipment and services; developing and coordinating Governmentwide 
plans, policies, procedures, regulations, and publications pertaining to 
ADP; telecommunications and records management activities; managing and 
operating the Information Technology Fund; managing and operating the 
Federal Telecommunications System (FTS); planning and directing programs 
for improving Federal records and information management practices 
Governmentwide; managing and operating the Federal Information Centers; 
developing and overseeing GSA policy concerning automated information 
systems, equipment, and facilities; and providing policy and program 
direction for the GSA Emergency Preparedness and Disaster Support 
Programs.
    (c) Regulations. Regulations pertaining to IRMS programs are 
published in 41 CFR chapter 201, Federal Information Resources 
Management Regulation (FIRMR), and 48 CFR chapters 1 and 5. Information 
on availability of the regulations is provided in Sec. 105-53.116.

[51 FR 23230, June 26, 1986, as amended at 52 FR 23657, June 24, 1987]



Sec. 105-53.144  Federal Property Resources Service.

    (a) Creation and authority. The Federal Property Resources Service 
(FPRS), headed by the Commissioner, Federal Property Resources Service, 
was established on July 18, 1978, by the Administrator of General 
Services to carry out the utilization and disposal functions for real 
and related personal property.

[[Page 175]]

    (b) Functions. FPRS is responsible for utilization surveys of 
Federal real property holdings; the reuse of excess real property; and 
the disposal of surplus real property.
    (c) Regulations. Regulations pertaining to FPRS programs are 
published in 41 CFR chapter 1, 41 CFR chapter 101, subchapter H, and 48 
CFR chapter 1. Information on availability of the regulations is 
provided in Sec. 105-53.116

[54 FR 26742, June 26, 1989]



Sec. 105-53.145  Federal Supply Service.

    (a) Creation and authority. The Federal Supply Service (FSS), headed 
by the Commissioner, FSS, was established on December 11, 1949, by the 
Administrator of General Services to supersede the Bureau of Federal 
Supply of the Department of the Treasury which was abolished by the 
Federal Property and Administrative Services Act of 1949. The Federal 
Supply Service has been known previously as the Office of Personal 
Property and the Office of Federal Supply and Services.
    (b) Functions. FSS is responsible for determining supply 
requirements; procuring personal property and nonpersonal services; 
transferring excess (except ADP equipment) and donating and selling 
surplus personal property; managing GSA's Governmentwide transportation, 
traffic management, travel, fleet management, and employee relocation 
programs; auditing of transportation bills paid by the Government and 
subsequent settlement of claims; developing Federal standard purchase 
specifications and Commercial Item Descriptions; standardizing 
commodities purchased by the Federal Government; cataloging items of 
supply procured by civil agencies; and ensuring continuity of supply 
operations during defense emergency conditions.
    (c) Regulations. Regulations pertaining to FSS programs are 
published in 41 CFR chapters 1 and 5; 41 CFR chapter 101, subchapters A, 
E, G, and H; and in 48 CFR chapters 1 and 5. Information on availability 
of the regulations is provided in Sec. 105-53.116.

[49 FR 24996, June 19, 1984, as amended at 51 FR 23230, June 26, 1986]



Sec. 105-53.146  [Reserved]



Sec. 105-53.147  Public Buildings Service.

    (a) Creation and authority. The Public Buildings Service (PBS), 
headed by the Commissioner, Public Buildings Service, was established on 
December 11, 1949, by the Administrator of General Services to supersede 
the Public Buildings Administration, which was abolished by the Federal 
Property and Administrative Services Act of 1949.
    (b) Functions. PBS is responsible for the design, construction, 
management, maintenance, operation, alteration, extension, remodeling, 
preservation, repair, improvement, protection, and control of buildings, 
both federally owned and leased, in which are provided housing 
accommodations for Government activities; the acquisition, utilization, 
custody, and accountability for GSA real property and related personal 
property; representing the consumer interests of the Federal executive 
agencies before Federal and State rate regulatory commissions and 
providing procurement support and contracting for public utilities 
(except telecommunications); the Safety and Environmental Management 
Program for GSA managed Government-owned and-leased facilities; 
providing for the protection and enhancement of the cultural environment 
for federally owned sites, structures, and objects of historical, 
architectural, or archaeological significance; ensuring that Federal 
work space is used more effectively and efficiently; providing 
leadership in the development and maintenance of needed property 
management information systems for the Government; and coordination of 
GSA activities towards improving the environment, as required by the 
National Environmental Policy Act of 1959.
    (c) Regulations. Regulations pertaining to PBS programs are 
published in 41 CFR chapter 1, 41 CFR chapter 101, subchapters D and H; 
and in 48 CFR chapter 1. Information on availability of the regulations 
is provided in Sec. 105-53.116.

[48 FR 25200, June 6, 1983, as amended at 49 FR 24996, June 19, 1984; 52 
FR 23658, June 24, 1987]

[[Page 176]]



                       Subpart C--Regional Offices



Sec. 105-53.150  Organization and functions.

    Regional offices have been established in 11 cities throughout the 
United States. Each regional office is headed by a Regional 
Administrator who reports to the Associate Administrator for Operations 
and Industry Relations. The geographic composition of each region is 
shown in Sec. 105-53.151.

[54 FR 26742, June 26, 1989]



Sec. 105-53.151  Geographic composition, addresses, and telephone numbers.

            Regional Offices--General Services Administration

                           Region and Address

    No. 1. (Comprising the States of Connecticut, Maine, Massachusetts, 
New Hampshire, Rhode Island, and Vermont); Boston FOB, 10 Causeway 
Street, Boston, MA 02222. Telephone: 617-565-5860.
    No. 2. (Comprising the States of New Jersey and New York, the 
Commonwealth of Puerto Rico, and the Virgin Islands); 26 Federal Plaza, 
New York, NY 10278. Telephone: 212-264-2600.
    No. 3. (Comprising the States of Maryland, Virginia (except those 
jurisdictions within the National Capital Region boundaries), West 
Virginia, Pennsylvania, and Delaware); Ninth and Market Streets, 
Philadelphia, PA 19107. Telephone 215-597-1237.
    No. 4. (Comprising the States of Alabama, Florida, Georgia, 
Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee); 
75 Spring Street, SW., Atlanta, GA 30303. Telephone: 404-331-3200.
    No. 5. (Comprising the States of Illinois, Indiana, Michigan, 
Minnesota, Ohio, and Wisconsin); 230 South Dearborn Street, Chicago, IL 
60604. Telephone: 312-353-5395.
    No. 6. (Comprising the States of Iowa, Kansas, Missouri, and 
Nebraska); 1500 East Bannister Road, Kansas City, MO 64131. Telephone: 
816-926-7201.
    No. 7. (Comprising the States of Arkansas, Louisiana, New Mexico, 
Oklahoma, and Texas); 819 Taylor Street, Fort Worth, TX 76102. 
Telephone: 817-334-2321.
    No. 8. (Comprising the States of Colorado, Montana, North Dakota, 
South Dakota, Utah, and Wyoming); Building 41, Denver Federal Center, 
Denver, CO 80225. Telephone: 303-236-7329.
    No. 9. (Comprising Guam and the States of Arizona, California, 
Hawaii, and Nevada); 525 Market Street, San Francisco, CA 94105. 
Telephone : 415-974-9147.
    No. 10. (Comprising the States of Alaska, Idaho, Oregon, and 
Washington); GSA Center, Auburn, WA 98001. Telephone: 206-931-7000.
    National Capital Region. (Comprising the District of Columbia; 
Counties of Montgomery and Prince Georges in Maryland; and the City of 
Alexandria and the Counties of Arlington, Fairfax, Loudoun, and Prince 
William in Virginia); Seventh and D Streets, SW., Washington, DC 20407. 
Telephone: 202-472-1100.

[51 FR 23231, June 26, 1986, as amended at 52 FR 23658, June 24, 1987; 
53 FR 23762, June 24, 1988; 54 FR 26742, June 26, 1989]



PART 105-54--ADVISORY COMMITTEE MANAGEMENT--Table of Contents




Sec.
105-54.000  Scope of part.

                  Subpart 105-54.1--General Provisions

105-54.101  Applicability.
105-54.102  Definitions.
105-54.103  Policy.
105-54.104  Responsibilities.

         Subpart 105-54.2--Establishment of Advisory Committees

105-54.200  Scope of subpart.
105-54.201  Proposals for establishing advisory committees.
105-54.202  Review and approval of proposals.
105-54.203  Advisory committee charters.
105-54.203-1  Preparation of charters.
105-54.203-2  Active charters file.
105-54.203-3  Submission to Library of Congress.
105-54.204  Advisory committee membership.

             Subpart 105-54.3--Advisory Committee Procedures

105-54.300  Scope of subpart.
105-54.301  Meetings.
105-54.302  Committee records and reports.
105-54.303  Fiscal and administrative provisions.
105-54.304  Cost guidelines.
105-54.305  Renewal of advisory committees.
105-54.306  Amendment of advisory committee charters.
105-54.307  Termination of advisory committees.
105-54.308  Responsibilities of the Administrator.
105-54.309  Added responsibilities of service and staff office heads and 
          regional administrators.
105-54.310  Advisory committee duties of the GSA Committee Management 
          Officer.
105-54.311  Complaint procedures.

[[Page 177]]

                        Subpart 105-54.4--Reports

105-54.400  Scope of subpart.
105-54.401  Reports on GSA Federal Advisory Committees.

    Authority: Pub. L. 92-463 dated October 6, 1972, as amended; and 5 
U.S.C. 552.

    Source: 53 FR 40224, Oct. 14, 1988, unless otherwise noted.



Sec. 105-54.000  Scope of part.

    This part sets forth policies and procedures in GSA regarding the 
establishment, operation, termination, and control of advisory 
committees for which GSA has responsibility. It implements the Federal 
Advisory Committee Act (Pub. L. 92-463), which authorizes a system 
governing the establishment and operation of advisory committees in the 
executive branch of the Federal Government, and Executive Order 11686 of 
October 7, 1972, which directs the heads of all executive departments 
and agencies to take appropriate action to ensure their ability to 
comply with the provisions of the Act.



                  Subpart 105-54.1--General Provisions



Sec. 105-54.101  Applicability.

    This part 105-54 applies to all advisory committees for which GSA 
has responsibility. This part also applies to any committee that advises 
GSA officials even if the committee were not established for that 
purpose. This applicability, however, is limited to the period of the 
committee's use as an advisory body. This part does not apply to:
    (a) An advisory committee exempted by an Act of Congress;
    (b) A local civic group whose primary function is to render a public 
service in connection with a Federal program;
    (c) A State or local committee, council, board, commission, or 
similar group established to advise or make recommendations to State or 
local officials or agencies;
    (d) A meeting initiated by the President or one or more Federal 
official(s) for the purpose of obtaining advice or recommendations from 
one individual;
    (e) A meeting with a group initiated by the President or one or more 
Federal official(s) for the sole purpose of exchanging facts or 
information;
    (f) A meeting initiated by a group with the President or one or more 
Federal official(s) for the purpose of expressing the group's views, 
provided that the President or Federal official(s) does not use the 
group recurrently as a preferred source of advice or recommendations;
    (g) A committee that is established to perform primarily operational 
as opposed to advisory functions. Operational functions are those 
specifically provided by law, such as making or implementing Government 
decisions or policy. An operational committee would be covered by the 
Act if it becomes primarily advisory in nature;
    (h) A meeting initiated by a Federal official(s) with more than one 
individual for the purpose of obtaining the advice of individual 
attendees and not for the purpose of utilizing the group to obtain 
consensus advice or recommendations. However, such a group would be 
covered by the Act when an agency accepts the group's deliberations as a 
source of consensus advice or recommendations;
    (i) A meeting of two or more advisory committee or subcommittee 
members convened solely to gather information or conduct research for a 
chartered advisory committee, to analyze relevant issues and facts, or 
to draft proposed position papers for deliberation by the advisory 
committee or a subcommittee of the advisory committee; and
    (j) A committee composed wholly of full-time officers or employees 
of the Federal Government.



Sec. 105-54.102  Definitions.

    (a) The term ``advisory committee'' means any committee, board, 
commission, council, conference, panel, task force, or other similar 
group or any subcommittee thereof that is:
    (1) Established by statute,
    (2) Established or utilized by the President, or
    (3) Established or utilized by any agency official to obtain advice 
or recommendations that are within the scope of his/her responsibilies.

The term ``advisory committee'' excludes the Advisory Committee on 
Intergovernmental Relations and any

[[Page 178]]

committees composed wholly of full-time officers or employees of the 
Federal Government.
    (b) ``Presidential advisory committee'' means any committee that 
advises the President. It may be established by the President or by the 
Congress, or may be used by the President to obtain advice or 
recommendations.
    (c) ``Independent Presidential advisory committee'' means any 
Presidential advisory committee not assigned by the President, or the 
President's delegate, or by the Congress in law, to an agency for 
administrative and other support and for which the Administrator of 
General Services may provide administrative and other support on a 
reimbursable basis.
    (d) ``Committee member'' means an individual who serves by 
appointment on a committee and has the full right and obligation to 
participate in the activities of the committee, including voting on 
committee recommendations.
    (e) ``Staff member'' means any individual who serves in a support 
capacity to an advisory committee.
    (f) ``Secretariat'' means the General Services Administration's 
Committee Management Secretariat. Established pursuant to the Federal 
Advisory Committee Act, it is responsible for all matters relating to 
advisory committees, and carries out the Administrator's 
responsibilities under the Act and Executive Order 12024.
    (g) ``Utilized'' (or used), as stated in the definition of 
``advisory committee'' above, refers to a situation in which a GSA 
official adopts a committee or other group composed in whole or in part 
of other than full-time Federal officers or employees with an 
established existence outside GSA as a preferred source from which to 
obtain advice or recommendations on a specific issue or policy within 
the scope of his/her responsibilities in the same manner as that 
official would obtain advice or recommendations from an established 
advisory committee.



Sec. 105-54.103  Policy.

    The basic GSA policy on committee management is as follows:
    (a) Advisory committees will be formed or used by GSA only when 
specifically authorized by law, or by the President, or specifically 
determined as a matter of formal record by the Administrator of General 
Services to be in the public interest in connection with the performance 
of duties imposed on GSA by law;
    (b) Advisory committees will not be used to administer a function 
that is the assigned responsibility of a service or staff office;
    (c) The assigned responsibility of a GSA official may not be 
delegated to any committee;
    (d) No advisory committee may be used for functions that are not 
solely advisory unless specifically authorized by statute or 
Presidential directive. Making policy decisions and determining action 
to be taken with respect to any matter considered by an advisory 
committee is solely the responsibility of GSA; and
    (e) In carrying out its responsibilities, GSA will consult with and 
obtain the advice of interested groups substantially affected by its 
programs. The use of advisory committees for this purpose is considered 
to be in the public interest and necessary for the proper performance by 
GSA of its assigned functions.



Sec. 105-54.104  Responsibilities.

    (a) Responsibility for coordination and control of committee 
management in GSA is vested in the Associate Administrator for 
Administration, who serves as the GSA Committee Management Officer 
(CMO). This Officer carries out the functions prescribed in section 8(b) 
of the Federal Advisory Committee Act. In doing so, the Officer controls 
and supervises the establishment, procedures, and accomplishments of 
GSA-sponsored advisory committees. The Organization and Productivity 
Improvement Division, Office of Management Services, Office of 
Administration, provides staff resources and furnishes the Staff Contact 
Person (SCP) to the CMO.
    (b) The Head of each Service and Staff Office and each Regional 
Administrator selects a Committee Management Officer (CMO) to coordinate 
and control committee management within the service, staff office, or 
regional office and to act as liaison to the GSA

[[Page 179]]

Committee Management Officer. The duties of the CMOs are as follows:
    (1) Assemble and maintain the reports, records, and other papers of 
any GSA-sponsored committee during its existence (Arrangements may be 
made, however, for the Government chairperson or other GSA 
representative to retain custody of reports, records, and other papers 
to facilitate committee operations. After the committee is terminated, 
all committee records are disposed of following existing regulations.); 
and
    (2) Under agency regulations in 41 CFR 105-60, carry out the 
provisions of 5 U.S.C. 552 with respect to the reports, records, and 
other papers of GSA-sponsored advisory committees.



         Subpart 105-54.2--Establishment of Advisory Committees



Sec. 105-54.200  Scope of subpart.

    This subpart prescribes the policy and procedures for establishing 
advisory committees within GSA.



Sec. 105-54.201  Proposals for establishing advisory committees.

    (a) The Administrator approves the establishment of all GSA Federal 
Advisory Committees.
    (b) When it is decided that it is necessary to establish a 
committee, the appropriate Head of the Service or Staff Office (HSSO) 
must consider the functions of similar committees in GSA to ensure that 
no duplication of effort will occur.
    (c) The HSSO proposes the establishment of a Central Office or 
regional advisory committee within the scope of assigned program 
responsibilities. In doing so, the HSSO assures that advisory committees 
are established only if they are essential to the conduct of agency 
business. Advisory committees are established only if there is a 
compelling need for the committees, the committees have a truly balanced 
membership, and the committees conduct their business as openly as 
possible under the law and their mandate. Each proposal is submitted to 
the GSA Committee Management Officer for review and coordination and 
includes:
    (1) A letter addressed to the Committee Management Secretariat 
signed by the HSSO with information copies for the Administrator, Deputy 
Administrator, the Associate Administrator for Congressional and 
Industry Relations, and the Special Counsel for Ethics and Civil Rights, 
describing the nature and purpose of the proposed advisory committee; 
why it is essential to agency business and in the public interest; why 
its functions cannot be performed by an existing committee of GSA, by 
GSA, or other means such as a public hearing; and the plans to ensure 
balanced membership;
    (2) A notice for publication in the Federal Register containing the 
Administrator's certification that creation of the advisory committee is 
in the public interest and describing the nature and purpose of the 
committee; and
    (3) A draft charter for review by the Committee Management 
Secretariat.
    (d) Subcommittees that do not function independently of the full or 
parent advisory committee need not follow the requirements of paragraph 
(c) of this section. However, they are subject to all other requirements 
of the Federal Advisory Committee Act.
    (e) The requirements of paragraphs (a) through (c) of this section 
apply to any subcommittee of a chartered committee, whether its members 
are drawn in whole or in part from the full or parent advisory 
committee, that functions independently of the parent advisory 
committee, such as by making recommendations directly to a GSA official 
rather than for consideration by the chartered advisory committee.



Sec. 105-54.202  Review and approval of proposals.

    (a) The GSA Committee Management Officer reviews each proposal to 
make sure it conforms with GSA policies and procedures. The Officer 
sends the letter of justification, including the draft charter, to the 
Committee Management Secretariat. The Secretariat reviews the proposal 
and provides its views within 15 calendar days of receipt, if possible. 
The Administrator retains final authority for establishing a particular 
advisory committee.

[[Page 180]]

    (b) When the Secretariat notifies the Officer that establishing the 
committee conforms with the Federal Advisory Committee Act, the Officer 
obtains the Administrator's approval of the charter and the Federal 
Register notice. The Officer publishes the notice in the Federal 
Register at least 15 calendar days before the filing of the charter 
under Sec. 105-54.203 with the standing committees of the Senate and the 
House of Representatives having legislative jurisdiction over GSA. The 
date of filing constitutes the date of establishment.



Sec. 105-54.203  Advisory committee charters.

    No advisory committee may operate, meet, or take any action until 
the Administrator approves its charter and the Committee Management 
Officer sends a copy of it to the standing committees of the Senate and 
the House of Representatives having legislative jurisdiction over GSA.



Sec. 105-54.203-1  Preparation of charters.

    Each committee charter contains the following information:
    (a) The committee's official designation;
    (b) The committee's objectives and the scope of its activities;
    (c) The period of time necessary for the committee to carry out its 
purpose (if the committee is intended to function as a standing advisory 
committee, this should be made clear);
    (d) The official to whom the committee reports, including the 
official's name, title, and organization;
    (e) The agency and office responsible for providing the necessary 
support for the committee;
    (f) A description of the duties for which the committee is 
responsible (if the duties are not solely advisory, the statutory or 
Presidential authority for additional duties shall be specified);
    (g) The estimated annual operating costs in dollars and person-years 
for the committee;
    (h) The estimated number and frequency of committee meetings;
    (i) The committee's termination date, if it is less than 2 years 
from the date of its establishment; and
    (j) The date the charter is filed. This date is inserted by the GSA 
Committee Management Officer after the Administrator approves the 
charter.



Sec. 105-54.203-2  Active charters file.

    The GSA Committee Management Officer retains each original signed 
charter in a file of active charters.



Sec. 105-54.203-3  Submission to Library of Congress.

    The GSA Committee Management Officer furnishes a copy of each 
charter to the Library of Congress when or shortly after copies are 
filed with the requisite committees of the Congress. Copies for the 
Library are addressed: Library of Congress, Exchange and Gift Division, 
Federal Documents Section, Federal Advisory Committee Desk, Washington, 
DC 20540.



Sec. 105-54.204  Advisory committee membership.

    (a) Advisory committees that GSA establishes represent the points of 
view of the profession, industry, or other group to which it relates, 
taking into account the size, function, geographical location, 
affiliation, and other considerations affecting the character of a 
committee. To ensure balance, the agency considers for membership a 
cross-section of interested persons and groups with professional or 
personal qualifications or experience to contribute to the functions and 
tasks to be performed. This should be construed neither to limit the 
participation nor to compel the selection of any particular individual 
or group to obtain different points of view relevant to committee 
business. The Administrator designates members, alternates, and 
observers, as appropriate, of advisory committees. He/she designates a 
Federal officer or employee to chair or attend each meeting of each 
advisory committee. The Administrator also designates GSA employees to 
serve on advisory committees sponsored by other Government agencies. The 
HSSO or Regional Administrator submits nominations and letters of 
designation for the Administrator's signature to

[[Page 181]]

the GSA Committee Management Officer and to the Special Counsel for 
Ethics and Civil Rights for review and forwarding to the Administrator.
    (b) Discrimination is prohibited on the basis of race, color, age, 
national origin, religion, sex, or mental and physical handicap in 
selecting advisory committee members.
    (c) Nominees for membership must submit a Statement of Employment 
and Financial Interests (provided to the nominee by the HSSO or Regional 
Administrator) and may not be appointed until cleared by the Designated 
Agency Ethics Official.



             Subpart 105-54.3--Advisory Committee Procedures



Sec. 105-54.300  Scope of subpart.

    This subpart sets forth the procedures that will be followed in the 
operation of advisory committees within GSA.



Sec. 105-54.301  Meetings.

    (a) Each GSA advisory committee meeting is open to the public unless 
the Administrator decides otherwise;
    (b) Each meeting is held at a reasonable time and in a place 
reasonably accessible to the public;
    (c) The meeting room size is sufficient to accommodate committee 
members, committee or GSA staff, and interested members of the public;
    (d) Any private citizen is permitted to file a written statement 
with the advisory committee;
    (e) Any private citizen is permitted to speak at the advisory 
committee meeting, at the chairperson's discretion;
    (f) All persons attending committee meetings at which classified 
information will be considered are required to have an adequate security 
clearance;
    (g) The Designated Federal Officer (who may be either full time or 
permanent part-time) for each advisory committee and its subcommittees 
does the following:
    (1) Approves or calls the meetings of the advisory committee;
    (2) Approves the meeting agenda, which lists the matters to be 
considered at the meeting and indicates whether any part of the meeting 
will be closed to the public under the Government in the Sunshine Act (5 
U.S.C. 552b(c)). Ordinarily, copies of the agenda are distributed to 
committee members before the date of the meeting;
    (3) Attends all meetings (no part of a meeting may proceed in the 
Designated Federal Officer's absence);
    (4) Adjourns the meeting when he or she determines that adjournment 
is in the public interest; and
    (5) Chairs the meeting when asked to do so.
    (h) The Committee Chairperson makes sure that detailed minutes of 
each meeting are kept and certifies to their accuracy. The minutes 
include:
    (1) Time, date, and place;
    (2) A list of the following persons who were present;
    (i) Advisory committee members and staff;
    (ii) Agency employees; and
    (iii) Private citizens who presented oral or written statements;
    (3) The estimated number of private citizens present;
    (4) An accurate description of each matter discussed and the 
resolution of the matter, if any; and
    (5) Copies of each report or other document the committee received, 
issued, or approved.
    (i) The responsible HSSO or the Regional Administrator publishes at 
least 15 calendar days before the meeting a notice in the Federal 
Register that includes:
    (1) The name of the advisory committee as chartered;
    (2) The time, date, place, and purpose of the meeting;
    (3) A summary of the agenda; and
    (4) A statement whether all or part of the meeting is open to the 
public of closed; and if closed, the reasons why, and citing the 
specific exemptions of the Government is the Sunshine Act (5 U.S.C. 
552b) as the basis for closure;
    (j) In exceptional circumstances and when approved by the General 
Counsel or designee, less than 15 calendar days notice may be given, 
provided the reasons for doing so are included in the committee meeting 
notice published in the Federal Register;
    (k) Notices to be published in the Federal Register are submitted to 
the Federal Register Liaison Officer

[[Page 182]]

(CAID). At least five workdays are needed for printing of the notice;
    (l) Meetings may also be announced by press release, direct mail, 
publication in trade and professional journals, or by notice to special 
interest and community groups affected by the Committee's deliberations. 
This procedure cannot be a substitute for Federal Register publication;
    (m) The fact that a meeting may be closed to the public under the 
exemptions of the Government in the Sunshine Act does not relieve GSA of 
the requirement to publish a notice of it in the Federal Register. The 
Administrator may authorize an exception to this requirement for reasons 
of national security if the HSSO requests it at least 30 calendar days 
before the meeting, with the concurrence of the General Counsel of 
designee.
    (n) An advisory committee meeting is not open to the public, nor is 
the attendance, appearance, or filing of statements by interested 
persons permitted, if the Administrator decides that the meeting is 
exempted under the Government in the Sunshine Act (5 U.S.C. 552b (c)) 
and there is sufficient reason to invoke the exemption. If only part of 
the meeting concerns exempted matters, only that part is closed. The 
HSSO or Regional Administrator submits any decisions concerning the 
closing of meetings in writing to the Administrator for approval at 
least 30 calendar days in advance of the meeting. These decisions 
clearly set forth the reasons for doing so, citing the specific 
exemptions used from the Government in the Sunshine Act in the meeting 
notice published in the Federal Register. They are made available to the 
public on request. The Administrator may waive the 30-day requirement 
when a lesser period of time is requested and adequately justified.
    (o) If any meeting or portion of a meeting is closed to public 
attendance, the advisory committee issues a report at lease annually 
setting forth a summary of its activities and such related matters as 
would be informative to the public, consistent with the policy of 5 
U.S.C. 552(b). Notice of the availability of the report and instructions 
on how to gain access to it are published in the Federal Register no 
later than 60 days after its completion. In addition, copies of the 
report are filed with the Library of Congress.
    (p) The General Counsel reviews all requests to close meetings.
    (q) The HSSO or Regional Administrator publishes the meeting notices 
in the Federal Register, including the reasons why all or part of the 
meeting is closed, citing the specified exemptions used from the 
Government in the Sunshine Act.



Sec. 105-54.302  Committee records and reports.

    (a) Subject to the Freedom of Information Act (5 U.S.C. 552), the 
records, reports, transcripts, minutes, appendixes, working papers, 
drafts, studies, agenda, or other documents that were available to or 
prepared for or by a GSA advisory committee are available (until the 
committee ceases to exist) for public inspection and copying in the 
office of the Government Chairperson or Designated Federal Officer. 
Requests to inspect or copy these records are processed under 41 CFR 
105-60.4. Except where prohibited by a contract entered into before 
January 5, 1973, copies of transcripts, if any, of committee meetings 
are made available by the Government chairperson or Designated Federal 
Officer to any person at the cost of duplication. After the committee's 
work ends, disposition of the committee documents and the release of 
information from them are made in accordance with Federal records, 
statutes, and regulations.
    (b) Subject to 5 U.S.C. 552(b) and instructions of the Committee 
Management Secretariat, the Government chairperson or Designated Federal 
Officer files at least eight copies of each report an advisory committee 
makes, including any report on closed meetings with the Library of 
Congress at the time of its issuance. Where appropriate, the chairperson 
also files copies of background papers that consultants to the advisory 
committee prepare with the Library of Congress. The transmittal letter 
identifies the materials being furnished, with a copy of the transmittal 
provided to the GSA Committee Management Officer.

[[Page 183]]



Sec. 105-54.303  Fiscal and administrative provisions.

    (a) Each HSSO and each Regional Administrator ensures that under 
established GSA procedures, records are kept that fully disclose the 
disposition of funds at the disposal of an advisory committee and the 
nature and extent of the committee's activities.
    (b) When GSA is assigned to provide administrative support for a 
Presidential advisory committee, the Agency Liaison Coordinator in the 
Office of the Deputy Regional Administrator, National Capital Region, as 
a part of its support, arranges with the Office of Finance, Office of 
the Comptroller, for maintaining all financial records.
    (c) Unless otherwise provided in a Presidential order, statute, or 
other authority, the GSA service or staff office sponsoring an advisory 
committee provides support services for the committee.
    (d) The guidelines in paragraph (e) through (l) of this section are 
established under section 7(d) of the Federal Advisory Committee Act, 86 
Stat. 773. They apply to the pay of members, staff, and consultants of 
an advisory committee, except that nothing in this paragraph will affect 
a rate of pay or a limitation on a rate of pay that is established by 
statute or a rate of pay established under the General Schedule 
classification and pay system in Chapter 51 and Subchapter III of 
Chapter 53 of Title 5, U.S.C.
    (e) The members of GSA advisory committee established pursuant to 
the Administrator's authority under section 205(g) of the Federal 
Property and Administrative Services Act of 1949, as amended (40 U.S.C. 
486(g)), are not compensated, since, by law, members so appointed shall 
service without compensation. A person who (without regard to his or her 
service with an advisory committee) is a full-time Federal employee will 
normally receive compensation at the rate at which he or she would 
otherwise be compensated.
    (f) When required by law, the pay of the members of GSA advisory 
committees will be fixed to the daily equivalent of a rate of the 
General Schedule in 5 U.S.C. 5332 unless the members are appointed as 
consultants and compensated as provided in paragraph (h) of this 
section. In determining an appropriate rate of pay for the members, GSA 
must give consideration to the significance, scope, and technical 
complexity of the matters with which the advisory committee is concerned 
and the qualifications required of the members of the advisory 
committee. GSA may not fix the pay of the members of an advisory 
committee at a rate higher than the daily equivalent of the maximum rate 
for a GS-15 under the General Schedule, unless a higher rate is mandated 
by statute, or the Administrator has personally determined that a higher 
rate of pay under the General Schedule is justified and necessary. Such 
a determination must be reviewed by the Administrator annually. 
Accordingly, the Administrator may not fix the pay of the members of an 
advisory committee at a rate of pay higher than the daily equivalent of 
a rate for a GSA 18, as provided in 5 U.S.C. 5332.
    (g) The pay of each staff member of an advisory committee is fixed 
at a rate of the General Schedule, General Management Schedule, or 
Senior Executive Service pay rate in which the staff member's position 
would be placed (5 U.S.C. Chapter 51). GSA cannot fix the pay of a staff 
member higher than the daily equivalent of the maximum rate for GS-15 
unless the Administrator decides that under the General Schedule, 
General Management Schedule, or Senior Executive Service classification 
system, the staff member's position should be higher than GS-15. The 
Administrator must review this decision annually.
    (1) In establishing compensation rates, GSA must comply with 
applicable statutes, regulations, Executive Orders, and administrative 
guidelines.
    (2) A staff member who is a Federal employee serves with the 
knowledge of the Designated Federal Officer and the approval of the 
employee's direct supervisor. A staff member who is a non-Federal 
employee is appointed under agency procedures, after consultation with 
the advisory committee.
    (h) The pay of a consultant to an advisory committee will be fixed 
after giving consideration to the qualifications required of the 
consultant and the significance, scope, and technical complexity of the 
work. The rate of

[[Page 184]]

pay will not exceed the maximum rate of pay which the agency may pay 
experts and consultants under 5 U.S.C. 3109 and must be in accordance 
with any applicable statutes, regulations, Executive Orders, and 
administrative guidelines.
    (i) Advisory committee and staff members, while performing their 
duties away from their homes or regular places of business, may be 
allowed travel expenses, including per diem instead of subsistence, as 
authorized by 5 U.S.C. 5703 for persons employed intermittently in the 
Government service.
    (j) Members of an advisory committee and its staff who are blind or 
deaf or who otherwise qualify as handicapped persons (under section 501 
of the Rehabilitation Act of 1973 (29 U.S.C. 794)), and who do not 
otherwise qualify for assistance under 5 U.S.C. 3102, as an employee of 
an agency (under section 3102(a)(1) of Title 5), may be provided the 
services of a personal assistant.
    (k) Under this paragraph, GSA may accept the gratuitous services of 
a member, consultant, or staff member of an advisory committee who 
agrees in advance to serve without compensation.
    (l) A person who immediately before his or her service with an 
advisory committee was a full-time Federal employee may receive 
compensation at the rate at which he or she was compensated as a Federal 
employee.



Sec. 105-54.304  Cost guidelines.

    (a) The reporting and estimating of the costs of advisory committees 
include direct obligations for the following items:
    (1) Pay compensation of committee members; consultants to the 
committee; all permanent, temporary, or part-time (GM, GS, WB, or other) 
positions which are a part of or support the committee; and all overtime 
related to committee functions (Compensation should reflect actual or 
estimated Federal person-years or parts thereof devoted to a committee's 
activities. It includes the compensation of Federal employees assigned 
to committees, on a reimbursable or nonreimbursable basis, from agencies 
or departments other than to which the committee reports.);
    (2) Personnel benefits associated with the above compensation (13 
percent of basic payroll);
    (3) Travel costs (including per diem) of committee members; 
consultants; and all permanent, temporary, or part-time positions which 
are a part of or support the committee;
    (4) Transportation of things, communications, and printing and 
reproduction;
    (5) Rent for additional space acquired for committee use;
    (6) Other services required by the committee, including data 
processing services, management studies and evaluations, contractual 
services, and reimbursable services; and
    (7) Supplies, materials, and equipment acquired for committee use.
    (b) The reporting and estimating of the cost of advisory committees 
does not include indirect or overhead costs; e.g., the costs of the 
committee management system (committee management officers, etc.).



Sec. 105-54.305  Renewal of advisory committees.

    (a) Each advisory committee being continued is renewed for 
successive 2-year periods beginning with the date when it was 
established according to the following, except for statutory advisory 
committees: (For renewal of statutory advisory committees, see paragraph 
(b) of this section.)
    (1) Advisory committees are not renewed unless there is a compelling 
need for them, they have balanced membership, and they conduct their 
business as openly as possible under the law.
    (2) The renewal of a committee requires that the responsible HSSO 
submit to the GSA Committee Management Officer the following:
    (i) An updated charter with an explanation of the need for the 
renewal of the committee. The charter and explanation are furnished 60 
calendar days before the 2-year anniversary date of the committee.);
    (ii) A letter signed by the HSSO to the Director, Committee 
Management Secretariat, with information copies to the Administrator and 
the Deputy Administrator, setting forth:

[[Page 185]]

    (A) An explanation of why the committee is essential to the conduct 
of agency business and is in the public interest;
    (B) GSA's plan to attain balanced membership of the committee; and
    (C) An explanation of why the committee's functions cannot be 
performed by GSA, another existing GSA advisory committee, or other 
means such as a public hearing;
    (iii) A notice for publication in the Federal Register describing 
the nature and purpose of the committee and containing a certification 
by the Administrator that renewing the advisory committee is in the 
public interest.
    (3) On receiving the above documents, the GSA Committee Management 
Officer submits the renewal letter to the Committee Management 
Secretariat not more than 60 calendar days nor less than 30 days before 
the committee expires. Following receipt of the Committee Management 
Secretariat's views on the committee renewal, the Officer obtains the 
Administrator's approval of the charter and the Federal Register notice. 
The Officer publishes notice of the renewal in the Federal Register and 
files copies of the updated charter. The 15-day notice requirement does 
not apply to committee renewals, notices of which may be published 
concurrently with the filing of the charter.
    (b) Each statutory advisory committee is renewed by the filing of a 
renewal charter upon the expiration of each successive 2-year period 
following the date of enactment of the statute establishing the 
committee according to the following:
    (1) The procedures in paragraph (a)(2) of this section apply to the 
renewal of a statutory committee except that neither prior consultation 
with the Committee Management Secretariat nor a Federal Register notice 
is required. Accordingly, the letter that paragraph a(2)(ii) requires is 
sent to the Administrator rather than the Committee Mangement 
Secretariat. Due to the nature of a committee the law established, the 
explanation of the need to continue the committee's existence is less 
extensive than the explanation for the continuation of a non-statutory 
committee; and
    (2) The GSA Committee Management Officer provides the Committee 
Management Secretariat with a copy of the filed charter.
    (c) An advisory commitee required to file a new charter may not take 
any action other than preparing the charter between the date it is to be 
filed and the date it is actually filed.



Sec. 105-54.306  Amendment of advisory committee charters.

    (a) A charter is amended when GSA decides that the existing charter 
no longer accurately reflects the objectives or functions of the 
committee. Changes may be minor, such as revising the name of the 
committee or modifying the estimated number or frequency of meetings, or 
they may be major dealing with the basic objectives or composition of 
the committee. The Administrator retains final authority for amending 
the charter of an advisory committee. Amending an existing advisory 
committee charter does not constitute renewal of the committee.
    (b) To make a minor amendment, the Administrator approves the 
amended charter and has it filed according to Sec. 105-54.203-1.
    (c) To make a major amendment, the Committee Management Officer 
submits an amended charter and a letter to the Committee Management 
Secretariat, signed by the HSSO with the concurrence of the General 
Counsel or designee, requesting the Secretariat's views on the amended 
language, along with an explanation of the purpose of the changes and 
why they are necessary. The Secretariat reviews the proposed changes and 
notifies the Committee Management Officer of its views within 15 
calendar days of receiving it, if possible. The Administrator has the 
charter filed according to Sec. 105-54.203-1.
    (d) Amending an existing charter does not constitute renewal of the 
committee.



Sec. 105-54.307  Termination of advisory committees.

    (a) The sponsoring HSSO terminates an advisory commitee that has 
fulfilled the purpose stated in its charter. The official takes action 
to rescind any existing orders relating to the committee and to notify 
committee members, the

[[Page 186]]

GSA Committee Management Officer, and the Committee Management 
Secretariat of the termination.
    (b) Failing to continue an advisory committee by the 2-year 
anniversary date terminates the committee, unless its duration is 
provided for by law.



Sec. 105-54.308  Responsibilities of the Administrator.

    The Administrator must ensure:
    (a) Compliance with the Federal Advisory Committee Act and this 
chapter;
    (b) Issuance of administrative guidelines and management controls 
that apply to all advisory committees established or used by the agency;
    (c) Designation of a Committee Management Officer to carry out the 
functions specified in section 89(b) of the Federal Advisory Committee 
Act;
    (d) Provision of a written determination stating the reasons for 
closing any advisory committee meeting to the public;
    (e) A review, at least annually, of the need to continue each 
existing advisory committee, consistent with the public interest and the 
purpose and functions of each committee;
    (f) The appointment of a Designated Federal Officer for each 
advisory committee and its subcommittee;
    (g) The opportunity for reasonable public participation in advisory 
committee activities; and
    (h) That the number of committee members is limited to the fewest 
necessary to accomplish committee objectives.



Sec. 105-54.309  Added responsibilities of service and staff office heads and regional administrators.

    (a) No later than the first meeting of an advisory committee, submit 
to committee members, committee staff, consultants, and appropriate 
agency management personnel a written statement of the purpose, 
objectives, and expected accomplishments of the committee;
    (b) Solicit in writing or in a formal meeting at least annually the 
views of committee members on the effectiveness, activities, and 
management of the committee, including recommendations for improvement. 
Review comments to determine whether improvements or corrective action 
is warranted. Retain recommendations until the committee is terminated 
or renewed.
    (c) Involve key management personnel of the agency whose interests 
are affected by the committee in committee meetings, including reviewing 
reports and establishing agendas.
    (d) Periodically, but not less than annually, review the level of 
committee staff suport to make sure that expenditures are justified by 
committee activity and benefit to the Government.
    (e) Monitor the attendance and participation of committee members 
and consider replacing any member who misses a substantial number of 
scheduled meetings.
    (f) Establish meeting dates and distribute agendas and other 
materials well in advance.



Sec. 105-54.310  Advisory committee duties of the GSA Committee Management Officer.

    In addition to implementing the provisions of section 8(b) of the 
Federal Advisory Committee Act, the GSA Committee Management Officer 
carries out all responsibilities delegated by the Administrator. The 
Officer ensures that sections 10(b), 12(a), and 13 of the Act are 
implemented by GSA to provide for appropriate record keeping. Records 
include, but are not limited to:
    (a) A set of approved charters and membership lists for each 
advisory committee;
    (b) Copies of GSA's portion of the Annual Report of Federal Advisory 
Committees.
    (c) Guidelines on committee management operations and procedures as 
maintained and updated; and
    (d) Determinations to close advisory committee meetings.



Sec. 105-54.311  Complaint procedures.

    (a) Any person whose request for access to an advisory committee 
document is denied may seek administrative review under 41 CFR 105-60, 
which implements the Freedom of Information Act. (See GSA Order, GSA 
regulations under the ``Freedom of Information Act'' (ADM 7900.3A).)
    (b) Aggrieved individuals or organizations may file written 
complaints on

[[Page 187]]

matters not involving access to documents with the Deputy Administrator, 
General Services Administration, Washington, DC 20405. Complaints must 
be filed within 90 calendar days from the date the grievance arose. The 
Deputy Administrator promptly acts on each complaint and notifies the 
complainant in writing of the decision.



                        Subpart 105-54.4--Reports



Sec. 105-54.400  Scope of subpart.

    This subpart sets forth the reports required by this part 105-54 and 
prescribes instructions for submission of the reports.



Sec. 105-54.401  Reports on GSA Federal Advisory Committees.

    (a) The Committee Management Secretariat periodically issues 
reporting instructions and procedures. The GSA Committee Management 
Officer files a report each fiscal year providing program, financial, 
and membership information. The Secretariat uses the information in 
preparing recommendations and status reports on advisory committee 
matters and in assisting the President in preparing and submitting a 
fiscal year report to the Congress. Instructions for preparing GSA's 
submission are provided by the GSA Committee Management Officer.
    (b) Reports on closed meetings are required as specified in 
Sec. 105-54.301(o).



PART 105-55--COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents




Sec.
105-55.001  Background.
105-55.002  Purpose.
105-55.003  Applicability.
105-55.004  Demand for payment.
105-55.005  Interest, administrative charges, and penalty charges.
105-55.006  Responsibility for collection.
105-55.007  Collection by offset.
105-55.008  Settlement of claims.
105-55.009  Referral for litigation.
105-55.010  Disclosure to credit reporting agencies and referrals to 
          collection agencies.
105-55.011  Credit report.

    Authority: 31 U.S.C. 3701-3719; Pub. L. 97-365, 96 Stat. 1754.

    Source: 50 FR 37531, Sept. 16, 1985, unless otherwise noted.



Sec. 105-55.001  Background.

    The Department of Justice and the General Accounting Office have 
jointly issued amended Federal Claims Collection Standards (4 CFR parts 
101-105) which reflect changes to the Federal Claims Collection Act of 
1966 (31 U.S.C. 3701-3719) made by the passage of the Debt Collection 
Act of 1982 (Pub. L. 97-365, 96 Stat. 1754). The preamble to the amended 
Federal Claims Collection Standards instructs individual agencies to 
adopt their own regulations as to detailed procedures in furtherance of 
the Federal Claims Collection Standards. Additionally, the Debt 
Collection Act of 1982 directs, as reflected in the Federal Claims 
Collection Standards, that each agency must prescribe regulations on 
collecting by administrative offset and that each agency may prescribe 
regulations identifying circumstances appropriate to waive collection of 
interest and charges in conformity with the Federal Claims Collection 
Standards.



Sec. 105-55.002  Purpose.

    In keeping with the suggestion in the preamble to the amended 
Federal Claims Collection Standards and the directives in the Debt 
Collection Act of 1982 and the Federal Claims Collection Standards as to 
administrative offset and the collection of interest and charges, this 
part provides procedures for the General Services Administration to 
collect, compromise, or terminate collection action on claims owed to 
the United States arising from activities under GSA jurisdiction. It 
implements the Federal Claims Collection Act as amended by the Debt 
Collection Act. It supplements the regulations published jointly by the 
General Accounting Office and the Department of Justice. It sets forth 
procedures by which GSA:
    (a) Will collect claims owed to the United States;
    (b) Will determine and collect interest and other charges on those 
claims;
    (c) Will compromise claims; and
    (d) Will refer unpaid claims for litigation.



Sec. 105-55.003  Applicability.

    (a) This part applies to all claims due the United States under the 
Federal

[[Page 188]]

Claims Collection Act, as amended by the Debt Collection Act, arising 
from activities under the jurisdiction of the General Services 
Administration, except for the collection by administrative offset of 
those claims arising out of contracts subject to the Contracts Disputes 
Act of 1982, 41 U.S.C. 601 et. seq. The word ``claims'' includes but is 
not limited to amounts due the United States from fees, overpayments, 
fines, civil penalties, damages, interest and other sources.
    (b) Claims arising from the audit of transportation accounts 
pursuant to 31 U.S.C. 3726 shall be determined, collected, compromised, 
terminated or settled in accordance with regulation published under the 
authority of 31 U.S.C. 3726 (see 41 CFR part 101-41, administered by the 
Director, Office of Transportation Audits) and are otherwise excepted 
from these regulations.

[50 FR 37531, Sept. 16, 1985, as amended at 52 FR 46468, Dec. 8, 1987]



Sec. 105-55.004  Demand for payment.

    (a) A total of three progressively stronger written demands at 
approximately 30-day intervals will normally be made, unless a response 
or other information indicates that additional written demands would 
either be unnecessary or futile. When necessary to protect the 
Government's interest, written demand may be preceded by other 
appropriate actions under the Federal Claims Collection Standards, 
including immediate referral for litigation and/or offset.
    (b) The initial written demand for payment shall inform the debtor 
of:
    (1) The basis for the claim;
    (2) The amount of the claim;
    (3) The date when payment is due; (30 days from date of mailing or 
hand delivery of the initial demand for payment);
    (4) The provision for interest, penalties, and administrative 
charges in accordance with 31 U.S.C. 3717, if payment is not received by 
the due date (See Sec. 105-55.005 for details regarding interest, 
administrative charges, and penalty charges.)
    (5) The intent of the agency to collect by administrative offset, 
including asking the assistance of other Federal agencies to help in the 
offset whenever possible, if the debtor has not made payment by the 
payment due date, has not requested a review of the claim within the 
agency as set out in paragraph (b)(8) of this section or has not made an 
arrangement for payment by the payment due date;
    (6) The right of the debtor to inspect and copy the records of the 
agency related to the claim. Any costs associated therewith shall be 
borne by the debtor. The debtor shall give reasonable notice in advance 
to the agency of the date upon which it intends to inspect and copy the 
records involved;
    (7) The right of the debtor to a review of the claim within the 
agency. If the claim is disputed in full or part, the debtor shall 
respond to the demand in writing by making a request for a review of the 
claim within the agency by the payment due date stated in the demand. 
The debtor's written response shall state the basis for the dispute. If 
only part of the claim is disputed, the undisputed portion should be 
paid by the date stated in the initial demand. The agency shall 
acknowledge receipt of the request for a review, and upon completion of 
consideration shall notify the debtor whether its determination has been 
sustained, amended, or canceled within 15 days of the receipt of the 
request for a review. If the agency either sustains or amends its 
determination, it shall notify the debtor of its intent to collect by 
administrative offset unless payment is received within 15 days of the 
mailing of the notification of its decision following a review of the 
claim.
    (8) The right of the debtor to offer to make a written agreement to 
repay the amount of the claim. The acceptance of such an agreement is 
discretionary with the agency. If the debtor requests a repayment 
arrangement because a payment of the amount due would create a financial 
hardship, the appropriate GSA Regional Finance Division will analyze the 
debtor's financial condition. Dependent upon the Regional Finance 
Division's evaluation of the financial strength of the debtor, the 
Comptroller or the appropriate designee and the debtor may agree to a 
written installment repayment schedule. The debtor shall execute a 
confess-judgment note which specifies all of

[[Page 189]]

the terms of the arrangement. The size and frequency of installment 
payments should bear a reasonable relation to the size of the debt and 
the debtor's ability to pay. Interest, administrative charges, and 
penalty charges shall be provided for in the note. The debtor shall be 
provided with a written explanation of the consequences of signing a 
confess-judgment note. The debtor shall sign a statement acknowledging 
receipt of the written explanation which shall recite that the statement 
was read and understood before execution of the notice and that the note 
is being signed knowingly and voluntarily. Some form of objective 
evidence of these facts should be maintained in the agency's file on the 
debtor.
    (c) If no response to the demand is received by the date stated in 
the demand, GSA will take further action under this subpart or under the 
Federal Claims Collection Standards. These actions may include reports 
to credit bureaus, referrals to collection agencies, termination of 
contract, debarment, offset of Federal salary, and other administrative 
offset, as authorized in 31 U.S.C. 3701-3719.



Sec. 105-55.005  Interest, administrative charges, and penalty charges.

    (a) GSA shall assess interest on unpaid claims at the rate of the 
current value of funds to the Treasury as prescribed by the Secretary of 
the Treasury on the date interest begins to run. GSA shall assess 
administrative charges to cover the costs of processing and handling 
overdue claims. GSA shall assess penalty charges of six percent a year 
on any part of a debt more than 90 days past due. The imposition of 
interest, administrative charges, and penalty charges are made in 
accordance with 31 U.S.C. 3717.
    (b) Interest will be computed from the date of mailing or hand 
delivery of the initial demand if the amount of the claim is not paid 
within 30 days. The 30-day period may be extended in individual cases if 
there is good cause to do so and it is in the public interest. Interest 
will only be computed on the principal of the claim and the interest 
rate will remain fixed for the duration of the indebtedness, except 
where a debtor has defaulted on a repayment agreement and seeks to enter 
into a new agreement. A new rate which reflects the current value of 
funds to the Treasury at the time the new agreement is executed may be 
set if applicable and interest on interest and related charges may be 
charged where the debtor has defaulted on a previous repayment 
agreement. Charges which accrued but were not collected under the 
defaulted agreement shall be added to the principal to be paid under the 
new repayment schedule.
    (c) GSA may waive interest, administrative charges, or penalty 
charges if it finds that:
    (1) The debtor is unable to pay any significant sum toward the claim 
within a reasonable period of time;
    (2) Collection of interest, administrative charges, or penalty 
charges will jeopardize collection of the principal of the claim; or
    (3) It is otherwise in the best interests of the United States, 
including the situation where an offset or installment payment agreement 
is in effect.



Sec. 105-55.006  Responsibility for collection.

    (a) Heads of Central Office Services and Staff Offices and Regional 
Administrators must initiate actions on claims arising from their 
program operations and immediately notify the appropriate Regional 
Finance Division. A claim will be recorded and controlled by the 
Regional Finance Division upon receipt of documentation from a competent 
authority establishing the amount due.
    (b) The collection of claims under the control of Regional Finance 
Divisions will be aggressively pursued in accordance with the provisions 
of part 102 of the Federal Claims Collection Standards (4 CFR part 102). 
Whenever feasible, debts owed to the United States, together with 
interest, administrative charges and penalty charges, should be 
collected in full in one lump sum. If the debtor requests installment 
payments, the Regional Finance Divisions shall be responsible for 
determining the financial hardship of debtors and when appropriate shall 
arrange installment payment schedules. Claims which cannot be collected 
either directly or by administrative offset shall either be

[[Page 190]]

written off as administratively uncollectible in accordance with 
authority delegated to the Director, Office of Finance and the 
Directors, Regional Finance Divisions, or referred to the appropriate 
Assistant General Counsel or Regional Counsel for further consideration.
    (c) The General Counsel, delegated officials in the Office of 
General Counsel, and each Regional Counsel may compromise or suspend or 
terminate the collection of, referred claims under $20,000, exclusive of 
interest, penalties and administrative charges under the Act and the 
Federal Claims Collection Standards 4 CFR parts 103 and 104.
    (d) The Office of General Counsel officials listed in paragraph (c) 
of this section have the responsibility for referring to the Department 
of Justice all claims over $20,000 exclusive of interest, penalties and 
administrative charges which cannot be compromised, suspended or 
terminated in accordance with the Federal Claims Collection Act and the 
Federal Claims Collections Standards. Referrals to the Department of 
Justice shall be made in accordance with 4 CFR part 105 of the Federal 
Claims Collections Standards.



Sec. 105-55.007  Collection by offset.

    (a) Whenever feasible, after a debtor fails to pay the claim, 
request a review of the claim, or make an arrangement for payment. The 
Comptroller or his appropriate regional designee will collect claims 
under this part by means of administrative offset against obligations of 
the United States to the debtor, pursuant to 31 U.S.C. 3716, except 
offset of Federal salaries and claims arising out of contracts subject 
to the Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq.
    (b) Salary offsets and offsets against military retired pay are 
governed by 5 U.S.C. 5514.
    (c) Collection by administrative offset of amounts payable from 
Civil Service Retirement and Disability Fund will be made pursuant to 5 
U.S.C. 5514 and 5 U.S.C. 5705 and regulations thereunder.
    (d) The offset of claims arising out of contracts subject to the 
Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq. will be made 
pursuant to the Government common law right of offset.
    (e) GSA will promptly make requests for offset to other agencies 
holding funds payable to a debtor and provide instructions for the 
transfer of these funds. Requests for offset received from other 
agencies shall be processed promptly and the funds transferred to the 
requesting agency.
    (f) If administrative offset cannot be effected through GSA or other 
known agency accounts receivable, then GSA will place a complete stop 
order against amounts otherwise payable to the debtor by placing the 
name of that debtor on the Department of the Army ``List of Contractors 
Indebted to the United States.'' If any amounts are discovered under 
this procedure, they will be offset against the debt owed to GSA.
    (g) GSA should not attempt to effect collection by administrative 
offset when:
    (1) The debtor has ceased to do business and there are no known or 
potential obligations payable by any agency of the United States 
Government to the debtor.
    (2) The debt in question is over ten years old.
    (3) The debtor has either gone into receivership and has liquidated 
all of its assets or has filed a petition in bankruptcy as a no asset 
debtor, and there is no likelihood of the debtor resuming operations; 
and there are no known or potential obligations payable by any agency of 
the United States Government to the debtor. In the case of a bankruptcy 
petition, the automatic stay against setoff must be honored pending 
release from the stay.
    (4) The debtor is deceased, and there are no attachable assets in 
the estate.
    (5) Any other circumstances which would indicate that the likelihood 
of collection by administrative offset is less than probable.

[50 FR 37531, Sept. 16, 1985, as amended at 52 FR 46468, Dec. 8, 1987]



Sec. 105-55.008  Settlement of claims.

    (a) In accordance with the provisions of 4 CFR part 103, GSA 
officials listed in Sec. 105-55.006(c) may settle claims not exceeding 
$20,000 exclusive of interest, penalties and administrative charges

[[Page 191]]

by compromise at less than the principal of the claim if:
    (1) The debtor shows an inability to pay the full amount within a 
reasonable time;
    (2) The Government would be unable to enforce complete collection by 
any means within a reasonable time;
    (3) The amount of the claim does not justify the actual foreseable 
collection cost of the claim; or
    (4) A combination of the above reasons.
    (b) GSA may suspend or terminate collection action in accordance 
with the terms and procedures contained in 4 CFR part 104.



Sec. 105-55.009  Referral for litigation.

    Claims which cannot be settled under Sec. 105-55.008 or for which 
collection action cannot be suspended or terminated under 4 CFR parts 
103 and 104, will be referred to the General Accounting Office or the 
Department of Justice, whichever is appropriate, in accordance with the 
procedures in 4 CFR part 105.



Sec. 105-55.010  Disclosure to credit reporting agencies and referrals to collection agencies.

    The Comptroller and his designees may disclose debtor information to 
credit reporting agencies and may refer delinquent debts to debt 
collection agencies under the Federal Claims Collection Act, as amended, 
and other applicable authorities, provided, however, that no claim 
arising from the dishonor of any check or other negotiable instrument 
shall be disclosed to a credit reporting agency or referred to a 
collection agency without the concurrence of the appropriate Regional 
Inspector General for Investigations. Information will be disclosed to 
reporting agencies and referred to debt collection agencies in 
accordance with the terms and conditions of agreements entered into 
between GSA and the reporting and collection agencies. The terms and 
conditions of such agreements shall specify that all of the rights and 
protections afforded to the debtor under 31 U.S.C. 3711(f) have been 
fulfilled.



Sec. 105-55.011  Credit report.

    In order to aid the agency in making appropriate determinations as 
to the collection and compromise of claims; the collection of interest, 
administrative charges, and penalty charges; the use of administrative 
offset; the use of other collection methods; and the likelihood of 
collecting the claim, the Comptroller or his designees may institute a 
credit investigation of the debtor immediately following receipt of 
knowledge of the claim.



PART 105-56--SALARY OFFSET FOR INDEBTEDNESS OF GENERAL SERVICES ADMINISTRATION EMPLOYEES TO THE UNITED STATES--Table of Contents




Sec.
105-56.001  Scope.
105-56.002  Excluded debts or claims.
105-56.003  Definitions.
105-56.004  Pre-offset notice.
105-56.005  Employee response.
105-56.006  Petition for pre-offset hearing.
105-56.007  Pre-offset oral hearing.
105-56.008  Pre-offset ``paper hearing.''
105-56.009  Written decision.
105-56.010  Deductions.
105-56.011  Non-waiver of rights.
105-56.012  Refunds.
105-56.013  Coordinating offset with another Federal agency.

    Authority: 5 U.S.C. 5514; Pub. L. 97-365, 96 Stat. 1754.

    Source: 53 FR 31864, Aug. 22, 1988, unless otherwise noted.



Sec. 105-56.001  Scope.

    (a) This part covers both internal and Government-wide collections 
under 5 U.S.C. 5514. It applies when certain debts to the U.S. are 
recovered by administrative offset from the disposable pay of an 
employee of the U.S. Government, except in situations where the employee 
consents to the recovery.
    (b) The collection of any amount under this section shall be in 
accordance with the standards promulgated pursuant to the Federal Claims 
Collection Act of 1966 (31 U.S.C. 3701 et seq.) or in accordance with 
any other statutory authority for the collection of claims of the U.S. 
or any Federal agency.



Sec. 105-56.002  Excluded debts or claims.

    This part does not apply to:

[[Page 192]]

    (a) Debts or claims arising under the Internal Revenue Code of 1954 
as amended (26 U.S.C. 1 et seq.), the Social Security Act (41 U.S.C. 301 
et seq.), or the tariff laws of the United States.
    (b) To any case where collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute, such as travel 
advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C. 
4108. Debt collection procedures under other statutory authorities, 
however, must be consistent with the provisions of FCCS, defined below..
    (c) An employee election of coverage or of a change of coverage 
under a Federal benefits program which requires periodic deductions from 
pay if the amount to be recovered was accumulated over four pay periods 
or less.



Sec. 105-56.003  Definitions.

    The following definitions apply to this part:
    ``Administrator'' means the Administrator of the General Services or 
the Administrator's designee.
    ``Debt'' means an amount owed to the United States from sources 
which include loans insured or guaranteed by the United States and all 
other amounts due the United States from fees, leases, rents, royalties, 
services, sales of real or personal property, overpayments, penalties, 
damages, interest, fines and forfeitures and all other similar sources.
    ``Disposable pay'' means the amount that remains from an employee's 
Federal pay after required deductions for Federal, State and local 
income taxes; Social Security taxes, including Medicare taxes; Federal 
retirement programs; premiums for life and health insurance benefits; 
and such other deductions that are required by law to be withheld.
    ``Employee'' means a current employee of the General Services 
Administration, or other executive agency.
    ``FCCS'' means the Federal Claims Collection Standards jointly 
published by the Justice Department and the General Accounting Office at 
4 CFR 101.1 et seq.
    ``Pay'' means basic pay, special pay, incentive pay, retired pay, 
retainer pay, or in the case of an individual not entitled to basic pay, 
other authorized pay.
    ``Program official'' means a supervisor or management official of 
the employee's service or staff office.
    ``Salary offset'' means an administrative offset to collect a debt 
under 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.
    ``Waiver'' means the cancellation, remission, forgiveness, or 
nonrecovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 5584, 10 U.S.C. 2774 or 32 U.S.C. 716, 
5 U.S.C. 8346(b), or any other law.



Sec. 105-56.004  Pre-offset notice.

    The employee is entitled to written notice from an appropriate 
program officer in his or her employing activity at least 30 days in 
advance of initiating a deduction from disposable pay informing him or 
her of:
    (a) The nature, origin and amount of the indebtedness determined by 
the General Services Administration or another agency to be due;
    (b) The intention of the agency to initiate proceedings to collect 
the debt through deductions from the employee's current disposable pay;
    (c) The amount, frequency, proposed beginning date, and duration of 
the intended deductions;
    (d) GSA's policy concerning how interest is charged and penalties 
and administrative cost assessed, including a statement that such 
assessments must be made unless excused under 31 U.S.C. 3717 and the 
FCCS, 4 CFR 101.1 et seq.;
    (e) The employee's right to inspect and copy Government records 
relating to the debt if Government records of the debt are not attached, 
or if the employee or his or her representative cannot personally 
inspect the records, the right to receive a copy of such records. Any 
costs associated therewith shall be borne by the debtor. The debtor 
shall give reasonable notice in advance to GSA of the date on which he 
or she intends to inspect and copy the records involved;

[[Page 193]]

    (f) A demand for repayment providing for an opportunity, under terms 
agreeable to GSA, for the employee to establish a schedule for the 
voluntary repayment of the debt by offset or to enter into written 
repayment agreement of the debt in lieu of offset;
    (g) The employee's right to request a waiver from the General 
Accounting Office if a waiver of repayment is authorized by law;
    (h) The employee's right to pre-offset hearing conducted by a 
hearing official arranged by the appropriate program official of his or 
her employing activity if a petition is filed as prescribed by Sec. 105-
56.005. Such hearing official will be either an administrative law judge 
or a hearing official not under the control of the head of the agency 
and will be designated in accordance with the procedures established in 
5 CFR 550.1107;
    (i) The method and time period for petitioning for a hearing, 
including a statement that the timely filing of a petition for hearing 
will stay the commencement of collection proceedings;
    (j) The issuance of a final decision on the hearing, if requested, 
at the earliest practicable date, but no later than 60 days after the 
petition is filed unless a delay is requested and granted;
    (k) The risk that any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. Chapter 75, 5 
CFR part 752, or any other applicable statutes or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3731, or 
any other applicable statutory authority;
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority.
    (l) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made.
    (m) The employee's right to a prompt refund if amounts paid or 
deducted are later waived or found not owed, unless otherwise provided 
by law;
    (n) The specific address to which all correspondence shall be 
directed regarding the debt.



Sec. 105-56.005  Employee response.

    (a) Voluntary repayment agreement. An employee may submit a request 
to the official who signed the demand letter to enter into a written 
repayment agreement of the debt in lieu of offset. The request must be 
made within 7 days of receipt of notice under Sec. 105-56.004. The 
agreement must be in writing, signed by both the employee and the 
program official making the demand and a signed copy must be sent to the 
regional finance division serving the program activity. Acceptance of 
such an agreement is discretionary with the agency. An employee who 
enters into such an agreement may nevertheless seek a waiver under 
paragraph (b) of this section.
    (b) Waiver. Where a waiver of repayment is authorized by law, the 
employee may request a waiver from the General Accounting Office.
    (c) Reconsideration. (1) An employee may seek a reconsideration of 
the Agency's determination regarding the existence or amount of the 
debt. The request must be submitted to the official who signed the 
demand letter within 7 days of receipt of notice under Sec. 105-56.004. 
Within 20 days of receipt of this notice, the employee shall submit a 
detailed statement of reasons for reconsideration which must be 
accompanied by supporting documentation.
    (2) An employee may request a reconsideration of the proposed offset 
schedule. The request must be submitted to the program official who 
signed the demand letter within 7 days of receipt of notice under 
Sec. 105-56.004. Within 20 days of receipt of this notice, the employee 
shall submit an alternative repayment schedule accompanied by a detailed 
statement supported by documentation evidencing financial hardship 
resulting from the agency's proposed schedule. Acceptance of the request 
is discretionary with the agency. The agency must notify the employee in 
writing of its decision concerning the request to reduce the rate of an 
involuntary deduction.



Sec. 105-56.006  Petition for pre-offset hearing.

    (a) The employee may petition for a pre-offset hearing by filing a 
written petition with the program official who

[[Page 194]]

signed the demand letter within 15 days of receipt of the written 
notice. The petition must state why the employee believes the agency's 
determination concerning the existence or amount of the debt is in 
error, and set forth objections to the involuntary repayment schedule. 
The timely filing of a petition will suspend the commencement of 
collection proceedings.
    (b) The employee's petition or statement must be signed by the 
employee.
    (c) Petitions for hearing made after the expiration of the 15 day 
period may be accepted if the employee can show that the delay was 
because of circumstances beyond his or her control or because of failure 
to receive notice of the time limit.
    (d) If the employee timely requests a pre-offset hearing or the 
timeliness is waived, the program official must:
    (1) Notify the employee whether the employee may elect an oral 
hearing or whether he or she may have only a ``paper hearing,'' i.e., a 
review on the written record (see 4 CFR 102.3(c)). In either case, the 
program official will arrange for a hearing official; and
    (2) The program official will provide the hearing official with a 
copy of all records on which the determination of the debt and any 
involuntary repayment schedule are based.
    (e) An employee who elects an oral hearing must notify the hearing 
official and the program official in writing within 5 days of receipt of 
the notice under paragraph (d)(1) of this section and within 20 days of 
receipt of the notice under (d)(1) the employee shall fully identify and 
explain with reasonable specificity all the facts, evidence and 
witnesses which the employee believes support his or her position.
    (f) The hearing official shall notify the program official and the 
employee of the date, time and location of the hearing.
    (g) If the employee later elects to have the hearing based only on 
the written submissions, notification must be given to the hearing 
official and the program official at least 3 calendar days before the 
date of the oral hearing. The hearing official may waive the 3-day 
requirement for good cause.
    (h) Failure of the employee to appear at the oral hearing can result 
in dismissal of the petition and affirmation of the agency's decision.



Sec. 105-56.007  Pre-offset oral hearing.

    (a) Oral hearings are informal in nature. The agency, represented by 
a program official or a representative of the Office of General Counsel, 
and the employee, or his or her representative, shall explain their case 
in the form of an oral presentation with reference to the documentation 
submitted. The employee may testify on his or her own behalf, subject to 
cross examination. Other witnesses may be called to testify where the 
hearing official determines the testimony to be relevant and not 
redundant.
    (b) The hearing official shall--
    (1) Conduct a fair and impartial hearing; and
    (2) Preside over the course of the hearing, maintain decorum, and 
avoid delay in the disposition of the hearing.
    (c) The employee may represent himself or herself or may be 
represented by another person at the hearing. The employee may not be 
represented by a person who creates an actual or apparent conflict of 
interest.
    (d) Oral hearings are open to the public. However, the hearing 
official may close all or any portion of the hearing when doing so is in 
the best interests of the employee or the public.
    (e) Oral hearings may be conducted by conference call at the request 
of the employee or at the discretion of the hearing official.



Sec. 105-56.008  Pre-offset ``paper hearing.''

    If a hearing is to be held only upon written submissions, the 
hearing official shall issue a decision based upon the record and 
responses submitted by both the agency and the employee.



Sec. 105-56.009  Written decision.

    Within 60 days of filing of the employee's petition for a pre-offset 
hearing, the hearing official will issue a written decision setting 
forth: The facts supporting the nature and origin of the debt; the 
hearing official's analysis, findings and conclusions as to the 
employee's or agency's grounds, the amount and validity of the debt and 
the repayment schedule.

[[Page 195]]



Sec. 105-56.010  Deductions.

    (a) When deductions may begin. If the employee filed a petition for 
hearing with the program official before the expiration of the period 
provided for in Sec. 105-56.006, then deductions will begin after the 
hearing official has provided the employee with a hearing, and the final 
written decision is in favor of the agency. It is the responsibility of 
the employee's program official to issue the pre-offset notice to the 
employee and to instruct the National Payroll Center to begin offset in 
accordance with the final written decision.
    (b) Retired or separated employees. If the employee retires, 
resigns, or is terminated before collection of the amount of the 
indebtedness is completed, the remaining indebtedness will be offset 
from any subsequent payments of any nature. If the debt cannot be 
satisfied from subsequent payments, then the debt must be collected 
according to the procedures for administrative offset pursuant to 31 
U.S.C. 3716.
    (c) Types of collection. A debt may be collected in one lump sum or 
in installments. Collection will be by lump-sum unless the employee is 
able to demonstrate to the program official who signed the demand letter 
that he or she is financially unable to pay in one lump-sum. In these 
cases, collection will be by installment deductions.
    (d) Methods of collection. If the debt cannot be collected in one 
lump sum, the debt will be collected by deductions at officially 
established pay intervals from an employee's current pay account, unless 
the employee and the program official agree to an alternative repayment 
schedule. The alternative arrangement must be in writing and signed by 
both the employee and the program official.
    (1) Installment deductions. Installment deductions will be made over 
the shortest period possible. The size and frequency of installment 
deductions will bear a reasonable relation to the size of the debt and 
the employee's ability to pay. However, the amount deducted for any 
period will not exceed 15 percent of the disposable pay from which the 
deduction is made, unless the employee has agreed in writing to the 
deduction of a greater amount. The installment payment will be 
sufficient in size and frequency to pay the debt over the shortest 
period possible and never to exceed three years. Installment payments of 
less than $100 per pay period will be accepted only in the most unusual 
circumstances.
    (2) Sources of deductions. GSA will make deductions only from basic 
pay, special pay, incentive pay, retired pay, retainer pay, or in the 
case of an employee not entitled to basic pay, other authorized pay.
    (e) Interest, penalties and administrative costs on debts under this 
part will be assessed according to the provisions of 4 CFR 102.13.



Sec. 105-56.011  Non-waiver of rights.

    An employee's involuntary payment of all or any portion of a debt 
being collected under 5 U.S.C. 5514 shall not be construed as a waiver 
of any rights which the employee may have under 5 U.S.C. 5514 or any 
other provision of contract or law unless there are statutory or 
contractual provisions to the contrary.



Sec. 105-56.012  Refunds.

    GSA will refund promptly to the appropriate individual amounts 
offset under these regulations when:
    (a) A debt is waived or otherwise found not owing the United States 
(unless expressly prohibited by statute or regulation); or
    (b) GSA is directed by an administrative or judicial order to refund 
amounts deducted from the employee's current pay.



Sec. 105-56.013  Coordinating offset with another Federal agency.

    (a) When GSA is owed the debt. When GSA is owed a debt by an 
employee of another agency, the other agency shall not initiate the 
requested offset until GSA provides the agency with a written 
certification that the debtor owes GSA a debt and that GSA has complied 
with these regulations. This certification shall include the amount and 
basis of the debt and the due date of the payment.
    (b) When another agency is owed the debt. GSA may use salary offset 
against one of its employees who is indebted to another agency if 
requested to do so by that agency. Any such request must be

[[Page 196]]

accompanied by a certification from the requesting agency that the 
person owes the debt, the amount of the debt and that the employee has 
been given the procedural rights required by 5 U.S.C. 5514 and 5 CFR 
part 550, subpart K.



PART 105-57--COLLECTION OF DEBTS BY TAX REFUND OFFSET--Table of Contents




Sec.
105-57.001  Purpose.
105-57.002  Applicability and scope.
105-57.003  Administrative charges.
105-57.004  Reasonable attempt to notify.
105-57.005  Notice requirement before offset.
105-57.006  Consideration of evidence.
105-57.007  Change in conditions after submission to IRS.

    Authority: 31 U.S.C. 3720A.

    Source: 59 FR 1277, Jan. 10, 1994, unless otherwise noted.



Sec. 105-57.001  Purpose.

    This part establishes procedures for the General Services 
Administration (GSA) to refer past due debts to the Internal Revenue 
Service (IRS) for offset against income tax refunds of taxpayers owing 
debts to GSA.



Sec. 105-57.002  Applicability and scope.

    (a) This part implements 31 U.S.C. 3720A which authorizes the IRS to 
reduce a tax refund by the amount of a past due legally enforceable debt 
owed to the United States.
    (b) For purposes of this section, a past due legally enforceable 
debt referable to the IRS is a debt which is owed to the United States 
and:
    (1) Has been delinquent for at least three months but, except in the 
case of a judgment debt, has not been delinquent more than ten years at 
the time the offset is made;
    (2) With respect to which, GSA has given the taxpayer at least 60 
days, from the date of notification, to present evidence that all or 
part of the debt is not past due or legally enforceable, has considered 
such evidence, and has determined that the debt is past due and legally 
enforceable;
    (3) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (4) Cannot be currently collected pursuant to the administrative 
offset provisions of 31 U.S.C. 3716;
    (5) Has been disclosed by GSA to a credit reporting agency, 
including a consumer reporting agency as authorized by 31 U.S.C. 
3711(f);
    (6) With respect to which, GSA has notified, or has made a 
reasonable attempt to notify, the taxpayer that the debt is past due 
and, unless repaid within 60 days thereafter, will be referred to the 
IRS for offset against any income tax refunds due the taxpayer;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Department of 
the Treasury regulations relating to eligibility of a debt for tax 
refund offset, at 26 CFR 301.6402-6T, have been satisfied.



Sec. 105-57.003  Administrative charges.

    All administrative charges incurred in connection with the referral 
of debts to the IRS will be added to the debt, thus increasing the 
amount of the offset.



Sec. 105-57.004  Reasonable attempt to notify.

    In order to constitute a reasonable attempt to notify the debtor, 
GSA must have used a mailing address for the debtor obtained from the 
IRS pursuant to the Internal Revenue Code, 26 U.S.C. 6103 (m)(2) or 
(m)(4), within one year preceding the attempt to notify the debtor.



Sec. 105-57.005  Notice requirement before offset.

    The notification provided by GSA to the debtor will inform the 
debtor how to go about presenting evidence to GSA that all or part of 
the debt is either not past due or is not legally enforceable.



Sec. 105-57.006  Consideration of evidence.

    Evidence submitted by the debtor will be considered by officials or 
employees of GSA. Any determination that an amount of such debt is past 
due and legally enforceable will be made by such officials or employees. 
Evidence that the debt is affected by a bankruptcy proceeding involving 
the debtor shall bar referral of the debt.

[[Page 197]]



Sec. 105-57.007  Change in conditions after submission to IRS.

    If the amount of a debt is reduced after submission by GSA and 
offset by IRS, GSA will refund to the debtor any excess amount and will 
promptly notify IRS of the refund. GSA will also promptly notify the IRS 
if, after submission of a debt to the IRS for offset, GSA:
    (a) Determines that an error has been made with respect to the 
information submitted;
    (b) Receives a payment or credits a payment to an account submitted; 
or
    (c) Receives notification that the debtor has filed for bankruptcy 
under title 11 of the United States Code or has been adjudicated 
bankrupt and the debt has been discharged.



PART 105-60--PUBLIC AVAILABILITY OF AGENCY RECORDS AND INFORMATIONAL MATERIALS--Table of Contents




Sec.
105-60.000  Scope of part.

                  Subpart 105-60.1--General Provisions

105-60.101  Purpose.
105-60.102  Application.
105-60.103  Policy.
105-60.103-1  Availability of records.
105-60.103-2  Applying exemptions.
105-60.104  Records of other agencies.

Subpart 105-60.2--Publication of General Agency Information and Rules in 
                          the Federal Register

105-60.201  Published information and rules.
105-60.202  Published materials available for sale to the public.

     Subpart 105-60.3--Availability of Opinions, Orders, Policies, 
               Interpretations, Manuals, and Instructions

105-60.301  General.
105-60.302  Available materials.
105-60.303  Rules for public inspection and copying.
105-60.304  Public information handbook and index.
105-60.305  Fees.
105-60.305-1  Definitions.
105-60.305-2  Scope of this subpart.
105-60.305-3  GSA records available without charge.
105-60.305-4  GSA records available at a fee.
105-60.305-5  Searches.
105-60.305-6  Reviews.
105-60.305-7  Assurance of payment.
105-60.305-8  Prepayment of fees.
105-60.305-9  Form of payment.
105-60.305-10  Fee schedule.
105-60.305-11  Fees for authenticated and attested copies.
105-60.305-12  Administrative actions to improve assessment and 
          collection of fees.
105-60.305-13  Waiver of fee.

                   Subpart 105-60.4--Described Records

105-60.401  General.
105-60.402  Procedures for making records available.
105-60.402-1  Submission of requests.
105-60.402-2  Response to initial requests.
105-60.403  Appeal within GSA.
105-60.404  Extension of time limits.
105-60.405  Processing requests for confidential commercial information.

                      Subpart 105-60.5--Exemptions

105-60.501  Categories of records exempt from disclosure under the FOIA.

Subpart 105-60.6--Production or Disclosure by Present or Former General 
 Services Administration Employees in Response to Subpoenas or Similar 
            Demands in Judicial or Administrative Proceedings

105-60.601  Purpose and scope of subpart.
105-60.602  Definitions.
105-60.603  Acceptance of service of a subpoena duces tecum or other 
          legal demand on behalf of the General Services Administration.
105-60.604  Production or disclosure prohibited unless approved by the 
          Appropriate Authority.
105-60.605  Procedure in the event of a demand for production or 
          disclosure.
105-60.606  Procedure where response to demand is required prior to 
          receiving instructions.
105-60.607  Procedure in the event of an adverse ruling.
105-60.608  Fees, expenses, and costs.

    Authority: 5 U.S.C. 301 and 552; 40 U.S.C. 486(c).

    Source: 63 FR 56839, Oct. 23, 1998, unless otherwise noted.



Sec. 105-60.000  Scope of part.

    (a) This part sets forth policies and procedures of the General 
Services Administration (GSA) regarding public access to records 
documenting:
    (1) Agency organization, functions, decisionmaking channels, and 
rules and regulations of general applicability;

[[Page 198]]

    (2) Agency final opinions and orders, including policy statements 
and staff manuals;
    (3) Operational and other appropriate agency records; and
    (4) Agency proceedings.
    (b) This part also covers exemptions from disclosure of these 
records; procedures for the public to inspect or obtain copies of GSA 
records; and instructions to current and former GSA employees on the 
response to a subpoena or other legal demand for material or information 
received or generated in the performance of official duty or because of 
the person's official status.
    (c) Any policies and procedures in any GSA internal or external 
directive inconsistent with the policies and procedures set forth in 
this part are superseded to the extent of that inconsistency.



                  Subpart 105-60.1--General Provisions



Sec. 105-60.101  Purpose.

    This part 105-60 implements the provisions of the Freedom of 
Information Act (FOIA), as amended, 5 U.S.C. 552. The regulations in 
this part also implement Executive Order 12600, Predisclosure 
Notification Procedures for Confidential Commercial Information, of June 
23, 1987 (3 CFR, 1987 Comp., p. 235). This part prescribes procedures by 
which the public may inspect and obtain copies of GSA records under the 
FOIA, including administrative procedures which must be exhausted before 
a requester invokes the jurisdiction of an appropriate United States 
District Court for GSA's failure to respond to a proper request within 
the statutory time limits, for a denial of agency records or challenge 
to the adequacy of a search, or for a denial of a fee waiver.



Sec. 105-60.102  Application.

    This part applies to all records and informational materials 
generated, maintained, and controlled by GSA that come within the scope 
of 5 U.S.C. 552.



Sec. 105-60.103  Policy.



Sec. 105-60.103-1  Availability of records.

    The policies of GSA with regard to the availability of records to 
the public are:
    (a) GSA records are available to the greatest extent possible in 
keeping with the spirit and intent of the FOIA. GSA will disclose 
information in any existing GSA record, with noted exceptions, 
regardless of the form or format of the record. GSA will provide the 
record in the form or format requested if the record is reproducible by 
the agency in that form or format without significant expenditure of 
resources. GSA will make reasonable efforts to maintain its records in 
forms or formats that are reproducible for purposes of this section.
    (b) The person making the request does not need to demonstrate an 
interest in the records or justify the request.
    (c) The FOIA does not give the public the right to demand that GSA 
compile a record that does not already exist. For example, FOIA does not 
require GSA to collect and compile information from multiple sources to 
create a new record. GSA may compile records or perform minor 
reprogramming to extract records from a database or system when doing so 
will not significantly interfere with the operation of the automated 
system in question or involve a significant expenditure of resources.
    (d) Similarly, FOIA does not require GSA to reconstruct records that 
have been destroyed in compliance with disposition schedules approved by 
the Archivist of the United States. However, GSA will not destroy 
records after a member of the public has requested access to them and 
will process the request even if destruction would otherwise be 
authorized.
    (e) If the record requested is not complete at the time of the 
request, GSA may, at its discretion, inform the requester that the 
complete record will be provided when it is available, with no 
additional request required, if the record is not exempt from 
disclosure.
    (f) Requests must be addressed to the office identified in Sec. 105-
60.402-1.

[[Page 199]]

    (g) Fees for locating and duplicating records are listed in 
Sec. 105-60,305-10.



Sec. 105-60.103-2  Applying exemptions.

    GSA may deny a request for a GSA record if it falls within an 
exemption under the FOIA outlined in subpart 105-60.5 of this part. 
Except when a record is classified or when disclosure would violate any 
Federal statute, the authority to withhold a record from disclosure is 
permissive rather than mandatory. GSA will not withhold a record unless 
there is a compelling reason to do so; i.e., disclosure will likely 
cause harm to a Governmental or private interest. In the absence of a 
compelling reason, GSA will disclose a record even if it otherwise is 
subject to exemption. GSA will cite the compelling reason(s) to 
requesters when any record is denied under FOIA.



Sec. 105-60.104  Records of other agencies.

    If GSA receives a request for access to records that are known to be 
the primary responsibility of another agency, GSA will refer the request 
to the agency concerned for appropriate action. For example, GSA will 
refer requests to the appropriate agency in cases in which GSA does not 
have sufficient knowledge of the action or matter that is the subject of 
the requested records to determine whether the records must be released 
or may be withheld under one of the exemptions listed in Subpart 105-
60.5 of this part. If GSA does not have the requested records, the 
agency will attempt to determine whether the requested records exist at 
another agency and, if possible, will forward the request to that 
agency. GSA will inform the requester that GSA has forwarded the request 
to another agency.



Subpart 105-60.2--Publication of General Agency Information and Rules in 
                          the Federal Register



Sec. 105-60.201  Published information and rules.

    In accordance with 5 U.S.C. 552(a)(1), GSA publishes in the Federal 
Register, for the guidance of the public, the following general 
information concerning GSA:
    (a) Description of the organization of the Central Office and 
regional offices and the established places at which, the employees from 
whom, and the methods whereby, the public may obtain information, make 
submittals or requests, or obtain decisions;
    (b) Statements of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available;
    (c) Rules of procedure, descriptions of forms available or the 
places where forms may be obtained, and instructions on the scope and 
contents of all papers, reports, or examinations;
    (d) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by GSA; and
    (e) Each amendment, revision, or repeal of the materials described 
in this section.



Sec. 105-60.202  Published materials available for sale to the public.

    (a) Substantive rules of general applicability adopted by GSA as 
authorized by law that this agency publishes in the Federal Register and 
which are available for sale to the public by the Superintendent of 
Documents at pre-established prices are: The General Services 
Administration Acquisition Regulation (48 CFR Ch. 5), the Federal 
Acquisition Regulation (48 CFR Ch. 1), the Federal Property Management 
Regulations (41 CFR Ch. 101), and the Federal Travel Regulation (41 CFR 
Ch. 301-304).
    (b) GSA provides technical information, including manuals and 
handbooks, to other Federal entities, e.g., the National Technical 
Information Service, with separate statutory authority to make 
information available to the public at pre-established fees.
    (c) Requests for information available through the sources in 
paragraphs (a) and (b) of this section will be referred to those 
sources.

[[Page 200]]



     Subpart 105-60.3--Availability of Opinions, Orders, Policies, 
               Interpretations, Manuals, and Instructions



Sec. 105-60.301  General.

    GSA makes available to the public the materials described under 5 
U.S.C. 552(a)(2), which are listed in Sec. 105-60.302 through an 
extensive electronic home page, http://www.gsa.gov/. A public handbook 
listing those materials as described in Sec. 105-60.304 is available at 
GSA's Central Office in Washington, DC, and at the website at http://
www.gsa.gov/staff/c/ca/pub1.htm. Members of the public who do not have 
the means to access this information electronically, and who are not 
located in the Washington, DC area, may contact the Freedom of 
Information Act office in any of the regional offices listed in this 
regulation. These offices will make arrangements for members of the 
public to access the information at a computer located at the FOIA 
office. Reasonable copying services are provided at the fees specified 
in Sec. 105-60.305.



Sec. 105-60.302  Available materials.

    GSA materials available under this subpart 105-60.3 are as follows:
    (a) Final opinions, including concurring and dissenting opinions and 
orders, made in the adjudication of cases.
    (b) Those statements and policy and interpretations that have been 
adopted by GSA and are not published in the Federal Register.
    (c) Administrative staff manuals and instructions to staff affecting 
a member of the public unless these materials are promptly published and 
copies offered for sale.



Sec. 105-60.303  Rules for public inspection and copying.

    (a) Locations. Selected areas containing the materials available for 
public inspection and copying, described in this Sec. 105-60.302, are 
located in the following places:

Central Office (GSA Headquarters),
    General Services Administration, Washington, DC.
    Telephone: 202-501-2262
    FAX: 202-501-2727,
    Email: gsa.foia@gsa.gov
    1800 F Street, NW. (CAI), Washington, DC 20405
Office of the Inspector General
    FOIA Officer, Office of Inspector General (J)
    General Services Administration
    1800 F Street NW., Room 5324
    Washington, DC 20405
New England Region
    General Services Administration (1AB)
    (Comprised of the States of Connecticut, Maine, Massachusetts, New 
Hampshire, Rhode Island, and Vermont)
    Thomas P. O'Neill, Jr., Federal Building, 10 Causeway Street, 
Boston, MA 02222
    Telephone: 617-565-8100
    FAX: 617-565-8101
Northeast and Caribbean Region
    (Comprised of the States of New Jersey, New York, the Commonwealth 
of Puerto Rico, and the Virgin Islands)
    General Services Administration (2AR)
    26 Federal Plaza, New York, NY 10278
    Telephone: 212-264-1234
    FAX: 212-264-2760
Mid-Atlantic Region
    (Comprised of the States of Delaware, Maryland, Pennsylvania, 
Virginia, and West Virginia, excluding the Washington, DC metropolitan 
area)
    General Services Administration (3ADS), 100 Penn Square East, 
Philadelphia, PA 19107
    Telephone: 215-656-5530
    FAX: 215-656-5590
Southeast Sunbelt Region
    (Comprised of the States of Alabama, Florida, Georgia, Kentucky, 
Mississippi, North Carolina, South Carolina, and Tennessee)
    General Services Administration (4E), 401 West Peachtree Street, 
Atlanta, GA 30365
    Telephone: 404-331-5103
    FAX: 404-331-1813
Great Lakes Region
    (Comprised of the States of Illinois, Indiana, Ohio, Minnesota, 
Michigan, and Wisconsin)
    General Services Administration (5ADB), 230 South Dearborn Street, 
Chicago, IL 60604
    Telephone: 312-353-5383
    FAX: 312-353-5385
Heartland Region
    (Comprised of the States of Iowa, Kansas, Missouri, and Nebraska)
    General Services Administration (6ADB), 1500 East Bannister Road, 
Kansas City, MO 64131
    Telephone: 816-926-7203
    FAX: 816-823-1167
Greater Southwest Region
    (Comprised of the States of Arkansas, Louisiana, New Mexico, Texas, 
and Oklahoma)
    General Services Administration (7ADQ), 819 Taylor Street, Fort 
Worth, TX 76102

[[Page 201]]

    Telephone: 817-978-3902
    FAX: 817-978-4867
Rocky Mountain Region
    (Comprised of the States of Colorado, North Dakota, South Dakota, 
Montana, Utah, and Wyoming)
    Business Service Center, General Services Administration (8PB-B), 
Building 41, Denver Federal Center, Denver, CO 80225
    Telephone: 303-236-7408
    FAX: 303-236-7403
Pacific Rim Region
    (Comprised of the States of Hawaii, California, Nevada, Arizona, 
Guam, and Trust Territory of the Pacific)
    Business Service Center, General Services Administration (9ADB), 525 
Market Street, San Francisco, CA 941105
    Telephone: 415-522-2715
    FAX: 415-522-2705
Northwest/Arctic Region
    (Comprised of the States of Alaska, Idaho, Oregon, and Washington)
    General Services Administration (10L), GSA Center, 15th and C 
Streets, SW., Auburn, WA 98002
    Telephone: 206-931-7007
    FAX: 206-931-7195
National Capital Region
    (Comprised of the District of Columbia and the surrounding 
metropolitan area)
    General Services Administration (WPFA-L), 7th and D Streets SW., 
Washington, DC 20407
    Telephone: 202-708-5854
    FAX: 202-708-4655.

    (b) Time. The offices listed above will be open to the public during 
the business hours of the GSA office where they are located.
    (c) Reproduction services and fees. The GSA Central Office or the 
Regional Business Service Centers will furnish reasonable copying and 
reproduction services for available materials at the fees specified in 
Sec. 105-60.305.



Sec. 105-60.304   Public information handbook and index.

    GSA publishes a handbook for the public that identifies information 
regarding any matter described in Sec. 105-60.302. This handbook also 
lists published information available from GSA and describes the 
procedures the public may use to obtain information using the Freedom of 
Information Act (FOIA). This handbook may be obtained without charge 
from any of the GSA FOIA offices listed in Sec. 105-60.303(a), or at the 
GSA Internet Homepage 
(http://www.gsa.gov/staff/c/ca/cai/links.htm).



Sec. 105-60.305  Fees.



Sec. 105-60.305-1  Definitions.

    For the purpose of this part:
    (a) A statute specifically providing for setting the level of fees 
for particular types of records (5 U.S.C. 552(a)(4)(A)(vii)) means any 
statute that specifically requires a Government agency to set the level 
of fees for particular types of records, as opposed to a statute that 
generally discusses such fees. Fees are required by statute to:
    (1) Make Government information conveniently available to the public 
and to private sector organizations;
    (2) Ensure that groups and individuals pay the cost of publications 
and other services which are for their special use so that these costs 
are not borne by the general taxpaying public;
    (3) Operate an information dissemination activity on self-sustaining 
basis to the maximum extent possible; or
    (4) Return revenue to the Treasury for defraying, wholly or in part, 
appropriated funds used to pay the cost of disseminating Government 
information.
    (b) The term direct costs means those expenditures which GSA 
actually incurs in searching for and duplicating (and in the case of 
commercial requesters, reviewing and redacting) documents to respond to 
a FOIA request. Direct costs include, for example, the salary of the 
employee performing the work (the basic rate of pay for the employee 
plus 16 percent of that rate to cover benefits), and the cost of 
operating duplicating machinery. Overhead expenses such as costs of 
space, and heating or lighting the facility where the records are stored 
are not included in direct costs.
    (c) The term search includes all time spent looking for material 
that is responsive to a request, including line-by-line identification 
of material within documents. Searches will be performed in the most 
efficient and least expensive manner so as to minimize costs for both 
the agency and the requester. Line-by-line searches will not be 
undertaken when it would be more efficient to duplicate the entire 
document. Search for responsive material is not the same as review of a 
record to

[[Page 202]]

determine whether it is exempt from disclosure in whole or in part (see 
paragraph (e) of this section. Searches may be done manually or by 
computer using existing programming or new programming when this would 
not significantly interfere with the operation of the automated system 
in question.
    (d) The term duplication means the process of making a copy of a 
document in response to a FOIA request. Copies can take the form of 
paper, microform audiovisual materials, or magnetic types or disks. To 
the extent practicable, GSA will provide a copy of the material in the 
form specified by the requester.
    (e) The term review means the process of examining documents located 
in response to a request to determine if any portion of that document is 
permitted to be withheld and processing any documents for disclosure. 
See Sec. 105-60.305-6.
    (f) The term commercial-use request means a request from or on 
behalf of one who seeks information for a use or purpose that furthers 
the commercial, trade, or profit interests of the requester or person on 
whose behalf the request is made. GSA will determine whether a requester 
properly belongs in this category by determining how the requester will 
use the documents.
    (g) The term educational institution means a preschool, a public or 
private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, or an institution of vocational 
education which operates a program or programs of scholarly research.
    (h) The term noncommercial scientific institution means an 
institution that is not operated on a ``commercial'' basis as that term 
is used in paragraph (f) of this section and which is operated solely 
for the purpose of conducting scientific research the results of which 
are not intended to promote any particular product or industry.
    (i) The term representative of the news media means any person 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public. The term news means information 
that is about current events or that would be of current interest to the 
public. Examples of news media include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when they can qualify as disseminators of 
``news'') who make their products available for purchase or subscription 
by the general public. ``Freelance'' journalists will be regarded as 
working for a news organization if they can demonstrate a solid basis 
for expecting publication through that organization even though they are 
not actually employed by it.



Sec. 105-60.305-2  Scope of this subpart.

    This subpart sets forth policies and procedures to be followed in 
the assessment and collection of fees from a requester for the search, 
review, and reproduction of GSA records.



Sec. 105-60.305-3  GSA records available without charge.

    GSA records available to the public are displayed in the Business 
Service Center for each GSA region. The address and phone number of the 
Business Service Centers are listed in Sec. 105-60.303. Certain material 
related to bids (excluding construction plans and specifications) and 
any material displayed are available without charge upon request.



Sec. 105-60.305-4  GSA records available at a fee.

    (a) GSA will make a record not subject to exemption available at a 
time and place mutually agreed upon by GSA and the requester at fees 
shown in Sec. 105-60.305-10. Waivers of these fees are available under 
the conditions described in Sec. 105-60.305-13. GSA will agree to:
    (1) Show the originals to the requester;
    (2) Make one copy available at a fee; or
    (3) A combination of these alternatives.
    (b) GSA will make copies of voluminous records as quickly as 
possible. GSA may, in its discretion, make a reasonable number of 
additional copies for a fee when commercial reproduction services are 
not available to the requester.

[[Page 203]]



Sec. 105-60.305-5  Searches.

    (a) GSA may charge for the time spent in the following activities in 
determining ``search time'' subject to applicable fees as provided in 
Sec. 105-60.305-10:
    (1) Time spent in trying to locate GSA records which come within the 
scope of the request;
    (2) Time spent in either transporting a necessary agency searcher to 
a place of record storage, or in transporting records to the locations 
of a necessary agency searcher; and
    (3) Direct costs of the use of computer time to locate and extract 
requested records.
    (b) GSA will not charge for the time spent in monitoring a 
requester's inspection of disclosed agency records.
    (c) GSA may assess fees for search time even if the search proves 
unsuccessful or if the records located are exempt from disclosure.



Sec. 105-60.305-6  Reviews.

    (a) GSA will charge only commercial-use requesters for review time.
    (b) GSA will charge for the time spent in the following activities 
in determining ``review time'' subject to applicable fees as provided in 
Sec. 105-60.305-10:
    (1) Time spent in examining a requested record to determine whether 
any or all of the record is exempt from disclosure, including time spent 
consulting with submitters of requested information; and
    (2) Time spent in deleting exempt matter being withheld from records 
otherwise made available.
    (c) GSA will not charge for:
    (1) Time spent in resolving issues of law or policy regarding the 
application of exemptions; or
    (2) Review at the administrative appeal level of an exemption 
already applied. However, records or portions of records withheld in 
full under an exemption which is subsequently determined not to apply 
may be reviewed again to determine the applicability of other exemptions 
not previously considered. GSA will charge for such subsequent review.



Sec. 105-60.305-7  Assurance of payment.

    If fees for search, review, and reproduction will exceed $25 but 
will be less than $250, the requester must provide written assurance of 
payment before GSA will process the request. If this assurance is not 
included in the initial request, GSA will notify the requester that 
assurance of payment is required before the request is processed. GSA 
will offer requesters an opportunity to modify the request to reduce the 
fee.



Sec. 105-60.305-8  Prepayment of fees.

    (a) Fees over $250. GSA will require prepayment of fees for search, 
review, and reproduction which are likely to exceed $250. When the 
anticipated total fee exceeds $250, the requester will receive notice to 
prepay and at the same time will be given an opportunity to modify his 
or her request to reduce the fee. When fees will exceed $250, GSA will 
notify the requester that it will not start processing a request until 
payment is received.
    (b) Delinquent payments. As noted in Sec. 105-6.305-12(d), 
requesters who are delinquent in paying for previous requests will be 
required to repay the old debt and to prepay for any subsequent request. 
GSA will inform the requester that it will process no additional 
requests until all fees are paid.



Sec. 105-60.305-9  Form of payment.

    Requesters should pay fees by check or money order made out to the 
General Services Administration and addressed to the official named by 
GSA in its correspondence. Payment may also be made by means of 
Mastercard or Visa. For information concerning payment by credit cards, 
call 816-926-7551.



Sec. 105-60.305-10  Fee schedule.

    (a) When GSA is aware that documents responsive to a request are 
maintained for distribution by an agency operating a statutory fee based 
program, GSA will inform the requester of the procedures for obtaining 
records from those sources.
    (b) GSA will consider only the following costs in fees charged to 
requesters of GSA records:
    (1) Review and search fees.


[[Page 204]]


    Manual searches by clerical staff: $13 per hour or fraction of an 
hour.
    Manual searches and reviews by professional staff in cases in which 
clerical staff would be unable to locate the requested records: $29 per 
hour or fraction of an hour.
    Computer searches: Direct cost to GSA.
    Transportation or special handling of records: Direct cost to GSA.

    (2) Reproduction fees.

    Pages no larger than 8\1/2\ by 14 inches, when reproduced by routine 
electrostatic copying: 10 cents per page.
    Pages over 8\1/2\ by 14 inches: Direct cost of reproduction to GSA.
    Pages requiring reduction, enlargement, or other special services: 
Direct cost of reproduction to GSA.
    Reproduction by other than routine electrostatic copying: Direct 
cost of reproduction to GSA.

    (c) Any fees not provided for under paragraph (b) of this section, 
shall be calculated as direct costs, in accordance with Sec. 105-60.305-
1(b).
    (d) GSA will assess fees based on the category of the requester as 
defined in Sec. 105-60.305-1(f)-(1); i.e., commercial-use, educational 
and noncommercial scientific institutions, news media, and all other. 
The fees listed in paragraph (b) of this section apply with the 
following exceptions:
    (1) GSA will not charge the requester if the fee is $25 or less as 
the cost of collection is greater than the fee.
    (2) Educational and noncommercial scientific institutions and the 
news media will be charged for the cost of reproduction alone. These 
requesters are entitled to the first 100 pages (paper copies) of 
duplication at no cost. The following are examples of how these fees are 
calculated:
    (i) A request that results in 150 pages of material. No fee would be 
assessed for duplication of 150 pages. The reason is that these 
requesters are entitled to the first 100 pages at no charge. The charge 
for the remaining 50 pages would be $5.00. This amount would not be 
billed under the preceding section.
    (ii) A request that results in 450 pages of material. The requester 
in this case would be charged $35.00. The reason is that the requester 
is entitled to the first 100 pages at no charge. The charge for the 
remaining 350 pages would be $35.
    (3) Noncommercial requesters who are not included under paragraph 
(d)(2) of this section will be entitled to the first 100 pages (page 
copies) of duplication at not cost and two hours of search without 
charge. The term search time generally refers to manual search. To apply 
this term to searches made by computer, GSA will determine the hourly 
cost of operating the central processing unit and the operator's hourly 
salary plus 16 percent. When the cost of search (including the operator 
time and the cost of operating the computer to process a request) 
reaches the equivalent dollar amount of two hours of the salary of the 
person performing a manual search, i.e., the operator, GSA will begin 
assessing charges for computer search.
    (4) GSA will charge commercial-use requesters fees which recover the 
full direct costs of searching for, reviewing for release, and 
duplicating the records sought. Commercial-use requesters are not 
entitled to two hours of free search time.
    (e) Determining category of requester. GSA may ask any requester to 
provide additional information at any time to determine what fee 
category he or she falls under.



Sec. 105-60.305-11  Fees for authenticated and attested copies.

    The fees set forth in Sec. 105-60.305-10 apply to requests for 
authenticated and attested copies of GSA records.



Sec. 105-60.305-12  Administrative actions to improve assessment and collection of fees.

    (a) Charging interest. GSA may charge requesters who fail to pay 
fees interest on the amount billed starting on the 31st day following 
the day on which the billing was sent. Interest will be at the rate 
prescribed in 31 U.S.C. 3717.
    (b) Effect of the Debt Collection Act of 1982. GSA will take any 
action authorized by the Debt Collection Act of 1982 (Pub. L. 97-365, 96 
Stat. 1749), including disclosure to consumer reporting agencies, use of 
collection agencies, and assessment of penalties and administrative 
costs, where appropriate, to encourage payment.
    (c) Aggregating requests. When GSA reasonably believes that a 
requester, or

[[Page 205]]

group of requesters acting in concert, is attempting to break down a 
request into a series of requests related to the same subject for the 
purpose of evading the assessment of fees, GSA will combine any such 
requests and charge accordingly, including fees for previous requests 
where charges were not assessed. GSA will presume that multiple requests 
of this type within a 30-day period are made to avoid fees.
    (d) Advanced payments. Whenever a requester is delinquent in paying 
the fee for a previous request (i.e., within 30 days of the date of the 
billing), GSA will require the requester to pay the full amount owed 
plus any applicable interest penalties and administrative costs as 
provided in paragraph (a) of this section or to demonstrate that he or 
she has, in fact, paid the fee. In such cases, GSA will also require 
advance payment of the full amount of the estimated fee before the 
agency begins to process a new request or a pending request from that 
requester. When advance payment is required under this selection, the 
administrative time limits in subsection (a)(6) of the FOIA (i.e., 10 
working days from receipt of appeals from initial denial plus 
permissible time extensions) will begin only after GSA has received the 
fee payments described in Sec. 105-60.305-8.



Sec. 105-60.305-13  Waiver of fee.

    (a) Any request for a waiver or the reduction of a fee should be 
included in the initial letter requesting access to GSA records under 
Sec. 105-60.402-1. The waiver request should explain how disclosure of 
the information would contribute significantly to public's understanding 
of the operations or activities of the Government and would not be 
primarily in the commercial interest of the requester. In responding to 
a requester, GSA will consider the following factors:
    (1) Whether the subject of the requested records concerns ``the 
operations or activities of the Government.'' The subject matter of the 
requested records must specifically concern identifiable operations or 
activities of the Federal Government. The connection between the records 
and the operations or activities must be direct and clear, not remote or 
attenuated.
    (2) Whether the disclosure is ``likely to contribute'' to an 
understanding of Government operations or activities. In this 
connection, GSA will consider whether the requested information is 
already in the public domain. If it is, then disclosure of the 
information would not be likely to contribute to an understanding of 
Government operations or activities, as nothing new would be added to 
the public record.
    (3) Whether disclosure of the requested information will contribute 
to ``public's understanding.'' The focus here must be on the 
contribution to public's understanding rather than personal benefit to 
be derived by the requester. For purposes of this analysis, the identity 
and qualifications of the requester should be considered to determine 
whether the requester is in a position to contribute to public's 
understanding through the requested disclosure.
    (4) Whether the requester has a commercial interest that would be 
furthered by the requested disclosure; and if so: whether the magnitude 
of the identified commercial interest of the requester is sufficiently 
large, in comparison with the public's interest in disclosure, that 
disclosure is ``primarily in the commercial interest of the requester.''
    (b) GSA will ask the requester to furnish additional information if 
the initial request is insufficient to evaluate the merits of the 
request. GSA will not start processing a request until the fee waiver 
issue has been resolved unless the requester has provided written 
assurance of payment in full if the fee waiver is denied by the agency.



                   Subpart 105-60.4--Described Records



Sec. 105-60.401  General.

    (a) Except for records made available in accordance with subparts 
105-60.2 and 105-60.3 of this part, GSA will make records available to a 
requester promptly when the request reasonably describes the records 
unless GSA invokes an exemption in accordance with subpart 105-60.5 of 
this part. Although the burden of reasonable description of the records 
rests with the requester,

[[Page 206]]

whenever practical GSA will assist requesters to describe records more 
specifically.
    (b) Whenever a request does not reasonably describe the records 
requested, GSA may contact the requester to seek a more specific 
description. The 20-workday time limit set forth in Sec. 105-60.402-2 
will not start until the official identified in Sec. 105-60.402-1 or 
other responding official receives a request reasonably describing the 
records.



Sec. 105-60.402  Procedures for making records available.

    This subpart sets forth initial procedures for making records 
available when they are requested, including administrative procedures 
to be exhausted prior to seeking judicial review by an appropriate 
United States District Court.



Sec. 105-60.402-1  Submission of requests.

    For records located in the GSA Central Office, the requester must 
submit a request in writing to the GSA FOIA Officer, General Services 
Administration (CAI), Washington, DC 20405. Requesters may FAX requests 
to (202) 501-2727, or submit a request by electronic mail to 
gsa.foi@gsa.gov. For records located in the Office of Inspector General, 
the requester must submit a request to the FOIA Officer, Office of 
Inspector General, General Services Administration, 1800 F Street NW., 
Room 5324, Washington, DC 20405. For records located in the GSA regional 
offices, the requester must submit a request to the FOIA Officer for the 
relevant region, at the address listed in Sec. 105-60.303(a). Requests 
should include the words ``Freedom of Information Act Request'' 
prominently marked on both the face of the request letter and the 
envelope. The 20-workday time limit for agency decisions set forth in 
Sec. 105-60.402-2 begins with receipt of a request in the office of the 
official identified in this section, unless the provisions under 
Secs. 105-60.305-8 and 105-60.305-12(d) apply. Failure to include the 
words ``Freedom of Information Act Request'' or to submit a request to 
the official identified in this section will result in processing 
delays. A requester with questions concerning a FOIA request should 
contact the GSA FOIA Office, General Services Administration (CAI), 18th 
and F Streets, NW., Washington, DC 20405, (202) 501-2262.



Sec. 105-60.402-2  Response to initial requests.

    (a) GSA will respond to an initial FOIA request that reasonably 
describes requested records, including a fee waiver request, within 20 
workdays (that is, excluding Saturdays, Sundays, and legal holidays) 
after receipt of a request by the office of the appropriate official 
specified in Sec. 105-60.402-1. This letter will provide the agency's 
decision with respect to disclosure or nondisclosure of the requested 
records, or, if appropriate, a decision on a request for a fee waiver. 
If the records to be disclosed are not provided with the initial letter, 
the records will be sent as soon as possible thereafter.
    (b) In unusual circumstances, as described in Sec. 105-60.404, GSA 
will inform the requester of the agency's need to take an extension of 
time, not to exceed an additional 10 workdays. This notice will afford 
requesters an opportunity to limit the scope of the request so that it 
may be processed within prescribed time limits or an opportunity to 
arrange an alternative time frame for processing the request or a 
modified request. Such mutually agreed time frames will supersede the 10 
day limit for extensions.
    (c) GSA will consider requests for expedited processing from 
requesters who submit a statement describing a compelling need and 
certifying that this need is true and correct to the best of such 
person's knowledge and belief. A compelling need means:
    (1) Failure to obtain the records on an expedited basis could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual; or
    (2) The information is urgently needed by an individual primarily 
engaged in disseminating information in order to inform the public 
concerning actual or alleged Federal Government activity. An individual 
primarily engaged in dissmeninating information means a person whose 
primary activity involves publishing or otherwise disseminating 
information to the public. ``Urgently needed'' information has a 
particular

[[Page 207]]

value that will be lost if not disseminated quickly, such as a breaking 
news story or general public interest. Information of historical 
interest only, or information sought for litigation or commercial 
activities would not qualify, nor would a news media publication or 
broadcast deadline unrelated to the newsbreaking nature of the 
information.
    (d) GSA will decide whether to grant expedited processing within 
five working days of receipt of the request. If the request is granted, 
GSA will process the request ahead of non-expedited requests, as soon as 
practicable. If the request is not granted, GSA will give expeditious 
consideration to administrative appeals of this denial.
    (e) GSA may, at its discretion, establish three processing queues 
based on whether any requests have been granted expedited status and on 
the difficulty and complexity of preparing a response. Within each 
queue, responses will be prepared on a ``first in, first out'' basis. 
One queue will be made up of expedited requests; the second, of simple 
responses that clearly can be prepared without requesting an extension 
of time; the third, of responses that will require an extension of time.



Sec. 105-60.403  Appeal within GSA.

    (a) A requester who receives a denial of a request, in whole or in 
part, a denial of a request for expedited processing or of a fee waiver 
request may appeal that decision within GSA. A requester may also appeal 
the adequacy of the search if GSA determines that it has searched for 
but has not requested records. The requester must send the appeal to the 
GSA FOIA Officer, General Services Administration (CAI), Washington, DC 
20405, regardless of whether the denial being appealed was made in the 
Central Office or in a regional office. For denials which originate in 
the Office of Inspector General, the requester must send the appeal to 
the Inspector General, General Services Administration, 1800 F Street 
NW., Washington, DC 20405.
    (b) The GSA FOIA Officer must receive an appeal no later than 120 
calendar days after receipt by the requester of the initial denial of 
access or fee waiver.
    (c) An appeal must be in writing and include a brief statement of 
the reasons he or she thinks GSA should release the records or provide 
expedited processing and enclose copies of the initial request and 
denial. The appeal letter must include the words ``Freedom of 
Information Act Appeal'' on both the face of the appeal letter and on 
the envelope. Failure to follow these procedures will delay processing 
of the appeal. GSA has 20 workdays after receipt of a proper appeal of 
denial of records to issue a determination with respect to the appeal. 
The 20-workday time limit shall not begin until the GSA FOIA Officer 
receives the appeal. As noted in Sec. 105-60.404, the GSA FOIA Officer 
may extend this time limit in unusual circumstances. GSA will process 
appeals of denials of expedited processing as soon as possible after 
receiving them.
    (d) A requester who receives a denial of an appeal, or who has not 
received a response to an appeal or initial request within the statutory 
time frame may seek judicial review in the United States District Court 
in the district in which the requester resides or has a principal place 
of business, or where the records are situated, or in the United States 
District Court for the District of Columbia.



Sec. 105-60.404  Extension of time limits.

    (a) In unusual circumstances, the GSA FOIA Officer or the regional 
FOIA Officer may extend the time limits prescribed in Secs. 105-60.402 
and 105-60.403. For purposes of this section, the term unusual 
circumstances means:
    (1) The need to search for an collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are described 
in a single request;
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or

[[Page 208]]

more components of GSA having substantial subject-matter interest 
therein; or
    (4) The need to consult with the submitter of the requested 
information.
    (b) If necessary, GSA may take more than one extension of time. 
However, the total extension of time to respond to any single request 
shall not exceed 10 workdays. The extension may be divided between the 
initial and appeal stages or within a single stage. GSA will provide 
written notice to the requester of any extension of time limits.



Sec. 105-60.405  Processing requests for confidential commercial information.

    (a) General. The following additional procedures apply when 
processing requests for confidential commercial information.
    (b) Definitions. For the purposes of this section, the following 
definitions apply:
    (1) Confidential commercial information means records provided to 
the Government by a submitter that contain material arguably exempt from 
release under 5 U.S.C. 552(b)(4), because disclosure could reasonably be 
expected to cause substantial competitive harm.
    (2) Submitter means a person or entity which provides to the 
Government information which may constitute confidential commercial 
information. The term submitter includes, but is not limited to, 
individuals, partnerships, corporations, State governments, and foreign 
governments.
    (c) Designating confidential commercial information. Since January 
1, 1988, submitters have been required to designate confidential 
commercial information as such when it is submitted to GSA or at a 
reasonable time thereafter. For information submitted in connection with 
negotiated procurements, the requirements of Federal Acquisition 
Regulation 48 CFR 15.407(c)(8) and 52.215-12 also apply.
    (d) Procedural requirements--consultation with the submitter.(1) If 
GSA receives a FOIA request for potentially confidential commercial 
information, it will notify the submitter immediately by telephone and 
invite an opinion whether disclosure will or will not cause substantial 
competitive harm.
    (2) GSA will follow up the telephonic notice promptly in writing 
before releasing any records unless paragraph (f) of this section 
applies.
    (3) If the submitter indicates an objection to disclosure GSA will 
give the submitter seven workdays from receipt of the letter to provide 
GSA with a detailed written explanation of how disclosure of any 
specified portion of the records would be competitively harmful.
    (4) If the submitter verbally states that there is no objection to 
disclosure, GSA will confirm this fact in writing before disclosing any 
records.
    (5) At the same time GSA notifies the submitter, it will also advise 
the requester that there will be a delay in responding to the request 
due to the need to consult with the submitter.
    (6) GSA will review the reasons for nondisclosure before 
independently deciding whether the information must be released or 
should be withheld. If GSA decides to release the requested information, 
it will provide the submitter with a written statement explaining why 
his or her objections are not sustained. The letter to the submitter 
will contain a copy of the material to be disclosed or will offer the 
submitter an opportunity to review the material in none of GSA's 
offices. If GSA decides not to release the material, it will notify the 
submitter orally or in writing.
    (7) If GSA determines to disclose information over a submitter's 
objections, it will inform the submitter the GSA will delay disclosure 
for 5 workdays from the estimated date the submitter receives GSA's 
decision before it releases the information. The decision letter to the 
requester shall state that GSA will delay disclosure of material it has 
determined to disclose to allow for the notification of the submitter.
    (e) When notice is required. (1) For confidential commercial 
information submitted prior to January 1, 1988, GSA will notify a 
submitter whenever it receives a FOIA request for such information:
    (i) If the records are less than 10 years old and the information 
has been

[[Page 209]]

designated by the submitter as confidential commercial information; or
    (ii) If GSA has reason to believe that disclosure of the information 
could reasonably be expected to cause substantial competitive harm.
    (2) For confidential commercial information submitted on or after 
January 1, 1988, GSA will notify a submitter whenever it determines that 
the agency may be required to disclose records:
    (i) That the submitter has previously designated as privileged or 
confidential; or
    (ii) That GSA believes could reasonably be expected to cause 
substantial competitive harm if disclosed.
    (3) GSA will provide notice to a submitter for a period of up to 10 
years after the date of submission.
    (f) When notice is not required. The notice requirements of this 
section will not apply if:
    (1) GSA determines that the information should not be disclosed;
    (2) The information has been published or has been officially made 
available to the public;
    (3) Disclosure of the information is required by law other than the 
FOIA;
    (4) Disclosure is required by an agency rule that
    (i) Was adopted pursuant to notice and public comment;
    (ii) specifies narrow classes of records submitted to the agency 
that are to be released under FOIA; and
    (iii) provides in exceptional circumstances for notice when the 
submitter provides written justification, at the time the information is 
submitted for a reasonable time thereafter, that disclosure of the 
information could reasonably be expected to cause substantial 
competitive harm;
    (5) The information is not designated by the submitter as exempt 
from disclosure under paragraph (c) of this section, unless GSA has 
substantial reason to believe that disclosure of the information would 
be competitively harmful; or
    (6) The designation made by the submitter in accordance with 
paragraph (c) of this section appears obviously frivolous; except that, 
in such cases, the agency must provide the submitter with written notice 
of any final administrative decision five workdays prior to disclosing 
the information.
    (g) Lawsuits. If a FOIA requester sues the agency to compel 
disclosure of confidential commercial information, GSA will notify the 
submitter as soon as possible. If the submitter sues GSA to enjoin 
disclosure of the records, GSA will notify the requester.



                      Subpart 105-60.5--Exemptions



Sec. 105-60.501  Categories of records exempt from disclosure under the FOIA.

    (a) 5 U.S.C. 552(b) provides that the requirements of the FOIA do 
not apply to matters that are:
    (1) Specifically authorized under the criteria established by an 
executive order to be kept secret in the interest of national defense or 
foreign policy and are in fact properly classified pursuant to such 
executive order;
    (2) Related solely to the internal personnel rules and practices of 
an agency;
    (3) Specifically exempted from disclosure by statute (other than 
section 552b of this title), provided that such statute
    (i) requires that the matters be withheld from the public in such a 
manner as to leave no discretion on the issue; or
    (ii) establishes particular criteria for withholding or refers to 
particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person and privileged or confidential;
    (5) Interagency or intra-agency memorandums or letters which would 
not be available by law to a party other than an agency in litigation 
with the agency;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information
    (i) could reasonably be expected to interfere with enforcement 
proceedings;

[[Page 210]]

    (ii) would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source;
    (v) would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) could reasonably be expected to endanger the life or physical 
safety of any individual;
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
or
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (b) GSA will provide any reasonably segregable portion of a record 
to a requester after deletion of the portions that are exempt under this 
section. If GSA must delete information from a record before disclosing 
it, this information, and the reasons for withholding it, will be 
clearly described in the cover letter to the requester or in an 
attachment. Unless indicating the extent of the deletion would harm an 
interest protected by an exemption, the amount of deleted information 
shall be indicated on the released portion of paper records by use of 
brackets or darkened areas indicating removal of information. In the 
case of electronic deletion, the amount of redacted information shall be 
indicated at the place in the record where such deletion was made, 
unless including the indication would harm an interest protected by the 
exemption under which the exemption was made.
    (c) GSA will invoke no exemption under this section to deny access 
to records that would be available pursuant to a request made under the 
Privacy Act of 1974 (5 U.S.C. 552a) and implementing regulations, 41 CFR 
part 105-64, or if disclosure would cause no demonstrable harm to any 
governmental or private interest.
    (d) Pursuant to National Defense Authorization Act of Fiscal Year 
1997, Pub. L. No. 104-201, section 821, 110 Stat. 2422, GSA will invoke 
Exemption 3 to deny access to any proposal submitted by a vendor in 
response to the requirements of a solicitation for a competitive 
proposal unless the proposal is set forth or incorporated by reference 
in a contract entered into between the agency and the contractor that 
submitted the proposal.
    (e) Whenever a request is made which involves access to records 
described in Sec. 105-60.501(a)(7)(i) and the investigation or 
proceeding involves a possible violation of criminal law, and there is 
reason to believe that the subject of the investigation or proceeding is 
not aware of it, and disclosure of the existence of the records could 
reasonably be expected to interfere with enforcement proceedings, the 
agency may, during only such time as that circumstance continues, treat 
the records as not subject to the requirements of this section.
    (f) Whenever informant records maintained by a criminal law 
enforcement agency under an informant's name or personal identifier are 
requested by a third party according to the informant's name or personal 
identifier, the agency may treat the records as not subject to the 
requirements of this section unless the informant's status as an 
informant has been officially confirmed.
    (g) Whenever a request is made that involves access to records 
maintained by the Federal Bureau of Investigation pertaining to foreign 
intelligence or counterintelligence, or international terrorism, and the 
existence of the

[[Page 211]]

records is classified information as provided in paragraph (a)(1) of 
this section, the Bureau may, as long as the existence of the records 
remains classified information, treat the records are not subject to the 
requirements of this section.



Subpart 105-60.6--Production or Disclosure by Present or Former General 
 Services Administration Employees in Response to Subpoenas or Similar 
            Demands in Judicial or Administrative Proceedings



Sec. 105--60.601  Purpose and scope of subpart.

    (a) By virtue of the authority vested in the Administrator of 
General Services by 5 U.S.C. 301 and 40 U.S.C. 486(c) this subpart 
establishes instructions and procedures to be followed by current and 
former employees of the General Services Administration in response to 
subpoenas or similar demands issued in judicial or administrative 
proceedings for production or disclosure of material or information 
obtained as part of the performance of a person's official duties or 
because of the person's official status. Nothing in these instructions 
applies to responses to subpoenas or demands issued by the Congress or 
in Federal grand jury proceedings.
    (b) This subpart provides instructions regarding the internal 
operations of GSA and the conduct of its employees, and is not intended 
and does not, and may not, be relied upon to create any right or 
benefit, substantive or procedural, enforceable at law by a party 
against GSA.



Sec. 105--60.602  Definitions.

    For purposes of this subpart, the following definitions apply:
    (a) Material means any document, record, file or data, regardless of 
the physical form or the media by or through which it is maintained or 
recorded, which was generated or acquired by a current or former GSA 
employee by reason of the performance of that person's official duties 
or because of the person's official status, or any other tangible item, 
e.g., personal property possessed or controlled by GSA.
    (b) Information means any knowledge or facts contained in material, 
and any knowledge or facts acquired by current or former GSA employee as 
part of the performance of that person's official duties or because of 
that person's official status.
    (c) Demand means any subpoena, order, or similar demand for the 
production or disclosure of material, information or testimony regarding 
such material or information, issued by a court or other authority in a 
judicial or administrative proceeding, excluding congressional subpoenas 
or demands in Federal grand jury proceedings, and served upon a present 
or former GSA employee.
    (d) Appropriate Authority means the following officials who are 
delegated authority to approve or deny responses to demands for 
material, information or testimony:
    (1) The Counsel to the Inspector General for material and 
information which is the responsibility of the GSA Office of Inspector 
General or testimony of current or former employees of the Office of the 
Inspector General;
    (2) The Counsel to the GSA Board of Contract Appeals for material 
and information which is the responsibility of the Board of Contract 
Appeals or testimony of current or former Board of Contract Appeals 
employees;
    (3) The GSA General Counsel, Associate General Counsel(s) or 
Regional Counsel for all material, information, or testimony not covered 
by paragraphs (d)(1) and (2) of this section.



Sec. 105-60.603  Acceptance of service of a subpoena duces tecum or other legal demand on behalf of the General Services Administration.

    (a) The Administrator of General Services and the following 
officials are the only GSA personnel authorized to accept service of a 
subpoena or other legal demand on behalf of GSA: The GSA General Counsel 
and Associate General Counsel(s) and, with respect to material or 
information which is the responsibility of a regional office, the 
Regional Administrator and Regional Counsel. The Inspector General and 
Counsel to the Inspector General, as

[[Page 212]]

well as the Chairman and Vice Chairman of the Board of Contract Appeals, 
are authorized to accept service for material or information which are 
the responsibility of their respective organizations.
    (b) A present or former GSA employee not authorized to accept 
service of a subpoena or other demand for material, information or 
testimony obtained in an official capacity shall respectfully inform the 
process server that he or she is not authorized to accept service on 
behalf of GSA and refer the process server to an appropriate official 
listed in paragraph (a) of this section.
    (c) A Regional Administrator or Regional Counsel shall notify the 
General Counsel of a demand which may raise policy concerns or affect 
multiple regions.



Sec. 105-60.604  Production or disclosure prohibited unless approved by the Appropriate Authority.

    No current or former GSA employee shall, in response to a demand, 
produce any material or disclose, through testimony or other means, any 
information covered by this subpart, without prior approval of the 
Appropriate Authority.



Sec. 105-60.605  Procedure in the event of a demand for production or disclosure.

    (a) Whenever service of a demand is attempted in person or via mail 
upon a current or former GSA employee for the production of material or 
the disclosure of information covered by this subpart, the employee or 
former employee shall immediately notify the Appropriate Authority 
through his or her supervisor or his or her former service, staff 
office, or regional office. The supervisor shall notify the Appropriate 
Authority. For current or former employees of the Office of Inspector 
General located in regional offices, Counsel to the Inspector General 
shall be notified through the immediate supervisor or former employing 
field office.
    (b) The Appropriate Authority shall require that the party seeking 
material or testimony provide the Appropriate Authority with an 
affidavit, declaration, statement, and/or a plan as described in 
paragraphs (c) (1), (2), and (3) of this section if not included with or 
described in the demand. The Appropriate Authority may waive this 
requirement for a demand arising out of proceedings to which GSA or the 
United States is a party. Any waiver will be coordinated with the United 
States Department of Justice (DOJ) in proceedings in which GSA, its 
current or former employees, or the United States are represented by 
DOJ.
    (c)(1) Oral testimony. If oral testimony is sought by a demand, the 
Appropriate Authority shall require the party seeking the testimony or 
the party's attorney to provide, by affidavit or other statement, a 
detailed summary of the testimony sought and its relevance to the 
proceedings. Any authorization for the testimony of a current or former 
GSA employee shall be limited to the scope of the demand as summarized 
in such statement or affidavit.
    (2) Production of material. When information other than oral 
testimony is sought by a demand, the Appropriate Authority shall require 
the party seeking production or the party's attorney to provide a 
detailed summary, by affidavit or other statement, of the information 
sought and its relevance to the proceeding.
    (3) The Appropriate Authority may require a plan or other 
information from the party seeking testimony or production of material 
of all demands reasonably foreseeable, including, but not limited to, 
names of all current and former GSA employees from whom testimony or 
production is or will likely be sought, areas of inquiry, for current 
employees the length of time away from duty anticipated, and 
identification of documents to be used in each deposition or other 
testimony, where appropriate.
    (d) The Appropriate Authority will notify the current or former 
employee, the appropriate supervisor, and such other persons as 
circumstances may warrant, whether disclosure or production is 
authorized, and of any conditions or limitations to disclosure or 
production.
    (e) Factors to be considered by the Appropriate Authority in 
responding to demands:

[[Page 213]]

    (1) Whether disclosure or production is appropriate under rules of 
procedure governing the proceeding out of which the demand arose;
    (2) The relevance of the testimony or documents to the proceedings;
    (3) The impact of the relevant substantive law concerning applicable 
privileges recognized by statute, common law, judicial interpretation or 
similar authority;
    (4) The information provided by the issuer of the demand in response 
to requests by the Appropriate Authority pursuant to paragraphs (b) and 
(c) of this section;
    (5) The steps taken by the issuer of the demand to minimize the 
burden of disclosure or production on GSA, including but not limited to 
willingness to accept authenticated copies of material in lieu of 
personal appearance by GSA employees;
    (6) The impact on pending or potential litigation involving GSA or 
the United States as a party;
    (7) In consultation with the head of the GSA organizational 
component affected, the burden on GSA which disclosure or production 
would entail; and
    (8) Any additional factors unique to a particular demand or 
proceeding.
    (f) The Appropriate Authority shall not approve a disclosure or 
production which would:
    (1) Violate a statute or a specific regulation;
    (2) Reveal classified information, unless appropriately declassified 
by the originating agency;
    (3) Reveal a confidential source or informant, unless the 
investigative agency and the source or informant consent;
    (4) Reveal records or information compiled for law enforcement 
purposes which would interfere with enforcement proceedings or disclose 
investigative techniques and procedures the effectiveness of which would 
be impaired;
    (5) Reveal trade secrets or commercial or financial information 
which is privileged or confidential without prior consultation with the 
person from whom it was obtained; or
    (6) Be contrary to a recognized privilege.
    (g) The Appropriate Authority's determination, including any reasons 
for denial or limitations on disclosure or production, shall be made as 
expeditiously as possible and shall be communicated in writing to the 
issuer of the demand and appropriate current or former GSA employee(s). 
In proceedings in which GSA, its current or former employees, or the 
United States are represented by DOJ, the determination shall be 
coordinated with DOJ which may respond to the issuer of the subpoenas or 
demand in lieu of the Appropriate Authority.



Sec. 105-60.606  Procedure where response to demand is required prior to receiving instructions.

    (a) If a response to a demand is required before the Appropriate 
Authority's decision is issued, a GSA attorney designated by the 
Appropriate Authority for the purpose shall appear with the employee or 
former employee upon whom the demand has been made, and shall furnish 
the judicial or other authority with a copy of the instructions 
contained in this subpart. The attorney shall inform the court or other 
authority that the demand has been or is being referred for the prompt 
consideration by the Appropriate Authority. The attorney shall 
respectfully request the judicial or administrative authority to stay 
the demand pending receipt of the requested instructions.
    (b) The designated GSA attorney shall coordinate GSA's response with 
DOJ's Civil Division or the relevant Office of the United States 
Attorney and may request that a DOJ or Assistant United States Attorney 
appear with the employee in addition to or in lieu of a designated GSA 
attorney.
    (c) If an immediate demand for production or disclosure is made in 
circumstances which preclude the appearance of a GSA or DOJ attorney on 
the behalf of the employee or the former employee, the employee or 
former employee shall respectfully make a request to the demanding 
authority for sufficient time to obtain advice of counsel.



Sec. 105-60.607  Procedure in the event of an adverse ruling.

    If the court or other authority declines to stay the effect of the 
demand

[[Page 214]]

in response to a request made in accordance with Sec. 105-60.606 pending 
receipt of instructions, or if the court or other authority rules that 
the demand must be complied with irrespective of instructions by the 
Appropriate Authority not to produce the material or disclose the 
information sought, the employee or former employee upon whom the demand 
has been made shall respectfully decline to comply, citing these 
instructions and the decision of the United States Supreme Court in 
United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951).



Sec. 105-60.608  Fees, expenses, and costs.

    (a) In consultation with the Appropriate Authority, a current 
employee who appears as a witness pursuant to a demand shall ensure that 
he or she receives all fees and expenses, including travel expenses, to 
which witnesses are entitled pursuant to rules applicable to the 
judicial or administrative proceedings out of which the demand arose.
    (b) Witness fees and reimbursement for expenses received by a GSA 
employee shall be disposed of in accordance with rules applicable to 
Federal employees in effect at the time.
    (c) Reimbursement to the GSA for costs associated with producing 
material pursuant to a demand shall be determined in accordance with 
rules applicable to the proceedings out of which the demand arose.



PART 105-62--DOCUMENT SECURITY AND DECLASSIFICATION--Table of Contents




Sec.
105-62.000  Scope of part.

                 Subpart 105.62.1--Classified Materials

105-62.101  Security classification categories.
105-62.102  Authority to originally classify.
105-62.103  Access to GSA-originated materials.

           Subpart 105-62.2--Declassification and Downgrading

105-62.201  Declassification and downgrading.
105-62.202  Review of classified materials for declassification 
          purposes.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); and E.O. 
12065 dated June 28, 1978.

    Source: 44 FR 64805, Nov. 8, 1979, unless otherwise noted.



Sec. 105-62.000  Scope of part.

    This part prescribes procedures for safeguarding national security 
information and material within GSA. They explain how to identify, 
classify, downgrade, declassify, disseminate, and protect such 
information in the interests of national security. They also supplement 
and conform with Executive Order 12065 dated June 28, 1978, subject: 
National Security Information, and the Implementing Directive dated 
September 29, 1978, issued through the Information Security Oversight 
Office.



                 Subpart 105-62.1--Classified Materials



Sec. 105-62.101  Security classification categories.

    As set forth in Executive Order 12065, official information or 
material which requires protection against unauthorized disclosure in 
the interests of the national defense or foreign relations of the United 
States (hereinafter collectively termed ``national security'') shall be 
classified in one of three categories: Namely, Top Secret, Secret, or 
Confidential, depending on its degree of significance to the national 
security. No other categories shall be used to identify official 
information or material as requiring protection in the interests of 
national security except as otherwise expressly provided by statute. The 
three classification categories are defined as follows:
    (a) Top Secret. Top Secret refers to that national security 
information which requires the highest degree of protection, and shall 
be applied only to such information as the unauthorized disclosure of 
which could reasonably be expected to cause exceptionally grave damage 
to the national security. Examples of exceptionally grave damage include 
armed hostilities against the United States or its allies, disruption of 
foreign relations vitally affecting the national security, intelligence 
sources and methods, and the compromise of vital national defense plans 
or complex cryptologic and communications systems. This classification

[[Page 215]]

shall be used with the utmost restraint.
    (b) Secret. Secret refers to that national security information or 
material which requires a substantial degree of protection, and shall be 
applied only to such information as the unauthorized disclosure of which 
could reasonably be expected to cause serious damage to the national 
security. Examples of serious damage include disruption of foreign 
relations significantly affecting the national security, significant 
impairment of a program or policy directly related to the national 
security, and revelation of significant military plans or intelligence 
operations. This classification shall be used sparingly.
    (c) Confidential. Confidential refers to other national security 
information which requires protection, and shall be applied only to such 
information as the unauthorized disclosure of which could reasonably be 
expected to cause identifiable damage to the national security.



Sec. 105-62.102  Authority to originally classify.

    (a) Top secret, secret, and confidential. The authority to 
originally classify information as Top Secret, Secret, or Confidential 
may be exercised only by the Administrator and is delegable only to the 
Director, Information Security Oversight Office.
    (b) Limitations on delegation of classification authority. 
Delegations of original classification authority are limited to the 
minimum number absolutely required for efficient administration. 
Delegated original classification authority may not be redelegated.

[47 FR 5416, Feb. 5, 1982]



Sec. 105-62.103  Access to GSA-originated materials.

    Classified information shall not be disseminated outside the 
executive branch of the Government without the express permission of the 
GSA Security Officer except as otherwise provided in this Sec. 105-
62.103.
    (a) Access by historical researchers. Persons outside the executive 
branch who are engaged in historical research projects, may be 
authorized access to classified information or material, provided that:
    (1) A written determination is made by the Administrator of General 
Services that such access is clearly consistent with the interests of 
national security.
    (2) Access is limited to that information over which GSA has 
classification jurisdiction.
    (3) The material requested is reasonably accessible and can be 
located with a reasonable amount of effort.
    (4) The person agrees to safeguard the information and to authorize 
a review of his or her notes and manuscript for determination that no 
classified information is contained therein by signing a statement 
entitled ``Conditions Governing Access to Official Records for 
Historical Research Purposes.''
    (5) An authorization for access shall be valid for a period of 2 
years from the date of issuance and may be renewed under the provisions 
of this Sec. 105-62.103(a).
    (b) Access by former Presidential appointees. Persons who previously 
occupied policymaking positions to which they were appointed by the 
President may not remove classified information or material upon 
departure from office as all such material must remain under the 
security control of the U.S. Government. Such persons may be authorized 
access to classified information or material which they originated, 
received, reviewed, signed, or which was addressed to them while in 
public office, provided that the GSA element having classification 
jurisdiction for such information or material makes a written 
determination that access is consistent with the interests of national 
security, approval is granted by the GSA Security Officer, and the 
individual seeking access agrees:
    (1) To safeguard the information,
    (2) To authorize a review of his or her notes for determination that 
no classified information is contained therein, and
    (3) To ensure that no classified information will be further 
disseminated or published.
    (c) Access during judicial proceedings. Classified information will 
not normally be released in the course of any civilian judicial 
proceeding. In special circumstances however, and upon the receipt of an 
order or subpoena issued

[[Page 216]]

by a Federal court, the Administrator may authorize the limited release 
of classified information if he or she determines that the interests of 
justice cannot otherwise be served. Appropriate safeguards will be 
established to protect such classified material released for use in 
judicial proceedings.
    (d) Access to material in NARS custody. The Archivist of the United 
States prepares procedures governing access to materials transferred to 
NARS custody. These procedures are issued by the Administrator of 
General Services in 41 CFR part 105-61.
    (e) Access by the General Accounting Office and congressional 
committees. Classified information may be released to the General 
Accounting Office (GAO) and congressional committees when specifically 
authorized by the GSA Security Officer except as otherwise provided by 
law.



           Subpart 105-62.2--Declassification and Downgrading



Sec. 105-62.201  Declassification and downgrading.

    (a) Authority to downgrade and declassify. The authority to 
downgrade and declassify national security information or material shall 
be exercised as follows:
    (1) Information or material may be downgraded or declassified by the 
GSA official authorizing the original classification, by a successor in 
capacity, by a supervisory official of either, or by the Information 
Security Oversight Committee on appeal.
    (2) Downgrading and declassification authority may also be exercised 
by an official specifically authorized by the Administrator.
    (3) In the case of classified information or material officially 
transferred to GSA by or under statute or Executive order in conjunction 
with a transfer of functions and not merely for storage purposes, GSA 
shall be deemed the originating agency for all purposes under these 
procedures including downgrading and declassification.
    (4) In the case of classified information or material held in GSA 
not officially transferred under paragraph (a)(3) of this section but 
originated in an agency which has since ceased to exist, GSA is deemed 
the originating agency. Such information or material may be downgraded 
and declassified 30 calendar days after consulting with any other 
agencies having an interest in the subject matter.
    (5) Classified information or material under the final 
declassification jurisdiction of GSA which has been transferred to NARS 
for accession into the Archives of the United States may be downgraded 
and declassified by the Archivist of the United States in accordance 
with Executive Order 12065, directives of the Information Security 
Oversight Office, and the systematic review guidelines issued by the 
Administrator of General Services.
    (6) It is presumed that information which continues to meet 
classification requirements requires continued protection. In some 
cases, however, the need to protect such information may be outweighed 
by the public interest in disclosure of the information, and in these 
cases the information should be declassified. When such questions arise 
they shall be referred to the Administrator, the Director of the 
Information Security Oversight Office, or in accordance with the 
procedures for mandatory review described in Sec. 105-62.202(b).
    (b) Declassification. Declassification of information shall be given 
emphasis comparable to that acccorded classification. Information 
classified under Executive Order 12065 and prior orders shall be 
declassified as early as national security considerations permit. 
Decisions concerning declassification shall be based on the loss of 
sensitivity of the information with the passage of time or on the 
occurrence of an event which permits declassification. When information 
is reviewed for declassification it shall be declassified unless the 
declassification authority established in Sec. 105-62.202 determines 
that the information continues to meet the classification requirements 
prescribed despite the passage of time.
    (c) Downgrading. Classified information that is marked for automatic 
downgrading is downgraded accordingly without notification to holders. 
Classified information that is not marked for automatic downgrading may 
be assigned a lower classification designation by the originator or by 
an

[[Page 217]]

official authorized to declassify the same information. Notice of 
downgrading shall be provided to known holders of the information.



Sec. 105-62.202  Review of classified materials for declassification purposes.

    (a) Systematic review for declassification. Except for foreign 
government information, classified information constituting permanently 
valuable records of GSA as defined by 44 U.S.C. 2103, and information in 
the possession and under control of NARA, under 44 U.S.C. 2107 or 2107 
note, shall be reviewed for declassification as it becomes 20 years old. 
Transition to systematic review at 20 years shall be implemented as 
rapidly as practicable and shall be completed by December 1, 1988. 
Foreign government information shall be reviewed for declassification as 
it becomes 30 years old.
    (b) Mandatory review for declassification. All classified 
information upon request by a member of the public or a Government 
employee or agency to declassify and release such information under the 
provisions of Executive Order 12065 shall be reviewed by the responsible 
GSA element for possible declassification in accordance with the 
procedures set forth in paragraphs (c) through (g) of this section.
    (c) Submission of requests for review. Requests for mandatory review 
of classified information shall be submitted in accordance with the 
following:
    (1) Requests originating within GSA shall in all cases be submitted 
directly to the service or staff office that originated the information.
    (2) For expeditious action, requests from other governmental 
agencies or from members of the public should be submitted directly to 
the service or staff office that originated the material, or, if the 
originating element is not known, or no longer exists, the requester 
shall submit the request to the GSA Security Officer who shall cause 
such request to be reviewed.
    (d) Requirements for processing. Requests for declassification 
review and release of information shall be processed in accordance with 
the provisions set forth in paragraphs (e) through (h) of this section 
subject to the following conditions:
    (1) The request is in writing and reasonably describes the 
information sought with sufficient particularity to enable the element 
to identify it.
    (2) The requester shall be asked to correct a request that does not 
comply with paragraph (d)(1) of this section, to provide additional 
information.
    (3) If within 30 days the requester does not correct the request, 
describe the information sought with sufficient particularity or narrow 
the scope of the request, the element that received the request shall 
notify the requester and state the reason why no action will be taken on 
the request.
    (e) Processing of requests. Requests that meet the foregoing 
requirements for processing will be acted upon as follows:
    (1) GSA action upon the initial request shall be completed within 60 
days.
    (2) Receipt of the request shall be acknowledged within 7 days.
    (3) The designated service or staff office shall determine if the 
requested information may be declassified and shall make such 
information available to the requester, unless withholding it is 
otherwise warranted under applicable law. If the information may not be 
released in whole or in part, the requester shall be given a brief 
statement as to the reasons for denial, a notice of the right to appeal 
the determination to the Deputy Administrator (the notice shall include 
the Deputy Administrator's name, title, and address), and a notice that 
such an appeal must be filed with the Deputy Administrator within 60 
days in order to be considered.
    (f) Foreign government information. Except as provided hereinafter, 
requests for mandatory review for the declassification of classified 
documents that contain foreign government information shall be processed 
and acted upon in accordance with the provisions of paragraphs (c) 
through (e) of this section. If the request involves information that 
was initially received or classified by GSA, then the corresponding 
service or staff office shall be designated by the GSA Security Officer 
to determine whether the foreign government information in the document

[[Page 218]]

may be declassified and released in accordance with GSA policy or 
guidelines, after consulting with other agencies that have subject 
matter interest as necessary. If GSA is not the agency that received or 
classified the foreign government information, it shall refer the 
request to the appropriate agency. In those cases where agency policy or 
guidelines do not apply, consultation with the foreign originator, 
through the GSA Security Officer, may be made prior to final action on 
the request.
    (g) Information classified outside the service or staff office. When 
a service or staff office receives a request for declassification of 
information in a document which is in the custody of the service or 
staff office but was classified by another service or staff office or by 
another Government agency, the service or staff office shall refer the 
request to the classifying service or staff office or Government agency, 
together with a copy of the document containing the information 
requested when practicable, and shall notify the requester of the 
referral, unless the agency that classified the information objects on 
the grounds that its association with the information requires 
protection. When a GSA service or staff office receives such a referral, 
it shall process the request in accordance with the requirements of this 
paragraph and, if so requested, shall notify the referring service, 
staff office, or agency of the determination made on the request.
    (h) Action on appeal. The following procedures shall be followed 
when denials of requests for declassification are appealed:
    (1) The Deputy Administrator shall, within 15 days of the date of 
the appeal, convene a meeting of the GSA Information Security Oversight 
Committee (ISOC) that shall include the GSA Security Officer, or his or 
her representative, and the GSA official who denied the original request 
(and, at the option of that official, any subordinates or personnel from 
other agencies that participated in the decision for denial).
    (2) The ISOC shall learn from the official the reasons for denying 
the request, concentrating in particular upon which requirement 
continued classification is based and the identifiable damage that would 
result if the information were declassified. The ISOC shall also learn 
from the official the part or parts of the information that is 
classified and if by deleting minor segments of the information it might 
not then be declassified.
    (3) The ISOC's decision to uphold or deny the appeal, in whole or in 
part, shall be based upon the unanimous opinion of its membership. In 
the event that unanimity cannot be attained, the matter shall be 
referred to the Administrator, whose decision shall be final.
    (4) Based upon the outcome of the appeal, a reply shall be made to 
the person making the appeal that either encloses the requested 
information or part of the information, or explains why the continued 
classification of the information is required. A copy of the reply shall 
be sent to the GSA official who originally denied the request for 
declassification, to the GSA Security Officer, and to any other agency 
expressing an interest in the decision.
    (5) Final action on appeals shall be completed within 30 days of the 
date of the appeal.
    (i) Prohibition. No service of staff office in possession of a 
classified document may refuse to confirm the existence of the document 
in response to a request for the document under the provisions for 
mandatory review, unless the fact of its existence would itself be 
classifiable.
    (j) Presidential papers. Information less than 10 years old which 
was originated by the President, by the White House staff, or by 
committees or commissions appointed by the President, or by others 
acting on behalf of the President, is exempted from mandatory review for 
declassification. Such information 10 years old or older is subject to 
mandatory review for declassification in accordance with procedures 
developed by the Archivist of the United States which provide for 
consultation with GSA on matters of primary subject interest to this 
agency.

[[Page 219]]



PART 105-64--REGULATIONS IMPLEMENTING THE PRIVACY ACT OF 1974--Table of Contents




Sec.
105-64.000  Scope of part.
105-64.001  Purpose.
105-64.002  Definitions.

                    Subpart 105-64.1--General Policy

105-64.101  Maintenance of records.
105-64.101-1  Collection and use.
105-64.101-2  Standards of accuracy.
105-64.101-3  Rules of conduct.
105-64.101-4  Safeguarding systems of records.
105-64.101-5  Inconsistent directives of GSA superseded.
105-64.102  Records of other agencies.
105-64.103  Subpoenas and other legal demands.

                 Subpart 105-64.2--Disclosure of Records

105-64.201  Conditions of disclosure.
105-64.202  Procedures for disclosure.
105-64.203  Accounting of disclosure.

             Subpart 105-64.3--Individual Access to Records

105-64.301  Access procedures.
105-64.301-1  Form of requests.
105-64.301-2  Special requirements for medical records.
105-64.301-3  Granting access.
105-64.301-4  Denials of access.
105-64.301-5  Appeal of denial of access within GSA.
105-64.301-6  Geographic composition, addresses and telephone numbers of 
          regional Administrative Services Division directors.
105-64.302  Fees.
105-64.302-1  Records available at a fee.
105-64.302-2  Additional copies.
105-64.302-3  Waiver of fee.
105-64.302-4  Prepayment of fees over $25.
105-64.302-5  Form of payment.
105-64.302-6  Reproduction fee schedule.

               Subpart 105-64.4--Requests to Amend Records

105-64.401  Submission of requests to amend records.
105-64.402  Review of requests to amend records.
105-64.403  Approval of requests to amend.
105-64.404  Denial of requests to amend.
105-64.405  Agreement to alternative amendments.
105-64.406  Appeal of denial of request to amend a record.
105-64.407  Statements of disagreement.
105-64.408  Judicial review.

  Subpart 105-64.5--Reporting New Systems and Altering Existing Systems

105-64.501  Reporting requirement.
105-64.502  Federal Register notice of establishment of new system or 
          alteration of existing system.
105-64.503  Effective date of new systems of records or alteration of an 
          existing system of records.

                      Subpart 105-64.6--Exemptions

105-64.601  General exemptions.
105-64.602  Specific exemptions.

               Subpart 105-64.7--Assistance and Referrals

105-64.701  Requests for assistance and referral.

    Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); 88 Stat. 
1897 (5 U.S.C. 552a).

    Source: 50 FR 43139, Oct. 24, 1985, unless otherwise noted.



Sec. 105-64.000  Scope of part.

    The policies and procedures for collecting, using, and disseminating 
records maintained by GSA are subject to 5 U.S.C. 552a, and defined in 
Sec. 105-64.002. Policies and procedures governing availability of 
records in general are in parts 105-60 and 61 of this chapter. This part 
also covers exemptions from disclosing personal information; procedures 
guiding persons who wish to obtain information, or to inspect or correct 
the content of records; accounting for disclosure of information; 
requirements for medical records; and fees.



Sec. 105-64.001  Purpose.

    This part implements 5 U.S.C. 552a (Pub. L. 93-579), known as the 
Privacy Act of 1974 (referred to as the Act). This part states 
procedures for notifying an individual of a GSA system of records 
containing a record pertaining to him or her, procedures for gaining 
access to or contesting the content of records, and other procedures for 
carrying out the Act.



Sec. 105-64.002  Definitions.

    For the purpose of this part 105-64, the terms listed below are 
defined as follows:

[[Page 220]]

    (a) Agency means agency as defined in 5 U.S.C. 552(e);
    (b) Individual means a citizen of the United States or a legal alien 
admitted for permanent residence;
    (c) Maintain means keep, collect, use, and disseminate;
    (d) A record means any item, collection, or grouping of information 
an agency maintains about a person, including, but not limited to, his 
or her educational background, financial transactions, medical history, 
and employment or criminal history, and that contains his or her name or 
other identifying number of symbols such as a fingerprint, voiceprint, 
or photograph;
    (e) A system of records means any group of records under the control 
of the agency from which information is retrieved by a person's name or 
by an identifying number, symbols, or other identifiers assigned to that 
individual;
    (f) A statistical record means an item of information maintained for 
statistical research or reporting purposes that is not used in making 
any determination about an identifiable person, except as provided by 
Section 8 of Title 13 U.S.C.;
    (g) Routine use means using a record for the purpose for which it 
was intended;
    (h) System manager means the GSA employee who maintains a system of 
records and who collects, uses, and disseminates the information in it;
    (i) The subject individual means the person named or discussed in a 
record or the person to whom a record refers;
    (j) Disclosure means transferring a record, a copy of a record, or 
the information contained in a record to someone other than the subject 
individual, or the reviewing of a record by someone other than the 
subject individual;
    (k) Access means a transfer of a record, a copy of a record, or the 
information in a record to the subject individual, or the review of a 
record by the subject individual; and
    (l) Solicitation means a request by an officer or employee of GSA 
for a person to provide information about himself or herself.



                    Subpart 105-64.1--General Policy



Sec. 105-64.101  Maintenance of records.



Sec. 105-64.101-1  Collection and use.

    (a) General. The system manager (also called the manager) should 
collect information used for determining an individual's rights, 
benefits, or privileges under GSA programs directly from the subject 
individual if practical. The system manager should ensure that 
information collected is used only as intended by the Act and these 
regulations.
    (b) Soliciting information. Manager must ensure that when 
information is solicited, the person is informed of the authority for 
collecting it; whether providing it is mandatory or voluntary; the 
purpose for which it will be used; routine uses of the information; and 
the effect on the individual, if any, of not providing the information. 
Heads of Services and Staff Offices and Regional Administrators must 
ensure that forms used to solicit information comply with the Act and 
these regulations.
    (c) Soliciting a social security number. Before requesting a person 
to disclose his or her social security number, ensure either:
    (1) The disclosure is required by Federal statute, or;
    (2) Disclosure is required under a statute or regulation adopted 
before January 1, 1975, to verify the person's identity, and that it was 
part of a system of records in existence before January 1, 1975.

If soliciting a social security number is authorized under paragraph (c) 
(1) or (2) of this section, inform the person beforehand whether the 
disclosure is mandatory or voluntary, by what legal or other authority 
the number is requested, and the use that is to be made of it.
    (d) Soliciting information from third parties. Officers or employees 
must inform third parties requested to provide information about another 
person of the reason for collecting the information.



Sec. 105-64.101-2  Standards of accuracy.

    Managers should ensure that the records used by the Agency to make

[[Page 221]]

determinations about an individual are maintained with the accuracy, 
relevance, timeliness, and completeness needed to ensure fairness to the 
individual.



Sec. 105-64.101-3  Rules of conduct.

    Those who design, develop, operate, or maintain a system of records, 
or any record, must review 5 U.S.C. 552a and the regulations in this 
part and follow 41 CFR part 105-735, Standards of Conduct, for 
protecting personal information.



Sec. 105-64.101-4  Safeguarding systems of records.

    Managers must ensure that administrative, technical, and physical 
safeguards are established to ensure the security and confidentiality of 
records and to protect against possible threats or hazards which could 
be harmful, embarrassing, inconvenient, or unfair to any individual. 
They must protect personnel information contained in manual and 
automated systems of records by using the following safeguards:
    (a) Storing official personnel folders and work folders in a 
lockable filing cabinet when not in use. The system manager may use an 
alternative storage system if it provides the same security as a locked 
cabinet.
    (b) Designating other sensitive records that need safeguards similar 
to those described in paragraph (a) of this section.
    (c) Permitting access to and use of automated or manual personnel 
records only to persons whose official duties require it, or to a 
subject individual or to his or her representative.



Sec. 105-64.101-5  Inconsistent directives of GSA superseded.

    This part 105-64 applies or takes precedence when any GSA directive 
disagrees with it.



Sec. 105-64.102  Records of other agencies.

    If a GSA employee receives a request to review records that are the 
primary responsibility of another agency, but are maintained by or in 
the temporary possession of GSA, the employee should consult with the 
other agency before releasing the records. Records in the custody of GSA 
that are the responsibility of the Office of Personnel Management (OPM) 
are governed by rules issued by OPM under the Privacy Act.



Sec. 105-64.103  Subpoenas and other legal demands.

    Access to systems of records by subpoena or other legal process must 
meet the provisions of ubpart 105-60.6 of this chapter.



                 Subpart 105-64.2--Disclosure of Records



Sec. 105-64.201  Conditions of disclosure.

    GSA employees may not disclose any record to a person or another 
agency without the express written consent of the subject individual 
unless the disclosure is:
    (a) To GSA officials or employees who need the information to 
perform their official duties;
    (b) Required by the Freedom of Information Act;
    (c) For a routine use identified in the Federal Register;
    (d) For Bureau of the Census use under Title 13 of the United States 
Code;
    (e) To someone who has assured GSA in writing that the record is to 
be used solely for statistical research or reporting, and if it does not 
identify an individual;
    (f) To the National Archives of the United States as a record that 
has historical or other value warranting permanent retention;
    (g) To another agency or instrumentality under the jurisdiction or 
control of the United States for a civil or criminal law enforcement 
activity, if the head of the agency or instrumentality or the designated 
representative has made a written request to GSA specifying the part 
needed and the law enforcement agency seeking it;
    (h) To a person showing compelling circumstances affecting someone's 
health and safety not necessarily the subject individual (Upon 
disclosure, a notification must be sent to the subject individual's last 
known address);
    (i) To either House of Congress or to a committee or subcommittee 
(joint or of either House), to the extent that the matter falls within 
its jurisdiction;

[[Page 222]]

    (j) To the Comptroller General or an authorized representative while 
performing the duties of the General Accounting Office;
    (k) Under an order of a court of competent jurisdiction; or
    (l) To a consumer reporting agency under section 3(d) of the Federal 
Claims Collection Act of 1966 (31 U.S.C. 3711(f)(1)).



Sec. 105-64.202  Procedures for disclosure.

    (a) On receiving a request to disclose a record, the manager should 
verify the requester's right to obtain the information under Sec. 105-
64.201. Upon verification, the manager may make the records available.
    (b) If the manager decides the record can't be disclosed, he or she 
must inform the requester in writing and state that the denial can be 
appealed to the GSA Privacy Act Officer, General Services Administration 
(ATRAI), for a final decision.



Sec. 105-64.203  Accounting of disclosure.

    (a) Except for disclosures made under Sec. 105-64.201 (a) and (b), 
an accurate account of each disclosure is kept and retained for 5 years 
or for the life of the record, whichever is longer. The date, reason, 
and type of information disclosed, as well as the name and address of 
the person or agency to whom you disclosed it are noted.
    (b) The manager also keeps with the account of information 
disclosed:
    (1) A statement justifying the disclosure;
    (2) Any documentation related to disclosing a record for statistical 
or law enforcement use; and
    (3) The written consent of the person concerned.
    (c) Except when records are disclosed to agencies or 
instrumentalities for law enforcement under Sec. 105-64.201(g) or from 
exempt systems (see subpart 105-64.6), accounts of information disclosed 
must be opened to the person concerned, upon request. Procedures to 
request such access are given in the following subpart.



             Subpart 105-64.3--Individual Access to Records



Sec. 105-64.301  Access procedures.



Sec. 105-64.301-1  Form of requests.

    (a) A person who wants to see a record or any information concerning 
him or her that is contained in a system or records maintained in the 
GSA Central Office should send a written request to the GSA Privacy Act 
Officer, General Services Administration (ATRAI), Washington, DC 20405. 
For records maintained in GSA regional offices, send the request to the 
Director, Administrative Services Division at the address shown in 
Sec. 105-64.301-6.
    (b) Requests must be made in writing and must be labeled Privacy Act 
Request both on the letter and on the envelope. The letter should 
contain the full name and identifying number of the system as published 
in the Federal Register; the full name and address of the subject 
individual; a brief description of the nature, time, place, and 
circumstances of the person's association with GSA; and any other 
information that would indicate whether the information is in the system 
of records. The 10-workday time limit for the agency to reply under 
Sec. 105-64.301-3, begins when a request is received in the office of 
the official identified in this section.
    (c) Managers may accept oral requests for access, if the requester 
is properly identified.



Sec. 105-64.301-2  Special requirements for medical records.

    (a) A manager who receives a request for access to official medical 
records belonging to the Office of Personnel Management and described in 
Chapter 339, Federal Personnel Manual (records about entrance 
qualification, fitness for duty, or records filed in the official 
personnel folder), should refer the matter to a Federal medical officer 
for a decision under this section. If no medical officer is available, 
the manager should send the request and the medical reports to the 
Office of Personnel Management for a decision.

[[Page 223]]

    (b) If the Federal medical officer believes the medical records 
requested by the subject individual discuss a condition that a physician 
would hesitate to reveal to the person, the manager may release the 
information only to a physician designated in writing by the subject 
individual, his or her guardian, or conservator. If the records contain 
information the physician would likely disclose to the person, the 
information may be released to anyone the person authorizes in writing 
to receive it.



Sec. 105-64.301-3  Granting access.

    (a) Upon receiving a request for access to nonexempt records, the 
manager must make them available to the subject individual or 
acknowledge the request within 10 workdays after it is received, stating 
when the records will be available.
    (b) If the manager expects a delay of more than the 10 days allowed, 
he or she should state the reason why in the acknowledgement.
    (c) If a request for access does not contain enough information to 
find the records, the manager should request additional information from 
the individual and is allowed 10 more workdays after receiving it to 
make the records available or acknowledge receiving the request.
    (d) Records are available during normal business hours at the 
offices where the records are maintained. Requesters should be prepared 
to identify themselves by signature and to show other identification 
verifying their signature.
    (e) Managers may permit an individual to examine the original of a 
nonexempt record and, if asked, provide the person with a copy of the 
record. Fees are charged only for copies given to the person, not for 
copies made for the agency's convenience.
    (f) A requester may pick up a record in person or receive it by 
mail, directed to an address provided in the request. The manager should 
not give a record to a third party to deliver to the subject individual, 
except medical records as outlined in Sec. 105-64.301-2 or as described 
in paragraph (g) of this section.
    (g) If a person wants to have someone else accompany him or her 
while reviewing a record or when obtaining a copy of it, he or she must 
first sign a statement authorizing the disclosure of the record. The 
system manager shall maintain this statement with the record.
    (h) The procedure to review the account of disclosures is the same 
as the procedures for reviewing a record.



Sec. 105-64.301-4  Denials of access.

    (a) A manager may deny access to a record only if the information is 
being compiled in reasonable acticipation of a civil action or 
proceeding as provided under 5 U.S.C. 552(d)(5) or if rules published in 
the Federal Register state that it is in a system of records that may 
not be disclosed. These systems are described in Subpart 105-64.6.
    (b) If a manager receives a request for access to a record in an 
exempt system of record, he or she should forward it to the Head of the 
Service or Staff Office or Regional Administrator, attaching an 
explanation and recommending the request be denied or granted.
    (c) If the manager is the Head of a Service or Staff Office or a 
Regional Administrator, he or she retains the responsibility for 
granting or denying the request.
    (d) The head of the Service or Staff Office or Regional 
Administrator, in consultation with legal counsel and other officials 
concerned, should decide whether the requested record is exempt from 
disclosure and,
    (1) If the record is not exempt, notify the system manager to grant 
the request under Sec. 105-64.301-3; or
    (2) If the record is part of an exempt system he or she should:
    (i) Notify the requester that the request is denied, explain why it 
is denied, and inform the requester of his or her right to have GSA 
review the decision; or
    (ii) Notify the manager to make the record available under Sec. 105-
64.301-3, even though it is in an exempted system.
    (e) A copy of any denial of a request should be sent to the GSA 
Privacy Act Officer (ATRAI).

[[Page 224]]



Sec. 105-64.301-5  Appeal of denial of access within GSA.

    (a) A requester who is denied access, in whole or in part, to 
records pertaining to him or her may file an administrative appeal. 
Appeals should be addressed to the GSA Privacy Act Officer, General 
Services Administration (ATRAI), Washington, DC 20405, regardless 
whether the denial was made by a Central Office or a regional official.
    (b) Each appeal to the Privacy Act Officer must be in writing. The 
appeal should be marked Privacy Act-Access Appeal, on the face of the 
letter and on the envelope.
    (c) On receiving an appeal, the Privacy Act Officer consults with 
the manager, the official who made the denial, legal counsel, and other 
officials concerned. If the Privacy Act Officer, after consultation, 
decides to grant the request, he or she notifies the manager in writing 
to grant access to the record under Sec. 105-64.301-3, or grants access 
himself or herself and notifies the requester of that action.
    (d) If the Privacy Act Officer decides the appeal should be 
rejected, he or she sends the request file and any appeal, with a 
recommendation, to the Deputy Administrator for a final administrative 
decision.
    (e) If the Deputy Administrator decides to grant a request, he or 
she promptly instructs the system manager in writing to grant access to 
the record under Sec. 105-64.301-3. The Deputy Administrator sends a 
copy of the instructions to the Privacy Act Officer, who notifies the 
requester.
    (f) If the Deputy Administrator rejects an appeal, he or she should 
promptly notify the requester in writing. This action constitutes the 
final administrative decision on the request and should state:
    (1) The reason for rejecting the appeal; and
    (2) That the requester has the right to have a court review the 
final decision under Sec. 105-64.408.
    (g) The final decision must be made within 30 workdays from the date 
the appeal is received by the Privacy Act Officer. The Deputy 
Administrator may extend the time limit by notifying the requester in 
writing before the 30 days are up. The Deputy Administrator's letter 
should explain why the time was extended.



Sec. 105-64.301-6  Geographic composition, addresses and telephone numbers of regional Administrative Services Division directors.

                                Region 1

Boston (includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode 
Island, and Vermont) Telephone: 617-223-5212
Director, Administrative Services Division, General Services 
Administration (1BR), John W. McCormack Post Office and Courthouse, 
Boston, MA 02109

                                Region 2

New York (includes New Jersey, New York, the Commonwealth of Puerto 
Rico, and the Virgin Islands) Telephone: 212-264-8262
Director, Administrative Services Division, General Services 
Administration (2BR), 26 Federal Plaza, New York, NY 10278

                                Region 3

Philadelphia (includes Delaware, Maryland, Pennsylvania, Virginia, and 
West Virginia with the exception of the National Capital Region) 
Telephone: 215-597-7926
Director, Administrative Services Division, General Services 
Administration (3BR), Ninth and Market Streets, Philadelphia, PA 19107

                                Region 4

Atlanta (includes Alabama, Florida, Georgia, Kentucky, Mississippi, 
North Carolina, South Carolina, and Tennessee) Telephone: 404-221-3240
Director, Administrative Services Division, General Services 
Administration (4BR), 75 Spring Street, SW, Atlanta, GA 30303

                                Region 5

Chicago (includes Illinois, Indiana, Michigan, Ohio, Minnesota, and 
Wisconsin) Telephone: 312-353-8421
Director, Administrative Services Division, General Services 
Administration (5BR), 230 South Dearborn Street, Chicago, IL 60604

                                Region 6

Kansas City (includes Iowa, Kansas, Missouri, and Nebraska) Telephone: 
816-374-7581
Director, Administrative Services Division, General Services 
Administration (6BR), 1500 East Bannister Road, Kansas City, MO 64131

                                Region 7

Fort Worth (includes Arkansas, Louisiana, New Mexico, Texas, and 
Oklahoma) Telephone: 817-334-2350

[[Page 225]]

Director, Administrative Services Division, General Services 
Administration (7BR), 819 Taylor Street, Fort Worth, TX 76102

                                Region 8

Denver (includes Colorado, North Dakota, South Dakota, Montana, Utah, 
and Wyoming) Telephone: 303-776-2231
Director, Administrative Services Division, General Services 
Administration (8BR), Building 41, Denver Federal Center, Denver, CO 
80225

                                Region 9

San Francisco (includes Hawaii, California, Nevada, and Arizona) 
Telephone: 415-556-9130
Director, Administrative Services Division, General Services 
Administration (9BR), 525 Market Street, San Francisco, CA 95105

                                Region 10

Auburn (includes Alaska, Idaho, Oregon, and Washington) Telephone: 206-
931-7128
Director, Administrative Services Division, General Services 
Administration (10BR), GSA Center, Auburn, WA 98002

                         National Capital Region

Washington, DC (includes the District of Columbia, the counties of 
Montgomery and Prince Georges in Maryland; the city of Alexandria and 
the counties of Arlington, Fairfax, Loudoun, and Prince William in 
Virginia) Telephone: 202-472-1650
Director, Adminstrative Services Division, General Services 
Administration (WBR), Seventh and D Streets, SW, Washington, DC 20407



Sec. 105-64.302  Fees.



Sec. 105-64.302-1  Records available at a fee.

    The manager shall provide one copy of a record to a requester for 
the fee stated in Sec. 105-64.302-6.



Sec. 105-64.302-2  Additional copies.

    A reasonable number of additional copies shall be provided for a fee 
if a requester cannot get copies made commercially.



Sec. 105-64.302-3  Waiver of fee.

    The manager should make a copy of a record of up to 50 pages at no 
charge to a requester who is a GSA employee. The manager may waive the 
fee if the cost of collecting it is nearly as large as or greater than 
the fee, or if furnishing the record without charge is customary or in 
the public interest.



Sec. 105-64.302-4  Prepayment of fees over $25.

    If a fee is likely to exceed $25, the manager notifies the person to 
pay the fee before GSA can make the records available. GSA will remit 
any overpayment or will send the requester a bill for any change over 
the amount paid.



Sec. 105-64.302-5  Form of payment.

    Copies must be paid for by check or money order made out to the 
General Services Administration and addressed to the system manager.



Sec. 105-64.302-6  Reproduction fee schedule.

    (a) The fee for copying a GSA record (by electrostatic copier) of 8 
by 14 inches or less is 10 cents a page.
    (b) The fee for copying a GSA record more than 8 by 14 inches or one 
that does not permit copying by routine procedures is the same as that 
charged commercially.



               Subpart 105-64.4--Requests To Amend Records



Sec. 105-64.401  Submission of requests to amend records.

    A person who wants to amend a record containing personal information 
should send a written request to the GSA Privacy Act Officer. A GSA 
employee who want to amend personnel records should send a written 
request to the General Services Administration, Director of Personnel 
(EP), Washington, DC 20405. It should show evidence of and justify the 
need to amend the record. Both the letter and the envelope should be 
marked ``Privacy Act-Request to Amend Record''.



Sec. 105-64.402  Review of requests to amend records.

    (a) Managers must acknowledge a request to amend a record within 10 
workdays after receiving it. If possible, the acknowledgment should 
state whether the request will be granted or denied, under Sec. 105-
64.404.
    (b) In reviewing a record in response to a request to amend, the 
manager should weigh the accuracy, relevance, timeliness, and 
completeness of the existing record compared to the proposed

[[Page 226]]

amendment to decide whether the amendment is justified. On a request to 
delete information, the manager should also review the request and the 
existing record to decide whether the information is needed by the 
agency under a statute or an Executive order.



Sec. 105-64.403  Approval of requests to amend.

    If a manager decides that a record should be amended, he or she must 
promptly correct it and send the person a corrected copy. If an 
accounting of disclosure was created to document disclosure of a record, 
anyone who previously received the record must be informed of the 
substance of the correction and sent a copy of the corrected record. The 
manager should advise the Privacy Act Officer that the request to amend 
was approved.



Sec. 105-64.404  Denial of requests to amend.

    (a) If a manager decides that amending a record is improper or that 
it should be amended in a different way, he or she refers the request 
and recommendation to the Head of the Service or Staff Office or 
Regional Administrator through channels.
    (b) If the Head of the Service or Staff Office or Regional 
Administrator decides to amend the record as requested, he or she should 
promptly return the request to the manager with instructions to make the 
amendment under Sec. 105-64.403.
    (c) If the Head of the Service or Staff Officer or Regional 
Administrator decides not to amend the record as requested, he or she 
should promptly advise the requester in writing of the decision. The 
letter shall (1) state the reason for denying the request; (2) include 
proposed alternate amendments, if appropriate; (3) state the requester's 
right to appeal the denial; and (4) tell how to proceed with an appeal.
    (d) The Privacy Act Officer must be sent a copy of the original 
denial of a request to amend a record.



Sec. 105-64.405  Agreement to alternative amendments.

    If the letter denying a request to amend a record proposes alternate 
amendments and the requester agrees to them, he or she must notify the 
official who signed the letter. The official should promptly instruct 
the manager to amend the record under Sec. 105-64.403.



Sec. 105-64.406  Appeal of denial of request to amend a record.

    (a) A requester who is denied a request to amend a record may appeal 
the denial. The appeal should be sent to the General Services 
Administration, Privacy Act Officer (ATRAI), Washington, DC 20405. If 
the request involves a record in a GSA employee's official personnel 
folder, as described in Chapter 293 of the Federal Personnel Manual, the 
appeal should be addressed to the Director, Bureau of Manpower 
Information Systems, Office of Personnel Management, Washington, DC 
20415.
    (b) The appeal to the Privacy Act Officer must be in writing and be 
received within 30 calendar days after the requester receives the letter 
stating the request was denied. It should be marked ``Privacy Act--
Appeal,'' both on the front of the letter and the envelope.
    (c) On receiving an appeal, the Privacy Act Officer should consult 
with the manager, the official who made the denial, legal counsel, and 
other officials involved. If the Privacy Act Officer, after consulting 
with these officials, decides that the record should be amended as 
requested, he or she must promptly inform the manager to amend it under 
Sec. 105-64.403 and shall notify the requester.
    (d) If the Privacy Act Officer, after consulting with the officials 
listed in the above paragraph, decides to reject an appeal, he or she 
should send the file, with a recommendation, to the Deputy Administrator 
for a final administrative decision.
    (e) If the Deputy Administrator decides to change the record, he or 
she should promptly instruct the manager in writing to amend it under 
Sec. 105-64.403 and send a copy of the instruction to the Privacy Act 
Officer, who shall notify the requester.
    (f) If the Deputy Administrator rejects an appeal, he or she should

[[Page 227]]

promptly notify the requester in writing. This is the final 
administrative decision on the request and should include:
    (1) Why the appeal is rejected;
    (2) Alternate amendments that the requester may accept under 
Sec. 105-64.405;
    (3) Notice of the requester's right to file a Statement of 
Disagreement that must be distributed under Sec. 105-64.407; and
    (4) Notice of requester's right to seek court review of the final 
administrative decision under Sec. 105-64.408.
    (g) The final agency decision must be made within 30 workdays from 
the date the Privacy Act Officer receives the appeal. In unusual 
circumstances, the Deputy Administrator may extend this time limit by 
notifying the requester in writing before the 30 days are up. The notice 
should explain why the limit was extended.



Sec. 105-64.407  Statements of disagreement.

    On receiving a final decision not to amend a record, the requester 
may file a Statement of Disagreement with the manager. The statement 
should explain why the requester believes the record to be inaccurate, 
irrelevant, untimely, or incomplete. The manager must file the statement 
with the records and include a copy of it in any disclosure of the 
record. The manager must also provide a copy of the Statement of 
Disagreement to any person or agency to whom the record has been 
disclosed if the disclosure was made under the accounting requirement of 
Sec. 105-64.202.



Sec. 105-64.408  Judicial review.

    For up to 2 years after the final administrative decision under 
Sec. 105-64.301-4 or Sec. 105-64.406, a requester may seek to have the 
court overturn the decision. A civil action must be filed in the Federal 
District Court where the requester lives or has his or her principal 
place of business, where the agency records are maintained, or in the 
District of Columbia.



  Subpart 105-64.5--Reporting New Systems and Altering Existing Systems



Sec. 105-64.501  Reporting requirement.

    (a) At least 90 calendar days before establishing a new system of 
records, the manager must notify the Associate Administrator for Policy 
and Management Systems. The notification must describe and justify each 
system of records. If the Associate Administrator decides to establish 
the system, he or she should submit a proposal, at least 60 days before 
establishing the system, to the President of the Senate, the Speaker of 
the House of Representatives and the Director of the Office of 
Management and Budget for evaluating the effect on the privacy and other 
rights of individuals.
    (b) At least 90 calendar days before altering a system of records, 
the responsible manager must notify the Associate Administrator for 
Policy and Management Systems. The notification must describe and 
justify altering the system of records. If the Associate Administrator 
decides to alter the system, he or she should submit a proposal, at 
least 60 calendar days before altering the system, to the President of 
the Senate, the Speaker of the House of Representatives, and the 
Director of the Office of Management and Budget for evaluating the 
effect on the privacy and other rights of individuals.
    (c) Reports required by this regulation are exempt from reports 
control.



Sec. 105-64.502  Federal Register notice of establishment of new system or alteration of existing system.

    The Associate Administrator for Policy and Management Systems must 
publish in the Federal Register a notice of intent to establish or alter 
a system of records:
    (a) If he or she receives notice that the Senate, the House of 
Representatives, and the Office of Management and Budget (OMB) do not 
object to establishing or altering a system of records, or

[[Page 228]]

    (b) If 30 calendar days after submitting the proposal neither OMB 
nor the Congress objects.



Sec. 105-64.503  Effective date of new systems of records or alteration of an existing system of records.

    When there is no objection to establishing or changing a system of 
records, it becomes effective 30 calendar days after the notice is 
published in the Federal Register.



                      Subpart 105-64.6--Exemptions



Sec. 105-64.601  General exemptions.

    The following systems of records are exempt from the Privacy Act of 
1974, except subsections (b); (c) (1) and (2); (e)(4) (A) through (F); 
(e) (6), (7), (9), (10), and (11); and (i) of the Act:
    (a) Incident Reporting System, GSA/PBS-3.
    (b) Investigation Case Files, ADM-24.

The systems of records GSA/PBS-3 and GSA/ADM-24 are exempt to the extent 
that information in them relates to enforcing the law, including police 
efforts to prevent, control, or reduce crime or to apprehend criminals; 
to the activities of prosecutors, courts, and correctional, probation, 
pardon, or parole authorities; and to (1) information compiled to 
identify criminal offenders and alleged offenders, consisting of records 
of arrests, disposition of criminal charges, sentencing, confinement, 
release, parole, and probation; (2) information compiled for a criminal 
investigation, including reports of informants and investigators that 
identify a person; or (3) reports that identify a person and were 
prepared while enforcing criminal laws, from arrest or indictment 
through release from parole. The law exempts these systems to maintain 
the effectiveness and integrity of the Federal Protective Service and 
the Office of Inspector General.



Sec. 105-64.602  Specific exemptions.

    The following systems of records are exempt from subsections (c)(3); 
(d); (e)(1); (e)(4) (G), (H), and (I); and (f) of the Privacy Act of 
1974;
    (a) Incident Reporting System, GSA/PBS-3.
    (b) Investigation Case Files, GSA/ADM-24.
    (c) Security Files, HSA/HRO-37.

The systems are exempt (1) if they contain investigatory material 
compiled for law enforcement. However, if anyone is denied a right, 
privilege, or benefit for which they would otherwise be eligible because 
of the material, it should be provided to the person, except if it 
discloses the identify of a Government source of information which there 
is an express promise of confidentiality or before the effective date of 
this section, under an implied promise of confidentiality and (2) 
investigatory material compiled solely to decide suitability, 
eligibility, or qualification for Federal employment, military service, 
Federal contracts, or access to classified information, when disclosing 
the material would reveal the identity of a confidential Government 
informant, or prior to the effective date of this section, under an 
implied promise that their identity is to be held in confidence. The 
systems are exempted to maintain the effectiveness and integrity of 
investigations conducted as part of the Federal Protective Service, 
Office of Inspector General, and Office of Internal Security law 
enforcement duties or their responsibilities in the areas of Federal 
employment, Government contracts, and access to security classified 
information.



               Subpart 105-64.7--Assistance and Referrals



Sec. 105-64.701  Requests for assistance and referral.

    Requests for assistance and referral to a system manager or other 
GSA employee charged with implementing these regulations are made to the 
GSA Privacy Officer (ATRAI), General Services Administration, 
Washington, DC 20405.



PART 105-67--SALE OF PERSONAL PROPERTY--Table of Contents




Sec.
105-67.100  Scope of subpart.
105-67.101  Debarred, suspended and ineligible contractors.

    Authority: 40 U.S.C. 486(c).

[[Page 229]]



Sec. 105-67.100  Scope of subpart.

    This subpart prescribes policies and procedures governing the 
debarment or suspension of contractors from purchases of Federal 
personal property (see FPMR part 101-45).

[51 FR 13500, Apr. 21, 1986]



Sec. 105-67.101  Debarred, suspended and ineligible contractors.

    The policies, procedures and requirements of subpart 509.4 of the 
General Services Administration Acquisition Regulation (GSAR) are 
incorporated by reference and made applicable to contracts for, and to 
contractors who engage in, the purchase of Federal personal property.

[51 FR 13500, Apr. 21, 1986]



PART 105-68--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                        Subpart 105-68.1--General

Sec.
105-68.100  Purpose.
105-68.105  Definitions.
105-68.110  Coverage.
105-68.115  Policy.

                   Subpart 105-68.2--Effect of Action

105-68.200  Debarment or suspension.
105-68.205  Ineligible persons.
105-68.210  Voluntary exclusion.
105-68.215  Exception provision.
105-68.220  Continuation of covered transactions.
105-68.225  Failure to adhere to restrictions.

                       Subpart 105-68.3--Debarment

105-68.300  General.
105-68.305  Causes for debarment.
105-68.310  Procedures.
105-68.311  Investigation and referral.
105-68.312  Notice of proposed debarment.
105-68.313  Opportunity to contest proposed debarment.
105-68.314  Debarring official's decision.
105-68.315  Settlement and voluntary exclusion.
105-68.320  Period of debarment.
105-68.325  Scope of debarment.

                      Subpart 105-68.4--Suspension

105-68.400  General.
105-68.405  Causes for suspension.
105-68.410  Procedures.
105-68.411  Notice of suspension.
105-68.412  Opportunity to contest suspension.
105-68.413  Suspending official's decision.
105-68.415  Period of suspension.
105-68.420  Scope of suspension.

   Subpart 105-68.5--Responsibilities of GSA, Agency and Participants

105-68.500  GSA responsibilities (information dissemination).
105-68.505  GSA responsibilities.
105-68.510  Participants' responsibilities.

       Subpart 105-68.6--Drug-Free Workplace Requirements (Grants)

105-68.600  Purpose.
105-68.605  Definitions.
105-68.610  Coverage.
105-68.615  Grounds for suspension of payments, suspension or 
          termination of grants, or suspension or debarment.
105-68.620  Effect of violation.
105-68.625  Exception provision.
105-68.630  Certification requirements and procedures.
105-68.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

Appendix A to Part 105-68--Certification Regarding Debarment, 
          Suspension, and Other Responsibility Matters--Primary Covered 
          Transactions
Appendix B to Part 105-68--Certification Regarding Debarment, 
          Suspension, Ineligibility and Voluntary Exclusion--Lower Tier 
          Covered Transactions
Appendix C to Part 105-68--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: E.O. 12549; sec. 5151-5160 of the Drug-Free Workplace Act 
of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 701 et seq); 40 
U.S.C. 486(c).

    Source: 53 FR 19198, 19204, May 26, 1988, unless otherwise noted. 
Redesignated at 54 FR 4962, Jan. 31, 1989.

    Cross Reference: See also Office of Management and Budget notices 
published at 55 FR 21679, May 25, 1990, and 60 FR 33036, June 26, 1995.

    Editorial Note: For additional information, see related documents 
published at 53 FR 19160, May 26, 1988, and 53 FR 34474, Sept. 6, 1988.

[[Page 230]]



                        Subpart 105-68.1--General



Sec. 105-68.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see definition of 
``ineligible'' in Sec. 105-68.105), and participants who have 
voluntarily excluded themselves from participation in covered 
transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040 and 33059, June 26, 1995]



Sec. 105-68.105  Definitions.

    The following definitions apply to this part:
    Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
    Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
    Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
    Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person

[[Page 231]]

from participating in covered transactions. A person so excluded is 
``debarred.''
    Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    GSA. General Services Administration.
    Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
    Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing regulations, the 
equal employment opportunity acts and executive orders, or the 
environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
    Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
    Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
    Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
    Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
    Principal. Officer, director, owner, partner, key employee, or other 
person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
    Respondent. A person against whom a debarment or suspension action 
has been initiated.
    State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United

[[Page 232]]

States, or any agency of a State, exclusive of institutions of higher 
education, hospitals, and units of local government. A State 
instrumentality will be considered part of the State government if it 
has a written determination from a State government that such State 
considers that instrumentality to be an agency of the State government.
    Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
    Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.

[53 FR 19198 and 19204, May 26, 1988, as amended at 53 FR 19198, May 26, 
1988; 60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);

[[Page 233]]

    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart 105-68.2, ``Effect of Action,'' Sec. 105-68.200, 
``Debarment or suspension,'' sets forth the consequences of a debarment 
or suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 105-68.110(a). Sections 105-68.325, ``Scope of 
debarment,'' and 105-68.420, ``Scope of suspension,'' govern the extent 
to which a specific participant or organizational elements of a 
participant would be automatically included within a debarment or 
suspension action, and the conditions under which affiliates or persons 
associated with a participant may also be brought within the scope of 
the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995, shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995, shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4962, Jan. 31, 
1989; 60 FR 33041, 33059, June 26, 1995]



Sec. 105-68.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                   Subpart 105-68.2--Effect of Action



Sec. 105-68.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 105-68.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 105-68.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;

[[Page 234]]

    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 105-68.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 105-68.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 105-68.315 are 
excluded in accordance with the terms of their settlements. GSA shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 105-68.215  Exception provision.

    GSA may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a written determination by the agency head or an 
authorized designee stating the reason(s) for deviating from the 
Presidential policy established by Executive Order 12549 and Sec. 105-
68.200. However, in accordance with the President's stated intention in 
the Executive Order, exceptions shall be granted only infrequently. 
Exceptions shall be reported in accordance with Sec. 105-68.505(a).

[60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in Sec. 105-
68.215.

[60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 105-68.215 or Sec. 105-68.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded

[[Page 235]]

from the covered transaction (See appendix B of these regulations), 
unless it knows that the certification is erroneous. An agency has the 
burden of proof that a participant did knowingly do business with a 
person that filed an erroneous certification.

[60 FR 33041 and 33059, June 26, 1995]



                       Subpart 105-68.3--Debarment



Sec. 105-68.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 105-68.305, using procedures established in Secs. 105-68.310 
through 105-68.314. The existence of a cause for debarment, however, 
does not necessarily require that the person be debarred; the 
seriousness of the person's acts or omissions and any mitigating factors 
shall be considered in making any debarment decision.



Sec. 105-68.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 105-68.300 through 105-68.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 105-68.215 or Sec. 105-68.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 105-68.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart 105-68.6 of this part, 
relating to providing a drug-free workplace, as set forth in Sec. 105-
68.615 of this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4950 and 4962, 
Jan. 31, 1989; 56 FR 29438, June 27, 1991]



Sec. 105-68.310  Procedures.

    GSA shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 105-68.311 through 105-68.314 and 48 CFR subpart 
509.4.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]

[[Page 236]]



Sec. 105-68.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 105-68.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 105-68.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 105-68.311 through Sec. 105-68.314, 
and any other GSA procedures, if applicable, governing debarment 
decisionmaking; and
    (e) Of the potential effect of a debarment.



Sec. 105-68.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 105-68.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and

[[Page 237]]

    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 105-68.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 105-68.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, GSA may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart 105-68.5).

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4962, Jan. 31, 
1989]



Sec. 105-68.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart 105-68.6 of this part generally should not 
exceed three years. Where circumstances warrant, a longer period of 
debarment may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart 105-68.6 of this part (see 105-68.305(c)(5)), the period of 
debarment shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 105-68.311 through 105-68.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4950 and 4962, 
Jan. 31, 1989; 56 FR 29438, June 27, 1991]



Sec. 105-68.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 105-68.311 through 
105-68.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall

[[Page 238]]

be evidence of such knowledge, approval, or acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement or with the 
knowledge, approval, or acquiescence of these participants. Acceptance 
of the benefits derived from the conduct shall be evidence of such 
knowledge, approval, or acquiescence.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



                      Subpart 105-68.4--Suspension



Sec. 105-68.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 105-68.405 using procedures established in Secs. 105-
68.410 through 105-68.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 105-68.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 105-68.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 105-68.400 through 105-68.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in Sec. 105-
68.305(a); or
    (2) That a cause for debarment under Sec. 105-68.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 105-68.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. GSA shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Sec. 105-68.411 through Sec. 105-
68.413 and 48 CFR subpart 509.4.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



Sec. 105-68.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 105-68.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Sec. 105-68.411 through Sec. 105-68.413 and 
any other GSA

[[Page 239]]

procedures, if applicable, governing suspension decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 105-68.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on the same facts as the 
suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 105-68.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 105-68.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 105-68.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an

[[Page 240]]

impending termination of a suspension, at least 30 days before the 12-
month period expires, to give that Department an opportunity to request 
an extension.



Sec. 105-68.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 105-68.325), except that the procedures of Secs. 105-68.410 
through 105-68.413 shall be used in imposing a suspension.



   Subpart 105-68.5--Responsibilities of GSA, Agency and Participants



Sec. 105-68.500  GSA responsibilities (information dissemination).

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.

[53 FR 19198 and 19204, May 26, 1988, as amended at 53 FR 19198, May 26, 
1988]



Sec. 105-68.505  GSA responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which GSA has granted exceptions under Sec. 105-68.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 105-68.500(b) and 
of the exceptions granted under Sec. 105-68.215 within five working days 
after taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Agency officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (202) 501-0688.
    (e) Agency officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29439, June 27, 
1991]



Sec. 105-68.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(202) 501-0688. Adverse information on the certification will not 
necessarily result in denial of participation. However, the 
certification, and any additional information pertaining to the 
certification submitted by the participant, shall be considered in the 
administration of covered transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B

[[Page 241]]

to this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(202) 501-0688.
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to GSA if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated notice 
to the participant to which it submitted its proposals.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29439, June 27, 
1991]



       Subpart 105-68.6--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21701, May 25, 1990; 55 FR 26442, June 28, 
1990, unless otherwise noted.



Sec. 105-68.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 105-68.605  Definitions.

    (a) Except as amended in this section, the definitions of Sec. 105-
68.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);

[[Page 242]]

    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers the instrumentality to be an agency of the 
State government.



Sec. 105-68.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts 105-68.1, 105-68.2, 105-68.3, 105-
68.4 and 105-68.5 of this part apply to matters covered by this subpart, 
except where specifically modified by this subpart. In the event of any 
conflict between provisions of this subpart and other provisions of this 
part, the provisions of this subpart are deemed to control with respect 
to the implementation of drug-free workplace requirements concerning 
grants.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



Sec. 105-68.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 105-
68.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a) through (g) and/or (B) of the 
certification (Alternate I to Appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to Appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.



Sec. 105-68.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 105-68.615, and in accordance with applicable law, the

[[Page 243]]

grantee shall be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 105-68.320(a)(2) of this 
part).



Sec. 105-68.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 105-68.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific

[[Page 244]]

grant, the grant officer may determine a different date on which the 
policy statement and program shall be in place.



Sec. 105-68.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall report the conviction, in writing, within 10 calendar 
days, to his or her Federal agency grant officer, or other designee, 
unless the Federal agency has designated a central point for the receipt 
of such notices. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

     Appendix A to Part 105-68--Certification Regarding Debarment, 
     Suspension, and Other Responsibility Matters--Primary Covered 
                              Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.

[[Page 245]]

    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042 and 33059, June 26, 1995]

     Appendix B to Part 105-68--Certification Regarding Debarment, 
 Suspension, Ineligibility and Voluntary Exclusion--Lower Tier Covered 
                              Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with

[[Page 246]]

a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, 
debarred, suspended, declared ineligible, or voluntarily excluded from 
participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042 and 33059, June 26, 1995]

 Appendix C to Part 105-68--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);

[[Page 247]]

    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)

_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include

[[Page 248]]

the identification number(s) of each affected grant.

[55 FR 21690, 21701, May 25, 1990]



PART 105-69--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
105-69.100  Conditions on use of funds.
105-69.105  Definitions.
105-69.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

105-69.200  Agency and legislative liaison.
105-69.205  Professional and technical services.
105-69.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

105-69.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

105-69.400  Penalties.
105-69.405  Penalty procedures.
105-69.410  Enforcement.

                          Subpart E--Exemptions

105-69.500  Secretary of Defense.

                        Subpart F--Agency Reports

105-69.600  Semi-annual compilation.
105-69.605  Inspector General report.

Appendix A to Part 105-69--Certification Regarding Lobbying
Appendix B to Part 105-69--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121 (31 U.S.C. 1352); 40 U.S.C. 
486(c).

    Source: 55 FR 6737 and 6753, Feb. 26, 1990, unless otherwise noted.

    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 105-69.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.

[[Page 249]]



Sec. 105-69.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer

[[Page 250]]

or employee for work that is not furnished to, not funded by, or not 
furnished in cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 105-69.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraph (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,

[[Page 251]]

    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraph 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 105-69.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 105-69.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract,

[[Page 252]]

grant, loan, or cooperative agreement or an extension, continuation, 
renewal, amendment, or modification of a Federal contract, grant, loan, 
or cooperative agreement if payment is for professional or technical 
services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 105-69.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 105-69.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of any reasonable payment to a 
person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 105-69.110 (a) and (b) 
regarding filing a disclosure form by each person, if required, shall 
not apply with respect to professional or technical services rendered 
directly in the preparation, submission, or negotiation of any 
commitment providing for the United States to insure or guarantee a 
loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational

[[Page 253]]

capability of a piece of equipment rendered directly in the negotiation 
of a contract is allowable. However, communications with the intent to 
influence made by a professional (such as a licensed lawyer) or a 
technical person (such as a licensed accountant) are not allowable under 
this section unless they provide advice and analysis directly applying 
their professional or technical expertise and unless the advice or 
analysis is rendered directly and solely in the preparation, submission 
or negotiation of a covered Federal action. Thus, for example, 
communications with the intent to influence made by a lawyer that do not 
provide legal advice or analysis directly and solely related to the 
legal aspects of his or her client's proposal, but generally advocate 
one proposal over another are not allowable under this section because 
the lawyer is not providing professional legal services. Similarly, 
communications with the intent to influence made by an engineer 
providing an engineering analysis prior to the preparation or submission 
of a bid or proposal are not allowable under this section since the 
engineer is providing technical services but not directly in the 
preparation, submission or negotiation of a covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 105-69.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 105-69.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.

[[Page 254]]



Sec. 105-69.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 105-69.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 105-69.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 105-69.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.

[[Page 255]]

    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

       Appendix A to Part 105-69--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 256]]


          Appendix B to Part 105-69--Disclosure Form to Report 
                               Lobbying
    [GRAPHIC] [TIFF OMITTED] TC21OC91.008
    

[[Page 257]]


[GRAPHIC] [TIFF OMITTED] TC21OC91.009


[[Page 258]]


[GRAPHIC] [TIFF OMITTED] TC21OC91.010


[[Page 259]]





PART 105-70--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986--Table of Contents




Sec.
105-70.000  Scope.
105-70.001  Basis.
105-70.002  Definitions.
105-70.003  Basis for civil penalties and assessments.
105-70.004  Investigation.
105-70.005  Review by the reviewing official.
105-70.006  Prerequisites for issuing a complaint.
105-70.007  Complaint.
105-70.008  Service of complaint.
105-70.009  Answer.
105-70.010  Default upon failure to file an answer.
105-70.011  Referral of complaint and answer to the ALJ.
105-70.012  Notice of hearing.
105-70.013  Parties to the hearing.
105-70.014  Separation of functions.
105-70.015  Ex parte contacts.
105-70.016  Disqualification of reviewing official or ALJ.
105-70.017  Rights of parties.
105-70.018  Authority of the ALJ.
105-70.019  Prehearing conferences.
105-70.020  Disclosure of documents.
105-70.021  Discovery.
105-70.022  Exchange of witness lists, statements, and exhibits.
105-70.023  Subpoena for attendance at hearing.
105-70.024  Protective order.
105-70.025  Fees.
105-70.026  Form, filing and service of papers.
105-70.027  Computation of time.
105-70.028  Motions.
105-70.029  Sanctions.
105-70.030  The hearing and burden of proof.
105-70.031  Determining the amount of penalties and assessments.
105-70.032  Location of hearing.
105-70.033  Witnesses.
105-70.034  Evidence.
105-70.035  The record.
105-70.036  Post-hearing briefs.
105-70.037  Initial decision.
105-70.038  Reconsideration of initial decision.
105-70.039  Appeal to Authority Head.
105-70.040  Stays ordered by the Department of Justice.
105-70.041  Stay pending appeal.
105-70.042  Judicial review.
105-70.043  Collection of civil penalties and assessments.
105-70.044  Right to administrative offset.
105-70.045  Deposit in Treasury of United States.
105-70.046  Compromise or settlement.
105-70.047  Limitations.

    Authority: 40 U.S.C. 486(c); 31 U.S.C. 3809.

    Source: 52 FR 45188, Nov. 25, 1987, unless otherwise noted.



Sec. 105-70.000  Scope.

    This part (a) establishes administrative procedures for imposing 
civil penalties and assessments against persons who make, submit, or 
present, or cause to be made, submitted, or presented, false, 
fictitious, or fraudulent claims or written statements to authorities or 
to their agents, and (b) specifies the hearing and appeal rights of 
persons subject to allegations of liability for such penalties and 
assessments.



Sec. 105-70.001  Basis.

    This part implements the Program Fraud Civil Remedies Act of 1986, 
Pub. L. No. 99-509, 6101-6104, 100 Stat. 1874 (October 21, 1986), to be 
codified at 31 U.S.C. 3801-3812. 31 U.S.C. 3809 of the statute requires 
each authority head to promulgate regulations necessary to implement the 
provisions of the statute.



Sec. 105-70.002  Definitions.

    The following shall have the meanings ascribed to them below unless 
the context clearly indicates otherwise:
    (a) ALJ means an Administrative Law Judge in the Authority appointed 
pursuant to 5 U.S.C. 3105 or detailed to the Authority pursuant to 5 
U.S.C. 3344.
    (b) Authority means the General Services Administration.
    (c) Authority Head means the Administrator or Deputy Administrator 
of General Services.
    (d) Benefit means, in the context of statements, anything of value, 
including but not limited to any advantage, preference, privilege, 
license, permit, favorable decision, ruling, status, or loan guarantee.
    (e) Claim means any request, demand or submission--
    (1) Made to the Authority for property, services, or money 
(including money representing grants, loans, insurance, or benefits);
    (2) Made to a recipient of property, services, or money from the 
Authority or to a party to a contract with the Authority--
    (i) For property or services if the United States--

[[Page 260]]

    (A) Provided such property or services;
    (B) Provided any portion of the funds for the purchase of such 
property or services; or
    (C) Will reimburse such recipient or party for the purchase of such 
property or services; or
    (ii) For the payment of money (including money representing grants, 
loans, insurance, or benefits) if the United States--
    (A) Provided any portion of the money requested or demanded, or
    (B) Will reimburse such recipient or party for any portion of the 
money paid on such request of demand; or
    (3) Made to the Authority which has the effect of decreasing an 
obligation to pay or account for property, services, or money.
    (f) Complaint means the administrative complaint served by the 
reviewing official on the defendant under Sec. 105-70.007.
    (g) Defendant means any person alleged in a complaint under 
Sec. 105-70.007 to be liable for a civil penalty or assessment under 
Sec. 105-70.003.
    (h) Individual means a natural person.
    (i) Initial Decision means the written decision of the ALJ required 
by Sec. 105-70.010 or Sec. 105-70.037, and includes a revised initial 
decision issued following a remand or a motion for reconsideration.
    (j) Investigating Official means the Inspector General of the 
General Services Administration or an officer or employee of the Office 
of the Inspector General designated by the Inspector General and serving 
in a position for which the rate of basic pay is not less than the 
minimum rate of basic pay for grade GS-16 under the General Schedule.
    (k) Knows or has reason to know means that a person, with respect to 
a claim or statement--
    (1) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (2) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (3) Acts in reckless disregard of the truth or falsity of the claim 
or statement.
    (l) Makes, wherever it appears, shall include the terms presents, 
submits, and causes to be made, presented, or submitted. As the context 
requires, ``making'' or ``made'', shall likewise include the 
corresponding forms of such terms.
    (m) Person means any individual, partnership, corporation, 
association, or private organization.
    (n) Representative means an attorney who is a member in good 
standing of the bar of any State, Territory, or possession of the United 
States or of the District of Columbia or the Commonwealth of Puerto 
Rico. (An individual may appear pro se; a corporate officer or an owner 
may represent a business entity.)
    (o) Reviewing Official means the General Counsel of the General 
Services Administration or his designee who is--
    (1) Not subject to supervision by, or required to report to, the 
investigating official; and
    (2) Not employed in the organizational unit of the authority in 
which the investigating official is employed; and
    (3) Serving in a position for which the rate of basic pay is not 
less than the minimum rate of basic pay for grade GS-16 under the 
General Schedule.
    (p) Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made--
    (1) With respect to a claim or to obtain the approval or payment of 
a claim (including relating to eligibility to make a claim); or
    (2) With respect to (including relating to eligibility for)--
    (i) A contract with, or a bid or proposal for a contract with; or
    (ii) A grant, loan, or benefit from, the Authority, or any State, 
political subdivision of a State, or other party, if the United States 
Government provides any portion of the money or property under such 
contract or for such grant, loan, or benefit, or if the Government will 
reimburse such State, political subdivision, or party for any portion of 
the money or property under such contract or for such grant, loan, or 
benefit.

[[Page 261]]



Sec. 105-70.003  Basis for civil penalties and assessments.

    (a) Claims. (1) Any person who makes a claim that the person knows 
or has reason to know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which asserts 
a material fact which is false, fictitious, or fraudulent;
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed,

shall be subject, in addition to any other remedy that may be prescribed 
by law, to a civil penalty of not more than $5,500 for each such claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (3) A claim shall be considered made to the Authority, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of the Authority, recipient, or party.
    (4) Each claim for property, services, or money is subject to a 
civil penalty regardless of whether such property, services, or money is 
actually delivered or paid.
    (5) If the Government has made any payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such claim or that 
portion thereof that is determined to be in violation of paragraph 
(a)(1) of this section. Such assessment shall be in lieu of damages 
sustained by the Government because of such claim.
    (b) Statements. (1) Any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in such 
statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may be 
prescribed by law, to a civil penalty of not more than $5,500 for each 
such statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made to the Authority when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of the Authority.
    (c) No proof of specific intent to defraud is required to establish 
liability under this section.
    (d) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, each such 
person may be held liable for a civil penalty under this section.
    (e) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment (including transferred property or provided services), 
an assessment may be imposed against any such person or jointly and 
severally against any combination of such persons.

[52 FR 45188, Nov. 25, 1987, as amended at 61 FR 67235, Dec. 20, 1996]



Sec. 105-70.004  Investigation.

    (a) If an investigating official concludes that a subpoena pursuant 
to the authority conferred by 31 U.S.C. 3804(a) is warranted--
    (1) The subpoena so issued shall notify the person to whom it is 
addressed of the authority under which the subpoena is issued and shall 
identify the records or documents sought;
    (2) The investigating official may designate a person to act on his 
or her

[[Page 262]]

behalf to receive the documents sought; and
    (3) The person receiving such subpoena shall be required to tender 
to the investigating official or the person designated to receive the 
documents a certification that the documents sought have been produced, 
or that such documents are not available and the reasons therefor, or 
that such documents, suitably identified, have been withheld based upon 
the assertion of an identified privilege, or any combination of the 
foregoing.
    (b) If the investigating official concludes that an action under the 
Program Fraud Civil Remedies Act may be warranted, the investigating 
official shall submit a report containing the findings and conclusions 
of such investigation to the reviewing official.
    (c) Nothing in this section shall preclude or limit an investigating 
official's discretion to refer allegations directly to the Department of 
Justice for suit under the False Claims Act or other civil relief, or to 
defer or postpone a report or referral to the reviewing official to 
avoid interference with a criminal investigation or prosecution.
    (d) Nothing in this section modifies any responsibility of an 
investigating official to report violations of criminal law to the 
Attorney General.



Sec. 105-70.005  Review by the reviewing official.

    (a) If, based on the report of the investigating official under 
Sec. 105-70.004(b), the reviewing official determines that there is 
adequate evidence to believe that a person is liable under Sec. 105-
70.003 of this part, the reviewing official shall transmit to the 
Attorney General a written notice of the reviewing official's intention 
to issue a complaint under Sec. 105-70.007.
    (b) Such notice shall include--
    (1) A statement of the reviewing official's reasons for issuing a 
complaint;
    (2) A statement specifying the evidence that supports the 
allegations of liability;
    (3) A description of the claims or statements upon which the 
allegations of liability are based;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in violation of 
Sec. 105-70.003 of this part;
    (5) A statement of any exculpatory or mitigating circumstances that 
may relate to the claims or statements known by the reviewing official 
or the investigating official; and
    (6) A statement that there is a reasonable prospect of collecting an 
appropriate amount of penalties and assessments.



Sec. 105-70.006  Prerequisites for issuing a complaint.

    (a) The reviewing official may issue a complaint under Sec. 105-
70.007 only if--
    (1) The Department of Justice approves the issuance of a complaint 
in a written statement described in 31 U.S.C. 3803(b)(1), and
    (2) In the case of allegations of liability under Sec. 105-70.003(a) 
with respect to a claim, the reviewing official determines that, with 
respect to such claim or a group of related claims submitted at the same 
time such claim is submitted (as defined in paragraph (b) of this 
section), the amount of money or the value of property or services 
demanded or requested in violation of Sec. 105-70.003(a) does not exceed 
$150,000.
    (b) For the purposes of this section, a related group of claims 
submitted at the same time shall include only those claims arising from 
the same transaction (e.g., grant, loan, application, or contract) that 
are submitted simultaneously as part of a single request, demand, or 
submission.
    (c) Nothing in this section shall be construed to limit the 
reviewing official's authority to join in a single complaint against a 
person claims that are unrelated or were not submitted simultaneously, 
regardless of the amount of money or the value of property or services 
demanded or requested.



Sec. 105-70.007  Complaint.

    (a) On or after the date the Department of Justice approves the 
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the 
reviewing official may serve a complaint on the defendant, as provided 
in Sec. 105-70.008.
    (b) The complaint shall state--
    (1) The allegations of liability against the defendant, including 
the

[[Page 263]]

statutory basis for liability, an identification of the claims or 
statements that are the basis for the alleged liability, and the reasons 
why liability allegedly arises from such claims or statements;
    (2) The maximum amount of penalties and assessments for which the 
defendant may be held liable;
    (3) Instructions for filing an answer including a specific statement 
of the defendant's right to request a hearing by filing an answer and to 
be represented by a representative; and
    (4) That failure to file an answer within 30 days of service of the 
complaint will result in the imposition of the maximum amount of 
penalties and assessments without right to appeal, as provided in 
Sec. 105-70.010.
    (c) At the same time the reviewing official serves the complaint, he 
or she shall serve the defendant with a copy of these regulations.



Sec. 105-70.008  Service of complaint.

    (a) Service of a complaint must be made by certified or registered 
mail or by delivery in any manner authorized by Rule 4(d) of the Federal 
Rules of Civil Procedure. Service is complete upon receipt.
    (b) Proof of service, stating the name and address of the person on 
whom the complaint was served, and the manner and date of service, may 
be made by--
    (1) Affidavit of the individual serving the complaint by delivery;
    (2) A United States Postal Service return receipt card acknowledging 
receipt; or
    (3) Written acknowledgment of receipt by the defendant or his 
representative.



Sec. 105-70.009  Answer.

    (a) The defendant may request a hearing by filing an answer with the 
reviewing official within 30 days of service of the complaint. An answer 
shall be deemed to be a request for hearing.
    (b) In the answer, the defendant--
    (1) Shall admit or deny each of the allegations of liability made in 
the complaint;
    (2) Shall state any defense on which the defendant intends to rely;
    (3) May state any reasons why the defendant contends that the 
penalties and assessments should be less than the statutory maximum; and
    (4) Shall state the name, address, and telephone number of the 
person authorized by the defendant to act as defendant's representative, 
if any.
    (c) If the defendant is unable to file an answer meeting the 
requirements of paragraph (b) of this section within the time provided, 
the defendant may, before the expiration of 30 days from service of the 
complaint, file with the reviewing official a general answer denying 
liability and requesting a hearing, and a request for an extension of 
time within which to file an answer meeting the requirements of 
paragraph (b) of this section. The reviewing official shall file 
promptly with the ALJ the complaint, the general answer denying 
liability, and the request for an extension of time as provided in 
Sec. 105-70.011. For good cause shown, the ALJ may grant the defendant 
up to 30 additional days within which to file an answer meeting the 
requirements of paragraph (b) of this section.



Sec. 105-70.010  Default upon failure to file an answer.

    (a) If the defendant does not file an answer within the time 
prescribed in Sec. 105-70.009(a), the reviewing official may refer the 
complaint to the ALJ.
    (b) Upon the referral of the complaint, the ALJ shall promptly serve 
on the defendant in the manner prescribed in Sec. 105-70.008, a notice 
that an initial decision will be issued under this section.
    (c) The ALJ shall assume the facts alleged in the complaint to be 
true, and, if such facts establish liability under Sec. 105-70.003, the 
ALJ shall issue an initial decision imposing the maximum amount of 
penalties and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to file 
a timely answer, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.

[[Page 264]]

    (e) If, before such an initial decision becomes final, the defendant 
files a motion with the ALJ seeking to reopen on the grounds that 
extraordinary circumstances prevented the defendant from filing an 
answer, the initial decision shall be stayed pending the ALJ's decision 
on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to file a timely answer, the ALJ 
shall withdraw the initial decision in paragraph (c) of this section, if 
such a decision has been issued, and shall grant the defendant an 
opportunity to answer the complaint.
    (g) A decision of the ALJ denying a defendant's motion under 
paragraph (e) of this section is not subject to reconsideration under 
Sec. 105-70.038.
    (h) The defendant may appeal to the Authority Head the decision 
denying a motion to reopen by filing a notice of appeal with the 
Authority Head within 15 days after the ALJ denies the motion. The 
timely filing of a notice of appeal shall stay the initial decision 
until the Authority Head decides the issue.
    (i) If the defendant files a timely notice of appeal with the 
Authority Head, the ALJ shall forward the record of the proceeding to 
the Authority Head.
    (j) The Authority Head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to file a 
timely answer based solely on the record before the ALJ.
    (k) If the Authority Head decides that extraordinary circumstances 
excused the defendant's failure to file a timely answer, the Authority 
Head shall remand the case to the ALJ with instructions to grant the 
defendant an opportunity to answer.
    (l) If the Authority Head decides that the defendant's failure to 
file a timely answer is not excused, the Authority Head shall reinstate 
the initial decision of the ALJ, which shall become final and binding 
upon the parties 30 days after the Authority Head issues such decision.



Sec. 105-70.011  Referral of complaint and answer to the ALJ.

    Upon receipt of an answer, the reviewing official shall file the 
complaint and answer with the ALJ.



Sec. 105-70.012  Notice of hearing.

    (a) When the ALJ receives the complaint and answer, the ALJ shall 
promptly serve a notice of hearing upon the defendant in the manner 
prescribed by Sec. 105-70.008. At the same time, the ALJ shall send a 
copy of such notice to the representative for the Government.
    (b) Such notice shall include--
    (1) The tentative time and place, and the nature of the hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law to be asserted;
    (4) A description of the procedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the representative of 
the Government and of the defendant, if any; and
    (6) Such other matters as the ALJ deems appropriate.



Sec. 105-70.013  Parties to the hearing.

    (a) The parties to the hearing shall be the defendant and the 
Authority.
    (b) Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff under the 
False Claims Act may participate in these proceedings to the extent 
authorized by the provisions of that Act.



Sec. 105-70.014  Separation of functions.

    (a) The investigating official, the reviewing official, and any 
employee or agent of the Authority who takes part in investigating, 
preparing, or presenting a particular case may not, in such case or a 
factually related case--
    (1) Participate in the hearing as the ALJ;
    (2) Participate or advise in the initial decision or the review of 
the initial decision by the Authority Head, except as a witness or a 
representative in public proceedings; or

[[Page 265]]

    (3) Make the collection of penalties and assessments under 31 U.S.C. 
3806.
    (b) The ALJ shall not be responsible to, or subject to the 
supervision or direction of the investigating official or the reviewing 
official.
    (c) Except as provided in paragraph (a) of this section, the 
representative for the Government may be employed anywhere in the 
Authority, including in the offices of either the investigating official 
or the reviewing official.



Sec. 105-70.015  Ex parte contacts.

    No party or person (except employees of the ALJ's office) shall 
communicate in any way with the ALJ on any matter at issue in a case, 
unless on notice and opportunity for all parties to participate. This 
provision does not prohibit a person or party from inquiring about the 
status of a case or asking routine questions concerning administrative 
functions or procedures.



Sec. 105-70.016  Disqualification of reviewing official or ALJ.

    (a) A reviewing official or ALJ in a particular case may disqualify 
himself or herself at any time.
    (b) A party may file with the ALJ a motion for disqualification of a 
reviewing official or an ALJ. Such motion shall be accompanied by an 
affidavit alleging personal bias or other reason for disqualification.
    (c) Such motion and affidavit shall be filed promptly upon the 
party's discovery of reasons requiring disqualification, or such 
objections shall be deemed waived.
    (d) Such affidavit shall state specific facts that support the 
party's belief that personal bias or other reason for disqualification 
exists and the time and circumstances of the party's discovery of such 
facts. It shall be accompanied by a certificate of the representative of 
record that it is made in good faith.
    (e) Upon the filing of such a motion and affidavit, the ALJ shall 
proceed not further in the case until he or she resolves the matter of 
disqualification in accordance with paragraph (f) of this section.
    (f)(1) If the ALJ determines that a reviewing official is 
disqualified, the ALJ shall dismiss the complaint without prejudice.
    (2) If the ALJ disqualifies himself or herself, the case shall be 
reassigned promptly to another ALJ.
    (3) If the ALJ denies a motion to disqualify, the authority head may 
determine the matter only as part of his or her review of the initial 
decision upon appeal, if any.



Sec. 105-70.017  Rights of parties.

    Except as otherwise limited by this part, all parties may--
    (a) Be accompanied, represented, and advised by a representative;
    (b) Participate in any conference held by the ALJ;
    (c) Conduct discovery;
    (d) Agree to stipulations of fact or law, which shall be made part 
of the record;
    (e) Present evidence relevant to the issues at the hearing;
    (f) Present and cross-examine witnesses;
    (g) Present oral argument at the hearing as permitted by the ALJ; 
and
    (h) Submit written briefs and proposed findings of fact and 
conclusions of law after the hearing.



Sec. 105-70.018  Authority of the ALJ.

    (a) The ALJ shall conduct a fair and impartial hearing, avoid delay, 
maintain order, and assure that a record of the proceeding is made.
    (b) The ALJ has the authority to--
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or in part for a 
reasonable period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas requiring the attendance of witnesses and the 
production of documents at depositions or at hearings;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;

[[Page 266]]

    (8) Regulate the course of the hearing and the conduct of 
representatives and parties;
    (9) Examine witnesses;
    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party, take official notice of facts;
    (12) Upon motion of a party, decide cases, in whole or in part, by 
summary judgment where there is no disputed issue of material fact;
    (13) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (14) Exercise such other authority as is necessary to carry out the 
responsibility of the ALJ under this part.
    (c) The ALJ does not have the authority to find Federal statutes or 
regulations invalid.



Sec. 105-70.019  Prehearing conferences.

    (a) The ALJ may schedule prehearing conferences as appropriate.
    (b) Upon the motion of any party, the ALJ shall schedule at least 
one prehearing conference at a reasonable time in advance of the 
hearing.
    (c) The ALJ may use prehearing conferences to discuss the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations and admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearance at an oral hearing 
and to submit only documentary evidence (subject to the objection of 
other parties) and written argument;
    (6) Limitation of the number of witnesses;
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time and place for the hearing; and
    (10) Such other matters as may tend to expedite the fair and just 
disposition of the proceedings.
    (d) The ALJ may issue an order containing all matters agreed upon by 
the parties or ordered by the ALJ at a prehearing conference.



Sec. 105-70.020  Disclosure of documents.

    (a) Upon written request to the reviewing official, the defendant 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec. 105-70.004(b) are based, unless such 
documents are subject to a privilege under Federal law. Upon payment of 
fees for duplication, the defendant may obtain copies of such documents.
    (b) Upon written request to the reviewing official, the defendant 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec. 105-70.005 is not discoverable under any 
circumstances.
    (d) The defendant may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
only be filed with the ALJ following the filing of an answer pursuant to 
Sec. 105-70.009.



Sec. 105-70.021  Discovery.

    (a) The following types of discovery are authorized:
    (1) Requests for production of documents for inspection and copying;
    (2) Requests for admissions of the authenticity of any relevant 
document or of the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.
    (b) For the purpose of this section and Secs. 105-70.022 and 105-
70.023, the term ``documents'' includes information, documents, reports, 
answers, records, accounts, papers, and other data and

[[Page 267]]

documentary evidence. Nothing contained herein shall be interpreted to 
require the creation of a document.
    (c) Unless mutually agreed to by the parties, discovery is available 
only as ordered by the ALJ. The ALJ shall regulate the timing of 
discovery.
    (d) Motions for discovery. (1) A party seeking discovery may file a 
motion with the ALJ. Such a motion shall be accompanied by a copy of the 
requested discovery, or in the case of depositions, a summary of the 
scope of the proposed deposition.
    (2) Within ten days of service, a party may file an opposition to 
the motion and/or a motion for protective order as provided in Sec. 105-
70.024.
    (3) The ALJ may grant a motion for discovery only if he finds that 
the discovery sought--
    (i) Is necessary for the expeditious, fair, and reasonable 
consideration of the issues;
    (ii) Is not unduly costly or burdensome;
    (iii) Will not unduly delay the proceeding; and
    (iv) Does not seek privileged information.
    (4) The burden of showing that discovery should be allowed is on the 
party seeking discovery;
    (5) The ALJ may grant discovery subject to a protective order under 
Sec. 105-70.024.
    (e) Depositions. (1) If a motion for deposition is granted, the ALJ 
shall issue a subpoena for the deponent, which may require the deponent 
to produce documents. The subpoena shall specify the time and place at 
which the deposition will be held.
    (2) The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec. 105-70.008.
    (3) The deponent may file with the ALJ a motion to quash the 
subpoena or a motion for a protective order within ten days of service.
    (4) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.
    (f) Each party shall bear its own costs of discovery.



Sec. 105-70.022  Exchange of witness lists, statements, and exhibits.

    (a) At least 15 days before the hearing or at such other time as may 
be ordered by the ALJ, the parties shall exchange witness lists, copies 
of prior statements of proposed witnesses, and copies of proposed 
hearing exhibits, including copies of any written statements that the 
party intends to offer in lieu of live testimony in accordance with 
Sec. 105-70.033(b). At the time the above documents are exchanged, any 
party that intends to rely on the transcript of deposition testimony in 
lieu of live testimony at the hearing, if permitted by the ALJ, shall 
provide each party with a copy of the specific pages of the transcript 
it intends to introduce into evidence.
    (b) If a party objects, the ALJ shall not admit into evidence the 
testimony of any witness whose name does not appear on the witness list 
or any exhibit not provided to the opposing party as provided above 
unless the ALJ finds good cause for the failure or that there is no 
prejudice to the objecting party.
    (c) Unless another party objects within the time set by the ALJ, 
documents exchanged in accordance with paragraph (a) of this section 
shall be deemed to be authentic for the purpose of admissibility at the 
hearing.



Sec. 105-70.023  Subpoena for attendance at hearing.

    (a) A party wishing to procure the appearance and testimony of any 
individual at the hearing may request that the ALJ issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at the 
hearing.
    (c) A party seeking a subpoena shall file a written request therefor 
not less than 15 days before the date fixed for the hearing unless 
otherwise allowed by the ALJ for good cause shown. Such request shall 
specify any documents to be produced and shall designate the witnesses 
and describe the address and location thereof with sufficient 
particularity to permit such witnesses to be found.
    (d) The subpoena shall specify the time and place at which the 
witness is

[[Page 268]]

to appear and any documents the witness is to produce.
    (e) The party seeking the subpoena shall serve it in the manner 
prescribed in Sec. 105-70.008. A subpoena on a party or upon an 
individual under the control of a party may be served by first class 
mail.
    (f) A party or the individual to whom the subpoena is directed may 
file with the ALJ a motion to quash the subpoena within ten days after 
service or on or before the time specified in the subpoena for 
compliance if it is less than ten days after service.



Sec. 105-70.024  Protective order.

    (a) A party or a prospective witness or deponent may file a motion 
for a protective order with respect to discovery sought by an opposing 
party or with respect to the hearing, seeking to limit the availability 
or disclosure of evidence.
    (b) In issuing a protective order, the ALJ may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, including one or 
more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the ALJ;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the ALJ;
    (8) That a trade secret or other confidential research, development, 
commercial information, or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
ALJ.



Sec. 105-70.025  Fees.

    The party requesting a subpoena shall pay the cost of the fees and 
mileage of any witness subpoenaed in the amounts that would be payable 
to a witness in a proceeding in United States District Court. A check 
for witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of the Authority, a 
check for witness fees and mileage need not accompany the subpoena.



Sec. 105-70.026  Form, filing and service of papers.

    (a) Form. (1) Documents filed with the ALJ shall include an original 
and two copies.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the ALJ, and a designation of the paper (e.g., motion to quash 
subpoena).
    (3) Every pleading and paper shall be signed by, and shall contain 
the address and telephone number of the party or the person on whose 
behalf the paper was filed, or his or her representative.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or its 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the ALJ shall, at the 
time of filing, serve a copy of such document on every other party. 
Service upon any party of any document other than those required to be 
served as prescribed in Sec. 105-70.008 shall be made by delivering a 
copy or by placing a copy of the document in the United States mail, 
postage prepaid and addressed to the party's last known address. When a 
party is represented by a representative, service shall be made upon 
such representative in lieu of the actual party.
    (c) Proof of service. A certificate of the individual serving the 
document by personal delivery or by mail, setting

[[Page 269]]

forth the manner of service, shall be proof of service.



Sec. 105-70.027  Computation of time.

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal government, 
in which event it includes the next business day.
    (b) When the period of time allowed is less than seven days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal government shall be excluded from the computation.
    (c) Where a document has been served or issued by placing it in the 
mail, an additional five days will be added to the time permitted for 
any response.



Sec. 105-70.028  Motions.

    (a) Any application to the ALJ for an order or ruling shall be by 
motion. Motions shall state the relief sought, the authority relied 
upon, and the facts alleged, and shall be filed with the ALJ and served 
on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The ALJ may require that oral 
motions be reduced to writing.
    (c) Within 15 days after a written motion is served, or such other 
time as may be fixed by the ALJ, any party may file a response to such 
motion.
    (d) The ALJ may not grant a written motion before the time for 
filing responses thereto has expired, except upon consent of the parties 
or following a hearing on the motion, but may overrule or deny such 
motion without awaiting a response.
    (e) The ALJ shall make a reasonable effort to dispose of all 
outstanding motions prior to the beginning of the hearing.



Sec. 105-70.029  Sanctions.

    (a) The ALJ may sanction a person, including any party or 
representative for--
    (1) Failing to comply with an order, rule, or procedure governing 
the proceeding;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the ALJ may--
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem each matter of which 
an admission is requested to be admitted;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon, testimony 
relating to the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action under this 
part commenced by service of a notice of hearing, the ALJ may dismiss 
the action or may issue an initial decision imposing penalties and 
assessments.
    (e) The ALJ may refuse to consider any motion, request, response, 
brief or other document which is not filed in a timely fashion.



Sec. 105-70.030  The hearing and burden of proof.

    (a) The ALJ shall conduct a hearing on the record in order to 
determine whether the defendant is liable for a civil penalty or 
assessment under Sec. 105-70.003 and, if so, the appropriate amount of 
any such civil penalty or assessment considering any aggravating or 
mitigating factors.
    (b) The authority shall prove defendant's liability and any 
aggravating factors by a preponderance of the evidence.
    (c) The defendant shall prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.

[[Page 270]]

    (d) The hearing shall be open to the public unless otherwise ordered 
by the ALJ for good cause shown.



Sec. 105-70.031  Determining the amount of penalties and assessments.

    In determining an appropriate amount of civil penalties and 
assessments, the ALJ and the Authority Head, upon appeal, should 
evaluate any circumstances presented that mitigate or aggravate the 
violation and should articulate in their opinions the reasons that 
support the penalties and assessments they impose.



Sec. 105-70.032  Location of hearing.

    (a) The hearing may be held--
    (1) In any judicial district of the United States in which the 
defendant resides or transacts business;
    (2) In any judicial district of the United States in which the claim 
or statement in issue was made; or
    (3) In such other place as may be agreed upon by the defendant and 
the ALJ.
    (b) Each party shall have the opportunity to present arguments with 
respect to the location of the hearing.
    (c) The hearing shall be held at the place and at the time ordered 
by the ALJ.



Sec. 105-70.033  Witnesses.

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.
    (b) At the discretion of the ALJ, testimony may be admitted in the 
form of a written statement or deposition. Any such written statement 
must be provided to all other parties along with the last known address 
of such witness, in a manner which allows sufficient time for other 
parties to subpoena such witness for cross-examination at the hearing. 
Prior written statements of witnesses proposed to testify at the hearing 
and deposition transcripts shall be exchanged as provided in Sec. 105-
70.022(a).
    (c) The ALJ shall exercise reasonable control over the mode and 
order of interrogating witnesses and presenting evidence so as to--
    (1) Make the interrogation and presentation effective for the 
ascertainment of the truth,
    (2) Avoid needless consumption of time, and
    (3) Protect witnesses from harrassment or undue embarrassment.
    (d) The ALJ shall permit the parties to conduct such cross-
examination as may be required for a full and true disclosure of the 
facts.
    (e) To the extent permitted by the ALJ, cross-examination on matters 
outside the scope of direct examination shall be conducted in the manner 
of direct examination and may proceed by leading questions only if the 
witness is a hostile witness, an adverse party, or a witness identified 
with an adverse party.
    (f) Upon motion of any party, the ALJ shall order witnesses excluded 
so that they cannot hear the testimony of other witnesses. This rule 
does not authorize exclusion of--
    (1) A party who is an individual;
    (2) In the case of a party that is not an individual, an officer or 
employee of the party appearing for the entity pro se or designated by 
the party's representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
Government engaged in assisting the representative for the Government.



Sec. 105-70.034  Evidence.

    (a) The ALJ shall determine the admissibility of evidence.
    (b) Except as provided in this part, the ALJ shall not be bound by 
the Federal Rules of Evidence. However, the ALJ may apply the Federal 
Rules of Evidence where appropriate, e.g., to exclude unreliable 
evidence.
    (c) The ALJ shall exclude irrelevant and immaterial evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.

[[Page 271]]

    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The ALJ shall permit the parties to introduce rebuttal witnesses 
and evidence.
    (h) All documents and other evidence offered or taken for the record 
shall be open to examination by all parties, unless otherwise ordered by 
the ALJ pursuant to Sec. 105-70.024.



Sec. 105-70.035  The record.

    (a) The hearing will be recorded and transcribed. Transcripts may be 
obtained following the hearing from the ALJ at a cost not to exceed the 
actual cost of duplication.
    (b) The transcript of testimony, exhibits and other evidence 
admitted at the hearing, and all papers and requests filed in the 
proceeding constitute the record for the decision by the ALJ and the 
Authority Head.
    (c) The record may be inspected and copied (upon payment of a 
reasonable fee) by anyone, unless otherwise ordered by the ALJ pursuant 
to Sec. 105-70.024.



Sec. 105-70.036  Post-hearing briefs.

    The ALJ may require the parties to file post-hearing briefs. In any 
event, any party may file a post-hearing brief. The ALJ shall fix the 
time for filing such briefs, not to exceed 60 days from the date the 
parties receive the transcript of the hearing or, if applicable, the 
stipulated record. Such briefs may be accompanied by proposed findings 
of fact and conclusions of law. The ALJ may permit the parties to file 
reply briefs.



Sec. 105-70.037  Initial decision.

    (a) The ALJ shall issue an initial decision based only on the 
record, which shall contain findings of fact, conclusions of law, and 
the amount of any penalties and assessments imposed.
    (b) The findings of fact shall include a finding on each of the 
following issues:
    (1) Whether the claims or statements identified in the complaint, or 
any portions thereof, violate Sec. 105-70.003.
    (2) If the person is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments considering any 
mitigating or aggravating factors that he or she finds in the case.
    (c) The ALJ shall promptly serve the initial decision on all parties 
within 90 days after the time for submission of post-hearing briefs and 
reply briefs (if permitted) has expired. The ALJ shall at the same time 
serve all parties with a statement describing the right of any defendant 
determined to be liable for a civil penalty or assessment to file a 
motion for reconsideration with the ALJ or a notice of appeal with the 
Authority Head. If the ALJ fails to meet the deadline contained in this 
paragraph, he or she shall notify the parties of the reason for the 
delay and shall set a new deadline.
    (d) Unless the initial decision of the ALJ is timely appealed to the 
Authority Head, or a motion for reconsideration of the initial decision 
is timely filed, the initial decision shall constitute the final 
decision of the Authority Head and shall be final and binding on the 
parties 30 days after it is issued by the ALJ.



Sec. 105-70.038  Reconsideration of initial decision.

    (a) Except as provided in paragraph (d) of this section, any party 
may file a motion for reconsideration of the initial decision within 20 
days of receipt of the initial decision. If service was made by mail, 
receipt will be presumed to be five days from the date of mailing in the 
absence of contrary proof.
    (b) Every such motion must set forth the matters claimed to have 
been erroneously decided and the nature of the alleged errors. Such 
motion shall be accompanied by a supporting brief.
    (c) Responses to such motions shall be allowed only upon request of 
the ALJ.
    (d) No party may file a motion for reconsideration of an initial 
decision that has been revised in response to a previous motion for 
reconsideration.
    (e) The ALJ may dispose of a motion for reconsideration by denying 
it or by issuing a revised initial decision.
    (f) If the ALJ denies a motion for reconsideration, the initial 
decision shall constitute the final decision of the Authority Head and 
shall be final and

[[Page 272]]

binding on the parties 30 days after the ALJ denies the motion, unless 
the initial decision is timely appealed to the Authority Head in 
accordance with Sec. 105-70.039.
    (g) If the ALJ issues a revised initial decision, that decision 
shall constitute the final decision of the Authority Head and shall be 
final and binding on the parties 30 days after it is issued, unless it 
is timely appealed to the Authority Head in accordance with Sec. 105-
70.039.



Sec. 105-70.039  Appeal to Authority Head.

    (a) Any defendant who has filed a timely answer and who is 
determined in an initial decision to be liable for a civil penalty or 
assessment may appeal such decision to the Authority Head by filing a 
notice of appeal with the Authority Head in accordance with this 
section.
    (b)(1) A notice of appeal may be filed at any time within 30 days 
after the ALJ issues an initial decision. However, if another party 
files a motion for reconsideration under Sec. 105-70.038, consideration 
of the appeal shall be stayed automatically pending resolution of the 
motion for reconsideration.
    (2) If a motion for reconsideration is timely filed, a notice of 
appeal may be filed within 30 days after the ALJ denies the motion or 
issues a revised initial decision, whichever applies.
    (3) The Authority Head may extend the initial 30 day period for an 
additional 30 days if the defendant files with the Authority Head a 
request for an extension within the initial 30 day period and shows good 
cause.
    (c) If the defendant files a timely notice of appeal with the 
Authority Head and the time for filing motions for reconsideration under 
Sec. 105-70.038 has expired, the ALJ shall forward the record of the 
proceeding to the Authority Head.
    (d) A notice of appeal shall be accompanied by a written brief 
specifying exceptions to the initial decision and reasons supporting the 
exceptions.
    (e) The representative for the Authority may file a brief in 
opposition to exceptions within 30 days of receiving the notice of 
appeal and accompanying brief.
    (f) There is no right to appear personally before the Authority 
Head.
    (g) There is no right to appeal any interlocutory ruling by the ALJ.
    (h) In reviewing the initial decision, the Authority Head shall not 
consider any objection that was not raised before the ALJ unless a 
demonstration is made of extraordinary circumstances causing the failure 
to raise the objection.
    (i) If any party demonstrates to the satisfaction of the Authority 
Head that additional evidence not presented at such hearing is material 
and that there were reasonable grounds for the failure to present such 
evidence at such hearing, the Authority Head shall remand the matter to 
the ALJ for consideration of such additional evidence.
    (j) The Authority Head may affirm, reduce, reverse, compromise, 
remand, or settle any penalty or assessment, determined by the ALJ in 
any initial decision.
    (k) The Authority Head shall promptly serve each party to the appeal 
with a copy of the decision of the Authority Head and a statement 
describing the right of any person determined to be liable for a penalty 
or assessment to seek judicial review.
    (l) Unless a petition for review is filed as provided in 31 U.S.C. 
3805 after a defendant has exhausted all administrative remedies under 
this part and within 60 days after the date on which the Authority Head 
serves the defendant with a copy of the Authority Head's decision, a 
determination that a defendant is liable under Sec. 105-70.003 is final 
and is not subject to judicial review.



Sec. 105-70.040  Stays ordered by the Department of Justice.

    If at any time the Attorney General or an Assistant Attorney General 
designated by the Attorney General transmits to the Authority Head a 
written finding that continuation of the administrative process 
described in this part with respect to a claim or statement may 
adversely affect any pending or potential criminal or civil action 
related to such claim or statement, the Authority Head shall stay the 
process immediately. The Authority Head may order the process resumed 
only upon

[[Page 273]]

receipt of the written authorization of the Attorney General.



Sec. 105-70.041  Stay pending appeal.

    (a) An initial decision is stayed automatically pending disposition 
of a motion for reconsideration or of an appeal to the Authority Head.
    (b) No administrative stay is available following a final decision 
of the Authority Head.



Sec. 105-70.042  Judicial review.

    Section 3805 of title 31, United States Code, authorizes judicial 
review by an appropriate United States District Court of a final 
decision of the Authority Head imposing penalties or assessments under 
this part and specifies the procedures for such review.



Sec. 105-70.043  Collection of civil penalties and assessments.

    Sections 3806 and 3808(b) of title 31, United States Code, authorize 
action for collection of civil penalties and assessments imposed under 
this part and specify the procedures for such actions.



Sec. 105-70.044  Right to administrative offset.

    The amount of any penalty or assessment which has become final, or 
for which a judgment has been entered under Sec. 105-70.042 or Sec. 105-
70.043, or any amount agreed upon in a compromise or settlement under 
Sec. 105-70.046, may be collected by administrative offset under 30 
U.S.C. 3716, except that an administrative offset may not be made under 
this subsection against a refund of an overpayment of Federal taxes, 
then or later owing by the United States to the defendant.



Sec. 105-70.045  Deposit in Treasury of United States.

    All amounts collected pursuant to this part shall be deposited as 
miscellaneous receipts in the Treasury of the United States, except as 
provided in 31 U.S.C. 3806(g).



Sec. 105-70.046  Compromise or settlement.

    (a) Parties may make offers of compromise or settlement at any time.
    (b) The reviewing official has the exclusive authority to compromise 
or settle a case under this part at any time after the date on which the 
reviewing official is permitted to issue a complaint and before the date 
on which the ALJ issues an initial decision.
    (c) The Authority Head has exclusive authority to compromise or 
settle a case under this part at any time after the date on which the 
ALJ issues an initial decision, except during the pendency of any review 
under Sec. 105-70.042 or during the pendency of any action to collect 
penalties and assessments under Sec. 105-70.043.
    (d) The Attorney General has exclusive authority to compromise or 
settle a case under this part during the pendency of any review under 
Sec. 105-70.042 or of any action to recover penalties and assessments 
under 31 U.S.C. 3806.
    (e) The investigating official may recommend settlement terms to the 
reviewing official, the Authority Head, or the Attorney General, as 
appropriate. The reviewing official may recommend settlement terms to 
the Authority Head, or the Attorney General, as appropriate.
    (f) Any compromise or settlement must be in writing.



Sec. 105-70.047  Limitations.

    (a) The Program Fraud Civil Remedies Act of 1986 provides that a 
hearing shall be commenced within 6 years after the date on which a 
claim or statement is made. 31 U.S.C. 3808(a). The statute also provides 
that the hearing is commenced by the mailing or delivery of the 
presiding officer's (ALJ's) notice. 31 U.S.C. 3803(d)(2)(B). 
Accordingly, the notice of hearing provided for in Sec. 105-70.012 
herein shall be served within 6 years after the date on which a claim or 
statement is made.
    (b) If the defendant fails to file a timely answer, service of a 
notice under Sec. 105-70.010(b) shall be deemed a

[[Page 274]]

notice of hearing for purposes of this section.



PART 105-71--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS WITH STATE AND LOCAL GOVERNMENTS--Table of Contents




                        Subpart 105-71.1--General

Sec.
105-71.100  Purpose and scope of this part.
105-71.101  Scope of Secs. 105-71.100 through 105-71.105.
105-71.102  Definitions.
105-71.103  Applicability.
105-71.104  Effect on other issuances.
105-71.105  Additions and exceptions.

                Subpart 105-71.11--Pre-Award Requirements

105-71.110  Forms for applying for grants.
105-71.111  State plans.
105-71.112  Special grant or subgrant conditions for ``high-risk'' 
          grantees.

   Subpart 105-71.12--Post-Award Requirements/Financial Administration

105-71.120  Standards for financial management systems.
105-71.121  Payment.
105-71.122  Allowable costs.
105-71.123  Period of availability of funds.
105-71.124  Matching or cost sharing.
105-71.125  Program income.
105-71.126  Non-Federal audit.

   Subpart 105-71.13--Post-Award Requirements/Changes, Property, and 
                                Subawards

105-71.130  Changes.
105-71.131  Real property.
105-71.132  Equipment.
105-71.