[Title 41 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2017 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          Title 41

Public Contracts and Property Management


________________________

Chapters 102 to 200

                         Revised as of July 1, 2017

          Containing a codification of documents of general 
          applicability and future effect

          As of July 1, 2017
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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                            Table of Contents



                                                                    Page
  Explanation.................................................      vi

  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             421
          Chapter 109--Department of Energy Property 
          Management Regulations                                   639
          Chapter 114--Department of the Interior                  697
          Chapter 115--Environmental Protection Agency             701
          Chapter 128--Department of Justice                       705
          Chapters 129-200 [Reserved]
    SUBTITLE D--Other Provisions Relating to Property 
      Management [Reserved] 

  Finding Aids:
      Table of CFR Titles and Chapters........................     725
      Alphabetical List of Agencies Appearing in the CFR......     745

[[Page iv]]

      List of CFR Sections Affected...........................     755

[[Page v]]





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

                     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, 2017), 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 
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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 
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PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
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Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
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Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not accidentally dropped due to a printing or computer error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
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to materials already published elsewhere. For an incorporation to be 
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This material, like any other properly issued regulation, has the force 
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    What is a proper incorporation by reference? The Director of the 
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    (a) The incorporation will substantially reduce the volume of 
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    (b) The matter incorporated is in fact available to the extent 
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    (c) The incorporating document is drafted and submitted for 
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CFR INDEXES AND TABULAR GUIDES

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and Finding Aids. This volume contains the Parallel Table of Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.

[[Page viii]]

    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

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in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
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    For inquiries concerning CFR reference assistance, call 202-741-6000 
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    The e-CFR is a regularly updated, unofficial editorial compilation 
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of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register.
    July 1, 2017.







[[Page ix]]



                               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, 2017.

    For this volume, Robert J. Sheehan, III and Ann Worley were Chief 
Editors. The Code of Federal Regulations publication program is under 
the direction of John Hyrum Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT




                (This book contains chapters 102 to 200)

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

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

                                                                    Part

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           Federal Advisory Committee Management.......          11
102-4

Nondiscrimination in Federal financial assistance programs [Reserved]

102-5           Home-to-work transportation.................          36
102-6--102-30   [Reserved]



                     SUBCHAPTER B--PERSONAL PROPERTY
102-31

General [Reserved]

102-32

Management of personal property [Reserved]

102-33          Management of government aircraft...........          41
102-34          Motor vehicle management....................          71
102-35          Disposition of personal property............          84
102-36          Disposition of excess personal property.....          87
102-37          Donation of surplus personal property.......         110
102-38          Sale of personal property...................         143
102-39          Replacement of personal property pursuant to 
                    the exchange/sale authority.............         157
102-40          Utilization and disposition of personal 
                    property with special handling 
                    requirements............................         162
102-41          Disposition of seized, forfeited, 
                    voluntarily abandoned, and unclaimed 
                    personal property.......................         186
102-42          Utilization, donation, and disposal of 
                    foreign gifts and decorations...........         195
102-43--102-70  [Reserved]



                       SUBCHAPTER C--REAL PROPERTY
102-71          General.....................................         204
102-72          Delegation of authority.....................         209
102-73          Real estate acquisition.....................         214
102-74          Facility management.........................         227
102-75          Real property disposal......................         250

[[Page 6]]

102-76          Design and construction.....................         311
102-77          Art-in-architecture.........................         316
102-78          Historic preservation.......................         317
102-79          Assignment and utilization of space.........         320
102-80          Safety and environmental management.........         325
102-81          Security....................................         332
102-82          Utility services............................         333
102-83          Location of space...........................         334
102-84          Annual real property inventories............         340
102-85          Pricing policy for occupancy in GSA space...         343
102-86--102-115 [Reserved]



                      SUBCHAPTER D--TRANSPORTATION
102-116

General [Reserved]

102-117         Transportation management...................         358
102-118         Transportation payment and audit............         376
102-119--102-140[Reserved]



               SUBCHAPTER E--TRAVEL MANAGEMENT [RESERVED]
102-141

General [Reserved]

102-142--102-170 [Reserved]



                    SUBCHAPTER F--TELECOMMUNICATIONS
102-171

General [Reserved]

102-172

Telecommunications management policy [Reserved]

102-173         Internet GOV Domain.........................         405
102-174--102-190 [Reserved]



                  SUBCHAPTER G--ADMINISTRATIVE PROGRAMS
102-191

General [Reserved]

102-192         Mail management.............................         409
102-193         Creation, maintenance, and use of records...         415
102-194         Standard and optional forms management 
                    program.................................         417
102-196

Federal facility ridesharing [Reserved]

102-197--102-199 [Reserved]



                       SUBCHAPTERS H-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: [email protected]
    (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 FEDERAL ADVISORY COMMITTEE MANAGEMENT--Table of Contents



Subpart A_What Policies Apply to Advisory Committees Established Within 
                          the Executive Branch?

Sec.
102-3.5 What does this subpart cover and how does it apply?
102-3.10 What is the purpose of the Federal Advisory Committee Act?
102-3.15 Who are the intended users of this part?
102-3.20 How does this part meet the needs of its audience?
102-3.25 What definitions apply to this part?
102-3.30 What policies govern the use of advisory committees?
102-3.35 What policies govern the use of subcommittees?
102-3.40 What types of committees or groups are not covered by the Act 
          and this part?

Appendix A to Subpart A of Part 102-3--Key Points and Principles

      Subpart B_How Are Advisory Committees Established, Renewed, 
                     Reestablished, and Terminated?

102-3.45 What does this subpart cover and how does it apply?
102-3.50 What are the authorities for establishing advisory committees?
102-3.55 What rules apply to the duration of an advisory committee?
102-3.60 What procedures are required to establish, renew, or 
          reestablish a discretionary advisory committee?
102-3.65 What are the public notification requirements for discretionary 
          advisory committees?
102-3.70 What are the charter filing requirements?
102-3.75 What information must be included in the charter of an advisory 
          committee?
102-3.80 How are minor charter amendments accomplished?
102-3.85 How are major charter amendments accomplished?

Appendix A to Subpart B of Part 102-3--Key Points and Principles

             Subpart C_How Are Advisory Committees Managed?

102-3.90 What does this subpart cover and how does it apply?
102-3.95 What principles apply to the management of advisory committees?
102-3.100 What are the responsibilities and functions of GSA?
102-3.105 What are the responsibilities of an agency head?

[[Page 12]]

102-3.110 What are the responsibilities of a chairperson of an 
          independent Presidential advisory committee?
102-3.115 What are the responsibilities and functions of an agency 
          Committee Management Officer (CMO)?
102-3.120 What are the responsibilities and functions of a Designated 
          Federal Officer (DFO)?
102-3.125 How should agencies consider the roles of advisory committee 
          members and staff?
102-3.130 What policies apply to the appointment, and compensation or 
          reimbursement of advisory committee members, staff, and 
          experts and consultants?

Appendix A to Subpart C of Part 102-3--Key Points and Principles

    Subpart D_Advisory Committee Meeting and Recordkeeping Procedures

102-3.135 What does this subpart cover and how does it apply?
102-3.140 What policies apply to advisory committee meetings?
102-3.145 What policies apply to subcommittee meetings?
102-3.150 How are advisory committee meetings announced to the public?
102-3.155 How are advisory committee meetings closed to the public?
102-3.160 What activities of an advisory committee are not subject to 
          the notice and open meeting requirements of the Act?
102-3.165 How are advisory committee meetings documented?
102-3.170 How does an interested party obtain access to advisory 
          committee records?
102-3.175 What are the reporting and recordkeeping requirements for an 
          advisory committee?

Appendix A to Subpart D of Part 102-3--Key Points and Principles

   Subpart E_How Does This Subpart Apply to Advice or Recommendations 
Provided to Agencies by the National Academy of Sciences or the National 
                    Academy of Public Administration?

102-3.180 What does this subpart cover and how does it apply?
102-3.185 What does this subpart require agencies to do?

Appendix A to Subpart E of Part 102-3--Key Points and Principles

    Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); sec. 7, 5 
U.S.C., App.; and E.O. 12024, 3 CFR, 1977 Comp., p. 158.

    Source: At 66 FR 37733, July 19, 2001, unless otherwise noted.



Subpart A_What Policies Apply to Advisory Committees Established Within 
                          the Executive Branch?



Sec. 102-3.5  What does this subpart cover and how does it apply?

    This subpart provides the policy framework that must be used by 
agency heads in applying the Federal Advisory Committee Act (FACA), as 
amended (or ``the Act''), 5 U.S.C., App., to advisory committees they 
establish and operate. In addition to listing key definitions underlying 
the interpretation of the Act, this subpart establishes the scope and 
applicability of the Act, and outlines specific exclusions from its 
coverage.



Sec. 102-3.10  What is the purpose of the Federal Advisory Committee
Act?

    FACA governs the establishment, operation, and termination of 
advisory committees within the executive branch of the Federal 
Government. The Act defines what constitutes a Federal advisory 
committee and provides general procedures for the executive branch to 
follow for the operation of these advisory committees. In addition, the 
Act is designed to assure that the Congress and the public are kept 
informed with respect to the number, purpose, membership, activities, 
and cost of advisory committees.



Sec. 102-3.15  Who are the intended users of this part?

    (a) The primary users of this Federal Advisory Committee Management 
part are:
    (1) Executive branch officials and others outside Government 
currently involved with an established advisory committee;
    (2) Executive branch officials who seek to establish or utilize an 
advisory committee;
    (3) Executive branch officials and others outside Government who 
have decided to pursue, or who are already engaged in, a form of public 
involvement or consultation and want to avoid inadvertently violating 
the Act; and
    (4) Field personnel of Federal agencies who are increasingly 
involved with

[[Page 13]]

the public as part of their efforts to increase collaboration and 
improve customer service.
    (b) Other types of end-users of this part include individuals and 
organizations outside of the executive branch who seek to understand and 
interpret the Act, or are seeking additional guidance.



Sec. 102-3.20  How does this part meet the needs of its audience?

    This Federal Advisory Committee Management part meets the general 
and specific needs of its audience by addressing the following issues 
and related topics:
    (a) Scope and applicability. This part provides guidance on the 
threshold issue of what constitutes an advisory committee and clarifies 
the limits of coverage by the Act for the benefit of the intended users 
of this part.
    (b) Policies and guidelines. This part defines the policies, 
establishes minimum requirements, and provides guidance to Federal 
officers and agencies for the establishment, operation, administration, 
and duration of advisory committees subject to the Act. This includes 
reporting requirements that keep Congress and the public informed of the 
number, purpose, membership, activities, benefits, and costs of these 
advisory committees. These requirements form the basis for implementing 
the Act at both the agency and Governmentwide levels.
    (c) Examples and principles. This part provides summary-level key 
points and principles at the end of each subpart that provide more 
clarification on the role of Federal advisory committees in the larger 
context of public involvement in Federal decisions and activities. This 
includes a discussion of the applicability of the Act to different 
decisionmaking scenarios.



Sec. 102-3.25  What definitions apply to this part?

    The following definitions apply to this Federal Advisory Committee 
Management part:
    Act means the Federal Advisory Committee Act, as amended, 5 U.S.C., 
App.
    Administrator means the Administrator of General Services.
    Advisory committee subject to the Act, except as specifically 
exempted by the Act or by other statutes, or as not covered by this 
part, means any committee, board, commission, council, conference, 
panel, task force, or other similar group, which is established by 
statute, or established or utilized by the President or by an agency 
official, for the purpose of obtaining advice or recommendations for the 
President or on issues or policies within the scope of an agency 
official's responsibilities.
    Agency has the same meaning as in 5 U.S.C. 551(1).
    Committee Management Officer (``CMO''), means the individual 
designated by the agency head to implement the provisions of section 
8(b) of the Act and any delegated responsibilities of the agency head 
under the Act.
    Committee Management Secretariat (``Secretariat''), means the 
organization established pursuant to section 7(a) of the Act, which is 
responsible for all matters relating to advisory committees, and carries 
out the responsibilities of the Administrator under the Act and 
Executive Order 12024 (3 CFR, 1977 Comp., p. 158).
    Committee meeting means any gathering of advisory committee members 
(whether in person or through electronic means) held with the approval 
of an agency for the purpose of deliberating on the substantive matters 
upon which the advisory committee provides advice or recommendations.
    Committee member means an individual who serves by appointment or 
invitation on an advisory committee or subcommittee.
    Committee staff means any Federal employee, private individual, or 
other party (whether under contract or not) who is not a committee 
member, and who serves in a support capacity to an advisory committee or 
subcommittee.
    Designated Federal Officer (``DFO''), means an individual designated 
by the agency head, for each advisory committee for which the agency 
head is responsible, to implement the provisions of sections 10(e) and 
(f) of the Act and any advisory committee procedures of the agency under 
the control and supervision of the CMO.
    Discretionary advisory committee means any advisory committee that 
is

[[Page 14]]

established under the authority of an agency head or authorized by 
statute. An advisory committee referenced in general (non-specific) 
authorizing language or Congressional committee report language is 
discretionary, and its establishment or termination is within the legal 
discretion of an agency head.
    Independent Presidential advisory committee means any Presidential 
advisory committee not assigned by the Congress in law, or by President 
or the President's delegate, to an agency for administrative and other 
support.
    Non-discretionary advisory committee means any advisory committee 
either required by statute or by Presidential directive. A non-
discretionary advisory committee required by statute generally is 
identified specifically in a statute by name, purpose, or functions, and 
its establishment or termination is beyond the legal discretion of an 
agency head.
    Presidential advisory committee means any advisory committee 
authorized by the Congress or directed by the President to advise the 
President.
    Subcommittee means a group, generally not subject to the Act, that 
reports to an advisory committee and not directly to a Federal officer 
or agency, whether or not its members are drawn in whole or in part from 
the parent advisory committee.
    Utilized for the purposes of the Act, does not have its ordinary 
meaning. A committee that is not established by the Federal Government 
is utilized within the meaning of the Act when the President or a 
Federal office or agency exercises actual management or control over its 
operation.



Sec. 102-3.30  What policies govern the use of advisory committees?

    The policies to be followed by Federal departments and agencies in 
establishing and operating advisory committees consistent with the Act 
are as follows:
    (a) Determination of need in the public interest. A discretionary 
advisory committee may be established only when it is essential to the 
conduct of agency business and when the information to be obtained is 
not already available through another advisory committee or source 
within the Federal Government. Reasons for deciding that an advisory 
committee is needed may include whether:
    (1) Advisory committee deliberations will result in the creation or 
elimination of (or change in) regulations, policies, or guidelines 
affecting agency business;
    (2) The advisory committee will make recommendations resulting in 
significant improvements in service or reductions in cost; or
    (3) The advisory committee's recommendations will provide an 
important additional perspective or viewpoint affecting agency 
operations.
    (b) Termination. An advisory committee must be terminated when:
    (1) The stated objectives of the committee have been accomplished;
    (2) The subject matter or work of the committee has become obsolete 
by the passing of time or the assumption of the committee's functions by 
another entity;
    (3) The agency determines that the cost of operation is excessive in 
relation to the benefits accruing to the Federal Government;
    (4) In the case of a discretionary advisory committee, upon the 
expiration of a period not to exceed two years, unless renewed;
    (5) In the case of a non-discretionary advisory committee required 
by Presidential directive, upon the expiration of a period not to exceed 
two years, unless renewed by authority of the President; or
    (6) In the case of a non-discretionary advisory committee required 
by statute, upon the expiration of the time explicitly specified in the 
statute, or implied by operation of the statute.
    (c) Balanced membership. An advisory committee must be fairly 
balanced in its membership in terms of the points of view represented 
and the functions to be performed.
    (d) Open meetings. Advisory committee meetings must be open to the 
public except where a closed or partially-closed meeting has been 
determined proper and consistent with the exemption(s) of the Government 
in the Sunshine Act, 5 U.S.C. 552b(c), as the basis for closure.
    (e) Advisory functions only. The function of advisory committees is 
advisory

[[Page 15]]

only, unless specifically provided by statute or Presidential directive.



Sec. 102-3.35  What policies govern the use of subcommittees?

    (a) In general, the requirements of the Act and the policies of this 
Federal Advisory Committee Management part do not apply to subcommittees 
of advisory committees that report to a parent advisory committee and 
not directly to a Federal officer or agency. However, this section does 
not preclude an agency from applying any provision of the Act and this 
part to any subcommittee of an advisory committee in any particular 
instance.
    (b) The creation and operation of subcommittees must be approved by 
the agency establishing the parent advisory committee.



Sec. 102-3.40  What types of committees or groups are not covered
by the Act and this part?

    The following are examples of committees or groups that are not 
covered by the Act or this Federal Advisory Committee Management part:
    (a) Committees created by the National Academy of Sciences (NAS) or 
the National Academy of Public Administration (NAPA). Any committee 
created by NAS or NAPA in accordance with section 15 of the Act, except 
as otherwise covered by subpart E of this part;
    (b) Advisory committees of the Central Intelligence Agency and the 
Federal Reserve System. Any advisory committee established or utilized 
by the Central Intelligence Agency or the Federal Reserve System;
    (c) Committees exempted by statute. Any committee specifically 
exempted from the Act by law;
    (d) Committees not actually managed or controlled by the executive 
branch. Any committee or group created by non-Federal entities (such as 
a contractor or private organization), provided that these committees or 
groups are not actually managed or controlled by the executive branch;
    (e) Groups assembled to provide individual advice. Any group that 
meets with a Federal official(s), including a public meeting, where 
advice is sought from the attendees on an individual basis and not from 
the group as a whole;
    (f) Groups assembled to exchange facts or information. Any group 
that meets with a Federal official(s) for the purpose of exchanging 
facts or information;
    (g) Intergovernmental committees. Any committee composed wholly of 
full-time or permanent part-time officers or employees of the Federal 
Government and elected officers of State, local and tribal governments 
(or their designated employees with authority to act on their behalf), 
acting in their official capacities. However, the purpose of such a 
committee must be solely to exchange views, information, or advice 
relating to the management or implementation of Federal programs 
established pursuant to statute, that explicitly or inherently share 
intergovernmental responsibilities or administration (see guidelines 
issued by the Office of Management and Budget (OMB) on section 204(b) of 
the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1534(b), OMB 
Memorandum M-95-20, dated September 21, 1995, available from the 
Committee Management Secretariat (MC), General Services Administration, 
1800 F Street, NW., Washington, DC 20405-0002);
    (h) Intragovernmental committees. Any committee composed wholly of 
full-time or permanent part-time officers or employees of the Federal 
Government;
    (i) Local civic groups. Any local civic group whose primary function 
is that of rendering a public service with respect to a Federal program;
    (j) Groups established to advise State or local officials. Any State 
or local committee, council, board, commission, or similar group 
established to advise or make recommendations to State or local 
officials or agencies; and
    (k) Operational committees. Any committee established to perform 
primarily operational as opposed to advisory functions. Operational 
functions are those specifically authorized by statute or Presidential 
directive, such as making or implementing Government decisions or 
policy. A committee designated operational may be covered

[[Page 16]]

by the Act if it becomes primarily advisory in nature. It is the 
responsibility of the administering agency to determine whether a 
committee is primarily operational. If so, it does not fall under the 
requirements of the Act and this part.



  Sec. Appendix A to Subpart A of Part 102-3--Key Points and Principles

    This appendix provides additional guidance in the form of answers to 
frequently asked questions and identifies key points and principles that 
may be applied to situations not covered elsewhere in this subpart. The 
guidance follows:

----------------------------------------------------------------------------------------------------------------
    Key points and principles         Section(s)                 Question(s)                     Guidance
----------------------------------------------------------------------------------------------------------------
I. FACA applies to advisory       102-3.25, 102-     1. A local citizens group wants to  A. The answer to
 committees that are either        3.40(d), 102-      meet with a Federal official(s)     questions 1, 2, and 3
 ``established'' or ``utilized''   3.40(f)            to help improve the condition of    is yes, if the agency
 by an agency.                                        a forest's trails and quality of    does not either
                                                      concessions. May the Government     ``establish'' or
                                                      meet with the group without         ``utilize'' (exercise
                                                      chartering the group under the      ``actual management or
                                                      Act?                                control'' over) the
                                                     2. May an agency official attend     group. (i) Although
                                                      meetings of external groups where   there is no precise
                                                      advice may be offered to the        legal definition of
                                                      Government during the course of     ``actual management or
                                                      discussions?                        control,'' the
                                                     3. May an agency official            following factors may
                                                      participate in meetings of groups   be used by an agency
                                                      or organizations as a member        to determine whether
                                                      without chartering the group        or not a group is
                                                      under the Act?                      ``utilized'' within
                                                     4. Is the Act applicable to          the meaning of the
                                                      meetings between agency officials   Act: (a) Does the
                                                      and their contractors, licensees,   agency manage or
                                                      or other ``private sector program   control the group's
                                                      partners?''                         membership or
                                                                                          otherwise determine
                                                                                          its composition? (b)
                                                                                          Does the agency manage
                                                                                          or control the group's
                                                                                          agenda? (c) Does the
                                                                                          agency fund the
                                                                                          group's activities?
                                                                                          (ii) Answering ``yes''
                                                                                          to any or all of
                                                                                          questions 1, 2, or 3
                                                                                          does not automatically
                                                                                          mean the group is
                                                                                          ``utilized'' within
                                                                                          the meaning of the
                                                                                          Act. However, an
                                                                                          agency may need to
                                                                                          reconsider the status
                                                                                          of the group under the
                                                                                          Act if the
                                                                                          relationship in
                                                                                          question essentially
                                                                                          is indistinguishable
                                                                                          from an advisory
                                                                                          committee established
                                                                                          by the agency.
                                                                                         B. The answer to
                                                                                          question 4 is no.
                                                                                          Agencies often meet
                                                                                          with contractors and
                                                                                          licensees,
                                                                                          individually and as a
                                                                                          group, to discuss
                                                                                          specific matters
                                                                                          involving a contract's
                                                                                          solicitation,
                                                                                          issuance, and
                                                                                          implementation, or an
                                                                                          agency's efforts to
                                                                                          ensure compliance with
                                                                                          its regulations. Such
                                                                                          interactions are not
                                                                                          subject to the Act
                                                                                          because these groups
                                                                                          are not
                                                                                          ``established'' or
                                                                                          ``utilized'' for the
                                                                                          purpose of obtaining
                                                                                          advice or
                                                                                          recommendations.
----------------------------------------------------------------------------------------------------------------
II. The development of consensus  102-3.25, 102-     1. If, during a public meeting of   A. No, the public
 among all or some of the          3.40(d), 102-      the ``town hall'' type called by    meeting need not be
 attendees at a public meeting     3.40(f)            an agency, it appears that the      stopped. (i) A group
 or similar forum does not                            audience is achieving consensus,    must either be
 automatically invoke FACA.                           or a common point of view, is       ``established'' or
                                                      this an indication that the         ``utilized'' by the
                                                      meeting is subject to the Act and   executive branch in
                                                      must be stopped?                    order for the Act to
                                                                                          apply. (ii) Public
                                                                                          meetings represent a
                                                                                          chance for individuals
                                                                                          to voice their
                                                                                          opinions and/or share
                                                                                          information. In that
                                                                                          sense, agencies do not
                                                                                          either ``establish''
                                                                                          the assemblage of
                                                                                          individuals as an
                                                                                          advisory committee or
                                                                                          ``utilize'' the
                                                                                          attendees as an
                                                                                          advisory committee
                                                                                          because there are no
                                                                                          elements of either
                                                                                          ``management'' or
                                                                                          ``control'' present or
                                                                                          intended.

[[Page 17]]

 
III. Meetings between a Federal   102-3.40(e)        1. May an agency official meet      A. The answer to
 official(s) and a collection of                      with a number of persons            questions 1 and 2 is
 individuals where advice is                          collectively to obtain their        yes. The Act applies
 sought from the attendees on an                      individual views without            only where a group is
 individual basis are not                             violating the Act?                  established or
 subject to the Act.                                 2. Does the concept of an            utilized to provide
                                                      ``individual'' apply only to        advice or
                                                      ``natural persons?''                recommendations ``as a
                                                                                          group.'' (i) A mere
                                                                                          assemblage or
                                                                                          collection of
                                                                                          individuals where the
                                                                                          attendees are
                                                                                          providing individual
                                                                                          advice is not acting
                                                                                          ``as a group'' under
                                                                                          the Act. (ii) In this
                                                                                          respect,
                                                                                          ``individual'' is not
                                                                                          limited to ``natural
                                                                                          persons.'' Where the
                                                                                          group consists of
                                                                                          representatives of
                                                                                          various existing
                                                                                          organizations, each
                                                                                          representative
                                                                                          individually may
                                                                                          provide advice on
                                                                                          behalf of that
                                                                                          person's organization
                                                                                          without violating the
                                                                                          Act, if those
                                                                                          organizations
                                                                                          themselves are not
                                                                                          ``managed or
                                                                                          controlled'' by the
                                                                                          agency.
----------------------------------------------------------------------------------------------------------------
IV. Meetings between Federal,     102-3.40(g)        1. Is the exclusion from the Act    A. Yes. The scope of
 State, local, and tribal                             covering elected officials of       activities covered by
 elected officials are not                            State, local, and tribal            the exclusion from the
 subject to the Act.                                  governments acting in their         Act for
                                                      official capacities also            intergovernmental
                                                      applicable to associations of       activities should be
                                                      State officials?                    construed broadly to
                                                                                          facilitate Federal/
                                                                                          State/local/tribal
                                                                                          discussions on shared
                                                                                          intergovernmental
                                                                                          program
                                                                                          responsibilities or
                                                                                          administration.
                                                                                          Pursuant to a
                                                                                          Presidential
                                                                                          delegation, the Office
                                                                                          of Management and
                                                                                          Budget (OMB) issued
                                                                                          guidelines for this
                                                                                          exemption, authorized
                                                                                          by section 204(b) of
                                                                                          the Unfunded Mandates
                                                                                          Reform Act of 1995, 2
                                                                                          U.S.C. 1534(b). (See
                                                                                          OMB Memorandum M-95-
                                                                                          20, dated September
                                                                                          21, 1995, published at
                                                                                          60 FR 50651 (September
                                                                                          29, 1995), and which
                                                                                          is available from the
                                                                                          Committee Management
                                                                                          Secretariat (MC),
                                                                                          General Services
                                                                                          Administration, 1800 F
                                                                                          Street, NW,
                                                                                          Washington, DC 20405-
                                                                                          0002).
----------------------------------------------------------------------------------------------------------------
V. Advisory committees            102-3.30(e), 102-  1. Are ``operational committees''   A. No, so long as the
 established under the Act may     3.40(k)            subject to the Act, even if they    operational functions
 perform advisory functions                           may engage in some advisory         performed by the
 only, unless authorized to                           activities?                         committee constitute
 perform ``operational'' duties                                                           the ``primary''
 by the Congress or by                                                                    mission of the
 Presidential directive.                                                                  committee. Only
                                                                                          committees established
                                                                                          or utilized by the
                                                                                          executive branch in
                                                                                          the interest of
                                                                                          obtaining advice or
                                                                                          recommendations are
                                                                                          subject to the Act.
                                                                                          However, without
                                                                                          specific authorization
                                                                                          by the Congress or
                                                                                          direction by the
                                                                                          President, Federal
                                                                                          functions
                                                                                          (decisionmaking or
                                                                                          operations) cannot be
                                                                                          delegated to, or
                                                                                          assumed by, non-
                                                                                          Federal individuals or
                                                                                          entities.
----------------------------------------------------------------------------------------------------------------

[[Page 18]]

 
VI. Committees authorized by the  102-3.40(k)        1. What characteristics are common  A. In answer to
 Congress in law or by                                to ``operational committees?''      question 1, non-
 Presidential directive to                           2. A committee created by the        advisory, or
 perform primarily                                    Congress by statute is              ``operational''
 ``operational'' functions are                        responsible, for example, for       committees generally
 not subject to the Act.                              developing plans and events to      have the following
                                                      commemorate the contributions of    characteristics: (i)
                                                      wildlife to the enjoyment of the    Specific functions and/
                                                      Nation's parks. Part of the         or authorities
                                                      committee's role includes           provided by the
                                                      providing advice to certain         Congress in law or by
                                                      Federal agencies as may be          Presidential
                                                      necessary to coordinate these       directive; (ii) The
                                                      events. Is this committee subject   ability to make and
                                                      to FACA?                            implement
                                                                                          traditionally
                                                                                          Governmental
                                                                                          decisions; and (iii)
                                                                                          The authority to
                                                                                          perform specific tasks
                                                                                          to implement a Federal
                                                                                          program.
                                                                                         B. Agencies are
                                                                                          responsible for
                                                                                          determining whether or
                                                                                          not a committee
                                                                                          primarily provides
                                                                                          advice or
                                                                                          recommendations and
                                                                                          is, therefore, subject
                                                                                          to the Act, or is
                                                                                          primarily
                                                                                          ``operational'' and
                                                                                          not covered by FACA.
                                                                                         C. The answer to
                                                                                          question 2 is no. The
                                                                                          committee is not
                                                                                          subject to the Act
                                                                                          because: (i) Its
                                                                                          functions are to plan
                                                                                          and implement specific
                                                                                          tasks; (ii) The
                                                                                          committee has been
                                                                                          granted the express
                                                                                          authority by the
                                                                                          Congress to perform
                                                                                          its statutorily
                                                                                          required functions;
                                                                                          and (iii) Its
                                                                                          incidental role of
                                                                                          providing advice to
                                                                                          other Federal agencies
                                                                                          is secondary to its
                                                                                          primarily operational
                                                                                          role of planning and
                                                                                          implementing specific
                                                                                          tasks and performing
                                                                                          statutory functions.
----------------------------------------------------------------------------------------------------------------



      Subpart B_How Are Advisory Committees Established, Renewed, 
                     Reestablished, and Terminated?



Sec. 102-3.45  What does this subpart cover and how does it apply?

    Requirements for establishing and terminating advisory committees 
vary depending on the establishing entity and the source of authority 
for the advisory committee. This subpart covers the procedures 
associated with the establishment, renewal, reestablishment, and 
termination of advisory committees. These procedures include consulting 
with the Secretariat, preparing and filing an advisory committee 
charter, publishing notice in the Federal Register, and amending an 
advisory committee charter.



Sec. 102-3.50  What are the authorities for establishing advisory
committees?

    FACA identifies four sources of authority for establishing an 
advisory committee:
    (a) Required by statute. By law where the Congress establishes an 
advisory committee, or specifically directs the President or an agency 
to establish it (non-discretionary);
    (b) Presidential authority. By Executive order of the President or 
other Presidential directive (non-discretionary);
    (c) Authorized by statute. By law where the Congress authorizes, but 
does not direct the President or an agency to establish it 
(discretionary); or
    (d) Agency authority. By an agency under general authority in title 
5 of the United States Code or under other general agency-authorizing 
statutes (discretionary).



Sec. 102-3.55  What rules apply to the duration of an advisory
committee?

    (a) An advisory committee automatically terminates two years after 
its date of establishment unless:
    (1) The statutory authority used to establish the advisory committee 
provides a different duration;
    (2) The President or agency head determines that the advisory 
committee has fulfilled the purpose for which it was established and 
terminates the advisory committee earlier;
    (3) The President or agency head determines that the advisory 
committee is no longer carrying out the purpose

[[Page 19]]

for which it was established and terminates the advisory committee 
earlier; or
    (4) The President or agency head renews the committee not later than 
two years after its date of establishment in accordance with Sec. 102-
3.60. If an advisory committee needed by the President or an agency 
terminates because it was not renewed in a timely manner, or if the 
advisory committee has been terminated under the provisions of Sec. 
102-3.30(b), it can be reestablished in accordance with Sec. 102-3.60.
    (b) When an advisory committee terminates, the agency shall notify 
the Secretariat of the effective date of the termination.



Sec. 102-3.60  What procedures are required to establish, renew, 
or reestablish a discretionary advisory committee?

    (a) Consult with the Secretariat. Before establishing, renewing, or 
reestablishing a discretionary advisory committee and filing the charter 
as addressed later in Sec. 102-3.70, the agency head must consult with 
the Secretariat. As part of this consultation, agency heads are 
encouraged to engage in constructive dialogue with the Secretariat. With 
a full understanding of the background and purpose behind the proposed 
advisory committee, the Secretariat may share its knowledge and 
experience with the agency on how best to make use of the proposed 
advisory committee, suggest alternate methods of attaining its purpose 
that the agency may wish to consider, or inform the agency of a pre-
existing advisory committee performing similar functions.
    (b) Include required information in the consultation. Consultations 
covering the establishment, renewal, and reestablishment of advisory 
committees must, as a minimum, contain the following information:
    (1) Explanation of need. An explanation stating why the advisory 
committee is essential to the conduct of agency business and in the 
public interest;
    (2) Lack of duplication of resources. An explanation stating why the 
advisory committee's functions cannot be performed by the agency, 
another existing committee, or other means such as a public hearing; and
    (3) Fairly balanced membership. A description of the agency's plan 
to attain fairly balanced membership. The plan will ensure that, in the 
selection of members for the advisory committee, the agency will 
consider a cross-section of those directly affected, interested, and 
qualified, as appropriate to the nature and functions of the advisory 
committee. Advisory committees requiring technical expertise should 
include persons with demonstrated professional or personal 
qualifications and experience relevant to the functions and tasks to be 
performed.



Sec. 102-3.65  What are the public notification requirements for 
discretionary advisory committees?

    A notice to the public in the Federal Register is required when a 
discretionary advisory committee is established, renewed, or 
reestablished.
    (a) Procedure. Upon receiving notice from the Secretariat that its 
review is complete in accordance with Sec. 102-3.60(a), the agency must 
publish a notice in the Federal Register announcing that the advisory 
committee is being established, renewed, or reestablished. For the 
establishment of a new advisory committee, the notice also must describe 
the nature and purpose of the advisory committee and affirm that the 
advisory committee is necessary and in the public interest.
    (b) Time required for notices. Notices of establishment and 
reestablishment of advisory committees must appear at least 15 calendar 
days before the charter is filed, except that the Secretariat may 
approve less than 15 calendar days when requested by the agency for good 
cause. This requirement for advance notice does not apply to advisory 
committee renewals, notices of which may be published concurrently with 
the filing of the charter.



Sec. 102-3.70  What are the charter filing requirements?

    No advisory committee may meet or take any action until a charter 
has been filed by the Committee Management Officer (CMO) designated in 
accordance with section 8(b) of the Act,

[[Page 20]]

or by another agency official designated by the agency head.
    (a) Requirement for discretionary advisory committees. To establish, 
renew, or reestablish a discretionary advisory committee, a charter must 
be filed with:
    (1) The agency head;
    (2) The standing committees of the Senate and the House of 
Representatives having legislative jurisdiction of the agency, the date 
of filing with which constitutes the official date of establishment for 
the advisory committee;
    (3) The Library of Congress, Anglo-American Acquisitions Division, 
Government Documents Section, Federal Advisory Committee Desk, 101 
Independence Avenue, SE., Washington, DC 20540-4172; and
    (4) The Secretariat, indicating the date the charter was filed in 
accordance with paragraph (a)(2) of this section.
    (b) Requirement for non-discretionary advisory committees. Charter 
filing requirements for non-discretionary advisory committees are the 
same as those in paragraph (a) of this section, except the date of 
establishment for a Presidential advisory committee is the date the 
charter is filed with the Secretariat.
    (c) Requirement for subcommittees that report directly to the 
Government. Subcommittees that report directly to a Federal officer or 
agency must comply with this subpart and include in a charter the 
information required by Sec. 102-3.75.



Sec. 102-3.75  What information must be included in the charter of an
advisory committee?

    (a) Purpose and contents of an advisory committee charter. An 
advisory committee charter is intended to provide a description of an 
advisory committee's mission, goals, and objectives. It also provides a 
basis for evaluating an advisory committee's progress and effectiveness. 
The charter must contain the following information:
    (1) The advisory committee's official designation;
    (2) The objectives and the scope of the advisory committee's 
activity;
    (3) The period of time necessary to carry out the advisory 
committee's purpose(s);
    (4) The agency or Federal officer to whom the advisory committee 
reports;
    (5) The agency responsible for providing the necessary support to 
the advisory committee;
    (6) A description of the duties for which the advisory committee is 
responsible and specification of the authority for any non-advisory 
functions;
    (7) The estimated annual costs to operate the advisory committee in 
dollars and person years;
    (8) The estimated number and frequency of the advisory committee's 
meetings;
    (9) The planned termination date, if less than two years from the 
date of establishment of the advisory committee;
    (10) The name of the President's delegate, agency, or organization 
responsible for fulfilling the reporting requirements of section 6(b) of 
the Act, if appropriate; and
    (11) The date the charter is filed in accordance with Sec. 102-
3.70.
    (b) The provisions of paragraphs (a)(1) through (11) of this section 
apply to all subcommittees that report directly to a Federal officer or 
agency.



Sec. 102-3.80  How are minor charter amendments accomplished?

    (a) Responsibility and limitation. The agency head is responsible 
for amending the charter of an advisory committee. Amendments may be 
either minor or major. The procedures for making changes and filing 
amended charters will depend upon the authority basis for the advisory 
committee. Amending any existing advisory committee charter does not 
constitute renewal of the advisory committee under Sec. 102-3.60.
    (b) Procedures for minor amendments. To make a minor amendment to an 
advisory committee charter, such as changing the name of the advisory 
committee or modifying the estimated number or frequency of meetings, 
the following procedures must be followed:
    (1) Non-discretionary advisory committees. The agency head must 
ensure that any minor technical changes made to current charters are 
consistent with

[[Page 21]]

the relevant authority. When the Congress by law, or the President by 
Executive order, changes the authorizing language that has been the 
basis for establishing an advisory committee, the agency head or the 
chairperson of an independent Presidential advisory committee must amend 
those sections of the current charter affected by the new statute or 
Executive order, and file the amended charter as specified in Sec. 102-
3.70.
    (2) Discretionary advisory committees. The charter of a 
discretionary advisory committee may be amended when an agency head 
determines that technical provisions of a filed charter are inaccurate, 
or specific provisions have changed or become obsolete with the passing 
of time, and that these amendments will not alter the advisory 
committee's objectives and scope substantially. The agency must amend 
the charter language as necessary and file the amended charter as 
specified in Sec. 102-3.70.



Sec. 102-3.85  How are major charter amendments accomplished?

    Procedures for making major amendments to advisory committee 
charters, such as substantial changes in objectives and scope, duties, 
and estimated costs, are the same as in Sec. 102-3.80, except that for 
discretionary advisory committees an agency must:
    (a) Consult with the Secretariat on the amended language, and 
explain the purpose of the changes and why they are necessary; and
    (b) File the amended charter as specified in Sec. 102-3.70.



  Sec. Appendix A to Subpart B of Part 102-3--Key Points and
  Principles

    This appendix provides additional guidance in the form of answers to 
frequently asked questions and identifies key points and principles that 
may be applied to situations not covered elsewhere in this subpart. The 
guidance follows:

----------------------------------------------------------------------------------------------------------------
 Key points and principles       Section(s)                   Question(s)                       Guidance
----------------------------------------------------------------------------------------------------------------
I. Agency heads must        102-3.60, 102-3.115  1. Can an agency head delegate to     A. Yes. Many
 consult with the                                 the Committee Management Officer      administrative functions
 Secretariat prior to                             (CMO) responsibility for consulting   performed to implement
 establishing a                                   with the Secretariat regarding the    the Act may be
 discretionary advisory                           establishment, renewal, or            delegated. However,
 committee.                                       reestablishment of discretionary      those functions related
                                                  advisory committees?                  to approving the final
                                                                                        establishment, renewal,
                                                                                        or reestablishment of
                                                                                        discretionary advisory
                                                                                        committees are reserved
                                                                                        for the agency head.
                                                                                        Each agency CMO should
                                                                                        assure that their
                                                                                        internal processes for
                                                                                        managing advisory
                                                                                        committees include
                                                                                        appropriate
                                                                                        certifications by the
                                                                                        agency head.
----------------------------------------------------------------------------------------------------------------
II. Agency heads are        102-3.60(a), 102-    1. Who retains final authority for    A. Although agency heads
 responsible for complying   3.105                establishing or renewing a            retain final authority
 with the Act, including                          discretionary advisory committee?     for establishing or
 determining which                                                                      renewing discretionary
 discretionary advisory                                                                 advisory committees,
 committees should be                                                                   these decisions should
 established and renewed.                                                               be consistent with Sec.
                                                                                         102-3.105(e) and
                                                                                        reflect consultation
                                                                                        with the Secretariat
                                                                                        under Sec. 102-
                                                                                        3.60(a).
----------------------------------------------------------------------------------------------------------------

[[Page 22]]

 
III. An advisory committee  102-3.30(c), 102-    1. What factors should be considered  A. The composition of an
 must be fairly balanced     3.60(b)(3)           in achieving a ``balanced''           advisory committee's
 in its membership in                             advisory committee membership?        membership will depend
 terms of the points of                                                                 upon several factors,
 view represented and the                                                               including: (i) The
 functions to be                                                                        advisory committee's
 performed.                                                                             mission; (ii) The
                                                                                        geographic, ethnic,
                                                                                        social, economic, or
                                                                                        scientific impact of the
                                                                                        advisory committee's
                                                                                        recommendations; (iii)
                                                                                        The types of specific
                                                                                        perspectives required,
                                                                                        for example, such as
                                                                                        those of consumers,
                                                                                        technical experts, the
                                                                                        public at-large,
                                                                                        academia, business, or
                                                                                        other sectors; (iv) The
                                                                                        need to obtain divergent
                                                                                        points of view on the
                                                                                        issues before the
                                                                                        advisory committee; and
                                                                                        (v) The relevance of
                                                                                        State, local, or tribal
                                                                                        governments to the
                                                                                        development of the
                                                                                        advisory committee's
                                                                                        recommendations.
----------------------------------------------------------------------------------------------------------------
IV. Charters for advisory   102-3.70(b)          1. If an advisory committee's         A. Yes. Section 14(b)(2)
 committees required by                           duration exceeds two years, must a    of the Act provides
 statute must be filed                            charter be filed with the Congress    that: Any advisory
 every two years                                  and GSA every two years?              committee established by
 regardless of the                                                                      an Act of Congress shall
 duration provided in the                                                               file a charter upon the
 statute.                                                                               expiration of each
                                                                                        successive two-year
                                                                                        period following the
                                                                                        date of enactment of the
                                                                                        Act establishing such
                                                                                        advisory committee.
----------------------------------------------------------------------------------------------------------------



             Subpart C_How Are Advisory Committees Managed?



Sec. 102-3.90  What does this subpart cover and how does it apply?

    This subpart outlines specific responsibilities and functions to be 
carried out by the General Services Administration (GSA), the agency 
head, the Committee Management Officer (CMO), and the Designated Federal 
Officer (DFO) under the Act.



Sec. 102-3.95  What principles apply to the management of advisory
committees?

    Agencies are encouraged to apply the following principles to the 
management of their advisory committees:
    (a) Provide adequate support. Before establishing an advisory 
committee, agencies should identify requirements and assure that 
adequate resources are available to support anticipated activities. 
Considerations related to support include office space, necessary 
supplies and equipment, Federal staff support, and access to key 
decisionmakers.
    (b) Focus on mission. Advisory committee members and staff should be 
fully aware of the advisory committee's mission, limitations, if any, on 
its duties, and the agency's goals and objectives. In general, the more 
specific an advisory committee's tasks and the more focused its 
activities are, the higher the likelihood will be that the advisory 
committee will fulfill its mission.
    (c) Follow plans and procedures. Advisory committee members and 
their agency sponsors should work together to assure that a plan and 
necessary procedures covering implementation are in place to support an 
advisory committee's mission. In particular, agencies should be clear 
regarding what functions an advisory committee can perform legally and 
those that it cannot perform.
    (d) Practice openness. In addition to achieving the minimum 
standards of public access established by the Act and this part, 
agencies should seek to be as inclusive as possible. For example, 
agencies may wish to explore the use of the Internet to post advisory 
committee information and seek broader input from the public.
    (e) Seek feedback. Agencies continually should seek feedback from 
advisory committee members and the public regarding the effectiveness of 
the advisory committee's activities. At regular intervals, agencies 
should communicate to the members how their advice has affected agency 
programs and decisionmaking.

[[Page 23]]



Sec. 102-3.100  What are the responsibilities and functions of GSA?

    (a) Under section 7 of the Act, the General Services Administration 
(GSA) prepares regulations on Federal advisory committees to be 
prescribed by the Administrator of General Services, issues other 
administrative guidelines and management controls for advisory 
committees, and assists other agencies in implementing and interpreting 
the Act. Responsibility for these activities has been delegated by the 
Administrator to the GSA Committee Management Secretariat.
    (b) The Secretariat carries out its responsibilities by:
    (1) Conducting an annual comprehensive review of Governmentwide 
advisory committee accomplishments, costs, benefits, and other 
indicators to measure performance;
    (2) Developing and distributing Governmentwide training regarding 
the Act and related statutes and principles;
    (3) Supporting the Interagency Committee on Federal Advisory 
Committee Management in its efforts to improve compliance with the Act;
    (4) Designing and maintaining a Governmentwide shared Internet-based 
system to facilitate collection and use of information required by the 
Act;
    (5) Identifying performance measures that may be used to evaluate 
advisory committee accomplishments; and
    (6) Providing recommendations for transmittal by the Administrator 
to the Congress and the President regarding proposals to improve 
accomplishment of the objectives of the Act.



Sec. 102-3.105  What are the responsibilities of an agency head?

    The head of each agency that establishes or utilizes one or more 
advisory committees must:
    (a) Comply with the Act and this Federal Advisory Committee 
Management part;
    (b) Issue administrative guidelines and management controls that 
apply to all of the agency's advisory committees subject to the Act;
    (c) Designate a Committee Management Officer (CMO);
    (d) Provide a written determination stating the reasons for closing 
any advisory committee meeting to the public, in whole or in part, in 
accordance with the exemption(s) of the Government in the Sunshine Act, 
5 U.S.C. 552b(c), as the basis for closure;
    (e) Review, at least annually, the need to continue each existing 
advisory committee, consistent with the public interest and the purpose 
or functions of each advisory committee;
    (f) Determine that rates of compensation for members (if they are 
paid for their services) and staff of, and experts and consultants to 
advisory committees are justified and that levels of agency support are 
adequate;
    (g) Develop procedures to assure that the advice or recommendations 
of advisory committees will not be inappropriately influenced by the 
appointing authority or by any special interest, but will instead be the 
result of the advisory committee's independent judgment;
    (h) Assure that the interests and affiliations of advisory committee 
members are reviewed for conformance with applicable conflict of 
interest statutes, regulations issued by the U.S. Office of Government 
Ethics (OGE) including any supplemental agency requirements, and other 
Federal ethics rules;
    (i) Designate a Designated Federal Officer (DFO) for each advisory 
committee and its subcommittees; and
    (j) Provide the opportunity for reasonable participation by the 
public in advisory committee activities, subject to Sec. 102-3.140 and 
the agency's guidelines.



Sec. 102-3.110  What are the responsibilities of a chairperson of an
independent Presidential advisory committee?

    The chairperson of an independent Presidential advisory committee 
must:
    (a) Comply with the Act and this Federal Advisory Committee 
Management part;
    (b) Consult with the Secretariat concerning the designation of a 
Committee Management Officer (CMO) and Designated Federal Officer (DFO); 
and
    (c) Consult with the Secretariat in advance regarding any proposal 
to close any meeting in whole or in part.

[[Page 24]]



Sec. 102-3.115  What are the responsibilities and functions of an
agency Committee Management Officer (CMO)?

    In addition to implementing the provisions of section 8(b) of the 
Act, the CMO will carry out all responsibilities delegated by the agency 
head. The CMO also should ensure that sections 10(b), 12(a), and 13 of 
the Act are implemented by the agency to provide for appropriate 
recordkeeping. Records to be kept by the CMO include, but are not 
limited to:
    (a) Charter and membership documentation. A set of filed charters 
for each advisory committee and membership lists for each advisory 
committee and subcommittee;
    (b) Annual comprehensive review. Copies of the information provided 
as the agency's portion of the annual comprehensive review of Federal 
advisory committees, prepared according to Sec. 102-3.175(b);
    (c) Agency guidelines. Agency guidelines maintained and updated on 
committee management operations and procedures; and
    (d) Closed meeting determinations. Agency determinations to close or 
partially close advisory committee meetings required by Sec. 102-3.105.



Sec. 102-3.120  What are the responsibilities and functions of a
Designated Federal Officer (DFO)?

    The agency head or, in the case of an independent Presidential 
advisory committee, the Secretariat, must designate a Federal officer or 
employee who must be either full-time or permanent part-time, to be the 
DFO for each advisory committee and its subcommittees, who must:
    (a) Approve or call the meeting of the advisory committee or 
subcommittee;
    (b) Approve the agenda, except that this requirement does not apply 
to a Presidential advisory committee;
    (c) Attend the meetings;
    (d) Adjourn any meeting when he or she determines it to be in the 
public interest; and
    (e) Chair the meeting when so directed by the agency head.



Sec. 102-3.125  How should agencies consider the roles of advisory
committee members and staff?

    FACA does not assign any specific responsibilities to members of 
advisory committees and staff, although both perform critical roles in 
achieving the goals and objectives assigned to advisory committees. 
Agency heads, Committee Management Officers (CMOs), and Designated 
Federal Officers (DFOs) should consider the distinctions between these 
roles and how they relate to each other in the development of agency 
guidelines implementing the Act and this Federal Advisory Committee 
Management part. In general, these guidelines should reflect:
    (a) Clear operating procedures. Clear operating procedures should 
provide for the conduct of advisory committee meetings and other 
activities, and specify the relationship among the advisory committee 
members, the DFO, and advisory committee or agency staff;
    (b) Agency operating policies. In addition to compliance with the 
Act, advisory committee members and staff may be required to adhere to 
additional agency operating policies; and
    (c) Other applicable statutes. Other agency-specific statutes and 
regulations may affect the agency's advisory committees directly or 
indirectly. Agencies should ensure that advisory committee members and 
staff understand these requirements.



Sec. 102-3.130  What policies apply to the appointment, and
compensation or reimbursement of advisory committee members,
staff, and experts and consultants?

    In developing guidelines to implement the Act and this Federal 
Advisory Committee Management part at the agency level, agency heads 
must address the following issues concerning advisory committee member 
and staff appointments, and considerations with respect to uniform fair 
rates of compensation for comparable services, or expense reimbursement 
of members, staff, and experts and consultants:
    (a) Appointment and terms of advisory committee members. Unless 
otherwise provided by statute, Presidential directive, or other 
establishment authority,

[[Page 25]]

advisory committee members serve at the pleasure of the appointing or 
inviting authority. Membership terms are at the sole discretion of the 
appointing or inviting authority.
    (b) Compensation guidelines. Each agency head must establish uniform 
compensation guidelines for members and staff of, and experts and 
consultants to an advisory committee.
    (c) Compensation of advisory committee members not required. Nothing 
in this subpart requires an agency head to provide compensation to any 
member of an advisory committee, unless otherwise required by a specific 
statute.
    (d) Compensation of advisory committee members. When an agency has 
authority to set pay administratively for advisory committee members, it 
may establish appropriate rates of pay (including any applicable 
locality pay authorized by the President's Pay Agent under 5 U.S.C. 
5304(h)), not to exceed the rate for level IV of the Executive Schedule 
under 5 U.S.C. 5315, unless a higher rate expressly is allowed by 
another statute. However, the agency head personally must authorize a 
rate of basic pay in excess of the maximum rate of basic pay established 
for the General Schedule under 5 U.S.C. 5332, or alternative similar 
agency compensation system. This maximum rate includes any applicable 
locality payment under 5 U.S.C. 5304. The agency may pay advisory 
committee members on either an hourly or a daily rate basis. The agency 
may not provide additional compensation in any form, such as bonuses or 
premium pay.
    (e) Compensation of staff. When an agency has authority to set pay 
administratively for advisory committee staff, it may establish 
appropriate rates of pay (including any applicable locality pay 
authorized by the President's Pay Agent under 5 U.S.C. 5304(h)), not to 
exceed the rate for level IV of the Executive Schedule under 5 U.S.C. 
5315, unless a higher rate expressly is allowed by another statute. 
However, the agency head personally must authorize a rate of basic pay 
in excess of the maximum rate of basic pay established for the General 
Schedule under 5 U.S.C. 5332, or alternative similar agency compensation 
system. This maximum rate includes any applicable locality payment under 
5 U.S.C. 5304. The agency must pay advisory committee staff on an hourly 
rate basis. The agency may provide additional compensation, such as 
bonuses or premium pay, so long as aggregate compensation paid in a 
calendar year does not exceed the rate for level IV of the Executive 
Schedule, with appropriate proration for a partial calendar year.
    (f) Other compensation considerations. In establishing rates of pay 
for advisory committee members and staff, the agency must comply with 
any applicable statutes, Executive orders, regulations, or 
administrative guidelines. In determining an appropriate rate of basic 
pay for advisory committee members and staff, an agency must give 
consideration to the significance, scope, and technical complexity of 
the matters with which the advisory committee is concerned, and the 
qualifications required for the work involved. The agency also should 
take into account the rates of pay applicable to Federal employees who 
have duties that are similar in terms of difficulty and responsibility. 
An agency may establish rates of pay for advisory committee staff based 
on the pay these persons would receive if they were covered by the 
General Schedule in 5 U.S.C. Chapter 51 and Chapter 53, subchapter III, 
or by an alternative similar agency compensation system.
    (g) Compensation of experts and consultants. Whether or not an 
agency has other authority to appoint and compensate advisory committee 
members or staff, it also may employ experts and consultants under 5 
U.S.C. 3109 to perform work for an advisory committee. Compensation of 
experts and consultants may not exceed the maximum rate of basic pay 
established for the General Schedule under 5 U.S.C. 5332 (that is, the 
GS-15, step 10 rate, excluding locality pay or any other supplement), 
unless a higher rate expressly is allowed by another statute. The 
appointment and compensation of experts and consultants by an agency 
must be in conformance with applicable regulations issued by the U. S. 
Office of Personnel Management (OPM) (See 5 CFR part 304.).

[[Page 26]]

    (h) Federal employees assigned to an advisory committee. Any 
advisory committee member or staff person who is a Federal employee when 
assigned duties to an advisory committee remains covered during the 
assignment by the compensation system that currently applies to that 
employee, unless that person's current Federal appointment is 
terminated. Any staff person who is a Federal employee must serve with 
the knowledge of the Designated Federal Officer (DFO) for the advisory 
committee to which that person is assigned duties, and the approval of 
the employee's direct supervisor.
    (i) Other appointment considerations. An individual who is appointed 
as an advisory committee member or staff person immediately following 
termination of another Federal appointment with a full-time work 
schedule may receive compensation at the rate applicable to the former 
appointment, if otherwise allowed by applicable law (without regard to 
the limitations on pay established in paragraphs (d) and (e) of this 
section). Any advisory committee staff person who is not a current 
Federal employee serving under an assignment must be appointed in 
accordance with applicable agency procedures, and in consultation with 
the DFO and the members of the advisory committee involved.
    (j) Gratuitous services. In the absence of any special limitations 
applicable to a specific agency, nothing in this subpart prevents an 
agency from accepting the gratuitous services of an advisory committee 
member or staff person who is not a Federal employee, or expert or 
consultant, who agrees in advance and in writing to serve without 
compensation.
    (k) Travel expenses. Advisory committee members and staff, while 
engaged in the performance of their duties away from their homes or 
regular places of business, may be allowed reimbursement for travel 
expenses, including per diem in lieu of subsistence, as authorized by 5 
U.S.C. 5703, for persons employed intermittently in the Government 
service.
    (l) Services for advisory committee members with disabilities. While 
performing advisory committee duties, an advisory committee member with 
disabilities may be provided services by a personal assistant for 
employees with disabilities, if the member qualifies as an individual 
with disabilities as provided in section 501 of the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 791, and does not otherwise qualify for 
assistance under 5 U.S.C. 3102 by reason of being a Federal employee.



  Sec. Appendix A to Subpart C of Part 102-3--Key Points and Principles

    This appendix provides additional guidance in the form of answers to 
frequently asked questions and identifies key points and principles that 
may be applied to situations not covered elsewhere in this subpart. The 
guidance follows:

----------------------------------------------------------------------------------------------------------------
 Key points and principles        Section                     Question(s)                       Guidance
----------------------------------------------------------------------------------------------------------------
I. FACA does not specify    102-3.105, 102-      1. Does the appointment of an         A. No. Each agency head
 the manner in which         3.130(a)             advisory committee member             may specify those
 advisory committee                               necessarily result in a lengthy       policies and procedures,
 members and staff must be                        process?                              consistent with the Act
 appointed                                                                              and this part, or other
                                                                                        specific authorizing
                                                                                        statute, governing the
                                                                                        appointment of advisory
                                                                                        committee members and
                                                                                        staff.
                                                                                       B. Some factors that
                                                                                        affect how long the
                                                                                        appointment process
                                                                                        takes include: (i)
                                                                                        Solicitation of
                                                                                        nominations; (ii)
                                                                                        Conflict of interest
                                                                                        clearances; (iii)
                                                                                        Security or background
                                                                                        evaluations; (iv)
                                                                                        Availability of
                                                                                        candidates; and (v)
                                                                                        Other statutory or
                                                                                        administrative
                                                                                        requirements.
                                                                                       C. In addition, the
                                                                                        extent to which agency
                                                                                        heads have delegated
                                                                                        responsibility for
                                                                                        selecting members varies
                                                                                        from agency to agency
                                                                                        and may become an
                                                                                        important factor in the
                                                                                        time it takes to
                                                                                        finalize the advisory
                                                                                        committee's membership.
----------------------------------------------------------------------------------------------------------------

[[Page 27]]

 
II. Agency heads retain     102-3.130(a)         1. Can an agency head select for      A. The answer to question
 the final authority for                          membership on an advisory committee   1 is yes. Organizations
 selecting advisory                               from among nominations submitted by   may propose for
 committee members, unless                        an organization?                      membership individuals
 otherwise provided for by                                                              to represent them on an
 a specific statute or                                                                  advisory committee.
 Presidential directive                                                                 However, the agency head
                                                                                        establishing the
                                                                                        advisory committee, or
                                                                                        other appointing
                                                                                        authority, retains the
                                                                                        final authority for
                                                                                        selecting all members.
                                                 2. If so, can different persons       B. The answer to question
                                                  represent the organization at         2 also is yes.
                                                  different meetings?                   Alternates may represent
                                                                                        an appointed member with
                                                                                        the approval of the
                                                                                        establishing agency,
                                                                                        where the agency head is
                                                                                        the appointing
                                                                                        authority.
----------------------------------------------------------------------------------------------------------------
III. An agency may          102-3.130(d), 102-   1. May members and staff be           A. The answer to question
 compensate advisory         3.130(e), 102-       compensated for their service or      1 is yes. (i) However,
 committee members and       3.130(g)             duties on an advisory committee?      FACA limits compensation
 staff, and also employ                          2. Are the guidelines the same for     for advisory committee
 experts and consultants                          compensating both members and         members and staff to the
                                                  staff?                                rate for level IV of the
                                                 3. May experts and consultants be      Executive Schedule,
                                                  employed to perform other advisory    unless higher rates
                                                  committee work?                       expressly are allowed by
                                                                                        other statutes. (ii)
                                                                                        Although FACA provides
                                                                                        for compensation
                                                                                        guidelines, the Act does
                                                                                        not require an agency to
                                                                                        compensate its advisory
                                                                                        committee members.
                                                                                       B. The answer to question
                                                                                        2 is no. The guidelines
                                                                                        for compensating members
                                                                                        and staff are similar,
                                                                                        but not identical. For
                                                                                        example, the differences
                                                                                        are that: (i) An agency
                                                                                        ``may'' pay members on
                                                                                        either an hourly or a
                                                                                        daily rate basis, and
                                                                                        ``may not'' provide
                                                                                        additional compensation
                                                                                        in any form, such as
                                                                                        bonuses or premium pay;
                                                                                        while (ii) An agency
                                                                                        ``must'' pay staff on an
                                                                                        hourly rate basis only,
                                                                                        and ``may'' provide
                                                                                        additional compensation,
                                                                                        so long as aggregate
                                                                                        compensation paid in a
                                                                                        calendar year does not
                                                                                        exceed the rate for
                                                                                        level IV of the
                                                                                        Executive Schedule, with
                                                                                        appropriate proration
                                                                                        for a partial calendar
                                                                                        year.
                                                                                       C. The answer to question
                                                                                        3 is yes. Other work not
                                                                                        part of the duties of
                                                                                        advisory committee
                                                                                        members or staff may be
                                                                                        performed by experts and
                                                                                        consultants. For
                                                                                        additional guidance on
                                                                                        the employment of
                                                                                        experts and consultants,
                                                                                        agencies should consult
                                                                                        the applicable
                                                                                        regulations issued by
                                                                                        the U. S. Office of
                                                                                        Personnel Management
                                                                                        (OPM). (See 5 CFR part
                                                                                        304.)
----------------------------------------------------------------------------------------------------------------
IV. Agency heads are        102-3.105(h)         1. Are all advisory committee         A. The answer to question
 responsible for ensuring                         members subject to conflict of        1 is no. Whether an
 that the interests and                           interest statutes and other Federal   advisory committee
 affiliations of advisory                         ethics rules?                         member is subject to
 committee members are                           2. Who should be consulted for         Federal ethics rules is
 reviewed for conformance                         guidance on the proper application    dependent on the
 with applicable conflict                         of Federal ethics rules to advisory   member's status. The
 of interest statutes and                         committee members?                    determination of a
 other Federal ethics                                                                   member's status on an
 rules.                                                                                 advisory committee is
                                                                                        largely a personnel
                                                                                        classification matter
                                                                                        for the appointing
                                                                                        agency. Most advisory
                                                                                        committee members will
                                                                                        serve either as a
                                                                                        ``representative'' or a
                                                                                        ``special Government
                                                                                        employee'' (SGE), based
                                                                                        on the role the member
                                                                                        will play. In general,
                                                                                        SGEs are covered by
                                                                                        regulations issued by
                                                                                        the U. S. Office of
                                                                                        Government Ethics (OGE)
                                                                                        and certain conflict of
                                                                                        interest statutes, while
                                                                                        representatives are not
                                                                                        subject to these ethics
                                                                                        requirements.

[[Page 28]]

 
                                                                                       B. The answer to question
                                                                                        2 is the agency's
                                                                                        Designated Agency Ethics
                                                                                        Official (DAEO), who
                                                                                        should be consulted
                                                                                        prior to appointing
                                                                                        members to an advisory
                                                                                        committee in order to
                                                                                        apply Federal ethics
                                                                                        rules properly.
----------------------------------------------------------------------------------------------------------------
V. An agency head may       102-3.105(c), 102-   1. Must an agency's CMO and each      A. The answer to question
 delegate responsibility     3.105(i)             advisory committee DFO be appointed   1 is no. The agency head
 for appointing a                                 by the agency head?                   may delegate
 Committee Management                                                                   responsibility for
 Officer (CMO) or                                                                       appointing the CMO and
 Designated Federal                                                                     DFOs. However, these
 Officer (DFO); however,                                                                appointments, including
 there may be only one CMO                                                              alternate selections,
 for each agency.                                                                       should be documented
                                                                                        consistent with the
                                                                                        agency's policies and
                                                                                        procedures.
                                                 2. May an agency have more than one   B. The answer to question
                                                  CMO?                                  2 also is no. The
                                                                                        functions of the CMO are
                                                                                        specified in the Act and
                                                                                        include oversight
                                                                                        responsibility for all
                                                                                        advisory committees
                                                                                        within the agency.
                                                                                        Accordingly, only one
                                                                                        CMO may be appointed to
                                                                                        perform these functions.
                                                                                        The agency may, however,
                                                                                        create additional
                                                                                        positions, including
                                                                                        those in its
                                                                                        subcomponents, which are
                                                                                        subordinate to the CMO's
                                                                                        agencywide
                                                                                        responsibilities and
                                                                                        functions.
----------------------------------------------------------------------------------------------------------------
VI. FACA is the principal   102-3.125(c)         1. Do other statutes or regulations   A. Yes. While the Act
 statute pertaining to                            affect the way an agency carries      provides a general
 advisory committees.                             out its advisory committee            framework for managing
 However, other statutes                          management program?                   advisory committees
 may impact their use and                                                               Governmentwide, other
 operations.                                                                            factors may affect how
                                                                                        advisory committees are
                                                                                        managed. These include:
                                                                                        (i) The statutory or
                                                                                        Presidential authority
                                                                                        used to establish an
                                                                                        advisory committee; (ii)
                                                                                        A statutory limitation
                                                                                        placed on an agency
                                                                                        regarding its annual
                                                                                        expenditures for
                                                                                        advisory committees;
                                                                                        (iii) Presidential or
                                                                                        agency management
                                                                                        directives; (iv) The
                                                                                        applicability of
                                                                                        conflict of interest
                                                                                        statutes and other
                                                                                        Federal ethics rules;
                                                                                        (v) Agency regulations
                                                                                        affecting advisory
                                                                                        committees; and (vi)
                                                                                        Other requirements
                                                                                        imposed by statute or
                                                                                        regulation on an agency
                                                                                        or its programs, such as
                                                                                        those governing the
                                                                                        employment of experts
                                                                                        and consultants or the
                                                                                        management of Federal
                                                                                        records.
----------------------------------------------------------------------------------------------------------------



    Subpart D_Advisory Committee Meeting and Recordkeeping Procedures



Sec. 102-3.135  What does this subpart cover and how does it apply?

    This subpart establishes policies and procedures relating to 
meetings and other activities undertaken by advisory committees and 
their subcommittees. This subpart also outlines what records must be 
kept by Federal agencies and what other documentation, including 
advisory committee minutes and reports, must be prepared and made 
available to the public.



Sec. 102-3.140  What policies apply to advisory committee meetings?

    The agency head, or the chairperson of an independent Presidential 
advisory committee, must ensure that:
    (a) Each advisory committee meeting is held at a reasonable time and 
in a manner or place reasonably accessible to the public, to include 
facilities that are readily accessible to and usable by persons with 
disabilities, consistent with the goals of section 504 of the 
Rehabilitation Act of 1973, as amended, 29 U.S.C. 794;
    (b) The meeting room or other forum selected is sufficient to 
accommodate

[[Page 29]]

advisory committee members, advisory committee or agency staff, and a 
reasonable number of interested members of the public;
    (c) Any member of the public is permitted to file a written 
statement with the advisory committee;
    (d) Any member of the public may speak to or otherwise address the 
advisory committee if the agency's guidelines so permit; and
    (e) Any advisory committee meeting conducted in whole or part by a 
teleconference, videoconference, the Internet, or other electronic 
medium meets the requirements of this subpart.



Sec. 102-3.145  What policies apply to subcommittee meetings?

    If a subcommittee makes recommendations directly to a Federal 
officer or agency, or if its recommendations will be adopted by the 
parent advisory committee without further deliberations by the parent 
advisory committee, then the subcommittee's meetings must be conducted 
in accordance with all openness requirements of this subpart.



Sec. 102-3.150  How are advisory committee meetings announced to the
public?

    (a) A notice in the Federal Register must be published at least 15 
calendar days prior to an advisory committee meeting, which includes:
    (1) The name of the advisory committee (or subcommittee, if 
applicable);
    (2) The time, date, place, and purpose of the meeting;
    (3) A summary of the agenda, and/or topics to be discussed;
    (4) A statement whether all or part of the meeting is open to the 
public or closed; if the meeting is closed state the reasons why, citing 
the specific exemption(s) of the Government in the Sunshine Act, 5 
U.S.C. 552b(c), as the basis for closure; and
    (5) The name and telephone number of the Designated Federal Officer 
(DFO) or other responsible agency official who may be contacted for 
additional information concerning the meeting.
    (b) In exceptional circumstances, the agency or an independent 
Presidential advisory committee may give less than 15 calendar days 
notice, provided that the reasons for doing so are included in the 
advisory committee meeting notice published in the Federal Register.



Sec. 102-3.155  How are advisory committee meetings closed to the 
public?

    To close all or part of an advisory committee meeting, the 
Designated Federal Officer (DFO) must:
    (a) Obtain prior approval. Submit a request to the agency head, or 
in the case of an independent Presidential advisory committee, the 
Secretariat, citing the specific exemption(s) of the Government in the 
Sunshine Act, 5 U.S.C. 552b(c), that justify the closure. The request 
must provide the agency head or the Secretariat sufficient time 
(generally, 30 calendar days) to review the matter in order to make a 
determination before publication of the meeting notice required by Sec. 
102-3.150.
    (b) Seek General Counsel review. The General Counsel of the agency 
or, in the case of an independent Presidential advisory committee, the 
General Counsel of GSA should review all requests to close meetings.
    (c) Obtain agency determination. If the agency head, or in the case 
of an independent Presidential advisory committee, the Secretariat, 
finds that the request is consistent with the provisions in the 
Government in the Sunshine Act and FACA, the appropriate agency official 
must issue a determination that all or part of the meeting be closed.
    (d) Assure public access to determination. The agency head or the 
chairperson of an independent Presidential advisory committee must make 
a copy of the determination available to the public upon request.



Sec. 102-3.160  What activities of an advisory committee are not 
subject to the notice and open meeting requirements of the Act?

    The following activities of an advisory committee are excluded from 
the procedural requirements contained in this subpart:
    (a) Preparatory work. Meetings of two or more advisory committee or 
subcommittee members convened solely to gather information, conduct 
research,

[[Page 30]]

or analyze relevant issues and facts in preparation for a meeting of the 
advisory committee, or to draft position papers for deliberation by the 
advisory committee; and
    (b) Administrative work. Meetings of two or more advisory committee 
or subcommittee members convened solely to discuss administrative 
matters of the advisory committee or to receive administrative 
information from a Federal officer or agency.



Sec. 102-3.165  How are advisory committee meetings documented?

    (a) The agency head or, in the case of an independent Presidential 
advisory committee, the chairperson must ensure that detailed minutes of 
each advisory committee meeting, including one that is closed or 
partially closed to the public, are kept. The chairperson of each 
advisory committee must certify the accuracy of all minutes of advisory 
committee meetings.
    (b) The minutes must include:
    (1) The time, date, and place of the advisory committee meeting;
    (2) A list of the persons who were present at the meeting, including 
advisory committee members and staff, agency employees, and members of 
the public who presented oral or written statements;
    (3) An accurate description of each matter discussed and the 
resolution, if any, made by the advisory committee regarding such 
matter; and
    (4) Copies of each report or other document received, issued, or 
approved by the advisory committee at the meeting.
    (c) The Designated Federal Officer (DFO) must ensure that minutes 
are certified within 90 calendar days of the meeting to which they 
relate.



Sec. 102-3.170  How does an interested party obtain access to advisory
committee records?

    Timely access to advisory committee records is an important element 
of the public access requirements of the Act. Section 10(b) of the Act 
provides for the contemporaneous availability of advisory committee 
records that, when taken in conjunction with the ability to attend 
committee meetings, provide a meaningful opportunity to comprehend fully 
the work undertaken by the advisory committee. Although advisory 
committee records may be withheld under the provisions of the Freedom of 
Information Act (FOIA), as amended, if there is a reasonable expectation 
that the records sought fall within the exemptions contained in section 
552(b) of FOIA, agencies may not require members of the public or other 
interested parties to file requests for non-exempt advisory committee 
records under the request and review process established by section 
552(a)(3) of FOIA.



Sec. 102-3.175  What are the reporting and recordkeeping requirements
for an advisory committee?

    (a) Presidential advisory committee follow-up report. Within one 
year after a Presidential advisory committee has submitted a public 
report to the President, a follow-up report required by section 6(b) of 
the Act must be prepared and transmitted to the Congress detailing the 
disposition of the advisory committee's recommendations. The Secretariat 
shall assure that these reports are prepared and transmitted to the 
Congress as directed by the President, either by the President's 
delegate, by the agency responsible for providing support to a 
Presidential advisory committee, or by the responsible agency or 
organization designated in the charter of the Presidential advisory 
committee pursuant to Sec. 102-3.75(a)(10). In performing this 
function, GSA may solicit the assistance of the President's delegate, 
the Office of Management and Budget (OMB), or the responsible agency 
Committee Management Officer (CMO), as appropriate. Reports shall be 
consistent with specific guidance provided periodically by the 
Secretariat.
    (b) Annual comprehensive review of Federal advisory committees. To 
conduct an annual comprehensive review of each advisory committee as 
specified in section 7(b) of the Act, GSA requires Federal agencies to 
report information on each advisory committee for which a charter has 
been filed in accordance with Sec. 102-3.70, and which is in existence 
during any part of a Federal fiscal year. Committee Management Officers 
(CMOs), Designated Federal Officers

[[Page 31]]

(DFOs), and other responsible agency officials will provide this 
information by data filed electronically with GSA on a fiscal year 
basis, using a Governmentwide shared Internet-based system that GSA 
maintains. This information shall be consistent with specific guidance 
provided periodically by the Secretariat. The preparation of these 
electronic submissions by agencies has been assigned interagency report 
control number (IRCN) 0304-GSA-AN.
    (c) Annual report of closed or partially-closed meetings. In 
accordance with section 10(d) of the Act, advisory committees holding 
closed or partially-closed meetings must issue reports at least 
annually, setting forth a summary of activities and such related matters 
as would be informative to the public consistent with the policy of 5 
U.S.C. 552(b).
    (d) Advisory committee reports. Subject to 5 U.S.C. 552, 8 copies of 
each report made by an advisory committee, including any report of 
closed or partially-closed meetings as specified in paragraph (c) of 
this section and, where appropriate, background papers prepared by 
experts or consultants, must be filed with the Library of Congress as 
required by section 13 of the Act for public inspection and use at the 
location specified Sec. 102-3.70(a)(3).
    (e) Advisory committee records. Official records generated by or for 
an advisory committee must be retained for the duration of the advisory 
committee. Upon termination of the advisory committee, the records must 
be processed in accordance with the Federal Records Act (FRA), 44 U.S.C. 
Chapters 21, 29-33, and regulations issued by the National Archives and 
Records Administration (NARA) (see 36 CFR parts 1220, 1222, 1228, and 
1234), or in accordance with the Presidential Records Act (PRA), 44 
U.S.C. Chapter 22.



  Sec. Appendix A to Subpart D of Part 102-3--Key Points and Principles

    This appendix provides additional guidance in the form of answers to 
frequently asked questions and identifies key points and principles that 
may be applied to situations not covered elsewhere in this subpart. The 
guidance follows:

----------------------------------------------------------------------------------------------------------------
 Key points and principles       Section(s)                   Question(s)                       Guidance
----------------------------------------------------------------------------------------------------------------
I. With some exceptions,    102-3.140, 102-      1. Must all advisory committee and    A. No. Advisory committee
 advisory committee          3.145(a), 102-       subcommittee meetings be open to      meetings may be closed
 meetings are open to the    3.155                the public?                           when appropriate, in
 public                                                                                 accordance with the
                                                                                        exemption(s) for closure
                                                                                        contained in the
                                                                                        Government in the
                                                                                        Sunshine Act, 5 U.S.C.
                                                                                        552b(c). (i)
                                                                                        Subcommittees that
                                                                                        report to a parent
                                                                                        advisory committee, and
                                                                                        not directly to a
                                                                                        Federal officer or
                                                                                        agency, are not required
                                                                                        to open their meetings
                                                                                        to the public or comply
                                                                                        with the procedures in
                                                                                        the Act for announcing
                                                                                        meetings. (ii) However,
                                                                                        agencies are cautioned
                                                                                        to avoid excluding the
                                                                                        public from attending
                                                                                        any meeting where a
                                                                                        subcommittee develops
                                                                                        advice or
                                                                                        recommendations that are
                                                                                        not expected to be
                                                                                        reviewed and considered
                                                                                        by the parent advisory
                                                                                        committee before being
                                                                                        submitted to a Federal
                                                                                        officer or agency. These
                                                                                        exclusions may run
                                                                                        counter to the
                                                                                        provisions of the Act
                                                                                        requiring
                                                                                        contemporaneous access
                                                                                        to the advisory
                                                                                        committee deliberative
                                                                                        process.
----------------------------------------------------------------------------------------------------------------

[[Page 32]]

 
II. Notices must be         102-3.150            1. Can agencies publish a single      A. Yes, agencies may
 published in the Federal                         Federal Register notice announcing    publish a single notice
 Register announcing                              multiple advisory committee           announcing multiple
 advisory committee                               meetings?                             meetings so long as
 meetings                                                                               these notices contain
                                                                                        all of the information
                                                                                        required by Sec. 102-
                                                                                        3.150. (i) ``Blanket
                                                                                        notices'' should not
                                                                                        announce meetings so far
                                                                                        in advance as to prevent
                                                                                        the public from
                                                                                        adequately being
                                                                                        informed of an advisory
                                                                                        committee's schedule.
                                                                                        (ii) An agency's Office
                                                                                        of General Counsel
                                                                                        should be consulted
                                                                                        where these notices
                                                                                        include meetings that
                                                                                        are either closed or
                                                                                        partially closed to the
                                                                                        public.
----------------------------------------------------------------------------------------------------------------

[[Page 33]]

 
III. Although certain       102-3.170            1. May an agency require the use of   A. No. Section 10(b) of
 advisory committee                               its internal FOIA procedures for      FACA provides that:
 records may be withheld                          access to advisory committee          Subject to section 552
 under the Freedom of                             records that are not exempt from      of title 5, United
 Information Act (FOIA),                          release under FOIA?                   States Code, the
 as amended, 5 U.S.C. 552,                                                              records, reports,
 agencies may not require                                                               transcripts, minutes,
 the use of FOIA                                                                        appendixes, working
 procedures for records                                                                 papers, drafts, studies,
 available under section                                                                agenda, or other
 10(b) of FACA                                                                          documents which were
                                                                                        made available to or
                                                                                        prepared for or by each
                                                                                        advisory committee shall
                                                                                        be available for public
                                                                                        inspection and copying
                                                                                        at a single location in
                                                                                        the offices of the
                                                                                        advisory committee or
                                                                                        the agency to which the
                                                                                        advisory committee
                                                                                        reports until the
                                                                                        advisory committee
                                                                                        ceases to exist. (i) The
                                                                                        purpose of section 10(b)
                                                                                        of the Act is to provide
                                                                                        for the contemporaneous
                                                                                        availability of advisory
                                                                                        committee records that,
                                                                                        when taken in
                                                                                        conjunction with the
                                                                                        ability to attend
                                                                                        advisory committee
                                                                                        meetings, provide a
                                                                                        meaningful opportunity
                                                                                        to comprehend fully the
                                                                                        work undertaken by the
                                                                                        advisory committee. (ii)
                                                                                        Although advisory
                                                                                        committee records may be
                                                                                        withheld under the
                                                                                        provisions of FOIA if
                                                                                        there is a reasonable
                                                                                        expectation that the
                                                                                        records sought fall
                                                                                        within the exemptions
                                                                                        contained in section
                                                                                        552(b) of FOIA, agencies
                                                                                        may not require members
                                                                                        of the public or other
                                                                                        interested parties to
                                                                                        file requests for non-
                                                                                        exempt advisory
                                                                                        committee records under
                                                                                        the request and review
                                                                                        process established by
                                                                                        section 552(a)(3) of
                                                                                        FOIA. (iii) Records
                                                                                        covered by the
                                                                                        exemptions set forth in
                                                                                        section 552(b) of FOIA
                                                                                        may be withheld. An
                                                                                        opinion of the Office of
                                                                                        Legal Counsel (OLC),
                                                                                        U.S. Department of
                                                                                        Justice concludes that:
                                                                                        FACA requires disclosure
                                                                                        of written advisory
                                                                                        committee documents,
                                                                                        including predecisional
                                                                                        materials such as
                                                                                        drafts, working papers,
                                                                                        and studies. The
                                                                                        disclosure exemption
                                                                                        available to agencies
                                                                                        under exemption 5 of
                                                                                        FOIA for predecisional
                                                                                        documents and other
                                                                                        privileged materials is
                                                                                        narrowly limited in the
                                                                                        context of FACA to
                                                                                        privileged ``inter-
                                                                                        agency or intra-agency''
                                                                                        documents prepared by an
                                                                                        agency and transmitted
                                                                                        to an advisory
                                                                                        committee. The language
                                                                                        of the FACA statute and
                                                                                        its legislative history
                                                                                        support this restrictive
                                                                                        application of exemption
                                                                                        5 to requests for public
                                                                                        access to advisory
                                                                                        committee documents.
                                                                                        Moreover, since an
                                                                                        advisory committee is
                                                                                        not itself an agency,
                                                                                        this construction is
                                                                                        supported by the express
                                                                                        language of exemption 5
                                                                                        which applies only to
                                                                                        inter-agency or intra-
                                                                                        agency materials. (iv)
                                                                                        Agencies first should
                                                                                        determine, however,
                                                                                        whether or not records
                                                                                        being sought by the
                                                                                        public fall within the
                                                                                        scope of FACA in
                                                                                        general, and section
                                                                                        10(b) of the Act in
                                                                                        particular, prior to
                                                                                        applying the available
                                                                                        exemptions under FOIA.
                                                                                        (See OLC Opinion 12 Op.
                                                                                        O.L.C. 73, dated April
                                                                                        29, 1988, which is
                                                                                        available from the
                                                                                        Committee Management
                                                                                        Secretariat (MC),
                                                                                        General Services
                                                                                        Administration, 1800 F
                                                                                        Street, NW., Washington,
                                                                                        DC 20405-0002.)
----------------------------------------------------------------------------------------------------------------

[[Page 34]]

 
IV. Advisory committee      102-175(e)           1. How must advisory committee        A. In order to ensure
 records must be managed                          records be treated and preserved?     proper records
 in accordance with the                                                                 management, the
 Federal Records Act                                                                    Committee Management
 (FRA), 44 U.S.C. Chapters                                                              Officer (CMO),
 21, 29-33, and                                                                         Designated Federal
 regulations issued by the                                                              Officer (DFO), or other
 National Archives and                                                                  representative of the
 Records Administration                                                                 advisory committee, in
 (NARA) (see 36 CFR parts                                                               coordination with the
 1220, 1222, 1228, and                                                                  agency's Records
 1234), or the                                                                          Management Officer,
 Presidential Records Act                                                               should clarify upon the
 (PRA), 44 U.S.C. Chapter                                                               establishment of the
 22                                                                                     advisory committee
                                                                                        whether its records will
                                                                                        be managed in accordance
                                                                                        with the FRA or the PRA.
                                                                                       B. Official records
                                                                                        generated by or for an
                                                                                        advisory committee must
                                                                                        be retained for the
                                                                                        duration of the advisory
                                                                                        committee. Responsible
                                                                                        agency officials are
                                                                                        encouraged to contact
                                                                                        their agency's Records
                                                                                        Management Officer or
                                                                                        NARA as soon as possible
                                                                                        after the establishment
                                                                                        of the advisory
                                                                                        committee to receive
                                                                                        guidance on how to
                                                                                        establish effective
                                                                                        records management
                                                                                        practices. Upon
                                                                                        termination of the
                                                                                        advisory committee, the
                                                                                        records must be
                                                                                        processed in accordance
                                                                                        with the FRA and
                                                                                        regulations issued by
                                                                                        NARA, or in accordance
                                                                                        with the PRA.
                                                                                       C. The CMO, DFO, or other
                                                                                        representative of an
                                                                                        advisory committee
                                                                                        governed by the FRA, in
                                                                                        coordination with the
                                                                                        agency's Records
                                                                                        Management Officer, must
                                                                                        contact NARA in
                                                                                        sufficient time to
                                                                                        review the process for
                                                                                        submitting any necessary
                                                                                        disposition schedules of
                                                                                        the advisory committee's
                                                                                        records upon
                                                                                        termination. In order to
                                                                                        ensure the proper
                                                                                        disposition of the
                                                                                        advisory committee's
                                                                                        records, disposition
                                                                                        schedules need to be
                                                                                        submitted to NARA no
                                                                                        later than 6 months
                                                                                        before the termination
                                                                                        of the advisory
                                                                                        committee.
                                                                                       D. For Presidential
                                                                                        advisory committees
                                                                                        governed by the PRA, the
                                                                                        CMO, DFO, or other
                                                                                        representative of the
                                                                                        advisory committee
                                                                                        should consult with the
                                                                                        White House Counsel on
                                                                                        the preservation of any
                                                                                        records subject to the
                                                                                        PRA, and may also confer
                                                                                        with NARA officials.
----------------------------------------------------------------------------------------------------------------



   Subpart E_How Does This Subpart Apply to Advice or Recommendations 
Provided to Agencies by the National Academy of Sciences or the National 
                    Academy of Public Administration?



Sec. 102-3.180  What does this subpart cover and how does it apply?

    This subpart provides guidance to agencies on compliance with 
section 15 of the Act. Section 15 establishes requirements that apply 
only in connection with a funding or other written agreement involving 
an agency's use of advice or recommendations provided to the agency by 
the National Academy of Sciences (NAS) or the National Academy of Public 
Administration (NAPA), if such advice or recommendations were developed 
by use of a committee created by either academy. For purposes of this 
subpart, NAS also includes the National Academy of Engineering, the 
Institute of Medicine, and the National Research Council. Except with 
respect to NAS committees that were the subject of judicial actions 
filed before December 17, 1997, no part of the Act other than section 15 
applies to any committee created by NAS or NAPA.

[[Page 35]]



Sec. 102-3.185  What does this subpart require agencies to do?

    (a) Section 15 requirements. An agency may not use any advice or 
recommendation provided to an agency by the National Academy of Sciences 
(NAS) or the National Academy of Public Administration (NAPA) under an 
agreement between the agency and an academy, if such advice or 
recommendation was developed by use of a committee created by either 
academy, unless:
    (1) The committee was not subject to any actual management or 
control by an agency or officer of the Federal Government; and
    (2) In the case of NAS, the academy certifies that it has complied 
substantially with the requirements of section 15(b) of the Act; or
    (3) In the case of NAPA, the academy certifies that it has complied 
substantially with the requirements of sections 15(b) (1), (2), and (5) 
of the Act.
    (b) No agency management or control. Agencies must not manage or 
control the specific procedures adopted by each academy to comply with 
the requirements of section 15 of the Act that are applicable to that 
academy. In addition, however, any committee created and used by an 
academy in the development of any advice or recommendation to be 
provided by the academy to an agency must be subject to both actual 
management and control by that academy and not by the agency.
    (c) Funding agreements. Agencies may enter into contracts, grants, 
and cooperative agreements with NAS or NAPA that are consistent with the 
requirements of this subpart to obtain advice or recommendations from 
such academy. These funding agreements require, and agencies may rely 
upon, a written certification by an authorized representative of the 
academy provided to the agency upon delivery to the agency of each 
report containing advice or recommendations required under the agreement 
that:
    (1) The academy has adopted policies and procedures that comply with 
the applicable requirements of section 15 of the Act; and
    (2) To the best of the authorized representative's knowledge and 
belief, these policies and procedures substantially have been complied 
with in performing the work required under the agreement.



  Sec. Appendix A to Subpart E of Part 102-3--Key Points and Principles

    This appendix provides additional guidance in the form of answers to 
frequently asked questions and identifies key points and principles that 
may be applied to situations not covered elsewhere in this subpart. The 
guidance follows:

----------------------------------------------------------------------------------------------------------------
 Key points and principles       Section(s)                   Question(s)                       Guidance
----------------------------------------------------------------------------------------------------------------
I. Section 15 of the Act    102-3.185(a)         1. May agencies rely upon an academy  A. Yes. NAS and NAPA are
 allows the National                              certification regarding compliance    completely separate
 Academy of Sciences (NAS)                        with section 15 of the Act if         organizations. Each is
 and the National Academy                         different policies and procedures     independently chartered
 of Public Administration                         are adopted by NAS and NAPA?          by the Congress for
 (NAPA) to adopt separate                                                               different purposes, and
 procedures for complying                                                               Congress has recognized
 with FACA                                                                              that the two
                                                                                        organizations are
                                                                                        structured and operate
                                                                                        differently. Agencies
                                                                                        should defer to the
                                                                                        discretion of each
                                                                                        academy to adopt
                                                                                        policies and procedures
                                                                                        that will enable it to
                                                                                        comply substantially
                                                                                        with the provisions of
                                                                                        section 15 of the Act
                                                                                        that apply to that
                                                                                        academy.
II. Section 15 of the Act   102-3.185(c)         1. Can an agency enter into a         A. Yes, if the members of
 allows agencies to enter                         funding agreement with an academy     the committee are
 into funding agreements                          which provides for the preparation    selected by the academy
 with NAS and NAPA without                        of one or more academy reports        and if the committee's
 the academies' committees                        containing advice or                  meetings, deliberations,
 being ``managed'' or                             recommendations to the agency, to     and the preparation of
 ``controlled''                                   be developed by the academy by use    reports are all
                                                  of a committee created by the         controlled by the
                                                  academy, without subjecting an        academy. Under these
                                                  academy to ``actual management or     circumstances, neither
                                                  control'' by the agency?              the existence of the
                                                                                        funding agreement nor
                                                                                        the fact that it
                                                                                        contemplates use by the
                                                                                        academy of an academy
                                                                                        committee would
                                                                                        constitute actual
                                                                                        management or control of
                                                                                        the committee by the
                                                                                        agency.
----------------------------------------------------------------------------------------------------------------


[[Page 36]]

 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?
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: 40 U.S.C. 121(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 use a passenger carrier in conjunction with 
official travel, including temporary duty (TDY) or relocation;
    (b) Employees who are essential for the safe and efficient 
performance of

[[Page 37]]

intelligence, counterintelligence, protective services, or criminal law 
enforcement duties when designated in writing as such by their agency 
head; or
    (c) Employees who use a passenger carrier for transportation between 
places of employment and mass transit facilities (see, e.g., 41 CFR 102-
34.210).

[65 FR 54966, Sept. 12, 2000, as amended at 75 FR 41995, July 20, 2010]



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:
    (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

[[Page 38]]

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.''



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

[[Page 39]]

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 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

[[Page 40]]

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;
    (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 41]]



                     SUBCHAPTER B_PERSONAL PROPERTY



                     PART 102	31_GENERAL [RESERVED]

         PART 102-32 MANAGEMENT OF PERSONAL PROPERTY [RESERVED]



PART 102-33-MANAGEMENT OF GOVERNMENT AIRCRAFT--Table of Contents



                     Subpart A_How These Rules Apply

                                 General

Sec.
102-33.5 To whom do these rules apply?
102-33.6 How are the terms ``we,'' ``you,'' ``your,'' and ``our'' used 
          in this part?
102-33.10 May we request approval to deviate from these rules?
102-33.15 How does this part relate to Title 14 of the Code of Federal 
          Regulations?
102-33.20 What definitions apply to this part?

                            Responsibilities

102-33.25 What are our responsibilities under this part?
102-33.30 What are the duties of an agency's Senior Aviation Management 
          Official (SAMO)?
102-33.35 How can we get help in carrying out our responsibilities?
102-33.40 What are some of GSA's responsibilities for Federal aviation 
          management?

       Subpart B_Acquiring Government Aircraft and Aircraft Parts

                                Overview

102-33.50 Under what circumstances may we acquire Government aircraft?
102-33.55 Are there restrictions on acquiring Government aircraft?
102-33.60 What methods may we use to acquire Government aircraft?
102-33.65 What is the process for acquiring Government aircraft?

                 Planning to Acquire Government Aircraft

102-33.70 What directives must we follow when planning to acquire 
          Government aircraft?
102-33.75 What other guidance is available to us in planning to acquire 
          Government aircraft?

                            OMB Circular A-76

102-33.80 Must we comply with OMB Circular A-76 before we acquire 
          Government aircraft?

        The Process for Budgeting To Acquire Government Aircraft

102-33.90 What is the process for budgeting to acquire a Federal 
          aircraft (including a Federal aircraft transferred from 
          another executive agency)?
102-33.95 What is the process for budgeting to acquire Commercial 
          Aviation Services (CAS)?

               Contracting to Acquire Government Aircraft

102-33.100 What are our responsibilities when contracting to purchase or 
          capital lease a Federal aircraft or to award a CAS contract?
102-33.105 What minimum requirements must we put into our CAS contracts?

                        Acquiring Aircraft Parts

102-33.110 What are our responsibilities when acquiring aircraft parts?
102-33.115 Are there requirements for acquiring military Flight Safety 
          Critical Aircraft Parts (FSCAP)?
102-33.120 Are there requirements for acquiring life-limited parts?

        Subpart C_Managing Government Aircraft and Aircraft Parts

                                Overview

102-33.125 If we use Federal aircraft, what are our management 
          responsibilities?
102-33.130 If we hire CAS, what are our management responsibilities?
102-33.135 Do we have to follow the direction in OMB Circular A-123, 
          ``Management's Accountability and Control,'' for establishing 
          management controls for our aviation program?

                  Establishing Flight Program Standards

102-33.140 What are Flight Program Standards?
102-33.145 Why must we establish Flight Program Standards?
102-33.150 What Federally-funded aviation activities of executive 
          agencies are exempt from establishing Flight Program Standards 
          under this part?
102-33.155 How must we establish Flight Program Standards?

[[Page 42]]

                        Management/Administration

102-33.160 What standards must we establish or require (contractually, 
          where applicable) for management/administration of our flight 
          program?

                               Operations

102-33.165 What standards must we establish or require (contractually, 
          where applicable) for operation of our flight program?

                               Maintenance

102-33.170 What standards must we establish or require (contractually, 
          where applicable) for maintenance of our Government aircraft?

                                Training

102-33.175 What standards must we establish or require (contractually, 
          where applicable) to train our flight program personnel?

                                 Safety

102-33.180 What standards should we establish or require (contractually, 
          where applicable) for aviation safety management?
102-33.185 What standards should we establish or require (contractually, 
          where applicable) for responding to aircraft accidents and 
          incidents?

             Accounting for the Costs of Government Aircraft

102-33.190 What are the aircraft operations and ownership costs for 
          which we must account?
102-33.195 Do we need an automated system to account for aircraft costs?
102-33.200 Must we periodically justify owning and operating Federal 
          aircraft?
102-33.205 When we use our aircraft to support other executive agencies, 
          must we recover the operating costs?

              Accounting for the Use of Government Aircraft

102-33.210 How do we account for the use of our Government aircraft?
102-33.215 May we use Government aircraft to carry passengers?
102-33.220 What are the responsibilities of our aviation program in 
          justifying the use of a Government aircraft to transport 
          passengers?

                         Managing Aircraft Parts

102-33.225 How must we manage aircraft parts?
102-33.230 May we use military FSCAP on non-military FAA-type 
          certificated Government aircraft?
102-33.235 What documentation must we maintain for life-limited parts 
          and FSCAP?

  Subpart D_Disposing or Replacing of Government Aircraft and Aircraft 
                                  Parts

                                Overview

102-33.240 What must we consider before disposing or replacing aircraft 
          and aircraft parts?
102-33.245 May we report as excess, or replace (i.e., by exchange/sale), 
          both operational and non-operational aircraft?
102-33.250 May we declassify aircraft?
102-33.255 Must we document FSCAP or life-limited parts installed on 
          aircraft that we will report as excess or replace?
102-33.260 When we report as excess, or replace, an aircraft (including 
          a declassified aircraft), must we report the change in 
          inventory to the Federal Aviation Interactive Reporting System 
          (FAIRS)?

                    Reporting Excess Federal Aircraft

102-33.265 What must we do with aircraft that are excess to our needs?
102-33.270 What is the process for reporting an excess aircraft?

                Replacing Aircraft Through Exchange/Sale

102-33.275 What should we consider before replacing our aircraft through 
          an exchange/sale?
102-33.280 What are our options if we need a replacement aircraft?
102-33.285 Do we need to include any special disclaimers in our 
          exchange/sale agreements for non-certificated aircraft or 
          aircraft that we have operated as public aircraft (i.e., not 
          in compliance with 14 CFR)?
102-33.295 May we exchange/sell an aircraft through reimbursable 
          transfer to another executive agency or conduct a negotiated 
          sale at fixed price to a State Agency for Surplus Property 
          (SASP)?

                       Disposing of Aircraft Parts

102-33.300 What must we consider before disposing of aircraft parts?
102-33.305 May we report as excess, or replace, FSCAP and life-limited 
          parts?
102-33.310 May we report as excess, or replace, unsalvageable aircraft 
          parts?
102-33.315 What are the procedures for mutilating unsalvageable aircraft 
          parts?
102-33.320 What must we do if we are unable to perform required 
          mutilation of aircraft parts?
102-33.325 What documentation must we furnish with excess, surplus, or 
          replaced parts when they are transferred, donated, exchanged, 
          or sold?

[[Page 43]]

                     Reporting Excess Aircraft Parts

102-33.330 What must we do with aircraft parts that are excess to our 
          needs?
102-33.335 What are the receiving agency's responsibilities in the 
          transfer of aircraft parts?
102-33.340 What are GSA's responsibilities in disposing of excess and 
          surplus aircraft parts?
102-33.345 What are the responsibilities of a State Agency for Surplus 
          Property (SASP) in the donation of Federal Government aircraft 
          parts?

             Replacing Aircraft Parts Through Exchange/Sale

102-33.350 What do we need to consider for an exchange/sale of our 
          aircraft parts?
102-33.355 May we exchange/sell aircraft parts through a reimbursable 
          transfer to another executive agency or conduct a negotiated 
          sale at fixed price to a State Agency for Surplus Property 
          (SASP)?
102-33.360 What is the process for exchanging/selling aircraft parts for 
          replacement?
102-33.365 Must we report exchange/sale of parts to FAIRS?

 Special Requirements for Disposing of Flight Safety Critical Aircraft 
                  Parts (FSCAP) and Life-Limited Parts

102-33.370 What must we do to dispose of military FSCAP and/or life-
          limited parts?
102-33.375 What is a FSCAP Criticality Code?

         Subpart E_Reporting Information on Government Aircraft

                                Overview

102-33.380 Who must report information to GSA on Government aircraft?
102-33.385 What Federally-funded aviation activities of executive 
          agencies are exempt from the requirement to report information 
          to GSA on Government aircraft?
102-33.390 What information must we report on Government aircraft?

          Federal Aviation Interactive Reporting System (FAIRS)

102-33.395 What is FAIRS?
102-33.400 How must we report to FAIRS?
102-33.405 When must we report to FAIRS?

                         Federal Inventory Data

102-33.410 What are Federal inventory data?
102-33.415 When may we declassify an aircraft and remove it from our 
          Federal aircraft inventory?
102-33.420 How must we declassify an aircraft?

               Federal Aircraft Cost and Utilization Data

102-33.425 What Federal aircraft cost and utilization data must we 
          report?
102-33.430 Who must report Federal aircraft cost and utilization data?

      Commercial Aviation Services (CAS) Cost and Utilization Data

102-33.435 What CAS cost and utilization data must we report?
102-33.440 Who must report CAS cost and utilization data?

                       Accident and Incident Data

102-33.445 What accident and incident data must we report?
102-33.450 How must we report accident and incident data?

        Common Aviation Management Information Standard (C-AMIS)

102-33.455 What is C-AMIS?
102-33.460 What is our responsibility in relation to C-AMIS?

                         Performance Indicators

102-33.465 What is a performance indicator?
102-33.470 Must we develop performance indicators?
102-33.475 What are some examples of performance indicators that we can 
          use?

Appendix A to Part 102-33--Disclosure Statement for Crewmembers and 
          Qualified Non-Crewmembers Flying on Board Government Aircraft 
          Operated as Public Aircraft

    Authority: 40 U.S.C. 121(c); 31 U.S.C. 101 et seq.; Reorganization 
Plan No. 2 of 1970, 35 FR 7959, 3 CFR, 1066-1970 Comp., p. 1070; 
Executive Order 11541, 35 FR 10737, 3 CFR, 1966-1970 Comp., p. 939; and 
OMB Circular No. A-126 (Revised May 22, 1992), 57 FR 22150.

    Source: 79 FR 77336, Dec. 23, 2014, unless otherwise noted.



                     Subpart A_How These Rules Apply

                                 General



Sec. 102-33.5  To whom do these rules apply?

    (a) The rules in this part apply to all Federally-funded aviation 
activities of executive branch agencies of the U.S. Government who use 
Government aircraft to accomplish their official business, except for 
the exemptions listed in paragraph (b) of this section.
    (b) The rules in this part do not apply to the following:

[[Page 44]]

    (1) The Armed Forces, except for:
    (i) Section 102-33.25(e) and (g), which concern responsibilities 
related to the Interagency Committee for Aviation Policy (ICAP); and
    (ii) Subpart D of this part, ``Disposing of Government Aircraft and 
Aircraft Parts.''
    (2) The President or Vice President and their offices;
    (3) Aircraft when an executive agency provides Government-furnished 
avionics for commercially owned or privately owned aircraft for the 
purposes of technology demonstration or testing; and
    (4) Privately owned aircraft that agency personnel use for official 
travel (even though such use is Federally-funded).



Sec. 102-33.6  How are the terms ``we,'' ``you,'' ``your,'' and ``our''
used in this part?

    In this part, ``we'', ``you'', ``your'', and ``our'' refer to agency 
aviation managers or an executive agency.



Sec. 102-33.10  May we request approval to deviate from these rules?

    (a) You may request approval to deviate from the rules in this part. 
See Sec. Sec. 102-2.60 through 102-2.110 of this chapter for guidance 
on requesting a deviation. In most cases, GSA will respond to your 
written request within 30 days;
    (b) GSA may not grant deviations from the requirements of OMB 
Circular A-126, ``Improving the Management of Government Aircraft;'' and
    (c) You should consult with GSA's Aviation Policy Division before 
you request a deviation.



Sec. 102-33.15  How does this part relate to Title 14 of the Code of 
Federal Regulations?

    This part does not supersede any of the regulations in 14 CFR 
Chapter I, ``Federal Aviation Administration, Department of 
Transportation.''



Sec. 102-33.20  What definitions apply to this part?

    The following definitions apply to this part:
    Acquire means to procure or otherwise obtain personal property, 
including by lease or rent.
    Acquisition date means the date that the acquiring executive agency 
took responsibility for the aircraft, e.g., received title (through 
purchase, exchange, or gift), signed a bailment agreement with the 
Department of Defense (DOD), took physical custody, received a court 
order, put into operational status an aircraft that is newly 
manufactured by the agency, or otherwise accepted physical transfer 
(e.g., in the case of a borrowed aircraft).
    Aircraft part means an individual component or an assembly of 
components that is used on aircraft.
    Armed Forces mean the Army, Navy, Air Force, Marine Corps, and Coast 
Guard, including their regular and Reserve components and members 
serving without component status. For purposes of this part, the 
National Guard is also included in the Armed Forces.
    Aviation life support equipment (ALSE) means equipment that protects 
flight crewmembers and others aboard an aircraft, assisting their safe 
escape, survival, and recovery during an accident or other emergency.
    Aviation Policy Division is a division in the Office of Asset and 
Transportation Management, Office of Government-wide Policy, GSA. 
Contact the staff via the Aircraft Management Overview page at http://
www.gsa.gov/aviationpolicy.
    Crewmember means a person assigned to operate or assist in operating 
an aircraft during flight time. Crewmembers perform duties directly 
related to the operation of the aircraft (e.g., as pilots, co-pilots, 
flight engineers, navigators) or duties assisting in operation of the 
aircraft (e.g., as flight directors, crew chiefs, electronics 
technicians, mechanics). See also the terms and definitions for 
``Qualified non-crewmember'' and ``Passenger'' in this section.
    Criticality code means a single digit code that DOD assigns to 
military Flight Safety Critical Aircraft Parts (FSCAP) (see Sec. Sec. 
102-33.115 and 102-33.370).
    Data plate means a fireproof plate that is inscribed with certain 
information required by 14 CFR part 45 (or for military surplus 
aircraft, as required by Military Specifications), and secured to an 
aircraft, aircraft engine, or propeller. The information must be

[[Page 45]]

marked by etching, stamping, engraving, or other approved method of 
fireproof marking. The plate must be attached in such a manner that it 
is not likely to be defaced or removed during normal service or lost or 
destroyed in an accident. Data plates are required only on certificated 
aircraft. However, non-certificated aircraft may also have data plates.
    Declassify means to remove a lost, destroyed, or non-operational 
aircraft from the Federal aircraft inventory. Agencies may declassify 
only non-operational aircraft that they will retain for ground use only. 
Agencies must declassify an aircraft following the rules in Sec. Sec. 
102-33.415 and 102-33.420.
    Disposal date means the date that the disposing executive agency 
relinquishes responsibility for an aircraft, for example, when the 
agency transfers title in the case of an exchange/sale; returns the 
aircraft to the lessor or bailer; declassifies it (for FAIRS, 
declassification is considered a ``disposal'' action, even though the 
agency retains the property); or relinquishes custody to another agency 
(i.e., in the case of excess (transferred) or surplus (donated or sold) 
aircraft).
    Donated aircraft means an aircraft disposed of as surplus by GSA 
through donation to a non-Federal government, a tax-exempt nonprofit 
entity, or other eligible recipient, following the rules in part Sec. 
102-37 (some agencies, for example DOD, may have independent donation 
authority.)
    Exchange means to replace personal property by trade or trade-in 
with the supplier of the replacement property.
    Exchange/sale means to exchange or sell non-excess, non-surplus 
personal property and apply the exchange allowance or proceeds of sale 
in whole or in part payment for the acquisition of similar property. See 
40 U.S.C. 503.
    Exclusive use means a condition under which an aircraft is operated 
for the sole benefit of the U.S. Government.
    Executive agency means any executive department or independent 
establishment in the executive branch of the United States Government, 
including any wholly owned Government corporation. See 5 U.S.C. 105.
    Federal Acquisition Service (FAS) means a component of GSA. FAS is 
organized by geographical regions. The FAS Property Management Division 
in GSA's Pacific Rim Region, 450 Golden Gate Ave., San Francisco, CA 
94102-3434, has responsibility for disposing of excess and surplus 
aircraft.
    Federal aircraft means manned or unmanned aircraft that an executive 
agency owns (i.e., holds title to) or borrows for any length of time. 
Federal aircraft include--
    (1) Bailed aircraft: Federal aircraft that is owned by one executive 
agency, but is in the custody of and operated by another executive 
agency under an agreement that may or may not include cost-
reimbursement. Bailments are executive agency to executive agency 
agreements and involve only aircraft, not services;
    (2) Borrowed aircraft: Aircraft owned by a non-executive agency and 
provided to an executive agency for use without compensation. The 
executive agency operates and maintains the aircraft;
    (3) Forfeited aircraft: Aircraft acquired by the Government either 
by summary process or by order of a court of competent jurisdiction 
pursuant to any law of the United States;
    (4) Loaned aircraft: Federal aircraft owned by an executive agency, 
but in the custody of a non-executive agency under an agreement that 
does not include compensation; and
    (5) Owned aircraft: An aircraft for which title or rights of title 
are vested in an executive agency.
    Note to definition of Federal aircraft: When an executive agency 
loans or bails an aircraft that meets the criteria for Federal aircraft, 
the loaned or bailed aircraft is still considered a Federal aircraft in 
the owning agency's inventory, except when DOD is the owning agency of a 
bailed aircraft. In that case, the aircraft is recorded in the inventory 
of the bailee.
    Federal Aviation Interactive Reporting System (FAIRS) is a 
management information system operated by GSA to collect, maintain, 
analyze, and report information on Federal aircraft inventories and cost 
and usage of Federal aircraft and CAS aircraft (and related services) 
(see Sec. Sec. 102-33.395 through 102-33.440).

[[Page 46]]

    Flight Safety Critical Aircraft Part (FSCAP) means any aircraft 
part, assembly, or installation containing a critical characteristic 
whose failure, malfunction, or absence could cause a catastrophic 
failure resulting in loss or serious damage to the aircraft or an 
uncommanded engine shutdown resulting in an unsafe condition.
    Full service contract means a contractual agreement through which an 
executive agency acquires an aircraft and related aviation services 
(e.g., pilot, crew, maintenance, catering) for exclusive use. Aircraft 
hired under full service contracts are commercial aviation services 
(CAS), not Federal aircraft, regardless of the length of the contract.
    Government aircraft means manned or unmanned aircraft operated for 
the exclusive use of an executive agency. Government aircraft include--
    (1) Federal aircraft (see definition for ``Federal aircraft'' in 
this section); and
    (2) Aircraft hired as commercial aviation services (CAS). CAS 
include--
    (i) Leased aircraft for exclusive use for an agreed upon period of 
time (The acquiring executive agency operates and maintains the 
aircraft);
    (ii) Capital lease aircraft for which the leasing agency holds an 
option to take title;
    (iii) Charter aircraft for hire under a contractual agreement for 
one-time exclusive use that specifies performance (The commercial source 
operates and maintains a charter aircraft);
    (iv) Rental aircraft obtained commercially under an agreement in 
which the executive agency has exclusive use for an agreed upon period 
of time (The executive agency operates, but does not maintain, a rental 
aircraft);
    (v) Contracting for full services (i.e., aircraft and related 
aviation services for exclusive use); or
    (vi) Obtaining related aviation services (i.e., services but not 
aircraft) by commercial contract, except those services acquired to 
support a Federal aircraft.
    Governmental function means a Federally-funded activity that an 
executive agency performs in compliance with its statutory authorities.
    Intelligence community means those agencies identified in the 
National Security Act, 50 U.S.C. 401a(4).
    Inter-service support agreement (ISSA) means any agreement between 
two or more executive agencies (including the Department of Defense) in 
which one agency consents to perform aviation support services (e.g., 
providing an aircraft and other aviation services or providing only 
services) for another agency with or without cost-reimbursement. An 
executive agency-to-executive agency agreement that involves only the 
use of an aircraft, not services, is a bailment, not an ISSA.
    Life-limited part means any aircraft part that has an established 
replacement time, inspection interval, or other time-related procedure 
associated with it. For non-military parts, the FAA specifies life-
limited part airworthiness limitations in 14 CFR 21.50, 23.1529, 
25.1529, 27.1529, 29.1529, 31.82, 33.4, and 35.5, and on product Type 
Certificate Data Sheets (TCDS). Letters authorizing Technical Standards 
Orders (TSO) must also note or reference mandatory replacement or 
inspection of parts.
    Military aircraft part means an aircraft part used on an aircraft 
that was developed by the Armed Forces (whether or not it carries an FAA 
airworthiness certificate).
    Non-operational aircraft means a Federal aircraft that is not safe 
for flight and, in the owning executive agency's determination, cannot 
economically be made safe for flight. This definition refers to the 
aircraft's flight capability, not its mission-support equipment 
capability. An aircraft that is temporarily out of service for 
maintenance or repair and can economically be made safe for flight is 
considered an operational aircraft.
    Official Government business in relation to Government aircraft--
    (1) Includes, but is not limited to--
    (i) Carrying crewmembers, qualified non-crewmembers, and cargo 
directly required for or associated with performing Governmental 
functions (including travel-related Governmental functions);
    (ii) Carrying passengers authorized to travel on Government aircraft 
(see OMB Circular A-126); and
    (iii) Training pilots and other aviation personnel.
    (2) Does not include--

[[Page 47]]

    (i) Using Government aircraft for personal or political purposes, 
except for required use travel and space available travel as defined in 
OMB Circular A-126; or
    (ii) Carrying passengers who are not officially authorized to travel 
on Government aircraft.
    Operational aircraft means a Federal aircraft that is safe for 
flight or, in the owning executive agency's determination, can 
economically be made safe for flight. This definition refers to the 
aircraft's flight capability, not its mission-support capability. An 
aircraft temporarily out of service for maintenance or repair is 
considered an operational aircraft.
    Original equipment manufacturer (OEM) means the person or company 
who originally designed, engineered, and manufactured, or who currently 
holds the data rights to manufacture, a specific aircraft or aircraft 
part. Parts produced under a Parts Manufacturer Approval (PMA) are not 
considered OEM parts, even though they can be acceptable replacement 
parts for OEM parts.
    Passenger means a person flying onboard a Government aircraft who is 
officially authorized to travel and who is not a crewmember or qualified 
non-crewmember.
    Performance indicator means a quantitative or qualitative term or 
value for reporting organizational activities and results, generally 
with respect to achieving specific goals related to outcomes, outputs, 
efficiency, and inputs. When applied to aircraft, performance indicators 
typically measure the effectiveness and efficiency of the processes 
involved with safely delivering aircraft services.
    Production approval holder (PAH) means the person or company who 
holds a Production Certificate (PC), Approved Production Inspection 
System (APIS), Parts Manufacturer Approval (PMA), or Technical Standards 
Orders Authorization (TSOA), issued under provisions of 14 CFR part 21, 
Certification Procedures for Products and Parts, and who controls the 
design, manufacture, and quality of a specific aircraft part.
    Qualified non-crewmember means an individual, other than a member of 
the crew, aboard an aircraft--
    (1) Operated by an United States Government agency in the 
intelligence community; or
    (2) Whose presence is required to perform or is associated with 
performing the Governmental function for which the aircraft is being 
operated (Qualified non-crewmembers are not passengers).
    Registration mark means the unique identification mark that is 
assigned by the FAA and displayed on U.S.-registered Government aircraft 
(except Armed Forces aircraft). Foreign-registered aircraft hired as CAS 
will carry their national registration markings. Registration markings 
are commonly referred to as tail numbers.
    Related aviation services contract means a commercial contractual 
agreement through which an executive agency hires aviation services only 
(not aircraft), e.g., pilot, crew, maintenance, cleaning, dispatching, 
or catering.
    Required use travel means use of a Government aircraft for the 
travel of an executive agency officer or employee where the use of the 
Government aircraft is required because of bona fide communications or 
security need of the agency or exceptional scheduling requirements. 
Required use travel must be approved as described in OMB Circular A-126.
    Risk analysis and management means a systematic process for--
    (1) Identifying risks and hazards associated with alternative 
courses of action involved in an aviation operation;
    (2) Choosing from among these alternatives the course(s) of action 
that will promote optimum aviation safety;
    (3) Assessing the likelihood and predicted severity of an injurious 
mishap within the various courses of action;
    (4) Controlling and mitigating identified risks and hazards within 
the chosen course(s) of action; and
    (5) Periodically reviewing the chosen course(s) of action to 
identify possible emerging risks and hazards.
    Safe for flight means approved for flight and refers to an aircraft, 
aircraft engine, propeller, appliance, or part that has been inspected 
and certified to meet the requirements of applicable

[[Page 48]]

regulations, specifications, or standards. When applied to an aircraft 
that an executive agency operates under FAA regulations, safe for flight 
means ``airworthy,'' i.e., the aircraft or related parts meet their 
design specifications and are in a condition, relative to wear and 
deterioration, for safe operation. When applied to an aircraft that an 
executive agency uses, but does not operate under the FAA regulations, 
safe for flight means a state of compliance with military specifications 
or the executive agency's own Flight Program Standards, and as approved, 
inspected, and certified by the agency.
    Safety Management System (SMS) means a formal, top-down business-
like approach to managing safety risk. It includes systematic 
procedures, practices, and policies for the management of safety, safety 
risk management, safety policy, safety assurance, and safety promotion. 
For more information on SMS, refer to FAA Advisory Circular 120-92, 
``Safety Management Systems for Aviation Service Providers.''
    Senior Aviation Management Official (SAMO) means the person in an 
executive agency who is the agency's primary member of the Interagency 
Committee for Aviation Policy (ICAP). This person must be of appropriate 
grade and position to represent the agency and promote flight safety and 
adherence to standards.
    Serviceable aircraft part means a part that is safe for flight, can 
fulfill its operational requirements, and is sufficiently documented to 
indicate that the part conforms to applicable standards/specifications.
    Suspected unapproved part means an aircraft part, component, or 
material that any person suspects of not meeting the requirements of an 
``approved part.'' Approved parts are those that are produced in 
compliance with 14 CFR part 21, are maintained in compliance with 14 CFR 
parts 43 and 91, and meet applicable design standards. A part, 
component, or material may be suspect because of its questionable 
finish, size, or color; improper (or lack of) identification; incomplete 
or altered paperwork; or any other questionable indication. See detailed 
guidance in FAA Advisory Circular 21-29, ``Detecting and Reporting 
Suspected Unapproved Parts,'' available from the FAA at http://
www.faa.gov.
    Traceable part means an aircraft part whose manufacturer or 
production approval holder can be identified by documentation, markings/
characteristics on the part, or packaging of the part. Non-military 
parts are traceable if you can establish that the parts were 
manufactured in accordance with or were previously determined to be 
airworthy under rules in 14 CFR parts 21 and 43. Possible sources for 
making a traceability determination could be shipping tickets, bar 
codes, invoices, parts marking (e.g., PMA, TSO), data plates, serial/
part numbers, manufacturing production numbers, maintenance records, 
work orders, etc.
    Training means instruction for all flight program personnel (to 
include administrative, maintenance and dispatch personnel), which 
enables them to qualify initially for their positions and to maintain 
qualification for their positions over time.
    Note: This instruction can apply to either public or civil missions 
as defined in the latest version of the FAA's Advisory Circular for 
Government aircraft operations.
    Unmanned Aircraft Systems (UAS) means an unmanned aircraft and its 
associated elements related to safe operations, which may include but 
not be limited to control stations, data communications links, support 
equipment, payloads, flight termination systems, and launch/recovery 
equipment. The unmanned aircraft (UA) is the flying component of the 
system, flown by a pilot via a ground control system, or autonomously 
through the use of an on-board computer, communication links, and any 
additional equipment necessary for the unmanned aircraft to operate 
safely. The Federal Aviation Administration issues either an 
Airworthiness Directive (AD) or a Certificate of Authorization (COA) for 
the entire system, not just the flying component of the system. 
Reporting of UAS costs and flight hours is only required if the 
accumulated costs for acquisition and operations meets the agency's 
threshold for capitalization, and the UAS has a useful life of two years 
or more.
    Unsalvageable aircraft part means an aircraft part that cannot be 
restored to

[[Page 49]]

a condition that is safe for flight because of its age, its physical 
condition, a non-repairable defect, insufficient documentation, or its 
non-conformance with applicable standards/specifications.
    U.S. Government Aircraft Cost Accounting Guide (CAG) means guidance 
for the accounting of Government aircraft costs published by GSA and is 
based on the cost guidance within OMB Circular A-126, OMB Circular A-76, 
FAIRS, and the U.S. Government Standard General Ledger.

                            Responsibilities



Sec. 102-33.25  What are our responsibilities under this part?

    Under this part, your responsibilities are to--
    (a) Acquire, manage, and dispose of Federal aircraft (see the 
definition of ``Federal aircraft'' in Sec. 102-33.20) and acquire and 
manage Commercial Aviation Services (CAS) (see the definition for 
``CAS'' in paragraph (2) of the definition of ``Government aircraft'' in 
Sec. 102-33.20) as safely, efficiently, and effectively as possible 
consistent with the nature of your agency's aviation missions;
    (b) Document and report the--
    (1) Types and numbers of your Federal aircraft;
    (2) Costs of acquiring and operating Government aircraft;
    (3) Amount of time that your agency uses Government aircraft; and
    (4) Accidents and incidents involving Government aircraft;
    (c) Ensure that your Government aircraft are used only to accomplish 
your agency's official Government business;
    (d) Ensure that all passengers traveling on your agency's Government 
aircraft are authorized to travel on such aircraft (see OMB Circular A-
126);
    (e) Appoint (by letter to the Deputy Associate Administrator, Office 
of Asset and Transportation Management, Office of Government-wide 
Policy, GSA) a Senior Aviation Management Official (SAMO), who will be 
your agency's primary member of the ICAP (this paragraph (e) applies to 
all executive agencies that use aircraft, including the Department of 
Defense (DOD), the Federal Aviation Administration (FAA), and the 
National Transportation Safety Board (NTSB), but excludes executive 
agencies that only hire aircraft occasionally for a specific flight). It 
is suggested that an agency's SAMO have:
    (1) Experience as a pilot or crew member; or
    (2) Management experience within an aviation operations management/
flight program.
    (f) Designate an official (by letter to the Deputy Associate 
Administrator, Office of Asset and Transportation Management, Office of 
Government-wide Policy, GSA) to certify the accuracy and completeness of 
information reported by your agency through FAIRS. (Armed Forces 
agencies, which include the DOD and the U.S. Coast Guard, are not 
required to report information to FAIRS.);
    (g) Appoint representatives of the agency as members of ICAP 
subcommittees and working groups;
    (h) Ensure that your agency's internal policies and procedures are 
consistent with the requirements of OMB Circulars A-126, A-76 and A-11, 
Federal Aviation Administration Advisory Circular 120-92, and this part; 
and
    (i) Ensure that safety and other critical aviation program 
requirements are satisfied. Executive agencies that only hire aircraft 
occasionally for specific flights, must either:
    (1) Establish an aviation program that complies with the 
requirements of OMB Circular A-126; or
    (2) Hire those aircraft through an agency with a policy-compliant 
aviation program.



Sec. 102-33.30  What are the duties of an agency's Senior Aviation
Management Official (SAMO)?

    The duties of an agency's Senior Aviation Management Official (SAMO) 
are to--
    (a) Represent the agency's views to the ICAP and vote on behalf of 
the agency as needed;
    (b) Contribute technical and operational policy expertise to ICAP 
deliberations and activities;
    (c) Serve as the designated approving official for FAIRS when the 
agency elects to have one person serve as both the SAMO and the 
designated official

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for FAIRS (DOD will not have a designated official for FAIRS); and
    (d) Appoint representatives of the agency as members of ICAP 
subcommittees and working groups.



Sec. 102-33.35  How can we get help in carrying out our responsibilities?

    To get help in carrying out your responsibilities under this part, 
you may--
    (a) Call or write to GSA's Aviation Policy Division (see definition 
in Sec. 102-33.20); or
    (b) Find additional aviation program management information on the 
Internet at http://www.gsa.gov/aviationpolicy.



Sec. 102-33.40  What are some of GSA's responsibilities for Federal
aviation management?

    Under OMB Circular A-126, ``Improving the Management and Use of 
Government Aircraft,'' (http://www.whitehouse.gov/omb) GSA's chief 
responsibilities for Federal aviation management are to maintain--
    (a) A single office to carry out Governmentwide responsibilities for 
Government aircraft management, and publishing that policy;
    (b) An interagency committee (i.e., the ICAP), whose members 
represent the executive agencies that use Government aircraft to conduct 
their official business (including FAA and NTSB specifically) and advise 
and consult with GSA on developing policy for managing Government 
aircraft;
    (c) A management information system to collect, analyze, and report 
information on the inventory, cost, usage, and safety of Government 
aircraft; and
    (d) A set of performance indicators, policy recommendations, and 
guidance for the procurement, operation, and safety and disposal of 
Government aircraft.

    Note to Sec. 102-33.40: See OMB Circular A-126 (http://
www.whitehouse.gov/omb) for a complete listing of GSA's responsibilities 
related to Federal aviation.



       Subpart B_Acquiring Government Aircraft and Aircraft Parts

                                Overview



Sec. 102-33.50  Under what circumstances may we acquire Government
aircraft?

    (a) When you meet the requirements for operating an in-house 
aviation program contained in OMB Circular A-76, ``Performance of 
Commercial Activities'' and OMB Circular A-11, ``Preparation, 
Submission, and Execution of the Budget,'' Part 2, ``Preparation and 
Submission of Budget Estimates,'' Section 25.5, ``Summary of 
Requirements,'' Table 1, which refers to the Business Case for 
Acquisition and Maintenance of Aircraft, and Section 51.18, ``Budgeting 
for the acquisition of capital assets,'' subparagraph (d) (Both 
circulars are available at http://www.whitehouse.gov/omb), you may--
    (1) Acquire Federal aircraft when--
    (i) Aircraft are the optimum means of supporting your agency's 
official business;
    (ii) You do not have aircraft that can support your agency's 
official business safely (e.g., in compliance with applicable safety 
standards and regulations) and cost-effectively;
    (iii) No commercial or other Governmental source is available to 
provide aviation services safely (i.e., in compliance with applicable 
safety standards and regulations) and cost-effectively; and
    (iv) Congress has specifically authorized your agency to purchase, 
lease, or transfer aircraft and to maintain and operate those aircraft 
(see 31 U.S.C. 1343);
    (2) Acquire Commercial Aviation Services (CAS) when--
    (i) Aircraft are the optimum means of supporting your agency's 
official business; and
    (ii) Using commercial aircraft and services is safe (i.e., conforms 
to applicable laws, safety standards, and regulations) and is more cost 
effective than using Federal aircraft, aircraft from any other 
Governmental source, or scheduled air carriers.
    (b) When acquiring aircraft, aircraft selection must be based on 
need, a strong business case, and life-cycle cost

[[Page 51]]

analysis, which conform to OMB Circular A-11, ``Preparation, Submission, 
and Execution of the Budget,'' Part 2, ``Preparation and Submission of 
Budget Estimates,'' Section 25.5, ``Summary of Requirements,'' Table 1, 
which refers to the Business Case for Acquisition and Maintenance of 
Aircraft (available at http://www.whitehouse.gov/omb).



Sec. 102-33.55  Are there restrictions on acquiring Government 
aircraft?

    Yes, you may not acquire--
    (a) More aircraft than you need to carry out your official business;
    (b) Aircraft of greater size or capacity than you need to perform 
your Governmental functions cost-effectively; or
    (c) Federal aircraft that Congress has not authorized your agency to 
acquire or Federal aircraft or commercial aircraft and services for 
which you have not followed the requirements in OMB Circulars A-76 and 
A-11 (available at http://www.whitehouse.gov/omb).



Sec. 102-33.60  What methods may we use to acquire Government
aircraft?

    Following the requirements of Sec. Sec. 102-33.50 and 102-33.55, 
you (or an internal bureau or sub-agency within your agency) may acquire 
Government aircraft by means including, but not limited to--
    (a) Purchase;
    (b) Borrowing from a non-Federal source;
    (c) Bailment from another executive agency;
    (d) Exchange/sale;
    (e) Reimbursable transfer from another executive agency (see 
Sec. Sec. 102-36.75 and 102-36.80);
    (f) Transfer from another executive agency as approved by GSA;
    (g) Reassignment from one internal bureau or subagency to another 
within your agency;
    (h) Transfer of previously forfeited aircraft;
    (i) Insurance replacement (i.e., receiving a replacement aircraft);
    (j) Capital lease;
    (k) Rent or charter;
    (l) Contract for full services (i.e., aircraft plus crew and related 
aviation services) from a commercial source; or
    (m) Inter-service support agreements with other executive agencies 
for aircraft and services.



Sec. 102-33.65  What is the process for acquiring Government aircraft?

    Acquiring Government aircraft, as described in Sec. Sec. 102-33.70 
through 102-33.105, generally follows a three-step process:
    (a) Planning;
    (b) Budgeting; and
    (c) Contracting.

                 Planning To Acquire Government Aircraft



Sec. 102-33.70  What directives must we follow when planning to 
acquire Government aircraft?

    When planning to acquire Government aircraft, you must follow the 
requirements in--
    (a) 31 U.S.C. 1343, ``Buying and Leasing Passenger Motor Vehicles 
and Aircraft'';
    (b) OMB Circular A-126, ``Improving the Management and Use of 
Government Aircraft'' (http://www.whitehouse.gov/omb);
    (c) OMB Circular A-11, Part 2, Section 25.5, Table 1, Business Case 
for Acquisition and Maintenance of Aircraft (http://www.whitehouse.gov/
omb);
    (d) OMB Circular A-76, ``Performance of Commercial Activities'' 
(http://www.whitehouse.gov/omb); and
    (e) OMB Circular A-94, ``Guidelines and Discount Rates for Benefit-
Cost Analysis of Federal Programs'' (http://www.whitehouse.gov/omb).



Sec. 102-33.75  What other guidance is available to us in planning
to acquire Government aircraft?

    You can find guidance for acquisition planning in:
    (a) The ``Aviation Planning Desk Guide'' (available at http://
www.gsa.gov/aviationpolicy) and
    (b) OMB's ``Capital Programming Guide,'' which is a supplement to 
OMB Circular A-11 (http://www.whitehouse.gov/omb).

[[Page 52]]

                            OMB Circular A-76



Sec. 102-33.80  Must we comply with OMB Circular A-76 before we
acquire Government aircraft?

    Yes, before you acquire Government aircraft, you must comply with 
OMB Circular A-76 (http://www.whitehouse.gov/omb). If you are acquiring 
Federal aircraft, you must ensure that the private sector cannot provide 
Government aircraft or related aviation services more cost-effectively 
than you can provide Federal aircraft and related services.

        The Process for Budgeting To Acquire Government Aircraft



Sec. 102-33.90  What is the process for budgeting to acquire a Federal
aircraft (including a Federal aircraft transferred from another
executive agency)?

    (a) The process for budgeting to acquire a Federal aircraft or to 
accept a Federal aircraft transferred from another executive agency 
requires that you have specific authority from Congress in your 
appropriation, as called for in 31 U.S.C. 1343, to--
    (1) Purchase, capital lease, or lease a Federal aircraft and to 
operate and maintain it; or
    (2) Accept a Federal aircraft transferred from another executive 
agency and to operate and maintain it.
    (b) For complete information on budgeting to own Federal aircraft 
(i.e., large purchase of a capital asset), see OMB Circular A-11, Part 
2, Sections 25.1 and 51.18. Also see Sec. Sec. 102-33.70 and 102-33.75.



Sec. 102-33.95  What is the process for budgeting to acquire 
Commercial Aviation Services (CAS)?

    Except for leases and capital leases, for which you must have 
specific Congressional authorization as required by 31 U.S.C. 1343, you 
may budget to fund your CAS out of your agency's operating budget. Also 
see Sec. Sec. 102-33.70 and 102-33.75.

               Contracting To Acquire Government Aircraft



Sec. 102-33.100  What are our responsibilities when contracting to 
purchase or capital lease a Federal aircraft or to award a CAS 
contract?

    In contracting to purchase or capital lease a Federal aircraft or to 
award a CAS contract, you must follow the Federal Acquisition Regulation 
(FAR) (48 CFR Chapter 1) unless your agency is exempt from following the 
FAR.



Sec. 102-33.105  What minimum requirements must we put into our 
CAS contracts?

    At a minimum, your CAS contracts and agreements must require that 
any provider of CAS comply with--
    (a) Civil standards in 14 CFR that are applicable to the type of 
operation(s) you are asking the contractor to conduct;
    (b) Applicable military standards; or
    (c) Your agency's Flight Program Standards (see Sec. Sec. 102-
33.140 through 102-33.185 for the requirements for Flight Program 
Standards).

                        Acquiring Aircraft Parts



Sec. 102-33.110  What are our responsibilities when acquiring aircraft
parts?

    When acquiring aircraft parts, you must:
    (a) Acquire the parts cost-effectively and acquire only what you 
need;
    (b) Inspect and verify that all incoming parts are documented as 
safe for flight prior to installation;
    (c) Obtain all logbooks (if applicable) and maintenance records (for 
guidance on maintaining records for non-military parts, see Federal 
Aviation Administration (FAA) Advisory Circular 43-9C, ``Maintenance 
Records,'' which is available from the FAA at http://www.faa.gov);
    (d) Plan for adequate storage and protection; and
    (e) Refer to FAA Advisory Circular 21-29C, Change (2), ``Detecting 
and Reporting Suspected Unapproved Parts'' (http://www.faa.gov).

[[Page 53]]



Sec. 102-33.115  Are there requirements for acquiring military Flight
Safety Critical Aircraft Parts (FSCAP)?

    Yes, when you acquire military Flight Safety Critical Aircraft Parts 
(FSCAP), you must--
    (a) Accept FSCAP only when it is documented or traceable to its 
original equipment manufacturer. A part's DOD FSCAP Criticality Code 
should be marked or tagged on the part or appear on its invoice/transfer 
document (see Sec. 102-33.375 for further explanation of the FSCAP 
Criticality Codes); and
    (b) Not install undocumented, but traceable FSCAP until you have the 
parts inspected and recertified by the original equipment manufacturer 
or other FAA-approved facility (see Sec. 102-33.370 on FSCAP and AC 20-
142).



Sec. 102-33.120  Are there requirements for acquiring life-limited 
parts?

    Yes, when you acquire new or used life-limited parts, you must--
    (a) Identify and inspect the parts, ensuring that they have civil or 
military-certified documentation; and
    (b) Mutilate and dispose of any expired life-limited parts (see 
Sec. 102-33.370 on handling life-limited parts).



        Subpart C_Managing Government Aircraft and Aircraft Parts

                                Overview



Sec. 102-33.125  If we use Federal aircraft, what are our management
responsibilities?

    If you use Federal aircraft, you are responsible for--
    (a) Establishing agency-specific Flight Program Standards, as 
defined in Sec. Sec. 102-33.140 through 102-33.185;
    (b) Accounting for the cost of acquiring, operating, and supporting 
your aircraft;
    (c) Accounting for the use of your aircraft;
    (d) Maintaining and accounting for aircraft parts;
    (e) Reporting inventory, cost, and utilization data (for reporting 
requirements, see subpart E of this part); and
    (f) Properly disposing of aircraft and parts following Sec. Sec. 
102-33.240 through 102-33.375.



Sec. 102-33.130  If we hire CAS, what are our management
responsibilities?

    If you hire CAS, you are responsible for--
    (a) Establishing agency-specific Flight Program Standards, as 
defined in Sec. Sec. 102-33.140 through 102-33.185, as applicable, and 
requiring compliance with these standards in your contracts and 
agreements;
    (b) Accounting for the cost of your aircraft and services hired as 
CAS;
    (c) Accounting for the use of your aircraft hired as CAS; and
    (d) Reporting the cost and usage data for your CAS hires (for 
reporting requirements, see subpart E of this part).



Sec. 102-33.135  Do we have to follow OMB Circular A-123, ``Management
Accountability and Control,'' for establishing management controls
for our aviation program?

    Yes, you must follow OMB Circular A-123, ``Management's 
Responsibility for Accountability and Control'' (http://
www.whitehouse.gov/omb), when establishing management controls for your 
aviation program. The circular requires that you establish 
organizations, policies, and procedures to ensure that, among other 
things, your aviation program achieves its intended results and you use 
your resources consistently with your agency's missions.

                  Establishing Flight Program Standards



Sec. 102-33.140  What are Flight Program Standards?

    Flight Program Standards are the minimum requirements that must be 
incorporated into your flight programs to ensure that your aircraft are 
operated safely, effectively, and efficiently. These requirements must:
    (a) Be specific to your agency's aviation operations, including your 
CAS;
    (b) Meet the requirements identified in Sec. Sec. 102-33.155 
through 102-33.185.
    (c) Meet or exceed applicable civil or military rules (in particular 
49 U.S.C. 40102(a)(37) and 40125), and applicable FAA regulations); and
    (d) Incorporate risk management techniques when civil or military 
rules do not apply.

[[Page 54]]



Sec. 102-33.145  Why must we establish Flight Program Standards?

    You must establish Flight Program Standards because Title 14 of the 
Code of Federal Regulations (14 CFR) may not cover or address all 
aspects of your agency's flight program, such as non-certificated 
aircraft, high-risk operations, special personnel requirements, etc.



Sec. 102-33.150  What Federally-funded aviation activities of executive
agencies are exempt from establishing Flight Program Standards under
this part?

    The following Federally-funded activities are exempt from 
establishing Flight Program Standards under this part:
    (a) The Armed Forces (which includes the U.S. Coast Guard);
    (b) Agencies in the Intelligence Community; and
    (c) Entities outside the executive branch of the Federal Government 
when using aircraft loaned to them by an executive agency (that is, 
owned by an executive agency, but operated by and on behalf of the 
loanee) unless the loanee--
    (1) Uses the aircraft to conduct official Government business; or
    (2) Is required to follow Sec. Sec. 102-33.140 through 102-33.185 
under a Memorandum of Agreement governing the loan.



Sec. 102-33.155  How must we establish Flight Program Standards?

    To establish Flight Program Standards, you must write, publish (as 
appropriate), implement, and comply with standards (specific to your 
agency), which establish or require (contractually, where applicable) 
policies and procedures for--
    (a) Management/administration of your flight program (in this part, 
``flight program'' includes CAS contracts);
    (b) Operation of your flight program;
    (c) Maintenance of your Government aircraft;
    (d) Training for your flight program personnel;
    (e) Safety of your flight program;
    (f) Accident reporting and investigation as appropriate; and
    (g) Reporting to FAIRS as required by this part.

                        Management/Administration



Sec. 102-33.160  What standards must we establish or require 
(contractually, where applicable) for management/administration 
of our flight program?

    For management/administration of your flight program, you must 
establish or require (contractually, where applicable)--
    (a) A management structure responsible for the administration, 
operation, safety, training, maintenance, and financial needs of your 
aviation operation (including establishing minimum requirements for 
these items for any commercial contracts); and
    (b) Guidance describing the roles, responsibilities, and authorities 
of your flight program personnel, e.g., managers, pilots and other 
crewmembers, flight safety personnel, maintenance personnel, 
administrative personnel and dispatchers.

                               Operations



Sec. 102-33.165  What standards must we establish or require 
(contractually, where applicable) for operation of our flight program?

    For operation of your flight program, you must establish or require 
(contractually, where applicable)--
    (a) Basic qualifications and currency requirements for your pilots 
and other crewmembers, maintenance personnel, administrative personnel 
and other mission-related personnel;
    (b) Limitations on duty time and flight time for pilots and other 
crewmembers;
    (c) Procedures to record and track flight time, duty time, training 
of crewmembers, and applicable medical requirements;
    (d) Compliance with owning-agency or military safety of flight 
notices and operational bulletins;
    (e) Flight-following procedures to notify management and initiate 
search and rescue operations for lost or downed aircraft;
    (f) Dissemination, as your agency determines appropriate, of a 
disclosure statement to all crewmembers and

[[Page 55]]

qualified non-crewmembers who fly aboard your agency's Government 
aircraft (see Appendix A to this part);
    (g) Creation of a manifest, at the origin of each flight, that 
contains the full names of all persons on board for each leg of flight, 
a point of contact for each person, and phone numbers for the points of 
contact;
    (h) Documentation of any changes in the manifest by leg, and 
retention of manifests for two years from the time of flight;
    (i) Procedures for reconciling flight manifests with persons 
actually on board and a method to test those procedures periodically;
    (j) At the origin of each flight, preparation of a complete weight 
and balance computation and a cargo-loading manifest, and retention of 
this computation and manifest for 30 days from the date of flight;
    (k) Appropriate emergency procedures and equipment for specific 
missions;
    (l) Procedures to ensure that required Aviation Life Support 
Equipment (ALSE) is inspected and serviceable; and
    (m) Procedures to implement a ``risk assessment'' before each flight 
and/or as frequently as necessary that include such items as weather, 
crew rest, type of flight (low level, Instrument Flight Rules (IFR), 
night, etc.) crew makeup, etc. This process should be accomplished in 
accordance with your agency's operations, flight dispatch, or flight 
following procedures/program.

                               Maintenance



Sec. 102-33.170  What standards must we establish or require 
(contractually, where applicable) for maintenance of our Government
aircraft?

    For maintenance of your Government aircraft, you must establish or 
require (contractually, where applicable)--
    (a) Procedures to record and track duty time and training of 
maintenance personnel;
    (b) Aircraft maintenance and inspection programs that comply with 
whichever is most applicable among--
    (1) Programs for ex-military aircraft;
    (2) Manufacturers' programs;
    (3) FAA-approved programs (i.e., following the applicable parts of 
14 CFR);
    (4) FAA-accepted programs (i.e., those following ICAP guides or 
similar programs that have been accepted by the FAA); or
    (5) Your agency's self-prescribed programs;
    (c) Compliance with owning-agency or military safety of flight 
notices, FAA airworthiness directives, advisory circulars and orders, or 
mandatory manufacturers' bulletins applicable to the types of aircraft, 
engines, propellers, and appliances you operate;
    (d) Procedures for operating aircraft with inoperable instruments 
and equipment (i.e., Minimum Equipment Lists and Configuration Deviation 
Lists);
    (e) Technical support, including appropriate engineering 
documentation and testing, for aircraft, powerplant, propeller, or 
appliance repairs, modifications, or equipment installations;
    (f) A quality control system for acquiring replacements, ensuring 
that the parts you acquire are suitable replacement parts and have the 
documentation needed to determine that they are safe for flight and are 
inspected and tested, as applicable;
    (g) Procedures for recording and tracking maintenance actions; 
inspections; and the flight hours, cycles, and calendar times of life-
limited parts and FSCAP; and
    (h) The use of alternative aviation fuels in fleet aircraft to the 
maximum extent possible consistent with the availability of approved 
alternative fuels and aircraft operating procedures or manuals for those 
aircraft.

                                Training



Sec. 102-33.175  What standards must we establish or require 
(contractually, where applicable) to train our flight program 
personnel?

    You must establish or require (contractually, where applicable) the 
following standards to train your flight program personnel--
    (a) An instructional program to train your flight program personnel, 
initially and on a recurrent basis, in their roles, responsibilities, 
authorities, and in the operational skills relevant to

[[Page 56]]

the types of operations that you conduct. Flight program personnel may 
include, e.g., managers, pilots and other crewmembers, flight safety 
personnel, maintenance personnel, administrative personnel and 
dispatchers; and
    (b) An instructional program that meets the specific requirements 
for safety manager training identified in Sec. 102-33.180(a).

                                 Safety



Sec. 102-33.180  What standards should we establish or require
(contractually, where applicable) for aviation safety management?

    You should establish or require (contractually, where applicable) 
the following aviation safety management standards:
    (a) By June 30, 2015, a Safety Management System (SMS) that complies 
with the FAA's current Advisory Circular that addresses Safety 
Management Systems (SMS) or an equivalent internationally recognized SMS 
standard. The SMS should include:
    (1) Policies that define clear roles and responsibilities for 
implementing an SMS. This includes ensuring that senior level management 
has the ultimate responsibility for your SMS. It also includes 
appointing members of management as qualified aviation safety managers 
and safety officers (i.e., individuals who are responsible for an 
agency's aviation safety program, regardless of title), who should be--
    (i) Experienced as pilots, crewmembers, maintenance personnel, or 
have experience in aviation management or aviation maintenance program 
management; and
    (ii) Graduated or certificated from an aviation safety officer 
course provided by a recognized training provider and authority in 
aviation safety before appointment or within one year after appointment; 
and
    (2) A program for preventing accidents, which includes--
    (i) Measurable accident prevention procedures (e.g., safety reviews, 
clear roles and responsibilities, operations and maintenance procedures, 
pilot and mechanic proficiency evaluations, fire drills, hazard 
analyses);
    (ii) A procedure or system for disseminating accident-prevention 
information;
    (iii) Safety training;
    (iv) An aviation safety awards program that includes applying for 
the annual Federal Aviation Awards as appropriate;
    (v) An annual review to ensure compliance with the GSA Gold Standard 
Program; and
    (vi) A safety council or committee (applies to Federal aircraft-
owning agencies);
    (b) Procedures and processes for risk analysis and risk management 
that identify and mitigate hazards through formal administrative and 
engineering controls and provide recommendations to senior level 
managers for managing risk to an optimum level;
    (c) Policies that require the use of independent, unbiased 
inspectors to verify compliance with the standards called for in this;
    (d) Procedures for reporting unsafe operations to agency aviation 
safety officers and senior aviation safety managers without reprisal;
    (e) A system to collect and report information on aircraft accidents 
and incidents (as required by 49 CFR part 830 and 41 CFR 102-33.445 and 
102-33.450);
    (f) Policies that identify clear standards for acceptable behavior; 
and
    (g) A security program that includes--
    (1) A designated security manager;
    (2) A threat assessment process;
    (3) Procedures for preventing and deterring unlawful acts;
    (4) Procedures for responding to threats and unlawful acts;
    (5) Security training for personnel; and
    (6) Policies and procedures for a mail security plan that meet the 
mail security requirements contained in FMR 102-192, ``Mail 
Management,'' Subpart C, ``Security Requirements for All Agencies,'' 
Sec. Sec. 102-192.70 through 102-192.80. Specifically, section 102-
192.80 identifies topics that must be addressed in an agency's mail 
security plan, to include a plan to protect staff

[[Page 57]]

and all other occupants of agency facilities from hazards that might be 
delivered in the mail, which would include an agency's use of aircraft 
for mail delivery.



Sec. 102-33.185  What standards must we establish or require
(contractually, where applicable) for responding to aircraft
accidents and incidents?

    You must establish or require (contractually, where applicable) the 
following standards for responding to aircraft accidents and incidents:
    (a) An aircraft accident/incident reporting policy to ensure that 
you will comply with the National Transportation Safety Board's (NTSB) 
regulations (located in 49 CFR parts 830 and 831), including notifying 
NTSB immediately when you have an aircraft accident or an incident as 
defined in 49 CFR 830.5. In addition, this policy must contain a method 
of notifying the U.S. General Services Administration of an accident or 
incident that was reported to the NTSB. Refer to Sec. Sec. 102-33.445 
and 102-33.450 for further information;
    (b) An agency, bureau, or field level accident/incident response 
plan, modeled on the NTSB's ``Federal Plan for Aviation Accidents 
Involving Aircraft Operated by or Chartered by Federal Agencies,'' and 
periodic disaster response exercises to test your plan. A copy of the 
NTSB's plan is available at http://www.ntsb.gov. The plan should also 
refer to or incorporate procedures (as outlined in FAA Advisory Circular 
120-92) to identify the potential for accidents or incidents;
    (c) Procedures (see 49 CFR 831.11) for participation as a party to 
NTSB accident or incident investigations involving aircraft that your 
agency either owns or hires, and for conducting parallel investigations, 
as appropriate;
    (d) Training in investigating accidents/incidents for your agency's 
personnel who may be asked to participate in NTSB investigations or to 
conduct a parallel investigation; and
    (e) Procedures for disseminating, in the event of an aviation 
disaster that involves one of your Government aircraft, information 
about eligibility for benefits contained in the disclosure statement in 
appendix A of this part to anyone injured, to the injured or deceased 
persons' points of contact (listed on the manifest), and to the families 
of injured or deceased crewmembers and qualified non-crewmembers.

    Note to Sec. 102-33.185: This part does not supersede any of the 
regulations in 49 CFR parts 830 and 831. For definitions of terms and 
complete regulatory guidance on notifying the NTSB and reporting 
aircraft accidents and incidents, see 49 CFR parts 830 and 831.

             Accounting for the Costs of Government Aircraft



Sec. 102-33.190  What are the aircraft operations and ownership
costs for which we must account?

    You must account for the operations and ownership costs of your 
Government aircraft, including your Unmanned Aircraft Systems (UAS), as 
described in the ``U.S. Government Aircraft Cost Accounting Guide'' 
(CAG), available at (http://www.gsa.gov/aviationpolicy), which follows 
OMB Circular A-126 (http://www.whitehouse.gov/omb). To account for 
aircraft costs, you must do at least the following:
    (a) Justify acquisitions to support the agency's aviation program;
    (b) Justify the use of Government aircraft in lieu of commercially 
available aircraft, and the use of one Government aircraft in lieu of 
another;
    (c) Develop a variable cost rate for each aircraft or aircraft type 
(i.e., make and model) in your inventory;
    (d) Recover the costs of operating Government aircraft;
    (e) Determine the cost effectiveness of various aspects of agency 
aircraft programs; and
    (f) Accumulate aircraft program costs following the procedures 
defined in the CAG, available at (http://www.gsa.gov/aviationpolicy).



Sec. 102-33.195  Do we need an automated system to account for 
aircraft costs?

    (a) Yes, if you own Federal aircraft or operate bailed aircraft, you 
must maintain an automated system to account for aircraft costs by 
collecting the cost data elements required by FAIRS. The functional 
specifications and data definitions for a FAIRS-compliant system are 
described in the ``Common Aviation Management Information Standard'' (C-
AMIS), which is

[[Page 58]]

available from the Aviation Policy Division. See Sec. Sec. 102-33.395, 
102-33.405, and 102-33.410 for more information on FAIRS, and Sec. Sec. 
102-33.455 and 102-33.460 for more information on C-AMIS.
    (b) Agencies that use only CAS aircraft and do not have Federal 
aircraft must keep records adequate for reporting information through 
FAIRS, but are not required to have an automated system. See Sec. Sec. 
102-33.435 and 102-33.440 for the information on CAS that you must 
report through FAIRS.



Sec. 102-33.200  Must we periodically justify owning and operating 
Federal aircraft?

    Yes, after you have held a Federal aircraft for five years, you 
must:
    (a) Justify owning and operating the aircraft by reviewing your 
operations and establishing that you have a continuing need for the 
aircraft, using the procedures required in OMB Circular A-76 and OMB 
Circular A-11, Part 7, Appendix B, Budgetary treatment of lease-
purchases and leases of capital assets; and
    (b) Review the continuing need for each of your aircraft and the 
cost-effectiveness of your aircraft operations as directed by OMB 
Circulars A-11 and A-76, every five years.



Sec. 102-33.205  When we use our aircraft to support other executive 
agencies, must we recover the operating costs?

    Yes, you must recover the following:
    (a) Under 31 U.S.C. 1535 and other statutes, you may be required to 
recover the costs of operating aircraft in support of other agencies. 
Depending on the statutory authorities under which you acquired and 
operate your aircraft, you will use either of the following two methods 
for establishing the rates charged for using your aircraft:
    (1) The variable cost recovery rate; or
    (2) The full cost recovery rate.
    (b) See the U.S. Government Aircraft Cost Accounting Guide (CAG) 
(http://www.gsa.gov/aviationpolicy), for the definitions of ``variable 
cost recovery rate'' and ``full cost recovery rate.''

              Accounting for the Use of Government Aircraft



Sec. 102-33.210  How do we account for the use of our Government
aircraft?

    To account for the use of Government aircraft, including your 
Unmanned Aircraft Systems (UAS), you must document all flights and keep 
this documentation for two years after the date of the flight. For each 
flight, record the--
    (a) Aircraft's registration mark;
    (b) Owner and operator (the owner may not be the operator, as is the 
case when a CAS aircraft, owned commercially, is operated by U.S. 
Government personnel);
    (c) Purpose of the flight (the Governmental function that the 
aircraft was dispatched to perform);
    (d) Departure and destination points;
    (e) Flight date(s) and times;
    (f) Manifest (see Sec. 102-33.165(g) and (h)); and
    (g) Name(s) of the pilot(s) and crewmembers.



Sec. 102-33.215  May we use Government aircraft to carry passengers?

    Yes, you may use Government aircraft to carry passengers with the 
following restrictions:
    (a) You may carry passengers only on aircraft that you operate or 
require contractually to be operated in accordance with the rules and 
requirements in 14 CFR; and
    (b) For certain kinds of travel, your agency must justify 
passengers' presence on Government aircraft. See OMB Circular A-126 and 
the Federal Travel Regulation (FTR) Sec. Sec. 301-10.260 through 301-
10.266, and 301-70.800 through 301-70.808, and 301-70.910 (41 CFR 301-
10.260 through 301-10.266, 301-70.800 through 301-70.808, and 301-
70.910) for complete information on authorizing travel and analyzing 
costs before authorizing travel on Government aircraft.



Sec. 102-33.220  What are the responsibilities of our aviation program
in justifying the use of a Government aircraft to transport passengers?

    After receiving a request from your agency, your aviation program's 
responsibilities in justifying the use of a

[[Page 59]]

Government aircraft to transport passengers are to your travel approving 
authority:
    (a) Cost estimates to assist in determining whether or not use of a 
Government aircraft to carry passengers is justified. See OMB Circular 
A-126 (http://www.whitehouse.gov/omb) for more information on justifying 
travel on Government aircraft. See also FTR Sec. Sec. 301-10.260 
through 301-10.266, and 301-70.800 through 301-70.808, and 301-70.910 
(41 CFR 301-10.260 through 301-10.266, 301-70.800 through 301-70.808, 
and 301-70.910) for guidance on estimating the cost of using a 
Government aircraft. The cost of using a Government aircraft is--
    (1) The variable cost of using a Federal aircraft;
    (2) The amount your agency will be charged by a CAS provider; or
    (3) The variable cost of using an aircraft owned by another agency 
as reported by the owning agency; and
    (b) Information to assist in the analysis of alternatives to travel 
on Government aircraft. The information must include the following:
    (1) If no follow-on trip is scheduled, all time required to position 
the aircraft to begin the trip and to return the aircraft to its normal 
base of operations;
    (2) If a follow-on trip requires repositioning, the cost for the 
repositioning should be charged to the associated follow-on trip;
    (3) If an aircraft supports a multi-leg trip (a series of flights 
scheduled sequentially), the use of the aircraft for the total trip may 
be justified by comparing the total variable cost of the entire trip to 
the commercial aircraft cost (including charter) for all legs of the 
trip; and
    (4) The use of foreign aircraft as CAS is authorized when the agency 
has determined that an equivalent level of safety exists as compared to 
U.S. operations of a like kind. The safety of passengers shall be the 
overriding consideration for the selection of travel mode when comparing 
foreign sources of scheduled commercial airlines and CAS.

                         Managing Aircraft Parts



Sec. 102-33.225  How must we manage aircraft parts?

    You must manage your aircraft parts by maintaining proper storage, 
protection, maintenance procedures, and records for the parts throughout 
their life cycles.



Sec. 102-33.230  May we use military FSCAP on non-military FAA-type
certificated Government aircraft?

    You may use dual-use military FSCAP on non-military aircraft 
operated under restricted or standard airworthiness certificates if the 
parts are inspected and approved for such installation by the FAA. See 
detailed guidance in FAA Advisory Circular 20-142, Change (1), 
``Eligibility and Evaluation of U.S. Military Surplus Flight Safety 
Critical Aircraft Parts, Engines, and Propellers'' (http://www.faa.gov).



Sec. 102-33.235  What documentation must we maintain for life-limited
parts and FSCAP?

    For life-limited parts and FSCAP, you must hold and update the 
documentation that accompanies these parts for as long as you use or 
store them. When you dispose of life-limited parts or FSCAP, the up-to-
date documentation must accompany the parts. (See Sec. 102-33.370.)



  Subpart D_Disposing or Replacing of Government Aircraft and Aircraft 
                                  Parts

                                Overview



Sec. 102-33.240  What must we consider before disposing or replacing
aircraft and aircraft parts?

    Before disposing of aircraft and aircraft parts, you must first 
determine if the aircraft or parts are excess to your agency's mission 
or, if your aircraft or parts are not excess, if you will need 
replacements, as follows:

[[Page 60]]



------------------------------------------------------------------------
(a) If your aircraft/parts are .
               . .                     And . . .          Then . . .
------------------------------------------------------------------------
No longer needed to perform       You do not need to  You must report
 their mission(s) for your         replace them,       them to GSA as
 agency, i.e., they are excess                         excess property
 to your needs,                                        (see 41 CFR 102-
                                                       36.45(e)).
------------------------------------------------------------------------
(b) If your aircraft/parts are .  And . . .           Then . . .
 . .
------------------------------------------------------------------------
No longer suitable, or capable    You do need to      You may consider
 of performing their mission(s)    replace them,       using the
 for your agency,                                      exchange/sale
                                                       authority (see 41
                                                       CFR part 102-39).
------------------------------------------------------------------------



Sec. 102-33.245  May we report as excess, or replace (i.e., by
exchange/sale), both operational and non-operational aircraft?

    Yes, you may report as excess, or replace both operational and non-
operational aircraft by following the rules governing excess personal 
property and exchange/sale (see 41 CFR parts 102-36 and 102-39, 
respectively).



Sec. 102-33.250  May we declassify aircraft?

    Yes, you may declassify aircraft (See Sec. Sec. 102-33.415 and 102-
33.420).
    (a) A declassified aircraft is no longer considered an aircraft, but 
may be considered as a group of aircraft parts or other property for 
ground use only.
    (b) You must retain documentation and traceability on all parts that 
are intended for use as replacement parts on other aircraft. You must 
carry such ``aircraft parts or other property'' on your property records 
under the appropriate Federal Supply Classification group(s) (e.g., 
miscellaneous property).
    (c) For disposal of the property remaining after declassification of 
an aircraft, you must follow the property disposal regulations in 41 CFR 
parts 102-36, 102-37, 102-38 and 102-39.



Sec. 102-33.255  Must we document FSCAP or life-limited parts 
installed on aircraft that we will report as excess or replace?

    Yes, you must comply with the documentation procedures described in 
Sec. 102-33.370 if your aircraft and/or engines contain FSCAP or life-
limited parts that you will report as excess or replace.



Sec. 102-33.260  When we report as excess, or replace, an aircraft
(including a declassified aircraft), must we report the change in 
inventory to the Federal Aviation Interactive Reporting System (FAIRS)?

    (a) Yes. When you report as excess or replace an aircraft you must 
report the change in inventory to FAIRS. For more information see Sec. 
102-33.405.
    (b) Within 14 calendar days of the date you dispose of the aircraft, 
you must report--
    (1) The disposal method (e.g., reassignment, inter-agency transfer, 
donation, sale as surplus or scrap, declassification, or exchange/sale);
    (2) The disposal date; and
    (3) The identity and type of recipient (e.g., State, educational 
institution, executive agency, commercial vendor).

                    Reporting Excess Federal Aircraft



Sec. 102-33.265  What must we do with aircraft that are excess
to our needs?

    If aircraft are excess to your needs, you must:
    (a) Reassign the aircraft within your agency if any of your sub-
agencies can use the aircraft; or
    (b) Report the aircraft as excess property to GSA (see 41 CFR part 
102-36) if none of your sub-agencies can use the aircraft.



Sec. 102-33.270  What is the process for reporting an excess aircraft?

    To report an excess aircraft, you must:
    (a) Report electronically to GSA's Federal Disposal System 
GSAXcess (http://gsaxcess.gov). For information on reporting 
excess property electronically, contact the Federal Acquisition Service 
(FAS), Pacific Rim Region (Region 9) at (415) 522-2777; and
    (b) Submit a Standard Form (SF) 120, Report of Excess Personal 
Property

[[Page 61]]

(see Sec. 102-2.135), to: General Services Administration, Federal 
Acquisition Service, Pacific Rim Region, 450 Golden Gate Avenue, 4th 
Floor West, San Francisco, CA, 94102-3434.

                Replacing Aircraft Through Exchange/Sale



Sec. 102-33.275  What should we consider before replacing our aircraft
through exchange/sale?

    Before an exchange/sale of your aircraft, you should consider 
whether:
    (a) You have a continuing need for similar property and that the 
property being exchanged or sold is not excess or surplus; and
    (b) The exchange/sale meets all other requirements in 41 CFR part 
102-39.



Sec. 102-33.280  What are our options if we need a replacement aircraft?

    If you need to replace an aircraft, your options are--
    (a) Negotiating and conducting an exchange transaction directly with 
an aircraft provider and obtaining credit toward the purchase of a 
replacement aircraft, following the procurement rules applicable to your 
agency; or
    (b) Selling the aircraft and using the proceeds to offset the cost 
of purchasing a replacement aircraft, following 41 CFR part 102-39. 
Sales Centers (SC) that are currently authorized to conduct sales, as 
well as contact information for the GovSales Program Manager, are 
available on the GovSales Web site at http://www.gsa.gov/portal/content/
105020.



Sec. 102-33.285  Do we need to include any special disclaimers in
our exchange/sale agreements for non-certificated aircraft or aircraft
that we have operated as public aircraft (i.e., not in compliance 
with 14 CFR)?

    Yes, when you exchange/sell non-certificated aircraft or aircraft 
maintained as public aircraft, you must ensure that the exchange/sale 
offerings contain the following statement:
    ``Warning to purchasers/recipients. The aircraft you are purchasing 
or receiving in an exchange may not be in compliance with applicable 
Federal Aviation Administration (FAA) requirements. You are solely 
responsible for bringing the aircraft into compliance with 14 CFR 
Chapter I, or other applicable standards, by obtaining all necessary FAA 
inspections or modifications.
    The purchaser/recipient agrees that the Government shall not be held 
liable for personal injuries to, disabilities of, or death of the 
purchaser/recipient, the purchaser's/recipient's employees, or to any 
other persons arising from or incident to the purchase of this aircraft, 
its use, or disposition. You will hold the Government harmless from any 
or all debts, liabilities, judgments, costs, demands, suits, actions, or 
claims of any nature arising from or incident to the purchase, use, or 
resale of this item. This aircraft may have been operated outside the 
limitations of 14 CFR Chapter I, and some type of inspection may be 
needed to determine its airworthiness prior to being flown. You should 
be aware of the items below prior to operating this aircraft.
      All civil and public aircraft must have a valid 
registration issued by the FAA as required by 14 CFR Chapter I.
      Civil aircraft must have a valid airworthiness certificate 
in order to operate in the U.S. airspace.
      In order for the aircraft to be eligible for a standard 
airworthiness certificate, the aircraft must conform to its FAA Type 
Certificate.
      Aircraft not having a valid airworthiness certificate may 
be eligible for a special FAA one-time flight permit to enable 
relocating the aircraft. Relocation can be for a number of reasons, 
including storage, repair, inspection, or public display. Any one-time 
flight approval is predicated on the aircraft being safe for flight.
      Individuals who purchase a surplus military (foreign or 
domestic) or foreign aircraft not having any type of FAA Type 
Certificate may be unable to obtain any type of airworthiness 
certificate or special flight permit.
      An aircraft with good maintenance and inspection records 
makes an airworthiness determination easier to ascertain. It is in your 
best interest to contact the nearest FAA Flight Standards District 
Office and discuss your responsibilities with respect to gaining an 
airworthiness determination. The location of your nearest FAA office

[[Page 62]]

may be obtained from the FAA's Web site (http://www.faa.gov/).
      When the aircraft is purchased for spare parts and the 
airframe is scrapped, you should declassify the aircraft (see Sec. 102-
33.420 for more information), complete the back of the aircraft's 
registration form and send it to: The FAA Aircraft Registration Branch, 
P.O. Box 25504, Oklahoma City, OK 73125-0504.''



Sec. 102-33.295  May we exchange/sell an aircraft through reimbursable
transfer to another executive agency or conduct a negotiated sale at 
fixed price to a  State Agency for Surplus Property (SASP)?

    Yes, you may exchange/sell an aircraft through reimbursable transfer 
to another executive agency or conduct a negotiated sale at fixed price 
to a State Agency for Surplus Property (SASP) (see Sec. 102-39.55 for 
more information).

    Note to Sec. 102-33.295: Some agencies may also have special 
congressional authorization to recover costs.

                       Disposing of Aircraft Parts



Sec. 102-33.300  What must we consider before disposing of aircraft
parts?

    Before disposing of aircraft parts, you must first determine if they 
are excess to your agency's mission requirements or, if the aircraft 
parts are not excess, if you will need replacements. The table in Sec. 
102-33.240 shows the differences between excess and replacement parts.



Sec. 102-33.305  May we report as excess, or replace, FSCAP and life-
limited parts?

    Yes, you may report as excess, or replace, FSCAP and life-limited 
parts, but they require special handling. See the tables in Sec. 102-
33.370.



Sec. 102-33.310  May we report as excess, or replace, unsalvageable 
aircraft parts?

    No, you may not report unsalvageable aircraft parts as excess or 
exchange/sale them for replacements. You must mutilate unsalvageable 
parts. You may sell the mutilated parts only as scrap or report that 
scrap to GSA for sale.



Sec. 102-33.315  What are the procedures for mutilating unsalvageable 
aircraft parts?

    When mutilating unsalvageable aircraft parts, you must--
    (a) Destroy the data plates, remove the serial/lot/part numbers, and 
cut, crush, grind, melt, burn, or use other means to prevent the parts 
from being misidentified or used as serviceable aircraft parts. Call 
your regional FAA Flight Standards District Office for additional 
guidance;
    (b) Ensure that an authorized official of your agency witnesses and 
documents the mutilation; and
    (c) Retain a signed certification and statement of mutilation.



Sec. 102-33.320  What must we do if we are unable to perform required
mutilation of aircraft parts?

    If you are unable to perform the required mutilation of aircraft 
parts, you must turn the parts in to a Federal or Federally-approved 
facility for mutilation and proper disposition. Ensure that any 
contractor follows the provisions of Sec. 102-33.315 for mutilating and 
disposing of the parts.



Sec. 102-33.325  What documentation must we furnish with excess,
surplus or replaced parts when they are transferred, donated, or
exchanged/sold?

    When you transfer, donate, or exchange/sell excess, surplus or 
replaced parts, you must--
    (a) Furnish all applicable labels, tags, and historical and 
modification records for serviceable aircraft parts;
    (b) Mark mutilated parts as unsalvageable (mutilated parts may be 
sold only for scrap; see Sec. 102-33.315); and
    (c) Ensure that all available tags, labels, applicable historical 
data, life-histories, and maintenance records accompany FSCAP and life-
limited parts and that FSCAP criticality codes (see Sec. 102-33.375) 
are perpetuated on documentation (see Sec. 102-33.330 for additional 
requirements).

                     Reporting Excess Aircraft Parts



Sec. 102-33.330  What must we do with aircraft parts that are excess
to our needs?

    If aircraft parts are excess to your needs, you must:

[[Page 63]]

    (a) Reassign the aircraft parts within your agency if any of your 
sub-agencies can use the parts; or
    (b) Report the excess parts to GSA, using Standard Form (SF) 120, 
``Report of Excess Personal Property'' (see Sec. 102-2.135 for 
information to obtain this form). When reporting excess FSCAP, you must 
include the manufacturer's name, date of manufacture, part number, 
serial number, and the appropriate Criticality Code on the SF 120. For 
information on reporting excess property, refer to http://gsaxcess.gov. 
(See 41 CFR part 102-36 regarding disposal of excess property.)



Sec. 102-33.335  What are the receiving agency's responsibilities in 
the transfer of aircraft parts?

    An agency that receives transferred aircraft parts must:
    (a) Verify that all applicable labels and tags and historical and 
modification records accompany all serviceable aircraft parts (i.e., 
parts that are intended for flight use) that you receive. This 
requirement does not apply to parts for ground use only. See the tables 
in Sec. 102-33.370.
    (b) Mutilate all transferred parts that you discover to be 
unsalvageable, and dispose of them properly, following the procedures in 
Sec. 102-33.315.



Sec. 102-33.340  What are GSA's responsibilities in disposing of
excess and surplus aircraft parts?

    In disposing of excess aircraft parts, the GSA FAS office in your 
region:
    (a) Reviews your SF 120, Report of Excess Personal Property (see 
Sec. 102-2.135 for information to obtain this form) for completeness 
and accuracy (of status, condition, and FSCAP and demilitarization codes 
if applicable); and
    (b) Ensures that the following certification is included on disposal 
documents (e.g., transfer orders or purchasers' receipts):
    Because of the critical nature of the failure of aircraft parts and 
the resulting potential safety threat, recipients of aircraft parts must 
ensure that any parts installed on an aircraft meet applicable Federal 
Aviation Administration (FAA) requirements and must obtain required 
certifications. GSA makes no representation as to a part's conformance 
with the FAA requirements.



Sec. 102-33.345  What are the responsibilities of a State Agency for
Surplus Property (SASP) in the donation of Federal Government aircraft
parts?

    When a SASP accepts surplus Federal Government aircraft parts for 
donation, the SASP must:
    (a) Review donation and transfer documents for completeness and 
accuracy, and ensure that the certification in Sec. 102-33.340 is 
included;
    (b) Ensure that when the donee determines the part to be 
unsalvageable, the donee mutilates the part following the procedures in 
Sec. 102-33.315; and
    (c) Ensure that the donee retains, maintains, and perpetuates all 
documentation for serviceable parts (parts intended for flight use).

             Replacing Aircraft Parts Through Exchange/Sale



Sec. 102-33.350  What do we need to consider for an exchange/sale of
our aircraft parts?

    (a) When replacing aircraft parts through exchange/sale you--
    (1) Do not need approval from GSA; and
    (2) Must follow the provisions of this subpart and part 102-39 of 
this chapter.
    (b) Replacement parts do not have to be for the same type or design 
of aircraft, but you must use the exchange allowance or sales proceeds 
to purchase aircraft parts to support your aviation program which meet 
the ``similarity'' requirement in 41 CFR part 102-39.



Sec. 102-33.355  May we exchange/sell aircraft parts through a
reimbursable transfer to another executive agency or conduct a
negotiated sale at fixed price to  a State Agency for Surplus
Property (SASP)?

    Yes, you may exchange/sell aircraft parts through a reimbursable 
transfer to another executive agency, or conduct a negotiated sale at 
fixed price to a SASP (see Sec. 102-39.55 for more information).

[[Page 64]]



Sec. 102-33.360  What is the process for exchanging/selling aircraft 
parts for replacement?

    (a) You or your agent (i.e., another Federal agency or an authorized 
Sales Center) may transact an exchange/sale directly with a non-Federal 
source, or do a reimbursable transfer with another executive agency as 
long as you or your agent--
    (1) Follow the provisions in this part and in 41 CFR part 102-39;
    (2) Ensure that the applicable labels and tags, historical data and 
modification records accompany the parts at the time of sale, and that 
sales offerings on aircraft parts contain the following statement:
    ``Warning to purchasers/recipients. The aircraft parts you are 
purchasing or receiving in an exchange may not be in compliance with 
applicable Federal Aviation Administration (FAA) requirements. You are 
solely responsible for bringing the aircraft into compliance with 14 CFR 
Chapter I, or other applicable standards, by obtaining all necessary FAA 
inspections or modifications.''
    (3) Ensure that the following certification is signed by the 
purchaser/recipient and received by the Government before releasing 
parts to the purchaser/recipient:
    ``The purchaser/recipient agrees that the Government shall not be 
held liable for personal injuries to, disabilities of, or death of the 
purchaser/recipient, the purchaser's/recipient's employees, or to any 
other persons arising from or incident to the purchase of these aircraft 
parts, their use, or disposition. The purchaser/recipient shall hold the 
Government harmless from any or all debts, liabilities, judgments, 
costs, demands, suits, actions, or claims of any nature arising from or 
incident to the purchase, use, or resale of these aircraft parts.
    These parts may have been used on aircraft that were operated 
outside the limitations of 14 CFR Chapter I, and some type of inspection 
may be needed to determine their airworthiness prior to being used on a 
recipient aircraft.
    You should be aware of the following requirements prior to operating 
an aircraft with parts received from an exchange.
      All civil and public aircraft must have a valid 
registration issued by the FAA as required by 14 CFR Chapter I.
      Civil aircraft must have a valid airworthiness certificate 
in order to operate in U.S. airspace.
      In order for the aircraft to be eligible for a standard 
airworthiness certificate, the aircraft must conform to its FAA Type 
Certificate.
      Aircraft not having a valid airworthiness certificate may 
be eligible for a special FAA one-time flight permit to enable 
relocating the aircraft. Relocation can be for a number of reasons, 
perhaps including storage, repair, inspection, or public display. Any 
one-time flight approval is predicated on the aircraft being safe for 
flight.
      Individuals who purchase a surplus military (foreign or 
domestic) or foreign aircraft not having any type of FAA Type 
Certificate may be unable to obtain any type of airworthiness 
certificate or special flight permit.
      An aircraft with good maintenance and inspection records 
makes an airworthiness determination easier to ascertain. It is in your 
best interest to contact the nearest FAA Flight Standards District 
Office and discuss your responsibilities with respect to gaining an 
airworthiness determination. The location of your nearest FAA office may 
be obtained from the FAA's Web site (http://www.faa.gov/).''
    (b) Authorized SCs can conduct sales of aircraft parts for you. SCs 
that are currently authorized to conduct sales, as well as contact 
information for the GovSales Program Manager, are available on the 
GovSales Web site at http://www.gsa.gov/portal/content/105020.



Sec. 102-33.365  Must we report exchange/sale of parts to FAIRS?

    No, you don't have to report exchange/sale of parts to FAIRS. 
However, you must report the transactions to GSA as part of your 
agency's annual report (see 41 CFR part 102-39 Subpart C--Exchange/Sale 
Methods and Reports).

[[Page 65]]

 Special Requirements for Disposing of Flight Safety Critical Aircraft 
                  Parts (FSCAP) and Life-Limited Parts



Sec. 102-33.370  What must we do to dispose of military FSCAP and/or
life-limited parts?

    To dispose of military FSCAP and/or life-limited parts, you must use 
the following tables:
    (a) Table 1 for disposing of uninstalled FSCAP and/or life-limited 
parts follows:

                      Table 1 for Disposing of Uninstalled FSCAP and/or Life-Limited Parts
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
(1) If an Uninstalled FSCAP (i.e., not
 installed in an aircraft or engine)--
    (i) Is documented--                   Then.......................  (A) You may exchange/sale it or transfer
                                                                        it to another executive agency under 41
                                                                        CFR parts 102-36 and 102-39;
                                                                       (B) GSA may donate it for flight use
                                                                        under 41 CFR part 102-37 of this
                                                                        subchapter; or
                                                                       (C) GSA may donate it for ground use
                                                                        only, after you mutilate and mark it,
                                                                        ``FSCAP--NOT AIRWORTHY'' (the State
                                                                        Agency for Surplus Property must certify
                                                                        that the part has been mutilated and
                                                                        marked before donation).
    (ii) Is undocumented, but traceable   Then.......................  (A) You may exchange/sell it only to the
     to its original equipment                                          OEM or PAH under 41 CFR part 102-39;
     manufacturer (OEM) or production                                  (B) GSA may transfer or donate it for
     approval holder (PAH)--                                            flight use, but only by making it a
                                                                        condition of the transfer or donation
                                                                        agreement that the recipient will have
                                                                        the part inspected, repaired, and
                                                                        certified by the OEM or PAH before
                                                                        putting it into service (Note: You must
                                                                        mark parts individually to ensure that
                                                                        the recipient is aware of the part's
                                                                        service status); or
                                                                       (C) GSA may donate it for ground use
                                                                        only, after you mutilate and mark it,
                                                                        ``FSCAP--NOT AIRWORTHY'' (the State
                                                                        Agency for Surplus Property must certify
                                                                        that the part has been mutilated and
                                                                        marked before donation).
    (iii) Is undocumented and             Then.......................  (A) GSA may transfer or donate it for
     untraceable, you must mutilate it,                                 ground use only, after you mark it,
     and--                                                              ``FSCAP--NOT AIRWORTHY'' (the State
                                                                        Agency for Surplus Property must certify
                                                                        that the part has been mutilated and
                                                                        marked before donation); or
                                                                       (B) You may sell it only for scrap under
                                                                        Sec. Sec. 102-33.310 and 102-33.315.
(2) If an uninstalled life-limited part
 (i.e., not installed in an aircraft or
 engine)--
    (i) Is documented with service life   Then.......................  (A) You may exchange/sale it or transfer
     remaining--                                                        it to another executive agency under 41
                                                                        CFR parts 102-36 and 102-39;
                                                                       (B) GSA may donate it for flight use
                                                                        under 41 CFR part 102-37; or
                                                                       (C) GSA may donate it for ground use
                                                                        only, after you mutilate and mark it,
                                                                        ``EXPIRED LIFE-LIMITED--NOT AIRWORTHY''
                                                                        (the State Agency for Surplus Property
                                                                        must certify that the part has been
                                                                        mutilated and marked before donation).
    (ii) Is documented with no service    But........................  (A) GSA may transfer or donate it for
     life remaining, or undocumented,                                   ground use only, after you mutilate and
     GSA may not transfer it to another                                 mark it, ``EXPIRED LIFE-LIMITED--NOT
     executive agency for flight use--                                  AIRWORTHY'' (the State Agency for
                                                                        Surplus Property must certify that the
                                                                        part has been mutilated and marked
                                                                        before donation); or
                                                                       (B) You must mutilate it and may sell it
                                                                        only for scrap.
----------------------------------------------------------------------------------------------------------------

    (b) Table 2 for disposing of installed FSCAP and/or life-limited 
parts follows:

[[Page 66]]



                       Table 2 for Disposing of Installed FSCAP and/or Life-Limited Parts
----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
(1) If a FSCAP and/or life-limited part
 is installed in an aircraft or an
 engine, and it--
    (i) Is documented with service life   Then.......................  (A) You may exchange/sale the aircraft or
     remaining--                                                        engine, or GSA may transfer the aircraft
                                                                        or engine to another executive agency
                                                                        under 41 CFR parts 102-36 and 102-39;
                                                                       (B) GSA may donate the aircraft or engine
                                                                        for flight use or ground use.
    (ii) Is documented with no service    Then.......................  (A) You must remove and mutilate the part
     life remaining--                                                   before you exchange/sale the aircraft or
                                                                        engine (see rules for disposing of
                                                                        uninstalled life-limited parts in Table
                                                                        1 of this section). (Note: If an
                                                                        aircraft or engine is exchanged/sold to
                                                                        its OEM or PAH, you do not have to
                                                                        remove the expired life-limited part);
                                                                       (B) You must remove and mutilate the part
                                                                        before GSA may transfer or donate the
                                                                        aircraft or engine for flight use (see
                                                                        the rules for disposing of uninstalled
                                                                        FSCAP in Table 1 of this section).
                                                                        (Note: An internal engine part may be
                                                                        left installed, if you identify the part
                                                                        individually to ensure that the
                                                                        receiving agency is aware of the part's
                                                                        service status and, as a condition of
                                                                        the transfer or donation agreement, the
                                                                        receiving agency agrees to remove and
                                                                        mutilate the part before the engine is
                                                                        put into service. You must certify
                                                                        mutilation for transfers, and the State
                                                                        Agency for Surplus Property must certify
                                                                        that the part has been mutilated for
                                                                        donations); or
                                                                       (C) GSA may donate the aircraft or engine
                                                                        for ground use only, after you remove
                                                                        the part, mutilate and mark it ``EXPIRED
                                                                        LIFE-LIMITED--NOT AIRWORTHY.'' (Note: An
                                                                        internal engine part may be left
                                                                        installed, if, as a condition of the
                                                                        donation agreement, the receiving agency
                                                                        agrees to remove and mutilate the part
                                                                        and mark it, and the State Agency for
                                                                        Surplus Property must certify that the
                                                                        part has been mutilated and marked).
----------------------------------------------------------------------------------------------------------------



Sec. 102-33.375  What is a FSCAP Criticality Code?

    (a) A FSCAP Criticality Code is a code assigned by DOD to indicate 
the type of FSCAP: Code ``F'' indicates a standard FSCAP; Code ``E'' 
indicates a nuclear-hardened FSCAP.
    (b) You must perpetuate a FSCAP Criticality Code on all property 
records and reports of excess. If the code is not annotated on the 
transfer document that you received when you acquired the part, you may 
contact the appropriate military service or query DOD's Federal 
Logistics Information System (FLIS) using the National Stock Number 
(NSN) or the part number (see http://www.dlis.dla.mil/webflis). For 
assistance in subscribing to the FLIS service, contact the WebFLIS 
Consumer Support Office, 1-877-352-2255.



         Subpart E_Reporting Information on Government Aircraft

                                Overview



Sec. 102-33.380  Who must report information to GSA on Government
aircraft?

    You must report information to GSA on Government aircraft if your 
agency--
    (a) Is an executive agency of the United States Government; and
    (b) Owns, bails, borrows, loans, leases, rents, charters, or 
contracts for (or obtains by ISSA) Government aircraft.



Sec. 102-33.385  What Federally-funded aviation activities of executive
agencies are exempt from the requirement to report information to GSA
on Government aircraft?

    The following Federally-funded activities are exempt from the 
requirement to report information to GSA on Government aircraft:
    (a) The Armed Forces (which includes the U.S. Coast Guard); and
    (b) Agencies in the Intelligence Community.



Sec. 102-33.390  What information must we report on Government
aircraft?

    You must report the following information to GSA (for information 
regarding how to report this information, see: https://gsa.inl.gov/
fairs/):
    (a) Inventory data on Federal aircraft, including your Unmanned 
Aircraft Systems (UAS), through FAIRS;
    (b) Cost and utilization data on Federal aircraft, including your 
Unmanned Aircraft Systems (UAS), through FAIRS;

[[Page 67]]

    (c) Cost and utilization data on CAS aircraft and related aviation 
services (see definition of ``Government aircraft'' for more on CAS), 
through FAIRS;
    (d) Accident and incident data (see Sec. 102-33.445); and
    (e) The results of standard competition studies in compliance with 
OMB Circular A-76 to justify purchasing, leasing, modernizing, 
replacing, or otherwise acquiring aircraft and related aviation 
services.

          Federal Aviation Interactive Reporting System (FAIRS)



Sec. 102-33.395  What is FAIRS?

    FAIRS is a management information system operated by GSA to collect, 
maintain, analyze, and report information on Federal aircraft 
inventories and cost and usage of Federal aircraft and CAS aircraft (and 
related aviation services). Users access FAIRS through a highly-secure 
Web site. The U.S. Government Aircraft Cost Accounting Guide (CAG) (see 
http://www.gsa.gov/aviationpolicy) contains the business rules for using 
the system.



Sec. 102-33.400  How must we report to FAIRS?

    You must report to FAIRS electronically through a secure Web 
interface to the FAIRS application on the Internet. For additional 
information see https://gsa.inl.gov/fairs/.



Sec. 102-33.405  When must we report to FAIRS?

    (a) You must report any changes in your Federal aircraft inventory 
within 14 calendar days of those changes.
    (b) You must report cost and utilization data to FAIRS at the end of 
every quarter of the fiscal year (December 31, March 31, June 30, and 
September 30). However, you may submit your information to FAIRS on a 
daily, weekly, or monthly basis. To provide enough time to calculate 
your cost and utilization data, you may report any one quarter's cost 
and utilization in the following quarter, as follows:

------------------------------------------------------------------------
                 Quarter                              Submit
------------------------------------------------------------------------
QTR 1--October 1-December 31............  Federal inventory for QTR 1.
                                          Federal cost and utilization
                                           for previous QTR 4.
                                          CAS cost and utilization for
                                           previous QTR 4.
QTR 2--January 1-March 31...............  Federal inventory for QTR 2.
                                          Federal cost and utilization
                                           for QTR 1.
                                          CAS cost and utilization for
                                           QTR 1.
QTR 3--April 1-June 30..................  Federal inventory for QTR 3.
                                          Federal cost and utilization
                                           for QTR 2.
                                          CAS cost and utilization for
                                           QTR 2.
QTR 4--July 1-September 30..............  Federal inventory for QTR 4.
                                          Federal cost and utilization
                                           for QTR 3.
                                          CAS cost and utilization for
                                           QTR 3.
------------------------------------------------------------------------

                         Federal Inventory Data



Sec. 102-33.410  What are Federal inventory data?

    Federal inventory data includes:
    (a) Information on each of the operational and non-operational 
Federal aircraft that you own, bail, borrow, or loan; and
    (b) UAS as described in Sec. 102-33.20.



Sec. 102-33.415  When may we declassify a Federal aircraft and remove 
it from our Federal aircraft inventory?

    When an aircraft is lost or destroyed, or is otherwise non-
operational and you want to retain it, you may declassify it and remove 
it from your Federal aircraft inventory. For further details, see 
Sec. Sec. 102-33.250 and 102-33.420. See Sec. Sec. 102-33.265 and 102-
33.270 for reporting excess Federal aircraft.



Sec. 102-33.420  How must we declassify a Federal aircraft?

    To declassify a Federal aircraft, you must--
    (a) Send a letter to the Deputy Associate Administrator, Office of 
Asset and Transportation Management, Office of Government-wide Policy, 
General Services Administration, 1800 F

[[Page 68]]

St. NW., Washington, DC 20405, that requests approval to declassify the 
aircraft and states that the aircraft is non-operational (which includes 
lost or destroyed). In this letter you must--
    (1) Identify the Federal Supply Classification (FSC) group(s) that 
the declassified aircraft/parts will fall under, if applicable;
    (2) Describe the condition of the aircraft (crash-damaged, 
unrecoverable, parts unavailable, etc.); and
    (3) Include photographs as appropriate.
    (b) Within 14 calendar days of receiving GSA's approval to 
declassify the aircraft, following 14 CFR 45.13, request approval from 
your local FAA Flight Standards District Office (FSDO) to remove the 
manufacturer's data plate;
    (c) Within 14 calendar days of receiving approval from FAA to remove 
the data plate, inform GSA of FAA's approval, send the data plate by 
courier or registered mail to the FAA, as directed by your FSDO, and 
remove the certificate of airworthiness and the aircraft's registration 
form from the aircraft, complete the reverse side of the registration 
form, and send both documents to The FAA Aircraft Registration Branch, 
P.O. Box 25504, Oklahoma City, OK 73125-0504; and
    (d) Update the FAIRS inventory record to reflect disposal status and 
update your personal property records, deleting the declassified 
aircraft from the aircraft category and adding it to another Federal 
Supply Classification group or groups, as appropriate.

               Federal Aircraft Cost and Utilization Data



Sec. 102-33.425  What Federal aircraft cost and utilization data
must we report?

    You must report certain costs for each of your Federal aircraft 
(including your UAS) and the number of hours that you flew each 
aircraft. In reporting the costs of your Federal aircraft, you must 
report both the amounts you paid as Federal costs, which are for 
services the Government provides, and the amounts you paid for 
commercial aviation services (CAS) in support of your Federal aviation 
program. For a list and definitions of the Federal aircraft cost and 
utilization data elements, see the U.S. Government Aircraft Cost 
Accounting Guide (CAG), which is available at http://www.gsa.gov/
aviationpolicy.



Sec. 102-33.430  Who must report Federal aircraft cost and utilization
data?

    (a) Executive agencies, except the Armed Forces and agencies in the 
Intelligence Community, must report Federal cost and utilization data on 
all Federal aircraft; and
    (b) Agencies should report Federal cost and utilization data for 
loaned aircraft only if Federal money was expended on the aircraft.

      Commercial Aviation Services (CAS) Cost and Utilization Data



Sec. 102-33.435  What CAS cost and utilization data must we report?

    You must report:
    (a) The costs and flying hours for each CAS aircraft you hire;
    (b) The costs and contractual periods for related aviation services 
that you hire (by contract or through an Inter-service support agreement 
(ISSA)).

    Note to Sec. 102-33.435: You should not report related aviation 
services that you hire commercially in support of Federal aircraft. 
``Federal'' aircraft are by definition owned aircraft. The agency that 
owns the aircraft is responsible for capturing all cost and utilization 
data and is required to report this data in GSA's FAIRS. See the U.S. 
Government Aircraft Cost Accounting Guide (CAG), which is available from 
GSA at http://www.gsa.gov/aviationpolicy.



Sec. 102-33.440  Who must report CAS cost and utilization data?

    Executive agencies, except the Armed Forces and agencies in the 
Intelligence Community, must report CAS cost and utilization data. You 
must report CAS cost and utilization data if your agency makes payments 
to--
    (a) Charter or rent aircraft;
    (b) Lease or lease-purchase aircraft;
    (c) Hire aircraft and related services through an ISSA or a full 
service contract; or
    (d) Obtain related aviation services through an ISSA or by contract 
except when you use the services in support of Federal aircraft (see the 
Note at Sec. 102-33.435).

[[Page 69]]

                       Accident and Incident Data



Sec. 102-33.445  What accident and incident data must we report?

    You must report within 14 calendar days to GSA, Aviation Policy 
Division, 1800 F St. NW., Washington, DC 20405, all aviation accidents 
and incidents that your agency is required to report to the NTSB. You 
may also report other incident information. GSA and the ICAP will use 
the collected accident/incident information in conjunction with FAIRS' 
data, such as flying hours and missions, to calculate aviation safety 
statistics for the Federal aviation community and to share safety 
lessons-learned.



Sec. 102-33.450  How must we report accident and incident data?

    You must report accident and incident data to GSA at http://
www.gsa.gov/aviationpolicy or call GSA's Aviation Policy Division and 
report the accident or incident telephonically.

        Common Aviation Management Information Standard (C-AMIS)



Sec. 102-33.455  What is C-AMIS?

    The Common Aviation Management Information Standard (C-AMIS) is a 
guide to assist agencies in developing or modernizing their internal 
aviation management information systems. C-AMIS includes standard 
specifications and data definitions related to Federal aviation 
operations. C-AMIS is jointly written by the ICAP and GSA and available 
from GSA's Aviation Policy Division.



Sec. 102-33.460  What is our responsibility in relation to C-AMIS?

    If you use a management information system to provide data to FAIRS 
by batch upload, you are responsible for ensuring that your system is C-
AMIS-compliant (see Sec. 102-33.195). For more information on 
compliance with C-AMIS, contact GSA's Aviation Policy Division at (202) 
208-0519 or (202) 997-7274.

                         Performance Indicators



Sec. 102-33.465  What is a performance indicator?

    In addition to the definition in Sec. 102-33.20, a performance 
indicator provides information (either qualitative or quantitative) on 
the extent to which the actual outcome of a policy, program, or 
initiative achieves the planned outcome.



Sec. 102-33.470  Must we develop performance indicators?

    Yes, your agency must develop performance indicators in order to 
measure the degree to which key aviation program objectives are 
achieved. It is suggested that your performance indicators:
    (a) Measure the contribution of the aviation program toward the 
accomplishment of the agency's mission;
    (b) Support and justify aviation program budget requests; and
    (c) Demonstrate the effectiveness and efficiency of the aviation 
program's performance.



Sec. 102-33.475  What are some examples of performance indicators that
an agency can use?

    Examples of performance indicators include, but are not limited to, 
a percentage increase or decrease:
    (a) Of operations scheduling effectiveness;
    (b) Of repeat system discrepancies over a specific period of time;
    (c) In logistical response time for returned parts processing over a 
specified period of time;
    (d) In lost man-hours due to personnel injuries;
    (e) In aircraft turn-around time;
    (f) In fuel expenditures for a given mission, location, or type/
model/series of aircraft;
    (g) In aircraft availability or non-availability rates;
    (h) In full-mission-capable aircraft over a specific time period;
    (i) In non-airworthy maintenance;
    (j) In maintenance costs per flying hour; or
    (k) In variable cost per passenger mile.

[[Page 70]]



Sec. Appendix A to Part 102-33--Disclosure Statement for Crewmembers and 
 Qualified Non-Crewmembers Flying on Board Government Aircraft Operated 
                           as Public Aircraft

    Generally, an aircraft used exclusively for the U.S. Government may 
be considered a ``public aircraft'' as defined by Public Law 106-181 and 
14 CFR Chapter I, provided it is not a Government-owned aircraft 
transporting passengers or operating for commercial purposes. A public 
aircraft is not subject to many Federal Aviation Regulations, including 
requirements relating to aircraft certification, maintenance, and pilot 
certification. If the aircraft does not qualify as a ``public 
aircraft'', then it is a civil aircraft and must comply with all Federal 
Aviation Regulations applicable to civil aircraft. If you have any 
questions concerning whether a particular flight will be a public 
aircraft operation or a civil aircraft operation, you should contact the 
agency sponsor of that flight.

                           Rights and Benefits

    You have certain rights and benefits in the unlikely event you are 
injured or killed while working aboard a Government-owned or operated 
aircraft. Federal employees and some private citizens are eligible for 
workers' compensation benefits under the Federal Employees' Compensation 
Act (FECA). When FECA applies, it is the sole remedy. For more 
information about FECA and its coverage, consult with your agency's 
benefits office or contact the Branch of Technical Assistance at the 
Department of Labor's Office of Workers' Compensation Programs.

                          State or Foreign Laws

    State or foreign laws may provide for product liability or ``third 
party'' causes of actions for personal injury or wrongful death. If you 
have questions about a particular case or believe you have a claim, you 
should consult with an attorney.

                           Insurance Policies

    Some insurance policies may exclude coverage for injuries or death 
sustained while working or traveling aboard a Government or military 
aircraft or while within a combat area. You may wish to check your 
policy or consult with your insurance provider before your flight. The 
insurance available to Federal employees through the Federal Employees 
Group Life Insurance Program does not contain an exclusion of this type.

                              Victim Rights

    If you are the victim of an air disaster resulting from criminal 
activity, Victim and Witness Specialists from the Federal Bureau of 
Investigation (FBI) and/or the local U.S. Attorney's Office will keep 
you or your family informed about the status of the criminal 
investigation(s) and provide you or your family with information about 
rights and services, such as crisis intervention, counseling and 
emotional support. State crime victim compensation may be able to cover 
crime-related expenses, such as medical costs, mental health counseling, 
funeral and burial costs, and lost wages or loss of support. The Office 
for Victims of Crime (an agency of the Department of Justice) and the 
U.S. Attorneys Office are authorized by the Antiterrorism Act of 1996 to 
provide emergency financial assistance to State programs for the benefit 
of victims of terrorist acts or mass violence.

                            Federal Employee

    If you are injured or killed on the job during the performance of 
duty, including while traveling or working aboard a Government aircraft 
or other Government-owned or operated conveyance for official Government 
business purposes, you and your family are eligible to collect workers' 
compensation benefits under FECA. You and your family may not file a 
personal injury or wrongful death suit against the United States or its 
employees. However, you may have cause of action against potentially 
liable third parties.

                              Family Member

    You or your qualifying family member must normally also choose 
between FECA disability or death benefits, and those payable under your 
retirement system (either the Civil Service Retirement System or the 
Federal Employees Retirement System). You may choose the benefit that is 
more favorable to you.

                             Private Citizen

    Even if the Federal Government does not regularly employ you, if you 
are rendering personal service to the Federal Government on a voluntary 
basis or for nominal pay, you may be defined as a Federal employee for 
purposes of FECA. If that is the case, you and your family are eligible 
to receive workers' compensation benefits under FECA, but may not 
collect in a personal injury or wrongful death lawsuit against the 
United States or its employees. You and your family may file suit 
against potentially liable third parties. Before you board a Government 
aircraft, you may wish to consult with the department or agency 
sponsoring the flight to clarify whether you are considered a Federal 
employee.
    If the agency determines that you are not a ``Federal employee,'' 
you and your family

[[Page 71]]

will not be eligible to receive workers' compensation benefits under 
FECA. If you are onboard the aircraft for purposes of official 
Government business, you may be eligible for workers' compensation 
benefits under state law. If an accident occurs within the United 
States, or its territories, its airspace, or over the high seas, you and 
your family may claim against the United States under the Federal Tort 
Claims Act or Suits in Admiralty Act. If you are killed aboard a 
military aircraft, your family may be eligible to receive compensation 
under the Military Claims Act, or if you are an inhabitant of a foreign 
country, under the Foreign Claims Act.

    Note to appendix A to part 102-33: This disclosure statement is not 
all-inclusive. You should contact your agency's personnel office, or if 
you are a private citizen, your agency sponsor or point-of-contact for 
further assistance.



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



                      Subpart A_General Provisions

Sec.
102-34.5 What does this part cover?
102-34.10 What are the governing authorities for this part?
102-34.15 Who must comply with these provisions?
102-34.20 What motor vehicles are not covered by this part?
102-34.25 To whom do ``we'', ``you'', and their variants refer?
102-34.30 How do we request a deviation from the provisions of this 
          part?

                               Definitions

102-34.35 What definitions apply to this part?

            Subpart B_Obtaining Fuel Efficient Motor Vehicles

102-34.40 Who must comply with motor vehicle fuel efficiency 
          requirements?
102-34.45 How are passenger automobiles classified?
102-34.50 What size motor vehicles may we obtain?
102-34.55 Are there fleet average fuel economy standards we must meet?
102-34.60 How do we calculate the average fuel economy for Government 
          motor vehicles?
102-34.65 How may we request an exemption from the fuel economy 
          standards?
102-34.70 What do we do with completed calculations of our fleet vehicle 
          acquisitions?
102-34.75 Who is responsible for monitoring our compliance with fuel 
          economy standards for motor vehicles we obtain?
102-34.80 Where may we obtain help with our motor vehicle acquisition 
          plans?

          Subpart C_Identifying and Registering Motor Vehicles

                      Motor Vehicle Identification

102-34.85 What motor vehicles require motor vehicle identification?
102-34.90 What motor vehicle identification must we display on 
          Government motor vehicles?
102-34.95 What motor vehicle identification must the Department of 
          Defense (DOD) display on motor vehicles it owns, or leases 
          commercially?
102-34.100 Where is motor vehicle identification displayed?
102-34.105 Before we sell a motor vehicle, what motor vehicle 
          identification must we remove?

                             License Plates

102-34.110 Must Government motor vehicles use Government license plates?
102-34.115 Can official U.S. Government license plates be used on motor 
          vehicles not owned or leased by the Government?
102-34.120 Do we need to register Government motor vehicles?
102-34.125 Where may we obtain U.S. Government license plates?
102-34.130 How do we display U.S. Government license plates on 
          Government motor vehicles?
102-34.135 What do we do about a lost or stolen license plate?
102-34.140 What records do we need to keep on U.S. Government license 
          plates?
102-34.145 How are U.S. Government license plates coded?
102-34.150 How can we get a new license plate code designation?

                        Identification Exemptions

102-34.155 What are the types of motor vehicle identification 
          exemptions?
102-34.160 May we have a limited exemption from displaying U.S. 
          Government license plates and other motor vehicle 
          identification?
102-34.165 What information must the limited exemption certification 
          contain?
102-34.170 For how long is a limited exemption valid?
102-34.175 What motor vehicles have an unlimited exemption from 
          displaying U.S. Government license plates and motor vehicle 
          identification?
102-34.180 What agencies have a special exemption from displaying U.S. 
          Government license plates and motor vehicle identification on 
          some of their vehicles?

[[Page 72]]

102-34.185 What license plates do we use on motor vehicles that are 
          exempt from motor vehicle identification requirements?
102-34.190 What special requirements apply to exempted motor vehicles 
          using District of Columbia or State license plates?
102-34.195 Must we submit a report concerning motor vehicles exempted 
          under this subpart?

           Subpart D_Official Use of Government Motor Vehicles

102-34.200 What is official use of Government motor vehicles?
102-34.205 May I use a Government motor vehicle for transportation 
          between my residence and place of employment?
102-34.210 May I use a Government motor vehicle for transportation 
          between places of employment and mass transit facilities?
102-34.215 May Government contractors use Government motor vehicles?
102-34.220 What does GSA do if it learns of unofficial use of a 
          Government motor vehicle?
102-34.225 How are Federal employees disciplined for misuse of 
          Government motor vehicles?
102-34.230 How am I responsible for protecting Government motor 
          vehicles?
102-34.235 Am I bound by State and local traffic laws?
102-34.240 Who pays for parking fees?
102-34.245 Who pays for parking fines?
102-34.250 Do Federal employees in Government motor vehicles have to use 
          all safety devices and follow all safety guidelines?

                 Subpart E_Replacement of Motor Vehicles

102-34.255 What are motor vehicle replacement standards?
102-34.260 May we replace a Government-owned motor vehicle sooner?
102-34.265 May we keep a Government-owned motor vehicle even though the 
          standard permits replacement?
102-34.270 How long must we keep a Government-owned motor vehicle?

            Subpart F_Scheduled Maintenance of Motor Vehicles

102-34.275 What kind of maintenance programs must we have?
102-34.280 What State inspections must we have for Government motor 
          vehicles?
102-34.285 Where can we obtain help in setting up a maintenance program?

                 Subpart G_Motor Vehicle Crash Reporting

102-34.290 What forms do I use to report a crash involving a domestic 
          fleet motor vehicle?
102-34.295 To whom do we send crash reports?

                  Subpart H_Disposal of Motor Vehicles

102-34.300 How do we dispose of a domestic fleet motor vehicle?
102-34.305 What forms do we use to transfer ownership when selling a 
          motor vehicle?
102-34.310 How do we distribute the completed Standard Form 97?

                     Subpart I_Motor Vehicle Fueling

102-34.315 How do we obtain fuel for Government motor vehicles?
102-34.320 What Government-issued charge cards may I use to purchase 
          fuel and motor vehicle related services?
102-34.325 What type of fuel do I use in Government motor vehicles?

                     Subpart J_Federal Fleet Report

102-34.330 What is the Federal Fleet Report?
102-34.335 How do I submit information to the General Services 
          Administration (GSA) for the Federal Fleet Report (FFR)?
102-34.340 Do we need a fleet management information system?
102-34.345 What records do we need to keep?

                             Subpart K_Forms

102-34.350 How do we obtain the forms prescribed in this part?

    Authority: 40 U.S.C. 121(c); 40 U.S.C. 17503; 31 U.S.C. 1344; 49 
U.S.C. 32917; E.O. 12375.

    Source: 74 FR 11871, Mar. 20, 2009, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 102-34.5  What does this part cover?

    This part governs the economical and efficient management and 
control of motor vehicles that the Government owns, leases commercially 
or leases through GSA Fleet. 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.

[[Page 73]]



Sec. 102-34.10  What are the governing authorities for this part?

    The authorities for the regulations in this part are 40 U.S.C. 
121(c), 40 U.S.C. 17503, 31 U.S.C. 1344, 49 U.S.C. 32917, and E.O. 
12375.



Sec. 102-34.15  Who must comply with these provisions?

    All executive agencies must comply with the provisions of this part. 
The legislative and judicial branches are encouraged to follow these 
provisions.



Sec. 102-34.20  What motor vehicles are not covered by this part?

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



Sec. 102-34.25  To whom do ``we'', ``you'', and their variants refer?

    Unless otherwise indicated, use of pronouns ``we'', ``you'', and 
their variants throughout this part refer to you as an executive agency, 
as your agency's fleet manager, or as a motor vehicle user or operator, 
as appropriate.



Sec. 102-34.30  How do we request a deviation from the provisions of 
this part?

    Refer to Sec. Sec. 102-2.60 through 102-2.110 of this chapter for 
information on how to obtain a deviation from this part.

                               Definitions



Sec. 102-34.35  What definitions apply to this part?

    The following definitions apply to this part:
    Commercial design motor vehicle means a motor vehicle procurable 
from regular production lines and designed for use by the general 
public.
    Commercial lease or lease commercially means obtaining a motor 
vehicle by contract or other arrangement from a commercial source for 
120 continuous days or more. (Procedures for purchasing and leasing 
motor vehicles through GSA can be found in 41 CFR subpart 101-26.5).
    Domestic fleet means all reportable motor vehicles operated in any 
State, Commonwealth, territory or possession of the United States, and 
the District of Columbia.
    Foreign fleet means all reportable motor vehicles operated in areas 
outside any State, Commonwealth, territory or possession of the United 
States, and the District of Columbia.
    Government motor vehicle means any motor vehicle that the Government 
owns or leases. This includes motor vehicles obtained through purchase, 
excess, forfeiture, commercial lease, or GSA Fleet lease.
    Government-owned motor vehicle means any motor vehicle that the 
Government has obtained through purchase, excess, forfeiture, or 
otherwise and for which the Government holds title.
    GSA Fleet lease means obtaining a motor vehicle from the General 
Services Administration Fleet (GSA Fleet).
    Law enforcement motor vehicle means a light duty motor vehicle 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;''

[[Page 74]]

    (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; or
    (4) A forfeited 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 
commercial design motor vehicles) designed according to military 
specifications to directly support 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. 102-34.20).
    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 readily 
identifying the department, agency, establishment, corporation, or 
service by which the motor vehicle is used.
    Motor vehicle markings (see definition of ``Motor vehicle 
identification'' in this section).
    Motor vehicle purchase means buying a motor vehicle from a 
commercial source, usually a motor vehicle manufacturer or a motor 
vehicle manufacturer's dealership. (Procedures for purchasing and 
leasing motor vehicles through GSA can be found in 41 CFR subpart 101-
26.5.)
    Motor vehicle rental means obtaining a motor vehicle by contract or 
other arrangement from a commercial source for less than 120 continuous 
days.
    Motor vehicles transferred from excess means obtaining a motor 
vehicle reported as excess and transferred with or without cost.
    Owning agency means the executive agency that holds the vehicle 
title, manufacturer's Certificate of Origin, or is the lessee of a 
commercial 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 any Government motor vehicles used by 
an executive agency or activity, including those used by contractors. 
Also included are motor vehicles designed or acquired for a specific or 
unique purpose, including motor vehicles that serve as a platform or 
conveyance for special equipment, such as a trailer. Excluded are 
material handling equipment and construction equipment not designed and 
used primarily for highway operation (e.g., if it must be trailered or 
towed to be transported).
    Using agency means an executive agency that obtains motor vehicles 
from the GSA Fleet, commercial firms or another executive agency and 
does not hold the vehicle title or manufacturer's Certificate of Origin. 
However, this does not include an executive agency that obtains a motor 
vehicle by motor vehicle rental.

[74 FR 11871, Mar. 20, 2009, as amended at 76 FR 76623, Dec. 8, 2011]



            Subpart B_Obtaining Fuel Efficient Motor Vehicles



Sec. 102-34.40  Who must comply with motor vehicle fuel efficiency
requirements?

    (a) Executive agencies operating domestic fleets must comply with 
motor vehicle fuel efficiency requirements for such fleets.
    (b) This subpart does not apply to motor vehicles exempted by law or 
other regulations, such as law enforcement or emergency rescue work and 
foreign fleets. Other Federal agencies are encouraged to comply so that 
maximum energy conservation benefits may be realized in obtaining, 
operating, and managing Government motor vehicles.

[[Page 75]]



Sec. 102-34.45  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.
III.............................  III...............  Midsize.
IV..............................  IV................  Large.
V...............................  Limousine.........
------------------------------------------------------------------------



Sec. 102-34.50  What size motor vehicles may we obtain?

    (a) You may only obtain the minimum size of motor vehicle necessary 
to fulfill your agency's mission in accordance with the following 
considerations:
    (1) You must obtain motor vehicles that achieve maximum fuel 
efficiency.
    (2) Limit motor vehicle body size, engine size and optional 
equipment to what is essential to meet your agency's mission.
    (3) With the exception of motor vehicles used by the President and 
Vice President and motor vehicles for security and highly essential 
needs, you must obtain midsize (class III) or smaller sedans.
    (4) Obtain large (class IV) sedans only when such motor vehicles are 
essential to your agency's mission.
    (b) Agencies must establish and document a structured vehicle 
allocation methodology to determine the appropriate size and number of 
motor vehicles (see FMR Bulletin B-9, located at http://www.gsa.gov/
bulletin, for guidance).



Sec. 102-34.55  Are there fleet average fuel economy standards we
must meet?

    (a) Yes. 49 U.S.C. 32917 and Executive Order 12375 require that each 
executive agency meet the fleet average fuel economy standards in place 
as of January 1 of each fiscal year. The standards for passenger 
automobiles are prescribed in 49 U.S.C. 32902(b). The Department of 
Transportation publishes the standards for light trucks and amendments 
to the standards for passenger automobiles at http://www.dot.gov.
    (b) These standards do not apply to military design motor vehicles, 
law enforcement motor vehicles, or motor vehicles intended for emergency 
rescue.



Sec. 102-34.60  How do we calculate the average fuel economy for 
Government motor vehicles?

    You must calculate the average fuel economy for Government motor 
vehicles as follows:
    (a) Because there are so many motor vehicle configurations, you must 
take an average of all light duty motor vehicles by category that your 
agency obtained and operated during the fiscal year.
    (b) This calculation is the sum of such light duty motor vehicles 
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. The unadjusted city/
highway mile-per-gallon ratings for each make and model are published by 
the Environmental Protection Agency (EPA) for each model year and 
published at http://www.fueleconomy.gov.
    (c) 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 76]]

[GRAPHIC] [TIFF OMITTED] TR20MR09.000

    (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?

    You must submit a written request for an exemption from the fuel 
economy standards to: Administrator, General Services Administration, 
ATTN: Deputy Associate Administrator, Office of Travel, Transportation 
and Asset Management (MT), Washington, DC 20405.
    (a) Your request for an exemption must include all relevant 
information necessary to permit review of the request that the vehicles 
be exempted based on energy conservation, economy, efficiency, or 
service. Exemptions may be sought for individual vehicles or categories 
of vehicles.
    (b) GSA will review the request and advise you of the determination 
within 30 days of receipt. Light duty motor vehicles exempted under the 
provisions of this section must not be included in calculating your 
fleet average fuel economy.



Sec. 102-34.70  What do we do with completed calculations of our
fleet vehicle acquisitions?

    You must maintain the average fuel economy data for each year's 
vehicle acquisitions on file at your agency headquarters in accordance 
with the National Archives and Records Administration, General Records 
Schedule 10, Motor Vehicle and Aircraft Maintenance and Operations 
Records, Item 4, Motor Vehicle Report Files. Exemption requests and 
their disposition must also be maintained with the average fuel economy 
files.



Sec. 102-34.75  Who is responsible for monitoring our compliance with
fuel economy standards for motor vehicles we obtain?

    Executive agencies are responsible for monitoring their own 
compliance with fuel economy standards for motor vehicles they obtain.



Sec. 102-34.80  Where may we obtain help with our motor vehicle 
acquisition plans?

    For help with your motor vehicle acquisition plans, contact the: 
General Services Administration, ATTN: MT, Washington, DC 20405. E-mail: 
[email protected]



          Subpart C_Identifying and Registering Motor Vehicles

                      Motor Vehicle Identification



Sec. 102-34.85  What motor vehicles require motor vehicle 
identification?

    All Government motor vehicles must display motor vehicle 
identification unless exempted under Sec. 102-34.160, Sec. 102-34.175 
or Sec. 102-34.180.



Sec. 102-34.90  What motor vehicle identification must we display 
on Government motor vehicles?

    Unless exempted under Sec. 102-34.160, Sec. 102-34.175 or Sec. 
102-34.180, Government motor vehicles must display the following 
identification:
    (a) ``For Official Use Only'';
    (b) ``U.S. Government''; and
    (c) Identification that readily identifies the agency owning the 
vehicle.

[[Page 77]]



Sec. 102-34.95  What motor vehicle identification must the Department
of Defense (DOD) display on motor vehicles it owns or leases 
commercially?

    Unless exempted under Sec. 102-34.160, Sec. 102-34.175 or Sec. 
102-34.180, the following must appear on motor vehicles that the DOD 
owns or leases commercially:
    (a) ``For Official Use Only''; and
    (b) An appropriate title for the DOD component responsible for the 
vehicle.



Sec. 102-34.100  Where is motor vehicle identification displayed?

    Motor vehicle identification is displayed as follows:
    (a) For most Government motor vehicles, preferably on the official 
U.S. Government license plate. Some Government motor vehicles may 
display motor vehicle identification on a decal in the rear window, or 
centered on both front doors if the vehicle is without a rear window, or 
where identification on the rear window would not be easily seen.
    (b) For trailers, on both sides of the front quarter of the trailer 
in a conspicuous location.

    Note to Sec. 102-34.100: Each agency or activity that uses decals 
to identify Government motor vehicles is responsible for acquiring its 
own decals and for replacing them when necessary due to damage or wear.



Sec. 102-34.105  Before we sell a motor vehicle, what motor vehicle
identification must we remove?

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

                             License Plates



Sec. 102-34.110  Must Government motor vehicles use Government
license plates?

    Yes, you must use Government license plates on Government motor 
vehicles, with the exception of motor vehicles exempted under Sec. 102-
34.160, Sec. 102-34.175 or Sec. 102-34.180.



Sec. 102-34.115  Can official U.S. Government license plates be used
on motor vehicles not owned or leased by the Government?

    No, official U.S. Government license plates may only be used on 
Government motor vehicles.



Sec. 102-34.120  Do we need to register Government motor vehicles?

    If the Government motor vehicle displays U.S. Government license 
plates and motor vehicle identification, you do not need to register it 
in the jurisdiction where the vehicle is operated, however, you must 
register it in the Federal Government Motor Vehicle Registration System. 
GSA Fleet may register motor vehicles leased from GSA Fleet. Motor 
vehicles that have been exempted from the requirement to display 
official U.S. Government license plates under section Sec. 102-34.160, 
Sec. 102-34.175 or Sec. 102-34.180 must be registered and inspected in 
accordance with the laws of the jurisdiction where the motor vehicle is 
regularly operated.



Sec. 102-34.125  Where may we obtain U.S. Government license plates?

    You may obtain U.S. Government license plates for domestic fleets--
    (a) By contacting: U.S. Department of Justice, UNICOR, Federal 
Prison Industries, Inc., 400 First Street, NW., Room 6010, Washington, 
DC 20534.
    (b) For assistance with any issues involving license plates, contact 
the following office: General Services Administration, ATTN: MT, 
Washington, DC 20405. E-mail: [email protected]

    Note to Sec. 102-34.125: GSA has established a Memorandum of 
Understanding (MOU) on behalf of all Federal agencies with Federal 
Prison Industries (UNICOR) for the procurement of official U.S. 
Government license plates. Each agency must execute an addendum to this 
MOU providing plate design and specific ordering and payment information 
before ordering license plates. Agency field activities should contact 
their national level Agency Fleet Manager for assistance.



Sec. 102-34.130  How do we display U.S. Government license plates
on Government motor vehicles?

    (a) Display official U.S. Government license plates on the front and 
rear of all Government motor vehicles. The exception is two-wheeled 
motor vehicles and trailers, which require rear license plates only.
    (b) You must display U.S. Government license plates on the 
Government motor vehicle to which the license plates were assigned.

[[Page 78]]

    (c) Display the U.S. Government license plates until the Government 
motor vehicle is removed from Government service or is transferred 
outside the agency, or until the plates are damaged and require 
replacement. U.S. Government license plates shall only be used for one 
Government motor vehicle and shall not be reissued to another Government 
motor vehicle.
    (d) For motor vehicles owned or commercially leased by DOD, also 
follow DOD regulations.



Sec. 102-34.135  What do we do about a lost or stolen license plate?

    You must report the loss or theft of license plates as follows:
    (a) U.S. Government license plates. Report to your local security 
office (or equivalent), local police, to GSA Fleet when a GSA Fleet 
leased motor vehicle is involved, and to the Federal Government Motor 
Vehicle Registration System.
    (b) District of Columbia or State license plates. Report to your 
local security office (or equivalent) and either the District of 
Columbia Department of Transportation, or the State Department of Motor 
Vehicles, as appropriate.



Sec. 102-34.140  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 Government motor vehicles. The GSA Fleet must also keep such a 
record for GSA Fleet vehicles. The record must:
    (a) Identify the motor vehicle to which each set of plates is 
assigned; and
    (b) List lost, stolen, destroyed, and voided license plate numbers.



Sec. 102-34.145  How are U.S. Government license plates coded?

    U.S. Government license plate numbers will be preceded by a letter 
code that designates the owning agency for the motor vehicle. The agency 
letter codes are listed in GSA Bulletin FMR Bulletin B-11. (FMR 
bulletins are located at http://www.gsa.gov/bulletin.)



Sec. 102-34.150  How can we get a new license plate code designation?

    To obtain a new license plate code designation, write to the: 
General Services Administration, ATTN: MT, Washington, DC 20405. E-mail: 
[email protected]

                        Identification Exemptions



Sec. 102-34.155  What are the types of motor vehicle identification
exemptions?

    The types of motor vehicle identification exemptions are:
    (a) Limited exemption.
    (b) Unlimited exemption.
    (c) Special exemption.



Sec. 102-34.160  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-
34.165). For motor vehicles leased from the GSA Fleet, send an 
information copy of this certification to the: General Services 
Administration, ATTN: GSA Fleet (QMDB), 2200 Crystal Drive, Arlington, 
VA 22202.



Sec. 102-34.165  What information must the limited exemption 
certification contain?

    The certification must state that identifying the motor vehicle 
would endanger the security of the vehicle occupants or otherwise 
compromise the agency mission.



Sec. 102-34.170  For how long is a limited exemption valid?

    An exemption granted in accordance with Sec. 102-34.160 may last 
from one day up to 3 years. If the requirement for exemption still 
exists beyond 3 years, 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: GSA 
Fleet (QMDB), 2200 Crystal Drive, Arlington, VA 22202.

[[Page 79]]



Sec. 102-34.175  What motor vehicles have an unlimited exemption
from displaying U.S. Government license plates and motor vehicle
identification?

    Motor vehicles used primarily for investigative, law enforcement, 
intelligence, or security duties have an unlimited exemption from 
displaying U.S. Government license plates and motor vehicle 
identification when identifying these motor vehicles would interfere 
with those duties.



Sec. 102-34.180  What agencies have a special exemption from 
displaying U.S. Government license plates and motor vehicle
identification on some of their vehicles?

    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.



Sec. 102-34.185  What license plates do we use on motor vehicles that
are exempt from motor vehicle identification requirements?

    For motor vehicles that are exempt from motor vehicle identification 
requirements, 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 
(see Sec. 102-34.120).



Sec. 102-34.190  What special requirements apply to exempted motor 
vehicles using District of Columbia or State license plates?

    Your agency head must designate an official to authorize the 
District of Columbia (DC) or State motor vehicle department to issue DC 
license plates or State license plates for motor vehicles exempt from 
displaying U.S. Government license plates and motor vehicle 
identification. The agency head must provide the name and signature of 
that official to the DC Department of Transportation annually, or to the 
equivalent State vehicle motor vehicle department, as required. Agencies 
must pay DC and the States for these license plates in accordance with 
DC or State policy. Also, for motor vehicles leased from the GSA Fleet, 
send a list of the new plates to: General Services Administration, ATTN: 
GSA Fleet (QMDB), 2200 Crystal Drive, Arlington, VA 22202.



Sec. 102-34.195  Must we submit a report concerning motor vehicles
exempted under this subpart?

    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: MT, Washington, DC 20405. E-mail: [email protected]



           Subpart D_Official Use of Government Motor Vehicles



Sec. 102-34.200  What is official use of Government motor vehicles?

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



Sec. 102-34.205  May I use a Government motor vehicle 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 part 102-5 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. 102-34.210  May I use a Government motor vehicle for 
transportation between places of employment and mass transit
facilities?

    Yes, you may use a Government motor vehicle for transportation 
between places of employment and mass transit facilities under the 
following conditions:
    (a) The head of your agency must make a determination in writing, 
valid for one year, that such use is appropriate and consistent with 
sound budget policy, and the determination must be kept on file;
    (b) There is no safe and reliable commercial or duplicative Federal 
mass

[[Page 80]]

transportation service that serves the same route on a regular basis;
    (c) This transportation is made available, space provided, to other 
Federal employees;
    (d) Alternative fuel vehicles should be used to the maximum extent 
practicable;
    (e) This transportation should be provided in a manner that does not 
result in any additional gross income for Federal income tax purposes; 
and
    (f) Motor vehicle ridership levels must be frequently monitored to 
ensure cost/benefit of providing and maintaining this transportation.



Sec. 102-34.215  May Government contractors use Government motor 
vehicles?

    Yes, Government contractors may use Government motor vehicles when 
authorized in accordance with the Federal Acquisition Regulation (FAR), 
GSA Fleet procedures, and the following conditions:
    (a) Government motor vehicles are used for official purposes only 
and solely in the performance of the contract;
    (b) Government motor vehicles cannot be used for transportation 
between residence and place of employment, unless authorized in 
accordance with 31 U.S.C. 1344 and part 102-5 of this chapter; and
    (c) Contractors must:
    (1) Establish and enforce suitable penalties against employees who 
use, or authorize the use of, Government 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 Government motor vehicles other than in the performance of the 
contract.



Sec. 102-34.220  What does GSA do if it learns of unofficial use 
of a Government motor vehicle?

    GSA reports the matter to the head of your agency. The 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. 102-34.225  How are Federal employees disciplined for misuse 
of Government motor vehicles?

    If an employee willfully uses, or authorizes the use of, a 
Government 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. 102-34.230  How am I responsible for protecting Government motor
vehicles?

    When a Government motor vehicle is under your control, you must:
    (a) Park or store the Government motor vehicle in a manner that 
reasonably protects it from theft or damage; and
    (b) Lock the unattended Government 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. 102-34.235  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. 102-34.240  Who pays for parking fees?

    You must pay parking fees while operating a Government motor 
vehicle. However, you can expect to be reimbursed for parking fees 
incurred while performing official duties.



Sec. 102-34.245  Who pays for parking fines?

    If you are fined for a parking violation while operating a 
Government motor vehicle, you are responsible for paying the fine and 
will not be reimbursed.

[[Page 81]]



Sec. 102-34.250  Do Federal employees in Government motor vehicles 
have to use all safety devices and follow all safety guidelines?

    Yes, Federal employees in Government motor vehicles have to use all 
provided safety devices including safety belts and follow all 
appropriate motor vehicle manufacturer safety guidelines.



                 Subpart E_Replacement of Motor Vehicles



Sec. 102-34.255  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. 102-34.270).



Sec. 102-34.260  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. 102-34.265  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 keep a Government-owned motor vehicle longer than shown in Sec. 
102-34.270 if the motor vehicle can be operated without excessive 
maintenance costs or substantial reduction in resale value.



Sec. 102-34.270  How long must we keep a Government-owned motor vehicle?

    You must keep a Government-owned motor vehicle for at least the 
years or miles shown in the following table, unless it is no longer 
needed and declared excess:

                 Table of Minimum Replacement Standards
------------------------------------------------------------------------
           Motor vehicle type                Years \1\     Or miles \1\
------------------------------------------------------------------------
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
------------------------------------------------------------------------
\1\ Minimum standards are stated in both years and miles; use whichever
  occurs first.



            Subpart F_Scheduled Maintenance of Motor Vehicles



Sec. 102-34.275  What kind of maintenance programs must we have?

    You must have a scheduled maintenance program for each motor vehicle 
you own or lease commercially. This requirement applies to domestic 
fleets, and is recommended for foreign fleets. The GSA Fleet will 
develop maintenance programs for GSA Fleet vehicles. The scheduled 
maintenance program must:
    (a) Meet Federal and State emissions and safety 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. 102-34.280  What State inspections must we have for Government 
motor vehicles?

    You must have the following State inspections for Government motor 
vehicles:
    (a) Federally-mandated emissions inspections when required by the 
relevant State motor vehicle administration or State environmental 
department. Your agency must pay for these inspections if the fee is not 
waived. GSA Fleet will pay the cost of these inspections for motor 
vehicles leased from GSA Fleet; or

[[Page 82]]

    (b) For motor vehicles that display license plates issued by a 
State, Commonwealth, territory, or possession of the United States, 
motor vehicle safety inspections required by the relevant motor vehicle 
administration. Your agency must pay for these inspections unless the 
fee is waived. Payment for these inspections for motor vehicles leased 
from GSA Fleet is the responsibility of the using agency. Government 
motor vehicles that display official U.S. Government license plates do 
not require motor vehicle safety inspections.



Sec. 102-34.285  Where can we obtain help in setting up a maintenance
program?

    For help in setting up a maintenance program, contact the: General 
Services Administration, Attn: Motor Vehicle Policy, Washington, DC 
20405. E-mail: [email protected]



                 Subpart G_Motor Vehicle Crash Reporting



Sec. 102-34.290  What forms do I use to report a crash involving a 
domestic fleet motor vehicle?

    Use the following forms to report a domestic fleet crash. The forms 
should be carried in any domestic fleet motor vehicle.
    (a) Standard Form (SF) 91, Motor Vehicle Accident Report. The motor 
vehicle operator should complete this form at the time and scene of the 
crash if possible, even if damage to the motor vehicle is not 
noticeable.
    (b) SF 94, Statement of Witness. This form should be completed by 
any witness to the crash.



Sec. 102-34.295  To whom do we send crash reports?

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



                  Subpart H_Disposal of Motor Vehicles



Sec. 102-34.300  How do we dispose of a domestic fleet motor vehicle?

    After meeting the replacement standards under subpart E of this 
part, you may dispose of a Government-owned domestic fleet motor 
vehicle. Detailed instructions for the transfer of an excess motor 
vehicle to another Federal agency can be found in part 102-36 of this 
subchapter B, information for the donation of surplus of motor vehicles 
can be found in part 102-37 of this subchapter B, information for the 
sale of motor vehicles can be found in part 102-38 of this subchapter B, 
and information on exchange/sale authority can be found in part 102-39 
of this subchapter B.



Sec. 102-34.305  What forms do we use to transfer ownership when 
selling a motor vehicle?

    Use the following forms to transfer ownership:
    (a) SF 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. 102-34.305(a)(2):
    Do not use SF 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 and motor vehicles that are damaged beyond repair in 
crashes and intended to be sold as salvage only. Instead, use an 
appropriate bill of sale or award document. Examples are Optional Form 
16, Sales Slip--Sale of Government Personal Property, and SF 114C, Sale 
of Government Property-Bid and Award.

    (b) SF 97 is optional for foreign fleet motor vehicles because 
foreign governments may require the use of other forms.

    Note to Sec. 102-34.305: The original SF 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.

[[Page 83]]



Sec. 102-34.310  How do we distribute the completed Standard Form 97?

    SF 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; and
    (d) One copy under owning agency directives.



                     Subpart I_Motor Vehicle Fueling



Sec. 102-34.315  How do we obtain fuel for Government motor vehicles?

    You may obtain fuel for Government motor vehicles by using:
    (a) A Government-issued charge card;
    (b) A Government agency fueling facility; or
    (c) Personal funds and obtaining reimbursement from your agency, if 
permitted by your agency. You must use the method prescribed by GSA 
Fleet to obtain fuel for vehicles leased from GSA fleet.



Sec. 102-34.320  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 
may be deducted from fuel purchases by the fleet charge card services 
contractor before your agency is billed; otherwise you may need to 
request reimbursement from each State to which taxes were paid. 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: GSA SmartPay  
(QMB), 2200 Crystal Drive, Arlington, VA 22202.
    (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.

    Note to Sec. 102-34.320: OMB Circular A-123, Appendix B, contains 
additional specific guidance on the management, issuance, and usage of 
Government charge cards. The Appendix B guidance consolidates and 
updates current Governmentwide charge card program requirements and 
guidance issued by the Office of Management and Budget, GSA, Department 
of the Treasury, and other Federal agencies. Appendix B provides a 
single document to incorporate changes, new guidance, or amendments to 
existing guidance, and establishes minimum requirements and suggested 
best practices for Government charge card programs that may be 
supplemented by individual agency policy procedures.



Sec. 102-34.325  What type of fuel do I use in Government motor
vehicles?

    (a) Use the minimum grade (octane rating) of fuel recommended by the 
motor vehicle manufacturer when fueling Government motor vehicles, 
unless a higher grade of fuel is all that is available locally.
    (b) Use unleaded gasoline in all foreign fleet motor vehicles 
designed to operate on gasoline 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.
    (c) You must use alternative fuels in alternative fuel motor 
vehicles to the fullest extent possible as directed by regulations 
issued by the Department of Energy implementing the Energy Policy Act 
and related Executive Orders.



                     Subpart J_Federal Fleet Report



Sec. 102-34.330  What is the Federal Fleet Report?

    The Federal Fleet Report (FFR) is an annual summary of Federal fleet 
statistics based upon fleet composition at the end of each fiscal year 
and vehicle use and cost during the fiscal year. The FFR is compiled by 
GSA from information submitted by Federal agencies.

[[Page 84]]

The FFR is designed to provide essential statistical data for worldwide 
Federal motor vehicle fleet operations. Review of the report assists 
Government agencies, including GSA, in evaluating the effectiveness of 
the operation and management of individual fleets to determine whether 
vehicles are being utilized properly and to identify high cost areas 
where fleet expenses can be reduced. The FFR is posted on GSA's Motor 
Vehicle Management Policy Internet Web site (http://www.gsa.gov/
vehiclepolicy).



Sec. 102-34.335  How do I submit information to the General Services 
Administration (GSA) for the Federal Fleet Report (FFR)?

    (a) Annually, agencies must submit to GSA the information needed to 
produce the FFR through the Federal Automotive Statistical Tool (FAST), 
an Internet-based reporting tool. To find out how to submit motor 
vehicle data to GSA through FAST, consult the instructions from your 
agency fleet manager and read the documentation at http://
fastweb.inel.gov/.
    (b) Specific reporting categories, by agency, included in the FFR 
are--
    (1) Inventory;
    (2) Acquisitions;
    (3) Operating costs;
    (4) Miles traveled; and
    (5) Fuel used.

    Note to Sec. 102-34.335: The FAST system is also used by agency 
Fleet Managers to provide the Department of Energy with information 
required by the Energy Policy Act and related Executive Orders. In 
addition, the Office of Management and Budget (OMB) requires agency 
Fleet Managers and budget officers to submit annual agency motor vehicle 
budgeting information to OMB through FAST (see OMB Circular A-11, 
Preparation, Submission, and Execution of the Budget).



Sec. 102-34.340  Do we need a fleet management information system?

    Yes, you must have a fleet management information system at the 
department or agency level that --
    (a) Identifies and collects accurate inventory, cost, and use data 
that covers the complete lifecycle of each motor vehicle (acquisition, 
operation, maintenance, and disposal); and
    (b) Provides the information necessary to satisfy both internal and 
external reporting requirements, including:
    (1) Cost per mile;
    (2) Fuel costs for each motor vehicle; and
    (3) Data required for FAST (see Sec. 102-34.335).



Sec. 102-34.345  What records do we need to keep?

    You are responsible for developing and keeping adequate accounting 
and reporting procedures for Government motor vehicles. These will 
ensure accurate recording of inventory, cost, and operational data 
needed to manage and control motor vehicles, and will satisfy reporting 
requirements. You must also comply with the General Records Schedules 
issued by the National Archives and Records Administration (http://
www.archives.gov).



                             Subpart K_Forms



Sec. 102-34.350  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--Table of Contents



Sec.
102-35.5 What is the scope of the General Services Administration's 
          regulations on the disposal of personal property?
102-35.10 How are these regulations for the disposal of personal 
          property organized?
102-35.15 What are the goals of GSA's personal property regulations?
102-35.20 What definitions apply to GSA's personal property regulations?
102-35.25 What management reports must we provide?
102-35.30 What actions must I take or am I authorized to take regardless 
          of the property disposition method?

    Authority: 40 U.S.C. 121(c).

    Source: 72 FR 10085, Mar. 7, 2007, unless otherwise noted.



Sec. 102-35.5  What is the scope of the General Services 
Administration's regulations on the disposal of personal property?

    The General Services Administration's personal property disposal 
regulations are contained in this part and in parts 102-36 through 102-
42 of this

[[Page 85]]

subchapter B as well as in parts 101-42 and 101-45 of the Federal 
Property Management Regulations (FPMR)(41 CFR parts 101-42 and 101-45). 
With two exceptions, these regulations cover the disposal of personal 
property under the custody and control of executive agencies located in 
the United States, the U.S. Virgin Islands, American Samoa, Guam, Puerto 
Rico, the Northern Mariana Islands, the Federated States of Micronesia, 
the Marshall Islands, and Palau. The exceptions to this coverage are 
part 102-39 of this subchapter B, which applies to the replacement of 
all property owned by executive agencies worldwide using the exchange/
sale authority, and Sec. Sec. 102-36.380 through 102-36.400, which 
apply to the disposal of excess property located in countries and areas 
not listed in this subpart, i.e., foreign excess personal property. The 
legislative and judicial branches are encouraged to follow these 
provisions for property in their custody and control.



Sec. 102-35.10  How are these regulations for the disposal of personal
property organized?

    The General Services Administration (GSA) has divided its 
regulations for the disposal of personal property into the following 
program areas:
    (a) Disposition of excess personal property (part 102-36 of this 
subchapter B).
    (b) Donation of surplus personal property (part 102-37 of this 
subchapter B).
    (c) Sale of surplus personal property (part 102-38 of this 
subchapter B).
    (d) Replacement of personal property pursuant to the exchange/sale 
authority (part 102-39 of this subchapter B).
    (e) Disposition of seized and forfeited, voluntarily abandoned, and 
unclaimed personal property (part 102-41 of this subchapter B).
    (f) Utilization, donation, and disposal of foreign gifts and 
decorations (part 102-42 of this subchapter B).
    (g) Utilization and disposal of hazardous materials and certain 
categories of property (part 101-42 of the Federal Property Management 
Regulations (FPMR), 41 CFR part 101-42).



Sec. 102-35.15  What are the goals of GSA's personal property regulations?

    The goals of GSA's personal property regulations are to:
    (a) Improve the identification and reporting of excess personal 
property;
    (b) Maximize the use of excess property as the first source of 
supply to minimize expenditures for the purchase of new property, when 
practicable;

    Note to Sec. 102-35.15(b):
    If there are competing requests among Federal agencies for excess 
property, preference will be given to agencies where the transfer will 
avoid a new Federal procurement. A transfer to an agency where the 
agency will provide the property to a non-Federal entity for the non-
Federal entity's use will be secondary to Federal use.

    (c) Achieve maximum public benefit from the use of Government 
property through the donation of surplus personal property to State and 
local public agencies and other eligible non-Federal recipients;
    (d) Obtain the optimum monetary return to the Government for surplus 
personal property sold and personal property sold under the exchange/
sale authority; and
    (e) Reduce management and inventory costs by appropriate use of the 
abandonment/destruction authority to dispose of unneeded personal 
property that has no commercial value or for which the estimated cost of 
continued care and handling would exceed the estimated sales proceeds 
(see FMR Sec. Sec. 102-36.305 through 102-36.330).



Sec. 102-35.20  What definitions apply to GSA's personal property
regulations?

    The following are definitions of, or cross-references to, some key 
terms that apply to GSA's personal property regulations in the FMR (CFR 
parts 102-36 through 102-42). Other personal property terms are defined 
in the sections or parts to which they primarily apply.
    Accountable Personal Property includes nonexpendable personal 
property whose expected useful life is two years or longer and whose 
acquisition value, as determined by the agency, warrants tracking in the 
agency's property records, including capitalized and sensitive personal 
property.

[[Page 86]]

    Accountability means the ability to account for personal property by 
providing a complete audit trail for property transactions from receipt 
to final disposition.
    Acquisition cost means the original purchase price of an item.
    Capitalized Personal Property includes property that is entered on 
the agency's general ledger records as a major investment or asset. An 
agency must determine its capitalization thresholds as discussed in 
Financial Accounting Standard Advisory Board (FASAB) Statement of 
Federal Financial Accounting Standards No. 6 Accounting for Property, 
Plant and Equipment, Chapter 1, paragraph 13.
    Control means the ongoing function of maintaining physical oversight 
and surveillance of personal property throughout its complete life cycle 
using various property management tools and techniques taking into 
account the environment in which the property is located and its 
vulnerability to theft, waste, fraud, or abuse.
    Excess personal property (see Sec. 102-36.40 of this subchapter B).
    Exchange/sale (see Sec. 102-39.20 of this subchapter B).
    Executive agency (see Sec. 102-36.40 of this subchapter B).
    Federal agency (see Sec. 102-36.40 of this subchapter B).
    Foreign gifts and decorations (for the definition of relevant terms, 
see Sec. 102-42.10 of this subchapter B).
    Forfeited property (see Sec. 102-41.20 of this subchapter B).
    Inventory includes a formal listing of all accountable property 
items assigned to an agency, along with a formal process to verify the 
condition, location, and quantity of such items. This term may also be 
used as a verb to indicate the actions leading to the development of a 
listing. In this sense, an inventory must be conducted using an actual 
physical count, electronic means, and/or statistical methods.
    National property management officer means an official, designated 
in accordance with Sec. 102-36.45(b) of this subchapter B, who is 
responsible for ensuring effective acquisition, use, and disposal of 
excess property within your agency.
    Personal property (see Sec. 102-36.40 of this subchapter B).
    Property management means the system of acquiring, maintaining, 
using and disposing of the personal property of an organization or 
entity.
    Seized property means personal property that has been confiscated by 
a Federal agency, and whose care and handling will be the responsibility 
of that agency until final ownership is determined by the judicial 
process.
    Sensitive Personal Property includes all items, regardless of value, 
that require special control and accountability due to unusual rates of 
loss, theft or misuse, or due to national security or export control 
considerations. Such property includes weapons, ammunition, explosives, 
information technology equipment with memory capability, cameras, and 
communications equipment. These classifications do not preclude agencies 
from specifying additional personal property classifications to 
effectively manage their programs.
    Surplus personal property (see Sec. 102-37.25 of this subchapter 
B).
    Utilization means the identification, reporting, and transfer of 
excess personal property among Federal agencies.



Sec. 102-35.25  What management reports must we provide?

    (a) There are three reports that must be provided. The report 
summarizing the property provided to non-Federal recipients and the 
report summarizing exchange/sale transactions (see Sec. Sec. 102-36.295 
and 102-39.75 respectively of this subchapter B) must be provided every 
year (negative reports are required). In addition, if you conduct 
negotiated sales of surplus personal property valued over $5,000 in any 
year, you must report this transaction in accordance with Sec. 102-
38.115 (negative reports are not required for this report).
    (b) The General Services Administration (GSA) may request other 
reports as authorized by 40 U.S.C. 506(a)(1)(A).



Sec. 102-35.30  What actions must I take or am I authorized to take
regardless of the property disposition method?

    Regardless of the disposition method used:

[[Page 87]]

    (a) You must maintain property in a safe, secure, and cost-effective 
manner until final disposition.
    (b) You have authority to use the abandonment/ destruction 
provisions at any stage of the disposal process (see Sec. Sec. 102-
36.305 through 102-36.330 and Sec. 102-38.70 of this subchapter B).
    (c) You must implement policies and procedures to remove sensitive 
or classified information from property prior to disposal. Agency-
affixed markings should be removed, if at all possible, prior to 
personal property permanently leaving your agency's control.
    (d) Government-owned personal property may only be used as 
authorized by your agency. Title to Government-owned personal property 
cannot be transferred to a non-Federal entity unless through official 
procedures specifically authorized by law.



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?
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?

[[Page 88]]

 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?

                    Non-appropriated Fund Activities

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

[[Page 89]]

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?
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. 121(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 121(c) of title 40, United States Code, authorizes the 
Administrator of General Services to prescribe regulations as he deems 
necessary to carry out his functions under subtitle I of title 40. 
Section 521 of title 40 authorizes the General Services Administration 
(GSA) to prescribe policies to promote the maximum use of excess

[[Page 90]]

Government personal property by executive agencies.

[71 FR 53571, Sept. 12, 2006]



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, Puerto Rico, the 
Federated States of Micronesia, the Marshall Islands, Palau, and the 
Northern Mariana Islands.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53571, Sept. 12, 2006]



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



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. Title 40 of the United States Code 
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 
102-38 of this chapter. 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53571, Sept. 12, 2006]

                               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

[[Page 91]]

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.
    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 is property not excess to the needs of the 
holding agency but eligible for replacement, which is exchanged or sold 
under the provisions of part 102-39 of this chapter 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).
    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, Puerto Rico, the Federated States of 
Micronesia, the Marshall Islands, Palau, and 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.
    GSAXcess  is GSA's website for reporting, searching and 
selecting excess personal property. For information on using GSAXcess 
, access http://www.gsaxcess.gov.
    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

[[Page 92]]

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.
    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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53571, Sept. 12, 2006]

[[Page 93]]

                             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.
    (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 Title 40 of the United States Code and the 
Federal Management Regulation (41 CFR chapter 102), and any other 
applicable statutes and regulations when performing these functions.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53571, Sept. 12, 2006]



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.

[[Page 94]]

    (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, GSAXcess , to 
facilitate the reporting and transferring of excess personal property.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53571, Sept. 12, 2006]



       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 GSAXcess  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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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.

[[Page 95]]

    (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 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 GSAXcess , GSA's website for searching and 
selecting excess personal property. For information on GSAXcess 
, access http://www.gsaxcess.gov.
    (b) Contact or submit want lists to regional GSA Personal Property 
Management offices.
    (c) Check any available holding agency websites.
    (d) Conduct on-site screening at various federal facilities.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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).

[[Page 96]]



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:
    (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 
(GSAXcess ) 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, as amended at 71 
FR 53572, Sept. 12, 2006]



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

[[Page 97]]

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?

    Normally, you have 15 calendar days from the date of GSA allocation 
to pick up the excess personal property for transfer, and you are 
responsible for scheduling and coordinating the property removal with 
the holding agency. If additional removal time is required, you are 
responsible for requesting such additional removal time.

[74 FR 41060, Aug. 14, 2009]



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, 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 non-appropriated 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.

[[Page 98]]

    (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.

                    Non-appropriated Fund Activities



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

    Yes, title to excess personal property furnished to a non-
appropriated 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 non-appropriated 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 non-appropriated fund activities?

    Property purchased by a non-appropriated fund activity is not 
federal property. A non-appropriated fund activity has the option of 
making its 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:

[[Page 99]]

    (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 102-37 of 
this chapter, 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 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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

[[Page 100]]

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) Non-appropriated fund property (see Sec. 102-36.165).
    (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 102-75 of this chapter.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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 GSAXcess  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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

[[Page 101]]



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.
------------------------------------------------------------------------

                  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.

[[Page 102]]



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.
    (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

[[Page 103]]

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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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, Office of Travel, 
Transportation, and Asset Management (MT), 1800 F Street, NW, 
Washington, DC 20405, within 90 calendar days after the close of each 
fiscal 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, Puerto Rico, the Federated States of 
Micronesia, the Marshall Islands, Palau, and 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).

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                         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).

[[Page 104]]



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 102-37 of 
this chapter) 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 102-37 of this 
chapter.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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 102-38 of this chapter.



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;
    (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;

[[Page 105]]

    (ii) Data plate 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 the Department of Defense (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 data 
plate to GSA Property Management Branch (9FBP), San Francisco, CA 94102-
3434 prior to releasing the aircraft to the authorized recipient. GSA 
will forward the data plates 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 Office of Travel, Transportation, and Asset Management 
(MT), GSA, 1800 F Street, NW, Washington, DC 20405. For additional 
instructions on reporting to FAIRS, see part 102-33 of this chapter.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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 102-33, subpart D, 
of this chapter. 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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

    Any aircraft part designated as FSCAP is assigned an alpha 
Criticality 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.
------------------------------------------------------------------------


[[Page 106]]



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 102-33 of 
this chapter.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                        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 40 U.S.C. 555, 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                        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 (Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121-5206) and Executive Order 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                                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.

                    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 chapter 7 of title 40 of the United 
States Code.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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

[[Page 107]]

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 40 
U.S.C. 527. Abandonment, destruction or donation actions must also 
comply with the laws of the country in which the property is located.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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 40 
U.S.C. 521-529, 549, and 551, the Federal agency, State agency, or donee 
receiving the property is responsible for all direct costs involved in 
the transfer, which include packing, handling, crating, and 
transportation.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                                  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 102-42 of this chapter.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



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, DC 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.



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

[[Page 108]]

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, Property Management 
Division (FBP), Washington, DC 20406, for possible transfer, donation or 
sale in accordance with the provisions of part 102-42 of this chapter.

[71 FR 53572, Sept. 12, 2006]

                       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 Publishing Office (GPO), 
Customer Service Manager, 732 North Capitol Street, NW, Washington, DC 
20401. If GPO has no requirement for the property, you must then submit 
the report to GSA.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                           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

[[Page 109]]

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 102-39 of this chapter. 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.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]

                                 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 40 U.S.C. 548, 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, or 
submarines.

[65 FR 31218, May 16, 2000, as amended at 71 FR 53572, Sept. 12, 2006]



                   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 nonprofit organizations.

[[Page 110]]

    (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.



PART 102-37-DONATION OF SURPLUS PERSONAL PROPERTY--Table of Contents



                      Subpart A_General Provisions

Sec.
102-37.5 What does this part cover?
102-37.10 What is the primary governing authority for this part?
102-37.15 Who must comply with the provisions of this part?
102-37.20 How do we request a deviation from this part and who can 
          approve it?

                               Definitions

102-37.25 What definitions apply to this part?

                            Donation Overview

102-37.30 When does property become available for donation?
102-37.35 Who handles the donation of surplus property?
102-37.40 What type of surplus property is available for donation?
102-37.45 How long is property available for donation screening?
102-37.50 What is the general process for requesting surplus property 
          for donation?
102-37.55 Who pays for transportation and other costs associated with a 
          donation?
102-37.60 How much time does a transferee have to pick up or remove 
          surplus property from holding agency premises?
102-37.65 What happens to surplus property that has been approved for 
          transfer when the prospective transferee decides it cannot use 
          the property and declines to pick it up?
102-37.70 How should a transferee account for the receipt of a larger or 
          smaller number of items than approved by GSA on the SF 123?
102-37.75 What should be included in a shortage report?
102-37.80 What happens to surplus property that isn't transferred for 
          donation?
102-37.85 Can surplus property being offered for sale be withdrawn and 
          approved for donation?

             Subpart B_General Services Administration (GSA)

102-37.90 What are GSA's responsibilities in the donation of surplus 
          property?
102-37.95 How will GSA resolve competing requests?
102-37.100 What factors will GSA consider in allocating surplus property 
          among SASPs?

                        Subpart C_Holding Agency

102-37.110 What are a holding agency's responsibilities in the donation 
          of surplus property?
102-37.115 May a holding agency be reimbursed for costs incurred 
          incident to a donation?
102-37.120 May a holding agency donate surplus property directly to 
          eligible non-Federal recipients without going through GSA?
102-37.125 What are some donations that do not require GSA's approval?

           Subpart D_State Agency for Surplus Property (SASP)

102-37.130 What are a SASP's responsibilities in the donation of surplus 
          property?
102-37.135 How does a SASP become eligible to distribute surplus 
          property to donees?

                         State Plan of Operation

102-37.140 What is a State plan of operation?
102-37.145 Who is responsible for developing, certifying, and submitting 
          the plan?
102-37.150 What must a State legislature include in the plan?
102-37.155 When does a plan take effect?
102-37.160 Must GSA approve amendments or modifications to the plan?
102-37.165 Do plans or major amendments require public notice?
102-37.170 What happens if a SASP does not operate in accordance with 
          its plan?

                    Screening and Requesting Property

102-37.175 How does a SASP find out what property is potentially 
          available for donation?
102-37.180-102-102-37.185 [Reserved]
102-37.190 What records must a SASP maintain on authorized screeners?

[[Page 111]]

102-37.195 Does a SASP have to have a donee in mind to request surplus 
          property?
102-37.200 What certifications must a SASP make when requesting surplus 
          property for donation?
102-37.205 What agreements must a SASP make?
102-37.210 Must a SASP make a drug-free workplace certification when 
          requesting surplus property for donation?
102-37.215 When must a SASP make a certification regarding lobbying?

                  Justifying Special Transfer Requests

102-37.220 Are there special types of surplus property that require 
          written justification when submitting a transfer request?
102-37.225 What information or documentation must a SASP provide when 
          requesting a surplus aircraft or vessel?
102-37.230 What must a letter of intent for obtaining surplus aircraft 
          or vessels include?
102-37.235 What type of information must a SASP provide when requesting 
          surplus property for cannibalization?
102-37.240 How must a transfer request for surplus firearms be 
          justified?

                     Custody, Care, and Safekeeping

102-37.245 What must a SASP do to safeguard surplus property in its 
          custody?
102-37.250 What actions must a SASP take when it learns of damage to or 
          loss of surplus property in its custody?
102-37.255 Must a SASP insure surplus property against loss or damage?

                        Distribution of Property

102-37.260 How must a SASP document the distribution of surplus 
          property?
102-37.265 May a SASP distribute surplus property to eligible donees of 
          another State?
102-37.270 May a SASP retain surplus property for its own use?

                      Service and Handling Charges

102-37.275 May a SASP accept personal checks and non-official payment 
          methods in payment of service charges?
102-37.280 How may a SASP use service charge funds?
102-37.285 May a SASP use service charge funds to support non-SASP State 
          activities and programs?

                   Disposing of Undistributed Property

102-37.290 What must a SASP do with surplus property it cannot donate?
102-37.295 Must GSA approve a transfer between SASPs?
102-37.300 What information must a SASP provide GSA when reporting 
          unneeded usable property for disposal?
102-37.305 May a SASP act as GSA's agent in selling undistributed 
          surplus property (either as usable property or scrap)?
102-37.310 What must a proposal to sell undistributed surplus property 
          include?
102-37.315 What costs may a SASP recover if undistributed surplus 
          property is retransferred or sold?
102-37.320 Under what conditions may a SASP abandon or destroy 
          undistributed surplus property?

                         Cooperative Agreements

102-37.325 With whom and for what purpose(s) may a SASP enter into a 
          cooperative agreement?
102-37.330 Must the costs of providing support under a cooperative 
          agreement be reimbursed by the parties receiving such support?
102-37.335 May a SASP enter into a cooperative agreement with another 
          SASP?
102-37.340 When may a SASP terminate a cooperative agreement?

                           Audits and Reviews

102-37.345 When must a SASP be audited?
102-37.350 Does coverage under the single audit process in OMB Circular 
          A-133 exempt a SASP from other reviews of its program?
102-37.355 What obligations does a SASP have to ensure that donees meet 
          Circular A-133 requirements?

                                 Reports

102-37.360 What reports must a SASP provide to GSA?

                           Liquidating a SASP

102-37.365 What steps must a SASP take if the State decides to liquidate 
          the agency?
102-37.370 Do liquidation plans require public notice?

 Subpart E_Donations to Public Agencies, Service Educational Activities 
              (SEAs), and Eligible Nonprofit Organizations

102-37.375 How is the pronoun ``you'' used in this subpart?
102-37.380 What is the statutory authority for donations of surplus 
          Federal property made under this subpart?

                            Donee Eligibility

102-37.385 Who determines if a prospective donee applicant is eligible 
          to receive surplus property under this subpart?
102-37.390 What basic criteria must an activity meet before a SASP can 
          qualify it for eligibility?
102-37.395 How can a SASP determine whether an applicant meets any 
          required

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          approval, accreditation, or licensing requirements?
102-37.400 What type of eligibility information must a SASP maintain on 
          donees?
102-37.405 How often must a SASP update donee eligibility records?
102-37.410 What must a SASP do if a donee fails to maintain its 
          eligibility status?
102-37.415 What should a SASP do if an applicant appeals a negative 
          eligibility decision?

                         Conditional Eligibility

102-37.420 May a SASP grant conditional eligibility to applicants who 
          would otherwise qualify as eligible donees, but are unable to 
          obtain approval, accreditation, or licensing because they are 
          newly organized or their facilities are not yet constructed?
102-37.425 May a SASP grant conditional eligibility to a not-for-profit 
          organization whose tax-exempt status is pending?
102-37.430 What property can a SASP make available to a donee with 
          conditional eligibility?

                    Terms and Conditions of Donation

102-37.435 For what purposes may donees acquire and use surplus 
          property?
102-37.440 May donees acquire property for exchange?
102-37.445 What certifications must a donee make before receiving 
          property?
102-37.450 What agreements must a donee make?

                   Special Handling or Use Conditions

102-37.455 On what categories of surplus property has GSA imposed 
          special handling conditions or use limitations?
102-37.460 What special terms and conditions apply to the donation of 
          aircraft and vessels?

                         Release of Restrictions

102-37.465 May a SASP modify or release any of the terms and conditions 
          of donation?
102-37.470 At what point may restrictions be released on property that 
          has been authorized for cannibalization?
102-37.475 What are the requirements for releasing restrictions on 
          property being considered for exchange?

                       Compliance and Utilization

102-37.480 What must a SASP do to ensure that property is used for the 
          purpose(s) for which it was donated?
102-37.485 What actions must a SASP take if a review or other 
          information indicates noncompliance with donation terms and 
          conditions?
102-37.490 When must a SASP coordinate with GSA on compliance actions?
102-37.495 How must a SASP handle funds derived from compliance actions?

                        Returns and Reimbursement

102-37.500 May a donee receive reimbursement for its donation expenses 
          when unneeded property is returned to the SASP?
102-37.505 How does a donee apply for and receive reimbursement for 
          unneeded property returned to a SASP?

                  Special Provisions Pertaining to SEAs

102-37.510 Are there special requirements for donating property to SEAs?
102-37.515 Do SEAs have a priority over other SASP donees for DOD 
          property?

                 Subpart F_Donations to Public Airports

102-37.520 What is the authority for public airport donations?
102-37.525 What should a holding agency do if it wants a public airport 
          to receive priority consideration for excess personal property 
          it has reported to GSA?
102-37.530 What are FAA's responsibilities in the donation of surplus 
          property to public airports?
102-37.535 What information must FAA provide to GSA on its 
          administration of the public airport donation program?

         Subpart G_Donations to the American National Red Cross

102-37.540 What is the authority for donations to the American National 
          Red Cross?
102-37.545 What type of property may the American National Red Cross 
          receive?
102-37.550 What steps must the American National Red Cross take to 
          acquire property?
102-37.555 What happens to property the American National Red Cross does 
          not request?

 Subpart H_Donations to Public Bodies in Lieu of Abandonment/Destruction

102-37.560 What is a public body?
102-37.565 What is the authority for donations to public bodies?
102-37.570 What type of property may a holding agency donate under this 
          subpart?
102-37.575 Is there a special form for holding agencies to process 
          donations?
102-37.580 Who is responsible for costs associated with the donation?

[[Page 113]]

             Subpart I_Transfer of Vehicle Title to a Donee

102-37.585 In transferring donated surplus vehicles, what is the 
          responsibility of the holding agency?
102-37.590 In transferring donated surplus vehicles, what is the 
          responsibility of the SASP?
102-37.595 When transferring donated surplus vehicles, what is the 
          responsibility of the donee?
102-37.600 When does title to a surplus donated vehicle change hands?

Appendix A to Part 102-37--Miscellaneous Donation Statutes
Appendix B to Part 102-37--Elements of a State Plan of Operation
Appendix C to Part 102-37--Glossary of Terms for Determining Eligibility 
          of Public Agencies and Nonprofit Organizations

    Authority: 40 U.S.C. 549 and 121(c).

    Source: 67 FR 2584, Jan. 18, 2002, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 102-37.5  What does this part cover?

    This part covers the donation of surplus Federal personal property 
located within a State, including foreign excess personal property 
returned to a State for handling as surplus property. For purposes of 
this part, the term State includes any of the 50 States, as well as the 
District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the 
Commonwealth of Puerto Rico, and the Commonwealth of the Northern 
Mariana Islands.



Sec. 102-37.10  What is the primary governing authority for this part?

    Section 549 of title 40, United States Code, gives the General 
Services Administration (GSA) discretionary authority to prescribe the 
necessary regulations for, and to execute the surplus personal property 
donation program.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.15  Who must comply with the provisions of this part?

    You must comply with this part if you are a holding agency or a 
recipient of Federal surplus personal property approved by GSA for 
donation (e.g., a State agency for surplus property (SASP) or a public 
airport).



Sec. 102-37.20  How do we request a deviation from this part and 
who can approve it?

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

                               Definitions



Sec. 102-37.25  What definitions apply to this part?

    The following definitions apply to this part:
    Allocation means the process by which GSA identifies the SASP to 
receive surplus property on a fair and equitable basis, taking into 
account the condition of the property as well as the original 
acquisition cost of the property.
    Cannibalization means to remove serviceable parts from one item of 
equipment in order to install them on another item of equipment.
    Donee means any of the following entities that receive Federal 
surplus personal property through a SASP:
    (1) A service educational activity (SEA).
    (2) A public agency (as defined in appendix C of this part) which 
uses surplus personal property to carry out or promote one or more 
public purposes. (Public airports are an exception and are only 
considered donees when they elect to receive surplus property through a 
SASP, but not when they elect to receive surplus property through the 
Federal Aviation Administration as discussed in subpart F of this part.)
    (3) An eligible nonprofit tax-exempt educational or public health 
institution (including a provider of assistance to homeless or 
impoverished families or individuals).
    (4) A State or local government agency, or a nonprofit organization 
or institution, that receives funds appropriated for a program for older 
individuals.
    Holding agency means the executive agency having accountability for, 
and generally possession of, the property involved.
    Period of restriction means the period of time for keeping donated 
property in

[[Page 114]]

use for the purpose for which it was donated.
    Screening means the process of physically inspecting property or 
reviewing lists or reports of property to determine whether property is 
usable or needed for donation purposes.
    Service educational activity (SEA) means any educational activity 
designated by the Secretary of Defense as being of special interest to 
the armed forces; e.g., maritime academies or military, naval, Air 
Force, or Coast Guard preparatory schools.
    Standard Form (SF) 123, Transfer Order Surplus Personal Property 
means the document used to request and document the transfer of Federal 
surplus personal property for donation purposes.
    State means one of the 50 States, the District of Columbia, the U.S. 
Virgin Islands, Guam, American Samoa, the Commonwealth of Puerto Rico, 
and the Commonwealth of the Northern Mariana Islands.
    State agency for surplus property (SASP) means the agency designated 
under State law to receive Federal surplus personal property for 
distribution to eligible donees within the State as provided for in 40 
U.S.C. 549.
    Surplus personal property (surplus property) means excess personal 
property (as defined in Sec. 102-36.40 of this chapter) not required 
for the needs of any Federal agency, as determined by GSA.
    Surplus release date means the date on which Federal utilization 
screening of excess personal property has been completed, and the 
property is available for donation.
    Transferee means a public airport receiving surplus property from a 
holding agency through the Federal Aviation Administration, or a SASP.
    You, when used in subparts D and E of this part, means SASP, unless 
otherwise specified.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006; 79 
FR 64514, Oct. 30, 2014]

                            Donation Overview



Sec. 102-37.30  When does property become available for donation?

    Excess personal property becomes available for donation the day 
following the surplus release date. This is the point at which the 
screening period has been completed without transfer to a Federal agency 
or other eligible recipient, and the GSA has determined the property to 
be surplus.



Sec. 102-37.35  Who handles the donation of surplus property?

    (a) The SASPs handle the donation of most surplus property to 
eligible donees in their States in accordance with this part.
    (b) The GSA handles the donation of surplus property to public 
airports under a program administered by the Federal Aviation 
Administration (FAA) (see subpart F of this part). The GSA may also 
donate to the American National Red Cross surplus property that was 
originally derived from or through the Red Cross (see subpart G of this 
part).
    (c) Holding agencies may donate surplus property that they would 
otherwise abandon or destroy directly to public bodies in accordance 
with subpart H of this part.



Sec. 102-37.40  What type of surplus property is available for 
donation?

    All surplus property (including property held by working capital 
funds established under 10 U.S.C. 2208 or in similar funds) is available 
for donation to eligible recipients, except for property in the 
following categories:
    (a) Agricultural commodities, food, and cotton or woolen goods 
determined from time to time by the Secretary of Agriculture to be 
commodities requiring special handling with respect to price support or 
stabilization.
    (b) Property acquired with trust funds (e.g., Social Security Trust 
Funds).
    (c) Non-appropriated fund property.
    (d) Naval vessels of the following categories: Battleships, 
cruisers, aircraft carriers, destroyers, and submarines.

[[Page 115]]

    (e) Vessels of 1500 gross tons or more which the Maritime 
Administration determines to be merchant vessels or capable of 
conversion to merchant use.
    (f) Records of the Federal Government.
    (g) Property that requires reimbursement upon transfer (such as 
abandoned or other unclaimed property that is found on premises owned or 
leased by the Government).
    (h) Controlled substances.
    (i) Items as may be specified from time to time by the GSA Office of 
Governmentwide Policy.



Sec. 102-37.45  How long is property available for donation screening?

    Entities authorized to participate in the donation program may 
screen property, concurrently with Federal agencies, as soon as the 
property is reported as excess up until the surplus release date. The 
screening period is normally 21 calendar days, except as noted in Sec. 
102-36.95 of this chapter.



Sec. 102-37.50  What is the general process for requesting surplus 
property for donation?

    The process for requesting surplus property for donation varies, 
depending on who is making the request.
    (a) Donees should submit their requests for property directly to the 
appropriate SASP.
    (b) SASPs and public airports should submit their requests to the 
appropriate GSA regional office. Requests must be submitted on a 
Standard Form (SF) 123, Transfer Order Surplus Personal Property, or its 
electronic equivalent. Public airports must have FAA certify their 
transfer requests prior to submission to GSA for approval. GSA may ask 
SASPs or public airports to submit any additional information required 
to support and justify transfer of the property.
    (c) The American National Red Cross should submit requests to GSA as 
described in subpart G of this part when obtaining property under the 
authority of 40 U.S.C. 551.
    (d) Public bodies, when seeking to acquire property that is being 
abandoned or destroyed, should follow rules and procedures established 
by the donor agency (see subpart H of this part).

[67 FR 2584, Jan. 18, 2002, as amended at 79 FR 64514, Oct. 30, 2014]



Sec. 102-37.55  Who pays for transportation and other costs associated 
with a donation?

    The receiving organization (the transferee) is responsible for any 
packing, shipping, or transportation charges associated with the 
transfer of surplus property for donation. Those costs, in the case of 
SASPs, may be passed on to donees that receive the property.



Sec. 102-37.60  How much time does a transferee have to pick up or
remove surplus property from holding agency premises?

    The transferee (or the transferee's agent) must remove property from 
the holding agency premises within 15 calendar days after being notified 
that the property is available for pickup, unless otherwise coordinated 
with the holding agency. If the transferee decides prior to pickup or 
removal that it no longer needs the property, it must notify the GSA 
regional office that approved the transfer request.



Sec. 102-37.65  What happens to surplus property that has been approved 
for transfer when the prospective transferee decides it cannot use the
property and declines to pick it up?

    When a prospective transferee decides it cannot use surplus property 
that has already been approved for transfer and declines to pick it up, 
the GSA regional office will advise any other SASP or public airport 
known to be interested in the property to submit a transfer request. If 
there is no transfer interest, GSA will release the property for other 
disposal.

[[Page 116]]



Sec. 102-37.70  How should a transferee account for the receipt of a
larger or smaller number of items than approved by GSA on the SF 123?

    When the quantity of property received doesn't agree with that 
approved by GSA on the SF 123, the transferee should handle the overage 
or shortage as follows:

------------------------------------------------------------------------
            If . . .                   And . . .          Then . . .
------------------------------------------------------------------------
(a) More property is received     The known or        Submit a SF 123
 than was approved by GSA for      estimated           for the
 transfer.                         acquisition cost    difference to GSA
                                   of the line         (Identify the
                                   item(s) involved    property as an
                                   is $500 or more.    overage and
                                                       include the
                                                       original transfer
                                                       order number.)
                                                       \1\
------------------------------------------------------------------------
(b) Less property is received     The acquisition     Submit a shortage
 than was approved by GSA for      cost of the         report to GSA,
 transfer.                         missing item(s)     with a copy to
                                   is $500 or more.    the holding
                                                       agency.\1\
------------------------------------------------------------------------
(c) The known or estimated                            Annotate on your
 acquisition cost of the                               receiving and
 property is less than $500                            inventory
                                                       records, a
                                                       description of
                                                       the property, its
                                                       known or
                                                       estimated
                                                       acquisition cost,
                                                       and the name of
                                                       the holding
                                                       agency.
------------------------------------------------------------------------
\1\ Submit the SF 123 or shortage report to the GSA approving office
  within 30 calendar days of the date of transfer.



Sec. 102-37.75  What should be included in a shortage report?

    The shortage report should include:
    (a) The name and address of the holding agency;
    (b) All pertinent GSA and holding agency control numbers, in 
addition to the original transfer order number; and
    (c) A description of each line item of property, the condition code, 
the quantity and unit of issue, and the unit and total acquisition cost.



Sec. 102-37.80  What happens to surplus property that isn't
transferred for donation?

    Surplus property not transferred for donation is generally offered 
for sale under the provisions of part 102-38 of this chapter. Under the 
appropriate circumstances (see Sec. 102-36.305 of this chapter), such 
property might be abandoned or destroyed.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.85  Can surplus property being offered for sale be 
withdrawn and approved for donation?

    Yes, surplus property being offered for sale may be withdrawn for 
donation if approved by GSA. GSA will not approve requests for the 
withdrawal of property that has been advertised or listed on a sales 
offering if that withdrawal would be harmful to the overall outcome of 
the sale. GSA will only grant such requests prior to sales award, since 
an award is binding.



             Subpart B_General Services Administration (GSA)



Sec. 102-37.90  What are GSA's responsibilities in the donation 
of surplus property?

    The General Services Administration (GSA) is responsible for 
supervising and directing the disposal of surplus personal property. In 
addition to issuing regulatory guidance for the donation of such 
property, GSA:
    (a) Determines when property is surplus to the needs of the 
Government;

[[Page 117]]

    (b) Allocates and transfers surplus property on a fair and equitable 
basis to State agencies for surplus property (SASPs) for further 
distribution to eligible donees;
    (c) Oversees the care and handling of surplus property while it is 
in the custody of a SASP;
    (d) Approves all transfers of surplus property to public airports, 
pursuant to the appropriate determinations made by the Federal Aviation 
Administration (see subpart F of this part);
    (e) Donates to the American National Red Cross property (generally 
blood plasma and related medical materials) originally provided by the 
Red Cross to a Federal agency, but that has subsequently been determined 
surplus to Federal needs (see subpart G of this part);
    (f) Approves, after consultation with the holding agency, foreign 
excess personal property to be returned to the United States for 
donation purposes;
    (g) Coordinates and controls the level of SASP and donee screening 
at Federal installations;
    (h) Imposes appropriate conditions on the donation of surplus 
property having characteristics that require special handling or use 
limitations (see Sec. 102-37.455); and
    (i) Keeps track of and reports on Federal donation programs (see 
Sec. 102-37.105).



Sec. 102-37.95  How will GSA resolve competing transfer requests?

    In case of requests from two or more SASPs, GSA will use the 
allocating criteria in Sec. 102-37.100. When competing requests are 
received from public airports and SASPs, GSA will transfer property 
fairly and equitably, based on such factors as need, proposed use, and 
interest of the holding agency in having the property donated to a 
specific public airport.



Sec. 102-37.100  What factors will GSA consider in allocating surplus
property among SASPs?

    GSA allocates property among the SASPs on a fair and equitable basis 
using the following factors:
    (a) Extraordinary needs caused by disasters or emergency situations.
    (b) Requests from the Department of Defense (DOD) for DOD-generated 
property to be allocated through a SASP for donation to a specific 
service educational activity.
    (c) Need and usability of property, as reflected by requests from 
SASPs. GSA will also give special consideration to requests transmitted 
through the SASPs by eligible donees for specific items of property. 
(Requests for property to be used as is will be given preference over 
cannibalization requests.)
    (d) States in greatest need of the type of property to be allocated 
where the need is evidenced by a letter of justification from the 
intended donee.
    (e) Whether a SASP has already received similar property in the 
past, and how much.
    (f) Past performance of a SASP in effecting timely pickup or removal 
of property approved for transfer and making prompt distribution of 
property to eligible donees.
    (g) The property's condition and its original acquisition cost.
    (h) Relative neediness of each State based on the State's population 
and per capita income.



                        Subpart C_Holding Agency



Sec. 102-37.110  What are a holding agency's responsibilities in the
donation of surplus property?

    Your donation responsibilities as a holding agency begin when you 
determine that property is to be declared excess. You must then:
    (a) Let GSA know if you have a donee in mind for foreign gift items 
or airport property, as provided for in Sec. Sec. 102-37.525 and 102-
42.95(h) of this chapter;
    (b) Cooperate with all entities authorized to participate in the 
donation program and their authorized representatives in locating, 
screening, and inspecting excess or surplus property for possible 
donation;
    (c) Set aside or hold surplus property from further disposal upon 
notification of a pending transfer for donation; (If GSA does not notify 
you of a pending transfer within 5 calendar days following the surplus 
release date, you may proceed with the sale or other authorized disposal 
of the property.)

[[Page 118]]

    (d) Upon receipt of a GSA-approved transfer document, promptly ship 
or release property to the transferee (or the transferee's designated 
agent) in accordance with pickup or shipping instructions on the 
transfer document;
    (e) Notify the approving GSA regional office if surplus property to 
be picked up is not removed within 15 calendar days after you notify the 
transferee (or its agent) of its availability. (GSA will advise you of 
further disposal instructions.); and
    (f) Perform and bear the cost of care and handling of surplus 
property pending its disposal, except as provided in Sec. 102-37.115.

[67 FR 2584, Jan. 18, 2002, as amended at 67 FR 78732, Dec. 26, 2002]



Sec. 102-37.115  May a holding agency be reimbursed for costs incurred
incident to a donation?

    Yes, you, as a holding agency, may charge the transferee for the 
direct costs you incurred incident to a donation transfer, such as your 
packing, handling, crating, and transportation expenses. However, you 
may not include overhead or administrative costs in these charges.



Sec. 102-37.120  May a holding agency donate surplus property directly
to eligible non-Federal recipients without going through GSA?

    Generally, a holding agency may not donate surplus property directly 
to eligible non-Federal recipients without going through GSA, except for 
the situations listed in Sec. 102-37.125.



Sec. 102-37.125  What are some donations that do not require GSA's
approval?

    (a) Some donations of surplus property that do not require GSA's 
approval are:
    (1) Donations of condemned, obsolete, or other specified material by 
a military department or the Coast Guard to recipients eligible under 10 
U.S.C. 2572, 10 U.S.C. 7306, 10 U.S.C. 7541, 10 U.S.C. 7545, and 14 
U.S.C. 641a (see appendix A of this part for details). However, such 
property must first undergo excess Federal and surplus donation 
screening as required in this part and part 102-36 of this chapter;
    (2) Donations by holding agencies to public bodies under subpart H 
of this part;
    (3) Donations by the Small Business Administration (SBA) to small 
disadvantaged businesses under 13 CFR part 124 (although collaboration 
and agreement between the SBA, SASPs, and GSA is encouraged); and
    (4) Donations by holding agencies of law enforcement canines to 
their handlers under 40 U.S.C. 555.
    (b) You may also donate property directly to eligible non-Federal 
recipients under other circumstances if you have statutory authority to 
do so. All such donations must be included on your annual report to GSA 
under Sec. 102-36.300 of this chapter.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006; 79 
FR 64514, Oct. 30, 2014]



           Subpart D_State Agency for Surplus Property (SASP)



Sec. 102-37.130  What are a SASP's responsibilities in the donation
of surplus property?

    As a SASP, your responsibilities in the donation of surplus property 
are to:
    (a) Determine whether or not an entity seeking to obtain surplus 
property is eligible for donation as a:
    (1) Public agency;
    (2) Nonprofit educational or public health institution; or
    (3) Program for older individuals.
    (b) Distribute surplus property fairly, equitably, and promptly to 
eligible donees in your State based on their relative needs and 
resources, and ability to use the property, and as provided in your 
State plan of operation.
    (c) Enforce compliance with the terms and conditions imposed on 
donated property.



Sec. 102-37.135  How does a SASP become eligible to distribute 
surplus property to donees?

    In order to receive transfers of surplus property, a SASP must:
    (a) Have a GSA-approved State plan of operation; and
    (b) Provide the certifications and agreements as set forth in 
Sec. Sec. 102-37.200 and 102-37.205.

[[Page 119]]

                         State Plan of Operation



Sec. 102-37.140  What is a State plan of operation?

    A State plan of operation is a document developed under State law 
and approved by GSA in which the State sets forth a plan for the 
management and administration of the SASP in the donation of property.



Sec. 102-37.145  Who is responsible for developing, certifying,
and submitting the plan?

    The State legislature must develop the plan. The chief executive 
officer of the State must submit the plan to the Administrator of 
General Services for acceptance and certify that the SASP is authorized 
to:
    (a) Acquire and distribute property to eligible donees in the State;
    (b) Enter into cooperative agreements; and
    (c) Undertake other actions and provide other assurances as are 
required by 40 U.S.C. 549(e) and set forth in the plan.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.150  What must a State legislature include in the plan?

    The State legislature must ensure the plan conforms to the 
provisions of 40 U.S.C. 549(e) and includes the information and 
assurances set forth in Appendix B of this part. It may also include in 
the plan other provisions not inconsistent with the purposes of title 40 
of the United States Code and the requirements of this part.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.155  When does a plan take effect?

    The plan takes effect on the date GSA notifies the chief executive 
officer of the State that the plan is approved.



Sec. 102-37.160  Must GSA approve amendments or modifications to the
plan?

    Yes, GSA must approve amendments or modifications to the plan.



Sec. 102-37.165  Do plans or major amendments require public notice?

    Yes, proposed plans and major amendments to existing plans require 
general notice to the public for comment. A State must publish a general 
notice of the plan or amendment at least 60 calendar days in advance of 
filing the proposal with GSA and provide interested parties at least 30 
calendar days to submit comments before filing the proposal.



Sec. 102-37.170  What happens if a SASP does not operate in accordance
with its plan?

    If a SASP does not operate in accordance with its plan, GSA may 
withhold allocation and transfer of surplus property until the 
nonconformance is corrected.

                    Screening and Requesting Property



Sec. 102-37.175  How does a SASP find out what property is potentially
available for donation?

    (a) A SASP may conduct onsite screening at various Federal 
facilities, contact or submit want lists to GSA, or use GSA's or other 
agencies' computerized inventory system to electronically search for 
property that is potentially available for donation (see Sec. 102-36.90 
for information on GSAXcess).
    (b) For the SASP (or a SASP's representative) to perform onsite 
screening, the screener must coordinate the onsite visit and screening 
with the individual holding agency or organization. The screener should 
ascertain the identification required and any special procedures for 
access to the facility or location.

[67 FR 2584, Jan. 18, 2002, as amended at 79 FR 64514, Oct. 30, 2014]



Sec. Sec. 102-37.180--102-37.185  [Reserved]



Sec. 102-37.190  What records must a SASP maintain on authorized 
screeners?

    You must maintain a current record of all individuals authorized to 
screen for your SASP, including their names, addresses, telephone 
numbers, qualifications to screen, and any additional identifying 
information such as driver's license or social security numbers.

[[Page 120]]

In the case of donee screeners, you should place such records in the 
donee's eligibility file and review for currency each time a periodic 
review of the donee's file is undertaken.



Sec. 102-37.195  Does a SASP have to have a donee in mind to request 
surplus property?

    Generally yes, you should have a firm requirement or an anticipated 
demand for any property that you request.



Sec. 102-37.200  What certifications must a SASP make when requesting
surplus property for donation?

    When requesting or applying for property, you must certify that:
    (a) You are the agency of the State designated under State law that 
has legal authority under 40 U.S.C. 549 and GSA regulations, to receive 
property for distribution within the State to eligible donees as defined 
in this part.
    (b) No person with supervisory or managerial duties in your State's 
donation program is debarred, suspended, ineligible, or voluntarily 
excluded from participating in the donation program.
    (c) The property is usable and needed within the State by:
    (1) A public agency for one or more public purposes.
    (2) An eligible nonprofit organization or institution which is 
exempt from taxation under section 501 of the Internal Revenue Code (26 
U.S.C. 501), for the purpose of education or public health (including 
research for any such purpose).
    (3) An eligible nonprofit activity for programs for older 
individuals.
    (4) A service educational activity (SEA), for DOD-generated property 
only.
    (d) When property is picked up by, or shipped to, your SASP, you 
have adequate and available funds, facilities, and personnel to provide 
accountability, warehousing, proper maintenance, and distribution of the 
property.
    (e) When property is distributed by your SASP to a donee, or when 
delivery is made directly from a holding agency to a donee pursuant to a 
State distribution document, you have determined that the donee 
acquiring the property is eligible within the meaning of the Property 
Act and GSA regulations, and that the property is usable and needed by 
the donee.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.205  What agreements must a SASP make?

    With respect to surplus property picked up by or shipped to your 
SASP, you must agree to the following:
    (a) You will make prompt statewide distribution of such property, on 
a fair and equitable basis, to donees eligible to acquire property under 
40 U.S.C. 549 and GSA regulations. You will distribute property only 
after such eligible donees have properly executed the appropriate 
certifications and agreements established by your SASP and/or GSA.
    (b) Title to the property remains in the United States Government 
although you have taken possession of it. Conditional title to the 
property will pass to the eligible donee when the donee executes the 
required certifications and agreements and takes possession of the 
property.
    (c) You will:
    (1) Promptly pay the cost of care, handling, and shipping incident 
to taking possession of the property.
    (2) During the time that title remains in the United States 
Government, be responsible as a bailee for the property from the time it 
is released to you or to the transportation agent you have designated.
    (3) In the event of any loss of or damage to any or all of the 
property during transportation or storage at a place other than a place 
under your control, take the necessary action to obtain restitution 
(fair market value) for the Government. In the event of loss or damage 
due to negligence or willful misconduct on your part, repair, replace, 
or pay to the GSA the fair market value of any such property, or take 
such other action as the GSA may direct.
    (d) You may retain property to perform your donation program 
functions, but only when authorized by GSA in accordance with the 
provisions of a cooperative agreement entered into with GSA.
    (e) When acting under an interstate cooperative distribution 
agreement

[[Page 121]]

(see Sec. 102-37.335) as an agent and authorized representative of an 
adjacent State, you will:
    (1) Make the certifications and agreements required in Sec. 102-
37.200 and this section on behalf of the adjacent SASP.
    (2) Require the donee to execute the distribution documents of the 
State in which the donee is located.
    (3) Forward copies of the distribution documents to the 
corresponding SASP.
    (f) You will not discriminate on the basis of race, color, national 
origin, sex, age, or handicap in the distribution of property, and will 
comply with GSA regulations on nondiscrimination as set forth in parts 
101-4, subparts 101-6.2, and 101-8.3 of this title.
    (g) You will not seek to hold the United States Government liable 
for consequential or incidental damages or the personal injuries, 
disabilities, or death to any person arising from the transfer, 
donation, use, processing, or final disposition of this property. The 
Government's liability in any event is limited in scope to that provided 
for by the Federal Tort Claims Act (28 U.S.C. 2671, et seq.).

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.210  Must a SASP make a drug-free workplace certification
when requesting surplus property for donation?

    No, you must certify that you will provide a drug-free workplace 
only as a condition for retaining surplus property for SASP use. Drug-
free workplace certification requirements are found at part 105-68, 
subpart 105-68.6, of this title.



Sec. 102-37.215  When must a SASP make a certification regarding 
lobbying?

    You are subject to the anti-lobbying certification and disclosure 
requirements in part 105-69 of this title when all of the following 
conditions apply:
    (a) You have entered into a cooperative agreement with GSA that 
provides for your SASP to retain surplus property for use in performing 
donation functions or any other cooperative agreement.
    (b) The cooperative agreement was executed after December 23, 1989.
    (c) The fair market value of the property requested under the 
cooperative agreement is more than $100,000.

                  Justifying Special Transfer Requests



Sec. 102-37.220  Are there special types of surplus property that
require written justification when submitting a transfer request?

    Yes, a SASP must obtain written justification from the intended 
donee, and submit it to GSA along with the transfer request, prior to 
allocation of:
    (a) Aircraft and vessels covered by Sec. 102-37.455;
    (b) Items requested specifically for cannibalization;
    (c) Foreign gifts and decorations (see part 102-42 of this chapter);
    (d) Items containing 50 parts per million or greater of 
polychlorinated biphenyl (see part 101-42 of this title);
    (e) Firearms as described in part 101-42 of this title; and
    (f) Any item on which written justification will assist GSA in 
making allocation to States with the greatest need.



Sec. 102-37.225  What information or documentation must a SASP
provide when requesting a surplus aircraft or vessel?

    (a) For each SF 123 that you submit to GSA for transfer of a surplus 
aircraft or vessel covered by Sec. 102-37.455 include:
    (1) A letter of intent, signed and dated by the authorized 
representative of the proposed donee setting forth a detailed plan of 
utilization for the property (see Sec. 102-37.230 for information a 
donee has to include in the letter of intent); and
    (2) A letter, signed and dated by you, confirming and certifying the 
applicant's eligibility and containing an evaluation of the applicant's 
ability to use the aircraft or vessel for the purpose stated in its 
letter of intent and any other supplemental information concerning the 
needs of the donee which supports making the allocation.
    (b) For each SF 123 that GSA approves, you must include:
    (1) Your distribution document, signed and dated by the authorized 
donee representative; and

[[Page 122]]

    (2) A conditional transfer document, signed by you and the intended 
donee, and containing the special terms and conditions prescribed by 
GSA.



Sec. 102-37.230  What must a letter of intent for obtaining surplus
aircraft or vessels include?

    A letter of intent for obtaining surplus aircraft or vessels must 
provide:
    (a) A description of the aircraft or vessel requested. If the item 
is an aircraft, the description must include the manufacturer, date of 
manufacture, model, and serial number. If the item is a vessel, it must 
include the type, name, class, size, displacement, length, beam, draft, 
lift capacity, and the hull or registry number, if known;
    (b) A detailed description of the donee's program and the number and 
types of aircraft or vessels it currently owns;
    (c) A detailed description of how the aircraft or vessel will be 
used, its purpose, how often and for how long. If an aircraft is 
requested for flight purposes, the donee must specify a source of 
pilot(s) and where the aircraft will be housed. If an aircraft is 
requested for cannibalization, the donee must provide details of the 
cannibalization process (time to complete the cannibalization process, 
how recovered parts are to be used, method of accounting for usable 
parts, disposition of unsalvageable parts, etc.) If a vessel is 
requested for waterway purposes, the donee must specify a source of 
pilot(s) and where the vessel will be docked. If a vessel is requested 
for permanent docking on water or land, the donee must provide details 
of the process, including the time to complete the process; and
    (d) Any supplemental information (such as geographical area and 
population served, number of students enrolled in educational programs, 
etc.) supporting the donee's need for the aircraft or vessel.



Sec. 102-37.235  What type of information must a SASP provide when
requesting surplus property for cannibalization?

    When a donee wants surplus property to cannibalize, include the 
following statement on the SF 123: ``Line Item Number(s)------requested 
for cannibalization.''. In addition to including this statement, provide 
a detailed justification concerning the need for the components or 
accessories and an explanation of the effect removal will have on the 
item. GSA will approve requests for cannibalization only when it is 
clear from the justification that disassembly of the item for use of its 
component parts will provide greater potential benefit than use of the 
item in its existing form.



Sec. 102-37.240  How must a transfer request for surplus firearms
be justified?

    To justify a transfer request for surplus firearms, the requesting 
SASP must obtain and submit to GSA a letter of intent from the intended 
donee that provides:
    (a) Identification of the donee applicant, including its legal name 
and complete address and the name, title, and telephone number of its 
authorized representative;
    (b) The number of compensated officers with the power to apprehend 
and to arrest;
    (c) A description of the firearm(s) requested;
    (d) Details on the planned use of the firearm(s); and
    (e) The number and types of donated firearms received during the 
previous 12 months through any other Federal program.

                     Custody, Care, and Safekeeping



Sec. 102-37.245  What must a SASP do to safeguard surplus property
in its custody?

    To safeguard surplus property in your custody, you must provide 
adequate protection of property in your custody, including protection 
against the hazards of fire, theft, vandalism, and weather.



Sec. 102-37.250  What actions must a SASP take when it learns of
damage to or loss of surplus property in its custody?

    If you learn that surplus property in your custody has been damaged 
or lost, you must always notify GSA and notify the appropriate law 
enforcement officials if a crime has been committed.

[[Page 123]]



Sec. 102-37.255  Must a SASP insure surplus property against
loss or damage?

    No, you are not required to carry insurance on Federal surplus 
property in your custody. However, if you elect to carry insurance and 
the insured property is lost or damaged, you must submit a check made 
payable to GSA for any insurance proceeds received in excess of your 
actual costs of acquiring and rehabilitating the property prior to its 
loss, damage, or destruction.

                        Distribution of Property



Sec. 102-37.260  How must a SASP document the distribution of surplus
property?

    All SASPs must document the distribution of Federal surplus property 
on forms that are prenumbered, provide for donees to indicate the 
primary purposes for which they are acquiring property, and include the:
    (a) Certifications and agreements in Sec. Sec. 102-37.200 and 102-
37.205; and
    (b) Period of restriction during which the donee must use the 
property for the purpose for which it was acquired.



Sec. 102-37.265  May a SASP distribute surplus property to eligible
donees of another State?

    Yes, you may distribute surplus property to eligible donees of 
another State, if you and the other SASP determine that such an 
arrangement will be of mutual benefit to you and the donees concerned. 
Where such determinations are made, an interstate distribution 
cooperative agreement must be prepared as prescribed in Sec. 102-37.335 
and submitted to the appropriate GSA regional office for approval. When 
acting under an interstate distribution cooperative agreement, you must:
    (a) Require the donee recipient to execute the distribution 
documents of its home SASP; and
    (b) Forward copies of executed distribution documents to the donee's 
home SASP.



Sec. 102-37.270  May a SASP retain surplus property for its own use?

    Yes, you can retain surplus property for use in operating the 
donation program, but only if you have a cooperative agreement with GSA 
that allows you to do so. You must obtain prior GSA approval before 
using any surplus property in the operation of the SASP. Make your needs 
known by submitting a listing of needed property to the appropriate GSA 
regional office for approval. GSA will review the list to ensure that it 
is of the type and quantity of property that is reasonably needed and 
useful in performing SASP operations. GSA will notify you within 30 
calendar days whether you may retain the property for use in your 
operations. Title to any surplus property GSA approves for your 
retention will vest in your SASP. You must maintain separate records for 
such property.

                      Service and Handling Charges



Sec. 102-37.275  May a SASP accept personal checks and non-official
payment methods in payment of service charges?

    No, service charge payments must readily identify the donee 
institution as the payer (or the name of the parent organization when 
that organization pays the operational expenses of the donee). Personal 
checks, personal cashier checks, personal money orders, and personal 
credit cards are not acceptable.



Sec. 102-37.280  How may a SASP use service charge funds?

    Funds accumulated from service charges may be deposited, invested, 
or used in accordance with State law to:
    (a) Cover direct and reasonable indirect costs of operating the 
SASP;
    (b) Purchase necessary equipment for the SASP;
    (c) Maintain a reasonable working capital reserve;
    (d) Rehabilitate surplus property, including the purchase of 
replacement parts;
    (e) Acquire or improve office or distribution center facilities; or
    (f) Pay for the costs of internal and external audits.



Sec. 102-37.285  May a SASP use service charge funds to support
non-SASP State activities and programs?

    No, except as provided in Sec. 102-37.495, you must use funds 
collected from service charges, or from other sources

[[Page 124]]

such as proceeds from sale of undistributed property or funds collected 
from compliance cases, solely for the operation of the SASP and the 
benefit of participating donees.

                   Disposing of Undistributed Property



Sec. 102-37.290  What must a SASP do with surplus property it cannot
donate?

    (a) As soon as it becomes clear that you cannot donate the surplus 
property, you should first determine whether or not the property is 
usable.
    (1) If you determine that the undistributed surplus property is not 
usable, you should seek GSA approval to abandon or destroy the property 
in accordance with Sec. 102-37.320.
    (2) If you determine that the undistributed surplus property is 
usable, you should immediately offer it to other SASPs. If other SASPs 
cannot use the property, you should promptly report it to GSA for 
redisposal (i.e., disposition through retransfer, sale, or other means).
    (b) Normally, any property not donated within a 1-year period should 
be processed in this manner.



Sec. 102-37.295  Must GSA approve a transfer between SASPs?

    Yes, the requesting SASP must submit a SF 123, Transfer Order 
Surplus Personal Property, to the GSA regional office in which the 
releasing SASP is located. GSA will approve or disapprove the request 
within 30 calendar days of receipt of the transfer order.



Sec. 102-37.300  What information must a SASP provide GSA when 
reporting unneeded usable property for disposal?

    When reporting unneeded usable property that is not required for 
transfer to another SASP, provide GSA with the:
    (a) Best possible description of each line item of property, its 
current condition code, quantity, unit and total acquisition cost, State 
serial number, demilitarization code, and any special handling 
conditions;
    (b) Date you received each line item of property listed; and
    (c) Certification of reimbursement requested under Sec. 102-37.315.



Sec. 102-37.305  May a SASP act as GSA's agent in selling undistributed
surplus property (either as usable property or scrap)?

    Yes, you may act as GSA's agent in selling undistributed surplus 
property (either as usable property or scrap) if an established 
cooperative agreement with GSA permits such an action. You must notify 
GSA each time you propose to conduct a sale under the cooperative 
agreement. You may request approval to conduct a sale when reporting the 
property to GSA for disposal instructions. If no formal agreement 
exists, you may submit such an agreement at that time for approval.



Sec. 102-37.310  What must a proposal to sell undistributed surplus
property include?

    (a) Your request to sell undistributed surplus property must 
include:
    (1) The proposed sale date;
    (2) A listing of the property;
    (3) Location of the sale;
    (4) Method of sale; and
    (5) Proposed advertising to be used.
    (b) If the request is approved, the GSA regional sales office will 
provide the necessary forms and instructions for you to use in 
conducting the sale.



Sec. 102-37.315  What costs may a SASP recover if undistributed surplus
property is retransferred or sold?

    (a) When undistributed surplus property is transferred to a Federal 
agency or another SASP, or disposed of by public sale, you are entitled 
to recoup:
    (1) Direct costs you initially paid to the Federal holding agency, 
including but not limited to, packing, preparation for shipment, and 
loading. You will not be reimbursed for actions following receipt of the 
property, including unloading, moving, repairing, preserving, or 
storage.
    (2) Transportation costs you incurred, but were not reimbursed by a 
donee, for initially moving the property from the Federal holding agency 
to your distribution facility or other point of receipt. You must 
document and certify the amount of reimbursement requested for these 
costs.
    (b) Reimbursable arrangements should be made prior to transfer of 
the property. In the case of a Federal

[[Page 125]]

transfer, GSA will secure agreement of the Federal agency to reimburse 
your authorized costs, and annotate the amount of reimbursement on the 
transfer document. You must coordinate and make arrangements for 
reimbursement when property is transferred to another SASP. If you and 
the receiving SASP cannot agree on an appropriate reimbursement charge, 
GSA will determine appropriate reimbursement. The receiving SASP must 
annotate the reimbursement amount on the transfer document prior to its 
being forwarded to GSA for approval.
    (c) When undistributed property is disposed of by public sale, GSA 
must approve the amount of sales proceeds you may receive to cover your 
costs. Generally, this will not exceed 50 percent of the total sales 
proceeds.



Sec. 102-37.320  Under what conditions may a SASP abandon or destroy
undistributed surplus property?

    (a) You may abandon or destroy undistributed surplus property when 
you have made a written finding 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. The abandonment or 
destruction finding must be sent to the appropriate GSA regional office 
for approval. You must include in the finding:
    (1) The basis for the abandonment or destruction;
    (2) A detailed description of the property, its condition, and total 
acquisition cost;
    (3) The proposed method of destruction (burning, burying, etc.) or 
the abandonment location;
    (4) A statement confirming that the proposed abandonment or 
destruction will not be detrimental or dangerous to public health or 
safety and will not infringe on the rights of other persons; and
    (5) The signature of the SASP director requesting approval for the 
abandonment or destruction.
    (b) GSA will notify you within 30 calendar days whether you may 
abandon or destroy the property. GSA will provide alternate disposition 
instructions if it disapproves your request for abandonment or 
destruction. If GSA doesn't reply to you within 30 calendar days of 
notification, the property may be abandoned or destroyed.

                         Cooperative Agreements



Sec. 102-37.325  With whom and for what purpose(s) may a SASP enter
into a cooperative agreement?

    Section 549(f) of title 40, United States Code allows GSA, or 
Federal agencies designated by GSA, to enter into cooperative agreements 
with SASPs to carry out the surplus property donation program. Such 
agreements allow GSA, or the designated Federal agencies, to use the 
SASP's property, facilities, personnel, or services or to furnish such 
resources to the SASP. For example:
    (a) Regional GSA personal property management offices, or designated 
Federal agencies, may enter into a cooperative agreement to assist a 
SASP in distributing surplus property for donation. Assistance may 
include:
    (1) Furnishing the SASP with available GSA or agency office space 
and related support such as office furniture and information technology 
equipment needed to screen and process property for donation.
    (2) Permitting the SASP to retain items of surplus property 
transferred to the SASP that are needed by the SASP in performing its 
donation functions (see Sec. 102-37.270).
    (b) Regional GSA personal property management offices may help the 
SASP to enter into agreements with other GSA or Federal activities for 
the use of Federal telecommunications service or federally-owned real 
property and related personal property.
    (c) A SASP may enter into a cooperative agreement with GSA to 
conduct sales of undistributed property on behalf of GSA (see Sec. 102-
37.305).

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.330  Must the costs of providing support under a 
cooperative agreement be reimbursed by the parties receiving
such support?

    The parties to a cooperative agreement must decide among themselves 
the extent to which the costs of the

[[Page 126]]

services they provide must be reimbursed. Their decision should be 
reflected in the cooperative agreement itself. As a general rule, the 
Economy Act (31 U.S.C. 1535) would require a Federal agency receiving 
services from a SASP to reimburse the SASP for those services. Since 
SASPs are not Federal agencies, the Economy Act would not require them 
to reimburse Federal agencies for services provided by such agencies. In 
this situation, the Federal agencies would have to determine whether or 
not their own authorities would permit them to provide services to SASPs 
without reimbursement. If a Federal agency is reimbursed by a SASP for 
services provided under a cooperative agreement, it must credit that 
payment to the fund or appropriation that incurred the related costs.



Sec. 102-37.335  May a SASP enter into a cooperative agreement with
another SASP?

    Yes, with GSA's concurrence and where authorized by State law, a 
SASP may enter into an agreement with an adjacent State to act as its 
agent and authorized representative in disposing of surplus Federal 
property. Interstate cooperative agreements may be considered when 
donees, because of their geographic proximity to the property 
distribution centers of the adjoining State, could be more efficiently 
and economically serviced by surplus property facilities in the adjacent 
State. You and the other SASP must agree to the payment or reimbursement 
of service charges by the donee and you also must agree to the 
requirements of Sec. 102-37.205(e).



Sec. 102-37.340  When may a SASP terminate a cooperative agreement?

    You may terminate a cooperative agreement with GSA 60-calendar days 
after providing GSA with written notice. For other cooperative 
agreements with other authorized parties, you or the other party may 
terminate the agreement as mutually agreed. You must promptly notify GSA 
when such other agreements are terminated.

                           Audits and Reviews



Sec. 102-37.345  When must a SASP be audited?

    For each year in which a SASP receives $500,000 or more a year in 
surplus property or other Federal assistance, it must be audited in 
accordance with the Single Audit Act (31 U.S.C. 7501-7507) as 
implemented by Office of Management and Budget (OMB) Circular A-133, 
``Audits of States, Local Governments, and Non-Profit Organizations'' 
(for availability see 5 CFR 1310.3). GSA's donation program should be 
identified by Catalog of Federal Domestic Assistance number 39.003 when 
completing the required schedule of Federal assistance.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.350  Does coverage under the single audit process in 
OMB Circular A-133 exempt a SASP from other reviews of its program?

    No, although SASPs are covered under the single audit process in OMB 
Circular A-133, from time to time the Government Accountability Office 
(GAO), GSA, or other authorized Federal activities may audit or review 
the operations of a SASP. GSA will notify the chief executive officer of 
the State of the reasons for a GSA audit. When requested, you must make 
available financial records and all other records of the SASP for 
inspection by representatives of GSA, GAO, or other authorized Federal 
activities.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.355  What obligations does a SASP have to ensure that
donees meet Circular A-133 requirements?

    SASPs, if they donate $500,000 or more in Federal property to a 
donee in a fiscal year, must ensure that the donee has an audit 
performed in accordance with Circular A-133. If a donee receives less 
than $500,000 in donated property, the SASP is not expected to assume 
responsibility for ensuring the donee meets audit requirements, beyond 
making sure the donee is aware that the requirements do exist. It is the 
donee's responsibility to identify and determine the amount of

[[Page 127]]

Federal assistance it has received and to arrange for audit coverage.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]

                                 Reports



Sec. 102-37.360  What reports must a SASP provide to GSA?

    (a) Quarterly report on donations. Submit a GSA Form 3040, State 
Agency Monthly Donation Report of Surplus Personal Property, to the 
appropriate GSA regional office by the 25th day of the month following 
the quarter being reported. (OMB Control Number 3090-0112 has been 
assigned to this form.) Forms and instructions for completing the form 
are available from your servicing GSA office.
    (b) Additional reports. Make other reports GSA may require to carry 
out its discretionary authority to transfer surplus personal property 
for donation and to report to the Congress on the status and progress of 
the donation program.

                           Liquidating a SASP



Sec. 102-37.365  What steps must a SASP take if the State decides
to liquidate the agency?

    Before suspending operations, a SASP must submit to GSA a 
liquidation plan that includes:
    (a) Reasons for the liquidation;
    (b) A schedule for liquidating the agency and the estimated date of 
termination;
    (c) Method of disposing of property on hand under the requirements 
of this part;
    (d) Method of disposing of the agency's physical and financial 
assets;
    (e) Retention of all available records of the SASP for a 2-year 
period following liquidation; and
    (f) Designation of another governmental entity to serve as the 
agency's successor in function until continuing obligations on property 
donated prior to the closing of the agency are fulfilled.



Sec. 102-37.370  Do liquidation plans require public notice?

    Yes, a liquidation plan constitutes a major amendment of a SASP's 
plan of operation and, as such, requires public notice.



 Subpart E_Donations to Public Agencies, Service Educational Activities 
              (SEAs), and Eligible Nonprofit Organizations



Sec. 102-37.375  How is the pronoun ``you'' used in this subpart?

    The pronoun ``you,'' when used in this subpart, refers to the State 
agency for surplus property (SASP).



Sec. 102-37.380  What is the statutory authority for donations of
surplus Federal property made under this subpart?

    The following statutes provide the authority to donate surplus 
Federal property to different types of recipients:
    (a) Section 549(d) of title 40, United States Code authorizes 
surplus property under the control of the Department of Defense (DOD) to 
be donated, through SASPs, to educational activities which are of 
special interest to the armed services (referred to in this part 102-37 
as service educational activities or SEAs).
    (b) Section 549(c)(3) of title 40, United States Code authorizes 
SASPs to donate surplus property to public agencies and to nonprofit 
educational or public health institutions, such as:
    (1) Medical institutions.
    (2) Hospitals.
    (3) Clinics.
    (4) Health centers.
    (5) Drug abuse or alcohol treatment centers.
    (6) Providers of assistance to homeless individuals.
    (7) Providers of assistance to impoverished families and 
individuals.
    (8) Schools.
    (9) Colleges.
    (10) Universities.
    (11) Schools for the mentally disabled.
    (12) Schools for the physically disabled.
    (13) Child care centers.
    (14) Radio and television stations licensed by the Federal 
Communications Commission as educational radio or educational television 
stations.
    (15) Museums attended by the public.

[[Page 128]]

    (16) Libraries, serving free all residents of a community, district, 
State or region.
    (17) Historic light stations as defined under section 308(e)(2) of 
the National Historic Preservation Act (16 U.S.C. 470w-7(e)(2)), 
including a historic light station conveyed under subsection (b) of that 
section, notwithstanding the number of hours that the historic light 
station is open to the public.
    (c) Section 213 of the Older Americans Act of 1965, as amended (42 
U.S.C. 3020d), authorizes donations of surplus property to State or 
local government agencies, or nonprofit organizations or institutions, 
that receive Federal funding to conduct programs for older individuals.
    (d) Section 549(c)(3)(C) of title 40, United States Code authorizes 
SASPs to donate property to veterans organizations, for purposes of 
providing services to veterans (as defined in section 101 of title 38). 
Eligible veterans organizations are those whose:
    (1) Membership comprises substantially veterans; and
    (2) Representatives are recognized by the Secretary of Veterans 
Affairs under section 5902 of title 38.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006; 72 
FR 12572, Mar. 16, 2007; 79 FR 64514, Oct. 30, 2014]

                            Donee Eligibility



Sec. 102-37.385  Who determines if a prospective donee applicant is
eligible to receive surplus property under this subpart?

    (a) For most public and nonprofit activities, the SASP determines if 
an applicant is eligible to receive property as a public agency, a 
nonprofit educational or public health institution, or for a program for 
older individuals. A SASP may request GSA assistance or guidance in 
making such determinations.
    (b) For applicants that offer courses of instruction devoted to the 
military arts and sciences, the Defense Department will determine 
eligibility to receive surplus property through the SASP as a service 
educational activity or SEA.



Sec. 102-37.390  What basic criteria must an applicant meet before
a SASP can qualify it for eligibility?

    To qualify for donation program eligibility through a SASP, an 
applicant must:
    (a) Conform to the definition of one of the categories of eligible 
entities listed in Sec. 102-37.380 (see appendix C of this part for 
definitions);
    (b) Demonstrate that it meets any approval, accreditation, or 
licensing requirements for operation of its program;
    (c) Prove that it is a public agency or a nonprofit and tax-exempt 
organization under section 501 of the Internal Revenue Code;
    (d) Certify that it is not debarred, suspended, or excluded from any 
Federal program, including procurement programs; and
    (e) Operate in compliance with applicable Federal nondiscrimination 
statutes.



Sec. 102-37.395  How can a SASP determine whether an applicant meets
any required approval, accreditation, or licensing requirements?

    A SASP may accept the following documentation as evidence that an 
applicant has met established standards for the operation of its 
educational or health program:
    (a) A certificate or letter from a nationally recognized accrediting 
agency affirming the applicant meets the agency's standards and 
requirements.
    (b) The applicant's appearance on a list with other similarly 
approved or accredited institutions or programs when that list is 
published by a State, regional, or national accrediting authority.
    (c) Letters from State or local authorities (such as a board of 
health or a board of education) stating that the applicant meets the 
standards prescribed for approved or accredited institutions and 
organizations.
    (d) In the case of educational activities, letters from three 
accredited or State-approved institutions that students from the 
applicant institution have been and are being accepted.
    (e) In the case of public health institutions, licensing may be 
accepted as

[[Page 129]]

evidence of approval, provided the licensing authority prescribes the 
medical requirements and standards for the professional and technical 
services of the institution.
    (f) The awarding of research grants to the institution by a 
recognized authority such as the National Institutes of Health, the 
National Institute of Education, or by similar national advisory council 
or organization.



Sec. 102-37.400  What type of eligibility information must a SASP 
maintain on donees?

    In general, you must maintain the records required by your State 
plan to document donee eligibility (see appendix B of this part). For 
SEAs, you must maintain separate records that include:
    (a) Documentation verifying that the activity has been designated as 
eligible by DOD to receive surplus DOD property.
    (b) A statement designating one or more donee representative(s) to 
act for the SEA in acquiring property.
    (c) A listing of the types of property that are needed or have been 
authorized by DOD for use in the SEA's program.



Sec. 102-37.405  How often must a SASP update donee eligibility 
records?

    You must update donee eligibility records as needed, but no less 
than every 3 years, to ensure that all documentation supporting the 
donee's eligibility is current and accurate. Annually, you must update 
files for nonprofit organizations whose eligibility depends on annual 
appropriations, annual licensing, or annual certification. Particular 
care must be taken to ensure that all records relating to the authority 
of donee representatives to receive and receipt for property, or to 
screen property at Federal facilities, are current.



Sec. 102-37.410  What must a SASP do if a donee fails to maintain its 
eligibility status?

    If you determine that a donee has failed to maintain its eligibility 
status, you must terminate distribution of property to that donee, 
recover any usable property still under Federal restriction (as outlined 
in Sec. 102-37.465), and take any other required compliance actions.



Sec. 102-37.415  What should a SASP do if an applicant appeals a
negative eligibility determination?

    If an applicant appeals a negative eligibility determination, 
forward complete documentation on the appeal request, including your 
comments and recommendations, to the applicable GSA regional office for 
review and coordination with GSA headquarters. GSA's decision will be 
final.

                         Conditional Eligibility



Sec. 102-37.420  May a SASP grant conditional eligibility to applicants 
who would otherwise qualify as eligible donees, but have been unable 
to obtain approval, accreditation, or licensing because they are newly 
          organized or their facilities are not yet constructed?

    You may grant conditional eligibility to such an applicant provided 
it submits a statement from any required approving, accrediting, or 
licensing authority confirming it will be approved, accredited, or 
licensed. Conditional eligibility may be granted for a limited and 
reasonable time, not to exceed one year.

[67 FR 2584, Jan. 18, 2002, as amended at 79 FR 64514, Oct. 30, 2014]



Sec. 102-37.425  May a SASP grant conditional eligibility to a not-
for-profit organization whose tax-exempt status is pending?

    No, under no circumstances may you grant conditional eligibility 
prior to receiving from the applicant a copy of a letter of 
determination by the Internal Revenue Service stating that the applicant 
is exempt from Federal taxation under section 501 of the Internal 
Revenue Code.



Sec. 102-37.430  What property can a SASP make available to a donee 
with conditional eligibility?

    You may only make available surplus property that the donee can use 
immediately. You may not make available property that will only be used 
at a later date, for example, after the construction of the donee's 
facility has been completed. If property is provided

[[Page 130]]

to the donee with conditional eligibility, and the conditional 
eligibility lapses (see Sec. 102-37.420), the property must be returned 
to the SASP for redistribution or disposal.

[67 FR 2584, Jan. 18, 2002, as amended at 79 FR 64514, Oct. 30, 2014]

                    Terms and Conditions of Donation



Sec. 102-37.435  For what purposes may donees acquire and use surplus
property?

    A donee may acquire and use surplus property only for the following 
authorized purposes:
    (a) Public purposes. A public agency that acquires surplus property 
through a SASP must use such property to carry out or to promote one or 
more public purposes for the people it serves.
    (b) Educational and public health purposes, including related 
research. A nonprofit educational or public health institution must use 
surplus property for education or public health, including research for 
either purpose and assistance to the homeless or impoverished. While 
this does not preclude the use of donated surplus property for a related 
or subsidiary purpose incident to the institution's overall program, the 
property may not be used for a nonrelated or commercial purpose.
    (c) Programs for older individuals. An entity that conducts a 
program for older individuals must use donated surplus property to 
provide services that are necessary for the general welfare of older 
individuals, such as social services, transportation services, nutrition 
services, legal services, and multipurpose senior centers.



Sec. 102-37.440  May donees acquire property for exchange?

    No, a donee may not acquire property with the intent to sell or 
trade it for other assets.



Sec. 102-37.445  What certifications must a donee make before 
receiving property?

    Prior to a SASP releasing property to a donee, the donee must 
certify that:
    (a) It is a public agency or a nonprofit organization meeting the 
requirements of the Property Act and/or regulations of GSA;
    (b) It is acquiring the property for its own use and will use the 
property for authorized purposes;
    (c) Funds are available to pay all costs and charges incident to the 
donation;
    (d) It will comply with the nondiscrimination regulations issued 
under title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-
4), section 122 of title 40, United States Code, section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794), as amended, title IX of the 
Education Amendments of 1972 (20 U.S.C. 1681-1688), as amended, and 
section 303 of the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107); 
and
    (e) It isn't currently debarred, suspended, declared ineligible, or 
otherwise excluded from receiving the property.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.450  What agreements must a donee make?

    Before a SASP may release property to a donee, the donee must agree 
to the following conditions:
    (a) The property is acquired on an ``as is, where is'' basis, 
without warranty of any kind, and it will hold the Government harmless 
from any or all debts, liabilities, judgments, costs, demands, suits, 
actions, or claims of any nature arising from or incident to the 
donation of the property, its use, or final disposition.
    (b) It will return to the SASP, at its own expense, any donated 
property:
    (1) That is not placed in use for the purposes for which it was 
donated within 1 year of donation; or
    (2) Which ceases to be used for such purposes within 1 year after 
being placed in use.
    (c) It will comply with the terms and conditions imposed by the SASP 
on the use of any item of property having a unit acquisition cost of 
$5,000 or more and any passenger motor vehicle or other donated item. 
(Not applicable to SEAs.)
    (d) It agrees that, upon execution of the SASP distribution 
document, it

[[Page 131]]

has conditional title only to the property during the applicable period 
of restriction. Full title to the property will vest in the donee only 
after the donee has met all of the requirements of this part.
    (e) It will comply with conditions imposed by GSA, if any, requiring 
special handling or use limitations on donated property.
    (f) It will use the property for an authorized purpose during the 
period of restriction.
    (g) It will obtain permission from the SASP before selling, trading, 
leasing, loaning, bailing, cannibalizing, encumbering or otherwise 
disposing of property during the period of restriction, or removing it 
permanently for use outside the State.
    (h) It will report to the SASP on the use, condition, and location 
of donated property, and on other pertinent matters as the SASP may 
require from time to time.
    (i) If an insured loss of the property occurs during the period of 
restriction, GSA or the SASP (depending on which agency has imposed the 
restriction) will be entitled to reimbursement out of the insurance 
proceeds of an amount equal to the unamortized portion of the fair 
market value of the damaged or destroyed item.

                   Special Handling or Use Conditions



Sec. 102-37.455  On what categories of surplus property has GSA 
imposed special handling conditions or use limitations?

    GSA has imposed special handling or processing requirements on the 
property discussed in this section. GSA may, on a case-by-case basis, 
prescribe additional restrictions for handling or using these items or 
prescribe special processing requirements on items in addition to those 
listed in this section.
    (a) Aircraft and vessels. The requirements of this section apply to 
the donation of any fixed- or rotary-wing aircraft and donable vessels 
that are 50 feet or more in length, having a unit acquisition cost of 
$5,000 or more, regardless of the purpose for which donated. Such 
aircraft or vessels may be donated to public agencies and eligible 
nonprofit activities provided the aircraft or vessel is not classified 
for reasons of national security and any lethal characteristics are 
removed. The following table provides locations of other policies and 
procedures governing aircraft and vessels:

------------------------------------------------------------------------
                  For. . .                             See. . .
------------------------------------------------------------------------
(1) Policies and procedures governing the    Part 102-33, subpart D, of
 donation of aircraft parts.                  this chapter.
------------------------------------------------------------------------
(2) Documentation needed by GSA to process   Sec. 102-37.225.
 requests for aircraft or vessels.
------------------------------------------------------------------------
(3) Special terms, conditions, and           Sec. 102-37.460.
 restrictions imposed on aircraft and
 vessels.
------------------------------------------------------------------------
(4) Guidelines on preparing letters of       Sec. 102-37.230.
 intent for aircraft or vessels.
------------------------------------------------------------------------

    (b) Alcohol. (1) When tax-free or specially denatured alcohol is 
requested for donation, the donee must have a special permit issued by 
the Assistant Regional Commissioner of the appropriate regional office, 
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Department of 
the Justice, in order to acquire the property. Include the ATF use-
permit number on the SF 123, Transfer Order Surplus Personal Property.
    (2) You may not store tax-free or specially denatured alcohol in 
SASP facilities. You must make arrangements for this property to be 
shipped or transported directly from the holding agency to the 
designated donee.
    (c) Hazardous materials, firearms, and property with unsafe or 
dangerous characteristics. For hazardous materials, firearms, and 
property with unsafe or dangerous characteristics, see part 101-42 of 
this title.
    (d) Franked and penalty mail envelopes and official letterhead. 
Franked and penalty mail envelopes and official letterhead may not be 
donated without the SASP certifying that all Federal Government markings 
will be obliterated before use.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]

[[Page 132]]



Sec. 102-37.460  What special terms and conditions apply to the 
donation of aircraft and vessels?

    The following special terms and conditions apply to the donation of 
aircraft and vessels:
    (a) There must be a period of restriction which will expire after 
the aircraft or vessel has been used for the purpose stated in the 
letter of intent (see Sec. 102-37.230) for a period of 5 years, except 
that the period of restriction for a combat-configured aircraft is in 
perpetuity.
    (b) The donee of an aircraft must apply to the FAA for registration 
of an aircraft intended for flight use within 30 calendar days of 
receipt of the aircraft. The donee of a vessel must, within 30 calendar 
days of receipt of the vessel, apply for documentation of the vessel 
under applicable Federal, State, and local laws and must record each 
document with the U.S. Coast Guard at the port of documentation. The 
donee's application for registration or documentation must include a 
fully executed copy of the conditional transfer document and a copy of 
its letter of intent. The donee must provide the SASP and GSA with a 
copy of the FAA registration (and a copy of its FAA Standard 
Airworthiness Certificate if the aircraft is to be flown as a civil 
aircraft) or Coast Guard documentation.
    (c) The aircraft or vessel must be used solely in accordance with 
the executed conditional transfer document and the plan of utilization 
set forth in the donee's letter of intent, unless the donee has amended 
the letter, and it has been approved in writing by the SASP and GSA and 
a copy of the amendment recorded with FAA or the U.S. Coast Guard, as 
applicable.
    (d) In the event any of the terms and conditions imposed by the 
conditional transfer document are breached, title may revert to the 
Government. GSA may require the donee to return the aircraft or vessel 
or pay for any unauthorized disposal, transaction, or use.
    (e) If, during the period of restriction, the aircraft or vessel is 
no longer needed by the donee, the donee must promptly notify the SASP 
and request disposal instructions. A SASP may not issue disposal 
instructions without the prior written concurrence of GSA.
    (f) Military aircraft previously used for ground instruction and/or 
static display (Category B aircraft, as designated by DOD) or that are 
combat-configured (Category C aircraft) may not be donated for flight 
purposes.
    (g) For all aircraft donated for nonflight use, the donee must, 
within 30 calendar days of receipt of the aircraft, turn over to the 
SASP the remaining aircraft historical records (except the records of 
the major components/life limited parts; e.g., engines, transmissions, 
rotor blades, etc., necessary to substantiate their reuse). The SASP in 
turn must transmit the records to GSA for forwarding to the FAA.

                         Release of Restrictions



Sec. 102-37.465  May a SASP modify or release any of the terms and
conditions of donation?

    You may alter or grant releases from State-imposed restrictions, 
provided your State plan of operation sets forth the standards by which 
such actions will be taken. You may not grant releases from, or 
amendments or corrections to:
    (a) The terms and conditions you are required by the Property Act to 
impose on the use of passenger motor vehicles and any item of property 
having a unit acquisition cost of $5,000 or more.
    (b) Any special handling condition or use limitation imposed by GSA, 
except with the prior written approval of GSA.
    (c) The statutory requirement that usable property be returned by 
the donee to the SASP if the property has not been placed in use for the 
purposes for which it was donated within 1 year of donation or ceases to 
be used by the donee for those purposes within 1 year of being placed in 
use, except that:
    (1) You may grant authority to the donee to cannibalize property 
items subject to this requirement when you determine that such action 
will result in increased use of the property and that the proposed 
action meets the standards prescribed in your plan of operation.
    (2) You may, with the written concurrence of GSA, grant donees:
    (i) A time extension to place property into use if the delay in 
putting the

[[Page 133]]

property into use was beyond the control and without the fault or 
negligence of the donee.
    (ii) Authority to trade in one donated item for one like item having 
similar use potential.



Sec. 102-37.470  At what point may restrictions be released on
property that has been authorized for cannibalization?

    Property authorized for cannibalization must remain under the period 
of restriction imposed by the transfer/distribution document until the 
proposed cannibalization is completed. Components resulting from the 
cannibalization, which have a unit acquisition cost of $5,000 or more, 
must remain under the restrictions imposed by the transfer/distribution 
document. Components with a unit acquisition cost of less than $5,000 
may be released upon cannibalization from the additional restrictions 
imposed by the State. However, these components must continue to be used 
or be otherwise disposed of in accordance with this part.



Sec. 102-37.475  What are the requirements for releasing restrictions
on property being considered for exchange?

    GSA must consent to the exchange of donated property under Federal 
restrictions or special handling conditions. The donee must have used 
the donated item for its acquired purpose for a minimum of 6 months 
prior to being considered for exchange, and it must be demonstrated that 
the exchange will result in increased utilization value to the donee. As 
a condition of approval of the exchange, the item being exchanged must 
have remained in compliance with the terms and conditions of the 
donation. Otherwise, Sec. 102-37.485 applies. The item acquired by the 
donee must be:
    (a) Made subject to the period of restriction remaining on the item 
exchanged; and
    (b) Of equal or greater value than the item exchanged.

                       Compliance and Utilization



Sec. 102-37.480  What must a SASP do to ensure that property is used
for the purpose(s) for which it was donated?

    You must conduct utilization reviews, as provided in your plan of 
operation, to ensure that donees are using surplus property during the 
period of restriction for the purposes for which it was donated. You 
must fully document your efforts and report all instances of 
noncompliance (misuse or mishandling of property) to GSA.



Sec. 102-37.485  What actions must a SASP take if a review or other
information indicates noncompliance with donation terms and conditions?

    If a review or other information indicates noncompliance with 
donation terms and conditions, you must:
    (a) Promptly investigate any suspected failure to comply with the 
conditions of donated property;
    (b) Notify GSA immediately where there is evidence or allegation of 
fraud, wrongdoing by a screener, or nonuse, misuse, or unauthorized 
disposal or destruction of donated property;
    (c) Temporarily defer any further donations of property to any donee 
to be investigated for noncompliance allegations until such time as the 
investigation has been completed and:
    (1) A determination made that the allegations are unfounded and the 
deferment is removed.
    (2) The allegations are substantiated and the donee is proposed for 
suspension or debarment; and
    (d) Take steps to correct the noncompliance or otherwise enforce the 
conditions imposed on use of the property if a donee is found to be in 
noncompliance. Enforcement of compliance may involve:
    (1) Ensuring the property is used by the present donee for the 
purpose for which it was donated.
    (2) Recovering the property from the donee for:
    (i) Redistribution to another donee within the State;
    (ii) Transfer through GSA to another SASP; or
    (iii) Transfer through GSA to a Federal agency.

[[Page 134]]

    (3) Recovering fair market value or the proceeds of disposal in 
cases of unauthorized disposal or destruction.
    (4) Recovering fair rental value for property in cases where the 
property has been loaned or leased to an ineligible user or used for an 
unauthorized purpose.
    (5) Disposing of by public sale property no longer suitable, usable, 
or necessary for donation.



Sec. 102-37.490  When must a SASP coordinate with GSA on compliance
actions?

    You must coordinate with GSA before selling or demanding payment of 
the fair market or fair rental value of donated property that is:
    (a) Subject to any special handling condition or use limitation 
imposed by GSA (see Sec. 102-37.455); or
    (b) Not properly used within 1 year of donation or which ceases to 
be properly used within 1 year of being placed in use.



Sec. 102-37.495  How must a SASP handle funds derived from compliance
actions?

    You must handle funds derived from compliance actions as follows:
    (a) Enforcement of Federal restrictions. You must promptly remit to 
GSA any funds derived from the enforcement of compliance involving a 
violation of any Federal restriction, for deposit in the Treasury of the 
United States. You must also submit any supporting documentation 
indicating the source of the funds and essential background information.
    (b) Enforcement of State restrictions. You may retain any funds 
derived from a compliance action involving violation of any State-
imposed restriction and use such funds as provided in your State plan of 
operation.

                        Returns and Reimbursement



Sec. 102-37.500  May a donee receive reimbursement for its donation
expenses when unneeded property is returned to the SASP?

    When a donee returns unneeded property to a SASP, the donee may be 
reimbursed for all or part of the initial cost of any repairs required 
to make the property usable if:
    (a) The property is transferred to a Federal agency or sold for the 
benefit of the U.S. Government;
    (b) No breach of the terms and conditions of donation has occurred; 
and
    (c) GSA authorizes the reimbursement.



Sec. 102-37.505  How does a donee apply for and receive reimbursement
for unneeded property returned to a SASP?

    If the donee has incurred repair expenses for property it is 
returning to a SASP and wishes to be reimbursed for them, it will inform 
the SASP of this. The SASP will recommend for GSA approval a 
reimbursement amount, taking into consideration the benefit the donee 
has received from the use of the property and making appropriate 
deductions for that use.
    (a) If this property is subsequently transferred to a Federal 
agency, the receiving agency will be required to reimburse the donee as 
a condition of the transfer.
    (b) If the property is sold, the donee will be reimbursed from the 
sales proceeds.

                  Special Provisions Pertaining to SEAs



Sec. 102-37.510  Are there special requirements for donating property
to SEAs?

    Yes, only DOD-generated property may be donated to SEAs. When 
donating DOD property to an eligible SEA, SASPs must observe any 
restrictions the sponsoring Military Service may have imposed on the 
types of property the SEA may receive.



Sec. 102-37.515  Do SEAs have a priority over other SASP donees
for DOD property?

    Yes, SEAs have a priority over other SASP donees for DOD property, 
but only if DOD requests GSA to allocate surplus DOD property through a 
SASP for donation to a specific SEA. In such cases, DOD would be 
expected to clearly identify the items in question and briefly justify 
the request.

[[Page 135]]



                 Subpart F_Donations to Public Airports



Sec. 102-37.520  What is the authority for public airport donations?

    The authority for public airport donations is 49 U.S.C. 47151. 49 
U.S.C. 47151 authorizes executive agencies to give priority 
consideration to requests from a public airport (as defined in 49 U.S.C. 
47102) for the donation of surplus property if the Department of 
Transportation (DOT) considers the property appropriate for airport 
purposes and GSA approves the donation.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.525  What should a holding agency do if it wants a public
airport to receive priority consideration for excess personal property
it has reported to GSA?

    A holding agency interested in giving priority consideration to a 
public airport should annotate its reporting document to make GSA aware 
of this interest. In an addendum to the document, include the name of 
the requesting airport, specific property requested, and a brief 
description of how the airport intends to use the property.



Sec. 102-37.530  What are FAA's responsibilities in the donation
of surplus property to public airports?

    In the donation of surplus property to public airports, the Federal 
Aviation Administration (FAA), acting under delegation from the DOT, is 
responsible for:
    (a) Determining the property requirements of any State, political 
subdivision of a State, or tax-supported organization for public airport 
use;
    (b) Setting eligibility requirements for public airports and making 
determinations of eligibility;
    (c) Certifying that property listed on a transfer request is 
desirable or necessary for public airport use;
    (d) Advising GSA of FAA officials authorized to certify transfer 
requests and notifying GSA of any changes in signatory authority;
    (e) Determining and enforcing compliance with the terms and 
conditions under which surplus personal property is transferred for 
public airport use; and
    (f) Authorizing public airports to visit holding agencies for the 
purpose of screening and selecting property for transfer. This 
responsibility includes:
    (1) Issuing a screening pass or letter of authorization to only 
those persons who are qualified to screen.
    (2) Maintaining a current record (to include names, addresses, and 
telephone numbers, and additional identifying information such as 
driver's license or social security numbers) of screeners operating 
under FAA authority and making such records available to GSA upon 
request.
    (3) Recovering any expired or invalid screener authorizations.



Sec. 102-37.535  What information must FAA provide to GSA on its
administration of the public airport donation program?

    So that GSA has information on which to base its discretionary 
authority to approve the donation of surplus personal property, FAA 
must:
    (a) Provide copies of internal instructions that outline the scope 
of FAA's oversight program for enforcing compliance with the terms and 
conditions of transfer; and
    (b) Report any compliance actions involving donations to public 
airports.



         Subpart G_Donations to the American National Red Cross



Sec. 102-37.540  What is the authority for donations to the American
National Red Cross?

    Section 551 of title 40, United States Code authorizes GSA to donate 
to the Red Cross, for charitable use, such property as was originally 
derived from or through the Red Cross.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.545  What type of property may the American National
Red Cross receive?

    The Red Cross may receive surplus gamma globulin, dried plasma, 
albumin, antihemophilic globulin, fibrin foam, surgical dressings, or 
other products or materials it processed, produced, or donated to a 
Federal agency.

[[Page 136]]



Sec. 102-37.550  What steps must the American National Red Cross
take to acquire surplus property?

    Upon receipt of information from GSA regarding the availability of 
surplus property for donation, the Red Cross will:
    (a) Have 21 calendar days to inspect the property or request it 
without inspection; and
    (b) Be responsible for picking up property donated to it or 
arranging and paying for its shipment.



Sec. 102-37.555  What happens to property the American National Red 
Cross does not request?

    Property the Red Cross declines to request will be offered to SASPs 
for distribution to eligible donees. If such property is transferred, 
GSA will require the SASP to ensure that all Red Cross labels or other 
Red Cross identifications are obliterated or removed from the property 
before it is used.



 Subpart H_Donations to Public Bodies in Lieu of Abandonment/
 Destruction



Sec. 102-37.560  What is a public body?

    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.



Sec. 102-37.565  What is the authority for donations to public bodies?

    Section 527 of title 40, United States Code authorizes the 
abandonment, destruction, or donation to public bodies of property which 
has no commercial value or for which the estimated cost of continued 
care and handling would exceed the estimated proceeds from its sale.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006]



Sec. 102-37.570  What type of property may a holding agency donate
under this subpart?

    Only that property a holding agency has made a written determination 
to abandon or destroy (see process in part 102-36 of this chapter) may 
be donated under this subpart. A holding agency may not donate property 
that requires destruction for health, safety, or security reasons. When 
disposing of hazardous materials and other dangerous property, a holding 
agency must comply with all applicable laws and regulations and any 
special disposal requirements in part 101-42 of this title.



Sec. 102-37.575  Is there a special form for holding agencies to
process donations?

    There is no special form for holding agencies to process donations. 
A holding agency may use any document that meets its agency's needs for 
maintaining an audit trail of the transaction.



Sec. 102-37.580  Who is responsible for costs associated with the
donation?

    The recipient public body is responsible for paying the disposal 
costs incident to the donation, such as packing, preparation for 
shipment, demilitarization (as defined in Sec. 102-36.40 of this 
chapter), loading, and transportation to its site.



             Subpart I_Transfer of Vehicle Title to a Donee

    Source: 79 FR 64514, Oct. 30, 2014, unless otherwise noted.



Sec. 102-37.585  In transferring donated surplus vehicles, what is 
the responsibility of the holding agency?

    (a) The holding agency is responsible for preparing Standard Form 
97, The United States Government Certificate to Obtain Title to a 
Vehicle (SF 97) upon notification by GSA that a donee has been 
identified. The SF 97 may be prepared by GSA if mutually agreed upon by 
the holding agency and GSA. The holding agency is designated as the 
``transferor.''
    (b) If the holding agency authorizes or requires any other entity, 
including a contractor or grantee, to complete this SF 97, the holding 
agency must first ensure compliance with the Paperwork Reduction Act.
    (c) The SF 97 is a serially numbered, controlled form, stock number 
7540-00-634-4047, which can be obtained by executive agencies from GSA 
Global Supply or online at www.gsaglobalsupply.gsa.gov. Proper

[[Page 137]]

precautions shall be exercised by the agency to prevent blank copies of 
the SF 97 from being obtained by unauthorized persons.



Sec. 102-37.590  In transferring donated surplus vehicles, what is 
the responsibility of the SASP?

    The SASP is responsible for facilitating the transfer of the surplus 
vehicle to the donee in accordance with this part. The SASP should not 
sign the SF 97 as ``transferee'' unless the SASP is the donee.



Sec. 102-37.595  When transferring donated surplus vehicles, what 
is the responsibility of the donee?

    The donee is responsible for processing the SF 97 in accordance with 
state licensing and titling authorities. The donee signs the SF 97 as 
``transferee'' upon receipt of the surplus motor vehicle. The donee is 
responsible for notifying the SASP if a SF 97 is not provided by the 
Government.



Sec. 102-37.600  When does title to a surplus donated vehicle change
hands?

    Title to the vehicle rests with the holding agency until the SF 97 
is signed by the donee upon receipt of the surplus motor vehicle. (If 
applicable under the terms of the donation, the title will be 
conditional until the end of the period of restriction).



     Sec. Appendix A to Part 102-37--Miscellaneous Donation Statutes

    The following is a listing of statutes which authorize donations 
which do not require GSA's approval:
    Statute: 10 U.S.C. 2572.
    Donor Agency: Any military department (Army, Navy, and Air Force) or 
the Coast Guard.
    Type of Property: Books, manuscripts, works of art, historical 
artifacts, drawings, plans, models, and condemned or obsolete combat 
material.
    Eligible Recipients: Municipal corporations; soldiers' monument 
associations; museums, historical societies, or historical institutions 
of a State or foreign nation; incorporated museums that are operated and 
maintained for educational purposes only and the charters of which 
denies them the right to operate for profit; posts of the Veterans of 
Foreign Wars of the United States or of the American Legion or a unit of 
any other recognized war veterans' association; local or national units 
of any war veterans' association of a foreign nation which is recognized 
by the national government of that nation or a principal subdivision of 
that nation; and posts of the Sons of Veterans Reserve.

    Statute: 10 U.S.C. 7306.
    Donor Agency: Department of the Navy.
    Type of Property: Any vessel stricken from the Naval Vessel Register 
or any captured vessel in the possession of the Navy.
    Eligible Recipients: States, Commonwealths, or possessions of the 
United States; the District of Columbia; and not-for-profit or nonprofit 
entities.

    Statute: 10 U.S.C. 7541.
    Donor Agency: Department of the Navy.
    Type of Property: Obsolete material not needed for naval purposes.
    Eligible Recipients: Sea scouts of the Boy Scouts of America; Naval 
Sea Cadet Corps; and the Young Marines of the Marine Corps League.

    Statute: 10 U.S.C. 7545.
    Donor Agency: Department of the Navy.
    Type of Property: Captured, condemned, or obsolete ordnance 
material, books, manuscripts, works of art, drawings, plans, and models; 
other condemned or obsolete material, trophies, and flags; and other 
material of historic interest not needed by the Navy.
    Eligible Recipients: States, territories, commonwealths, or 
possessions of the United States, or political subdivisions or municipal 
corporations thereof; the District of Columbia; libraries; historical 
societies; educational institutions whose graduates or students fought 
in World War I or World War II; soldiers' monument associations; State 
museums; museums operated and maintained for educational purposes only, 
whose charter denies it the right to operate for profit; posts of the 
Veterans of Foreign Wars of the United States; American Legion posts; 
recognized war veterans' associations; or posts of the Sons of Veterans 
Reserve.

    Statute: 14 U.S.C. 641(a).
    Donor Agency: Coast Guard.
    Type of Property: Obsolete or other material not needed for the 
Coast Guard.
    Eligible Recipients: Coast Guard Auxiliary; sea scout service of the 
Boy Scouts of America; and public bodies or private organizations not 
organized for profit.

    Appendix B to Part 102-37--Elements of a State Plan of Operation

    The following is the information and assurances that must be 
included in a SASP's plan of operation:

[[Page 138]]



                         State Plan Requirements
------------------------------------------------------------------------
       Regarding . . .                    The plan must . . .
------------------------------------------------------------------------
(a) Designation of a SASP....  (1) Name the State agency that will be
                                responsible for administering the plan.
                               (2) Describe the responsibilities vested
                                in the agency which must include the
                                authorities to acquire, warehouse and
                                distribute surplus property to eligible
                                donees, carry out other requirements of
                                the State plan, and provide details
                                concerning the organization of the
                                agency, including supervision, staffing,
                                structure, and physical facilities.
                               (3) Indicate the organizational status of
                                the agency within the State governmental
                                structure and the title of the State
                                official who directly supervises the
                                State agent.
------------------------------------------------------------------------
(b) Operational authority....  Include copies of existing State statutes
                                and/or executive orders relative to the
                                operational authority of the SASP. Where
                                express statutory authority does not
                                exist or is ambiguous, or where
                                authority exists by virtue of executive
                                order, the plan must include also the
                                opinion of the State's Attorney General
                                regarding the existence of such
                                authority.
------------------------------------------------------------------------
(c) Inventory control and      (1) Require the SASP to use a management
 accounting system.             control and accounting system that
                                effectively governs the utilization,
                                inventory control, accountability, and
                                disposal of property.
                               (2) Provide a detailed explanation of the
                                inventory control and accounting system
                                that the SASP will use.
                               (3) Provide that property retained by the
                                SASP to perform its functions be
                                maintained on separate records from
                                those of donable property.
------------------------------------------------------------------------
(d) Return of donated          (1) Require the SASP to provide for the
 property.                      return of donated property from the
                                donee, at the donee's expense, if the
                                property is still usable as determined
                                by the SASP; and
                               (i) The donee has not placed the property
                                into use for the purpose for which it
                                was donated within 1 year of donation;
                                or
                               (ii) The donee ceases to use the property
                                within 1 year after placing it in use.
                               (2) Specify that return of property can
                                be accomplished by:
                               (i) Physical return to the SASP facility,
                                if required by the SASP.
                               (ii) Retransfer directly to another
                                donee, SASP, or
                               Federal agency, as required by the SASP.
                               (iii) Disposal (by sale or other means)
                                as directed by the SASP.
                               (3) Set forth procedures to accomplish
                                property returns to the SASP,
                                retransfers to other organizations, or
                                disposition by sale, abandonment, or
                                destruction.
------------------------------------------------------------------------
(e) Financing and service      (1) Set forth the means and methods for
 charges.                       financing the SASP. When the State
                                authorizes the SASP to assess and
                                collect service charges from
                                participating donees to cover direct and
                                reasonable indirect costs of its
                                activities, the method of establishing
                                the charges must be set forth in the
                                plan.
                               (2) Affirm that service charges, if
                                assessed, are fair and equitable and
                                based on services performed (or paid
                                for) by the SASP, such as screening,
                                packing, crating, removal, and
                                transportation. When the SASP provides
                                minimal services in connection with the
                                acquisition of property, except for
                                document processing and other
                                administrative actions, the State plan
                                must provide for minimal charges to be
                                assessed in such cases and include the
                                bases of computation.
                               (3) Provide that property made available
                                to nonprofit providers of assistance to
                                homeless individuals be distributed at a
                                nominal cost for care and handling of
                                the property.
                               (4) Set forth how funds accumulated from
                                service charges, or from other sources
                                such as sales or compliance proceeds are
                                to be used for the operation of the SASP
                                and the benefit of participating donees.
                               (5) Affirm, if service charge funds are
                                to be deposited or invested, that such
                                deposits or investments are permitted by
                                State law and set forth the types of
                                depositories and/or investments
                                contemplated.
                               (6) Cite State authority to use service
                                charges to acquire or improve SASP
                                facilities and set forth disposition to
                                be made of any financial assets realized
                                upon the sale or other disposal of the
                                facilities.
                               (7) Indicate if the SASP intends to
                                maintain a working capital reserve. If
                                one is to be maintained, the plan should
                                provide the provisions and limitations
                                for it.
                               (8) State if refunds of service charges
                                are to be made to donees when there is
                                an excess in the SASP's working capital
                                reserve and provide details of how such
                                refunds are to be made, such as a
                                reduction in service charges or a cash
                                refund, prorated in an equitable manner.
------------------------------------------------------------------------
(f) Terms and conditions on    (1) Require the SASP to identify terms
 donated property.              and conditions that will be imposed on
                                the donee for any item of donated
                                property with a unit acquisition cost of
                                $5,000 or more and any passenger motor
                                vehicle.
                               (2) Provide that the SASP may impose
                                reasonable terms and conditions on the
                                use of other donated property. If the
                                SASP elects to impose additional terms
                                and conditions, it should list them in
                                the plan. If the SASP wishes to provide
                                for amending, modifying, or releasing
                                any terms or conditions it has elected
                                to impose, it must state in the plan the
                                standards it will use to grant such
                                amendments, modifications or releases.

[[Page 139]]

 
                               (3) Provide that the SASP will impose on
                                the donation of property, regardless of
                                unit acquisition cost, such conditions
                                involving special handling or use
                                limitations as GSA may determine
                                necessary because of the characteristics
                                of the property.
------------------------------------------------------------------------
(g) Nonutilized or             Provide that, subject to GSA approval,
 undistributed property.        property in the possession of the SASP
                                which donees in the State cannot use
                                will be disposed of by:
                               (1) Transfer to another SASP or Federal
                                agency.
                               (2) Sale.
                               (3) Abandonment or destruction.
                               (4) Other arrangements.
------------------------------------------------------------------------
(h) Fair and equitable         (1) Provide that the SASP will make fair
 distribution.                  and equitable distribution of property
                                to eligible donees in the State based on
                                their relative needs and resources and
                                ability to use the property.
                               (2) Set forth the policies and detailed
                                procedures for effecting a prompt, fair,
                                and equitable distribution.
                               (3) Require that the SASP, insofar as
                                practicable, select property requested
                                by eligible donees and, if requested by
                                the donee, arrange for shipment of the
                                property directly to the donee.
------------------------------------------------------------------------
(i) Eligibility..............  (1) Set forth procedures for the SASP to
                                determine the eligibility of applicants
                                for the donation of surplus personal
                                property.
                               (2) Provide for donee eligibility records
                                to include at a minimum:
                               (i) Legal name and address of the donee.
                               (ii) Status of the donee as a public
                                agency or as an eligible nonprofit
                                activity.
                               (iii) Details on the scope of the donee's
                                program.
                               (iv) Proof of tax exemption under section
                                501 of the Internal Revenue Code if the
                                donee is nonprofit.
                               (v) Proof that the donee is approved,
                                accredited, licensed, or meets any other
                                legal requirement for operation of its
                                program(s).
                               (vi) Financial information.
                               (vii) Written authorization by the
                                donee's governing body or chief
                                administrative officer designating at
                                least one person to act for the donee in
                                acquiring property.
                               (viii) Assurance that the donee will
                                comply with GSA's regulations on
                                nondiscrimination.
                               (ix) Types of property needed.
------------------------------------------------------------------------
(j) Compliance and             (1) Provide that the SASP conduct
 utilization.                   utilization reviews for donee compliance
                                with the terms, conditions,
                                reservations, and restrictions imposed
                                by GSA and the SASP on property having a
                                unit acquisition cost of $5,000 or more
                                and any passenger motor vehicle.
                               (2) Provide for the reviews to include a
                                survey of donee compliance with any
                                special handling conditions or use
                                limitations imposed on items of property
                                by GSA.
                               (3) Set forth the proposed frequency of
                                such reviews and provide adequate
                                assurances that the SASP will take
                                effective action to correct
                                noncompliance or otherwise enforce such
                                terms, conditions, reservations, and
                                restrictions.
                               (4) Require the SASP to prepare reports
                                on utilization reviews and compliance
                                actions and provide assurance that the
                                SASP will initiate appropriate
                                investigations of alleged fraud in the
                                acquisition of donated property or
                                misuse of such property.
------------------------------------------------------------------------
(k) Consultation with          (1) Provide for consultation with
 advisory bodies and public     advisory bodies and public and private
 and private groups.            groups which can assist the SASP in
                                determining the relative needs and
                                resources of donees, the proposed
                                utilization of surplus property by
                                eligible donees, and how distribution of
                                surplus property can be effected to fill
                                existing needs of donees.
                               (2) Provide details of how the SASP will
                                accomplish such consultation.
------------------------------------------------------------------------
(l) Audit....................  (1) Provide for periodic internal audits
                                of the operations and financial affairs
                                of the SASP.
                               (2) Provide for compliance with the
                                external audit requirements of Office of
                                Management and Budget Circular No. A-
                                133, ``Audits of States, Local
                                Governments, and Non-Profit
                                Organizations'' (available at
                                www.whitehouse.gov/OMB), and make
                                provisions for the SASP to furnish GSA
                                with:
                               (i) Two copies of any audit report made
                                pursuant to the Circular, or with two
                                copies of those sections that pertain to
                                the Federal donation program.
                               (ii) An outline of all corrective actions
                                and scheduled completion dates for the
                                actions.
                               (3) Provide for cooperation in GSA or
                                Comptroller General conducted audits.
------------------------------------------------------------------------
(m) Cooperative agreements...  If the SASP wishes to enter into, renew,
                                or revise cooperative agreements with
                                GSA or other Federal agencies:
                               (1) Affirm the SASP's intentions to enter
                                into cooperative agreements.
                               (2) Cite the authority for entering into
                                such agreements.
------------------------------------------------------------------------
(n) Liquidation..............  Provide for the SASP to submit a
                                liquidation plan prior to termination of
                                the SASP activities if the State decides
                                to dissolve the SASP.
------------------------------------------------------------------------

[[Page 140]]

 
(o) Forms....................  Include copies of distribution documents
                                used by the SASP.
------------------------------------------------------------------------
(p) Records..................  Affirm that all official records of the
                                SASP will be retained for a minimum of 3
                                years, except that:
                               (1) Records involving property subject to
                                restrictions for more than 2 years must
                                be kept 1 year beyond the specified
                                period of restriction.
                               (2) Records involving property with
                                perpetual restriction must be retained
                                in perpetuity.
                               (3) Records involving property in
                                noncompliance status must be retained
                                for at least 1 year after the
                                noncompliance case is closed.
------------------------------------------------------------------------



   Sec. Appendix C to Part 102-37--Glossary of Terms for Determining 
       Eligibility of Public Agencies and Nonprofit Organizations

    The following is a glossary of terms for determining eligibility of 
public agencies and nonprofit organizations:
    Accreditation means the status of public recognition that an 
accrediting agency grants to an institution or program that meets the 
agency's standards and requirements.
    Accredited means approval by a recognized accrediting board or 
association on a regional, State, or national level, such as a State 
board of education or health; the American Hospital Association; a 
regional or national accrediting association for universities, colleges, 
or secondary schools; or another recognized accrediting association.
    Approved means recognition and approval by the State department of 
education, State department of health, or other appropriate authority 
where no recognized accrediting board, association, or other authority 
exists for the purpose of making an accreditation. For an educational 
institution or an educational program, approval must relate to academic 
or instructional standards established by the appropriate authority. For 
a public health institution or program, approval must relate to the 
medical requirements and standards for the professional and technical 
services of the institution established by the appropriate authority.
    Child care center means a public or nonprofit facility where 
educational, social, health, and nutritional services are provided to 
children through age 14 (or as prescribed by State law) and that is 
approved or licensed by the State or other appropriate authority as a 
child day care center or child care center.
    Clinic means an approved public or nonprofit facility organized and 
operated for the primary purpose of providing outpatient public health 
services and includes customary related services such as laboratories 
and treatment rooms.
    College means an approved or accredited public or nonprofit 
institution of higher learning offering organized study courses and 
credits leading to a baccalaureate or higher degree.
    Conservation means a program or programs carried out or promoted by 
a public agency for public purposes involving directly or indirectly the 
protection, maintenance, development, and restoration of the natural 
resources of a given political area. These resources include but are not 
limited to the air, land, forests, water, rivers, streams, lakes and 
ponds, minerals, and animals, fish and other wildlife.
    Drug abuse or alcohol treatment center means a clinic or medical 
institution that provides for the diagnosis, treatment, or 
rehabilitation of alcoholics or drug addicts. These centers must have on 
their staffs, or available on a regular visiting basis, qualified 
professionals in the fields of medicine, psychology, psychiatry, or 
rehabilitation.
    Economic development means a program(s) carried out or promoted by a 
public agency for public purposes to improve the opportunities of a 
given political area for the establishment or expansion of industrial, 
commercial, or agricultural plants or facilities and which otherwise 
assist in the creation of long-term employment opportunities in the area 
or primarily benefit the unemployed or those with low incomes.
    Education means a program(s) to develop and promote the training, 
general knowledge, or academic, technical, and vocational skills and 
cultural attainments of individuals in a community or given political 
area. Public educational programs may include public school systems and 
supporting facilities such as centralized administrative or service 
facilities.
    Educational institution means an approved, accredited, or licensed 
public or nonprofit institution, facility, entity, or organization 
conducting educational programs or research for educational purposes, 
such as a child care center, school, college, university, school for the 
mentally or physically disabled, or an educational radio or television 
station.

[[Page 141]]

    Educational radio or television station means a public or nonprofit 
radio or television station licensed by the Federal Communications 
Commission and operated exclusively for noncommercial educational 
purposes.
    Health center means an approved public or nonprofit facility that 
provides public health services, including related facilities such as 
diagnostic and laboratory facilities and clinics.
    Historic light station means a historic light station as defined 
under section 308(e)(2) of the National Historic Preservation Act 16 
U.S.C. 470w-7(e)2), including a historic light station conveyed under 
subsection (b) of that section, notwithstanding the number of hours that 
the historic light station is open to the public.
    Homeless individual means:
    (1) An individual who lacks a fixed, regular, and adequate nighttime 
residence, or who has a primary nighttime residence that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters, and transitional housing for the mentally ill);
    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or
    (iii) A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.
    (2) For purposes of this part, the term homeless individual does not 
include any individual imprisoned or otherwise detained pursuant to an 
Act of the Congress or a State law.
    Hospital means an approved or accredited public or nonprofit 
institution providing public health services primarily for inpatient 
medical or surgical care of the sick and injured and includes related 
facilities such as laboratories, outpatient departments, training 
facilities, and staff offices.
    Library means a public or nonprofit facility providing library 
services free to all residents of a community, district, State, or 
region.
    Licensed means recognition and approval by the appropriate State or 
local authority approving institutions or programs in specialized areas. 
Licensing generally relates to established minimum public standards of 
safety, sanitation, staffing, and equipment as they relate to the 
construction, maintenance, and operation of a health or educational 
facility, rather than to the academic, instructional, or medical 
standards for these institutions.
    Medical institution means an approved, accredited, or licensed 
public or nonprofit institution, facility, or organization whose primary 
function is the furnishing of public health and medical services to the 
public or promoting public health through the conduct of research, 
experiments, training, or demonstrations related to cause, prevention, 
and methods of diagnosis and treatment of diseases and injuries. The 
term includes, but is not limited to, hospitals, clinics, alcohol and 
drug abuse treatment centers, public health or treatment centers, 
research and health centers, geriatric centers, laboratories, medical 
schools, dental schools, nursing schools, and similar institutions. The 
term does not include institutions primarily engaged in domiciliary 
care, although a separate medical facility within such a domiciliary 
institution may qualify as a medical institution.
    Museum means a public or nonprofit institution that is organized on 
a permanent basis for essentially educational or aesthetic purposes and 
which, using a professional staff, owns or uses tangible objects, either 
animate or inanimate; cares for these objects; and exhibits them to the 
public on a regular basis (at least 1000 hours a year). As used in this 
part, the term museum includes, but is not limited to, the following 
institutions if they satisfy all other provisions of this definition: 
Aquariums and zoological parks; botanical gardens and arboretums; nature 
centers; museums relating to art, history (including historic 
buildings), natural history, science, and technology; and planetariums. 
For the purposes of this definition, an institution uses a professional 
staff if it employs at least one fulltime staff member or the 
equivalent, whether paid or unpaid, primarily engaged in the 
acquisition, care, or public exhibition of objects owned or used by the 
institution. This definition of museum does not include any institution 
that exhibits objects to the public if the display or use of the objects 
is only incidental to the primary function of the institution.
    Nationally recognized accrediting agency means an accrediting agency 
that the Department of Education recognizes under 34 CFR part 600. (For 
a list of accrediting agencies, see the Department's web site at http://
www.ed.gov/admins/finaid/accred)
    Nonprofit means not organized for profit and exempt from Federal 
income tax under section 501 of the Internal Revenue Code (26 U.S.C. 
501).
    Parks and recreation means a program(s) carried out or promoted by a 
public agency for public purposes that involve directly or indirectly 
the acquisition, development, improvement, maintenance, and protection 
of park and recreational facilities for the residents of a given 
political area.
    Program for older individuals means a program conducted by a State 
or local government agency or nonprofit activity that receives funds 
appropriated for services or programs for older individuals under the 
Older Americans Act of 1965, as amended, under title IV or title XX of 
the Social Security Act (42 U.S.C. 601 et seq.), or under titles VIII 
and X of the Economic Opportunity Act of

[[Page 142]]

1964 (42 U.S.C. 2991 et seq.) and the Community Services Block Grant Act 
(42 U.S.C. 9901 et seq.).
    Provider of assistance to homeless individuals means a public agency 
or a nonprofit institution or organization that operates a program which 
provides assistance such as food, shelter, or other services to homeless 
individuals.
    Provider of assistance to impoverished families and individuals 
means a public or nonprofit organization whose primary function is to 
provide money, goods, or services to families or individuals whose 
annual incomes are below the poverty line (as defined in section 673 of 
the Community Services Block Grant Act) (42 U.S.C. 9902). Providers 
include food banks, self-help housing groups, and organizations 
providing services such as the following: Health care; medical 
transportation; scholarships and tuition assistance; tutoring and 
literacy instruction; job training and placement; employment counseling; 
child care assistance; meals or other nutritional support; clothing 
distribution; home construction or repairs; utility or rental 
assistance; and legal counsel.
    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.
    Public health means a program(s) to promote, maintain, and conserve 
the public's health by providing health services to individuals and/or 
by conducting research, investigations, examinations, training, and 
demonstrations. Public health services may include but are not limited 
to the control of communicable diseases, immunization, maternal and 
child health programs, sanitary engineering, sewage treatment and 
disposal, sanitation inspection and supervision, water purification and 
distribution, air pollution control, garbage and trash disposal, and the 
control and elimination of disease-carrying animals and insects.
    Public health institution means an approved, accredited, or licensed 
public or nonprofit institution, facility, or organization conducting a 
public health program(s) such as a hospital, clinic, health center, or 
medical institution, including research for such programs, the services 
of which are available to the public.
    Public purpose means a program(s) carried out by a public agency 
that is legally authorized in accordance with the laws of the State or 
political subdivision thereof and for which public funds may be 
expended. Public purposes include but are not limited to programs such 
as conservation, economic development, education, parks and recreation, 
public health, public safety, programs of assistance to the homeless or 
impoverished, and programs for older individuals.
    Public safety means a program(s) carried out or promoted by a public 
agency for public purposes involving, directly or indirectly, the 
protection, safety, law enforcement activities, and criminal justice 
system of a given political area. Public safety programs may include, 
but are not limited to those carried out by:
    (1) Public police departments.
    (2) Sheriffs' offices.
    (3) The courts.
    (4) Penal and correctional institutions (including juvenile 
facilities).
    (5) State and local civil defense organizations.
    (6) Fire departments and rescue squads (including volunteer fire 
departments and rescue squads supported in whole or in part with public 
funds).
    School (except schools for the mentally or physically disabled) 
means a public or nonprofit approved or accredited organizational entity 
devoted primarily to approved academic, vocational, or professional 
study and instruction, that operates primarily for educational purposes 
on a full-time basis for a minimum school year and employs a full-time 
staff of qualified instructors.
    School for the mentally or physically disabled means a facility or 
institution operated primarily to provide specialized instruction to 
students of limited mental or physical capacity. It must be public or 
nonprofit and must operate on a full-time basis for the equivalent of a 
minimum school year prescribed for public school instruction for the 
mentally or physically disabled, have a staff of qualified instructors, 
and demonstrate that the facility meets the health and safety standards 
of the State or local government.
    University means a public or nonprofit approved or accredited 
institution for instruction and study in the higher branches of learning 
and empowered to confer degrees in special departments or colleges.
    Veterans Organizations means organizations eligible to receive 
Federal surplus property for purposes of providing services to veterans 
under 40 U.S.C. 549(c)(3)(C). Eligible veterans organizations are those 
whose (1) membership comprises substantially veterans (as defined under 
38 U.S.C. 101); and (2) representatives are recognized by the Secretary 
of Veterans Affairs under 38 U.S.C. 5902. The Department of Veterans 
Affairs maintains a searchable Web site of recognized organizations. The 
address is http://www.va.gov/ogc/apps/accreditation/index.asp.

[67 FR 2584, Jan. 18, 2002, as amended at 71 FR 23868, Apr. 25, 2006; 72 
FR 12572, Mar. 16, 2007; 79 FR 64515, Oct. 30, 2014]

[[Page 143]]



PART 102-38-SALE OF PERSONAL PROPERTY--Table of Contents



                      Subpart A_General Provisions

Sec.
102-38.5 What does this part cover?
102-38.10 What is the governing authority for this part?
102-38.15 Who must comply with these sales provisions?
102-38.20 Must an executive agency follow the regulations of this part 
          when selling all personal property?
102-38.25 To whom do ``we'', ``you'', and their variants refer?
102-38.30 How does an executive agency request a deviation from the 
          provisions of this part?

                               Definitions

102-38.35 What definitions apply to this part?

                            Responsibilities

102-38.40 Who may sell personal property?
102-38.45 What are an executive agency's responsibilities in selling 
          personal property?
102-38.50 What must we do when an executive agency suspects violations 
          of 40 U.S.C. 559, fraud, bribery, or criminal collusion in 
          connection with the disposal of personal property?
102-38.55 What must we do when selling personal property?
102-38.60 Who is responsible for the costs of care and handling of the 
          personal property before it is sold?
102-38.65 What if we are or the holding agency is notified of a Federal 
          requirement for surplus personal property before the sale is 
          complete?
102-38.70 May the holding agency abandon or destroy personal property 
          either prior to or after trying to sell it?

                         Subpart B_Sales Process

                             Methods of Sale

102-38.75 How may we sell personal property?
102-38.80 Which method of sale should we use?

                            Competitive Sales

102-38.85 What is a sealed bid sale?
102-38.90 What is a spot bid sale?
102-38.95 What is an auction?

                            Negotiated Sales

102-38.100 What is a negotiated sale?
102-38.105 Under what conditions may we negotiate sales of personal 
          property?
102-38.110 Who approves our determinations to conduct negotiated sales?
102-38.115 What are the specific reporting requirements for negotiated 
          sales?
102-38.120 When may we conduct negotiated sales of personal property at 
          fixed prices (fixed price sale)?
102-38.125 May we sell personal property at fixed prices to State 
          agencies?

                               Advertising

102-38.130 Must we publicly advertise sales of Federal personal 
          property?
102-38.135 What constitutes a public advertisement?
102-38.140 What must we include in the public notice on sale of personal 
          property?

                           Pre-Sale Activities

102-38.145 Must we allow for inspection of the personal property to be 
          sold?
102-38.150 How long is the inspection period?

                              Offer to Sell

102-38.155 What is an offer to sell?
102-38.160 What must be included in the offer to sell?
102-38.165 Are the terms and conditions in the offer to sell binding?

                             Subpart C_Bids

                            Buyer Eligibility

102-38.170 May we sell Federal personal property to anyone?
102-38.175 How do we find out if a person or entity has been suspended 
          or debarred from doing business with the Government?
102-38.180 May we sell Federal personal property to a Federal employee?
102-38.185 May we sell Federal personal property to State or local 
          governments?

                           Acceptance of Bids

102-38.190 What is considered a responsive bid?
102-38.195 Must bidders use authorized bid forms?
102-38.200 Who may accept bids?
102-38.205 Must we accept all bids?
102-38.210 What happens when bids have been rejected?
102-38.215 When may we disclose the bid results to the public?
102-38.220 What must we do when the highest bids received have the same 
          bid amount?
102-38.225 What are the additional requirements in the bid process?

                              Bid Deposits

102-38.230 Is a bid deposit required to buy personal property?
102-38.235 What types of payment may we accept as bid deposits?

[[Page 144]]

102-38.240 What happens to the deposit bond if the bidder defaults or 
          wants to withdraw his/her bid?

                                Late Bids

102-38.245 Do we consider late bids for award?
102-38.250 How do we handle late bids that are not considered?

                   Modification or Withdrawal of Bids

102-38.255 May we allow a bidder to modify or withdraw a bid?

                            Mistakes in Bids

102-38.260 Who makes the administrative determinations regarding 
          mistakes in bids?
102-38.265 Must we keep records on administrative determinations?
102-38.270 May a bidder protest the determinations made on sales of 
          personal property?

                      Subpart D_Completion of Sale

                                 Awards

102-38.275 To whom do we award the sales contract?
102-38.280 What happens when there is no award?

                            Transfer of Title

102-38.285 How do we transfer title from the Government to the buyer for 
          personal property sold?

                                Payments

102-38.290 What types of payment may we accept?

                         Disposition of Proceeds

102-38.295 May we retain sales proceeds?
102-38.300 What happens to sales proceeds that neither we nor the 
          holding agency are authorized to retain, or that are unused?

                                Disputes

102-38.305 How do we handle disputes involved in the sale of Federal 
          personal property?
102-38.310 Are we required to use the Disputes clause in the sale of 
          personal property?
102-38.315 Are we required to use Alternative Disputes Resolution for 
          sales contracts?

                   Subpart E_Other Governing Statutes

102-38.320 Are there other statutory requirements governing the sale of 
          Federal personal property?

                         Antitrust Requirements

102-38.325 What are the requirements pertaining to antitrust laws?

                    Subpart F_Reporting Requirements

102-38.330 Are there any reports that we must submit to the General 
          Services Administration?
102-38.335 Is there any additional personal property sales information 
          that we must submit to the General Services Administration?

          Subpart G_Provisions for State and Local Governments

102-38.340 How may we sell personal property to State and local 
          governments?
102-38.345 Do we have to withdraw personal property advertised for 
          public sale if a State Agency for Surplus Property wants to 
          buy it?
102-38.350 Are there special provisions for State and local governments 
          regarding negotiated sales?
102-38.355 Do the regulations of this part apply to State Agencies for 
          Surplus Property (SASPs) when conducting sales?

       Subpart H_Implementation of the Federal Asset Sales Program

102-38.360 What must an executive agency do to implement the eFAS 
          program?
102-38.365 Is a holding agency required to report property in ``scrap'' 
          condition to its selected SC?
102-38.370 What does a holding agency do with property which cannot be 
          sold by its SC?

    Authority: 40 U.S.C. 545 and 40 U.S.C. 121(c).

    Source: 68 FR 51421, Aug. 26, 2003, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 102-38.5  What does this part cover?

    This part prescribes the policies governing the sale of Federal 
personal property, including--
    (a) Surplus personal property that has completed all required 
Federal and/or donation screening; and
    (b) Personal property to be sold under the exchange/sale authority.

    Note to Sec. 102-38.5: You must follow additional guidelines in 41 
CFR parts 101-42 and 101-45 of the Federal Property Management 
Regulations (FPMR) for the sale of personal

[[Page 145]]

property that has special handling requirements or property containing 
hazardous materials. Additional requirements for the sale of aircraft 
and aircraft parts are provided in part 102-33 of this chapter.



Sec. 102-38.10  What is the governing authority for this part?

    The authority for the regulations in this part governing the sale of 
Federal personal property is 40 U.S.C. 541 through 548, 571, 573 and 
574.



Sec. 102-38.15  Who must comply with these sales provisions?

    All executive agencies must comply with the provisions of this part. 
The legislative and judicial branches are encouraged to follow these 
provisions.



Sec. 102-38.20  Must an executive agency follow the regulations of 
this part when selling all personal property?

    Generally, yes, an executive agency must follow the regulations of 
this part when selling all personal property; however--
    (a) Materials acquired for the national stockpile or supplemental 
stockpile, or materials or equipment acquired under section 303 of the 
Defense Production Act of 1950, as amended (50 U.S.C. App. 2093) are 
excepted from this part;
    (b) The Maritime Administration, Department of Transportation, has 
jurisdiction over the disposal of vessels of 1,500 gross tons or more 
and determined by the Secretary to be merchant vessels or capable of 
conversion to merchant use;
    (c) Sales made by the Secretary of Defense pursuant to 10 U.S.C. 
2576 (Sale of Surplus Military Equipment to State and Local Law 
Enforcement and Firefighting Agencies) are exempt from these provisions;
    (d) Foreign excess personal property is exempt from these 
provisions; and
    (e) Agency sales procedures which are mandated or authorized under 
laws other than Title 40 United States Code are exempt from this part.

[73 FR 20802, Apr. 17, 2008]



Sec. 102-38.25  To whom do ``we'', ``you'', and their variants refer?

    Unless otherwise indicated, use of pronouns ``we'', ``you'', and 
their variants throughout this part refer to the Sales Center 
responsible for the sale of the property.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20802, Apr. 17, 2008]



Sec. 102-38.30  How does an executive agency request a deviation 
from the provisions of this part?

    Refer to Sec. Sec. 102-2.60 through 102-2.110 of this chapter for 
information on how to obtain a deviation from this part. However, 
waivers which are distinct from the standard deviation process and 
specific to the requirements of the Federal Asset Sales (eFAS) 
initiative milestones (see subpart H of this part) are addressed in 
Sec. 102-38.360.

[73 FR 20802, Apr. 17, 2008]

                               Definitions



Sec. 102-38.35  What definitions apply to this part?

    The following definitions apply to this part:
    Bid means a response to an offer to sell that, if accepted, would 
bind the bidder to the terms and conditions of the contract (including 
the bid price).
    Bidder means any entity that is responding to or has responded to an 
offer to sell.
    Estimated fair market value means the selling agency's best estimate 
of what the property would be sold for if offered for public sale.
    Federal Asset Sales (eFAS) refers to the e-Government initiative to 
improve the way the Federal Government manages and sells its real and 
personal property assets. Under this initiative, only an agency 
designated as a Sales Center (SC) may sell Federal property, unless a 
waiver has been granted by the eFAS Planning Office in accordance with 
Sec. 102-38.360. The eFAS initiative is governed and given direction by 
the eFAS Executive Steering Committee (ESC), with GSA as the managing 
partner agency.
    Federal Asset Sales Planning Office (eFAS Planning Office) refers to 
the office within GSA assigned responsibility for managing the eFAS 
initiative.
    Holding Agency refers to the agency in possession of personal 
property eligible for sale under this part.

[[Page 146]]

    Identical bids means bids for the same item of property having the 
same total price.
    Migration Plan refers to the document a holding agency prepares to 
summarize its choice of SC(s) and its plan for migrating agency sales to 
the SC(s). The format for this document is determined by the eFAS ESC.
    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:
    (1) Battleships;
    (2) Cruisers;
    (3) Aircraft carriers;
    (4) Destroyers; and
    (5) Submarines.
    Sales Center (SC) means an agency that has been nominated, 
designated, and approved by the eFAS ESC and the Office of Management 
and Budget (OMB) as an official sales solution for Federal property. The 
criteria for becoming an SC, the selection process, and the ongoing SC 
requirements for posting property for sale to the eFAS portal and 
reporting sales activity and performance data are established by the 
eFAS ESC and can be obtained from the eFAS Planning Office at GSA. The 
eFAS Planning Office may be contacted via e-mail at 
[email protected] SCs may utilize (and should consider) private 
sector entities as well as Government activities and are expected to 
provide exemplary asset management solutions in one or more of the 
following areas: on-line sales; off-line sales; and sales-related value 
added services. SCs will enter into agreements with holding agencies to 
sell property belonging to these holding agencies. A holding agency may 
employ the services of multiple SCs to maximize efficiencies.
    State Agency for Surplus Property (SASP) means the agency designated 
under State law to receive Federal surplus personal property for 
distribution to eligible donees within the State as provided for in 40 
U.S.C. 549.
    State or local government means a State, territory, possession, 
political subdivision thereof, or tax-supported agency therein.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20802, Apr. 17, 2008]

                            Responsibilities



Sec. 102-38.40  Who may sell personal property?

    An executive agency may sell personal property (including on behalf 
of another agency when so requested) only if it is a designated Sales 
Center (SC), or if the agency has received a waiver from the eFAS 
Planning Office. An SC may engage contractor support to sell personal 
property. Only a duly authorized agency official may execute the sale 
award documents and bind the United States.

[73 FR 20802, Apr. 17, 2008]



Sec. 102-38.45  What are an executive agency's responsibilities in 
selling personal property?

    An executive agency's responsibilities in selling personal property 
are to--
    (a) Ensure the sale complies with the provisions of Title 40 of the 
U.S. Code, the regulations of this part, and any other applicable laws;
    (b) Issue internal guidance to promote uniformity of sales 
procedures;
    (c) Assure that officials designated to conduct and finalize sales 
are adequately trained;
    (d) Be accountable for the care and handling of the personal 
property prior to its removal by the buyer; and
    (e) Adjust your property and financial records to reflect the final 
disposition.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20803, Apr. 17, 2008]



Sec. 102-38.50  What must we do when an executive agency suspects 
violations of 40 U.S.C. 559, fraud, bribery, or criminal collusion 
in connection with the disposal of personal property?

    If an executive agency suspects violations of 40 U.S.C. 559, fraud, 
bribery, or criminal collusion in connection with the disposal of 
personal property, the agency must--
    (a) Refer the violations to the Inspector General of your agency 
and/or the

[[Page 147]]

Attorney General, Department of Justice, Washington, DC 20530, for 
further investigation. You must cooperate with and provide evidence 
concerning the suspected violation or crime to the investigating agency 
assuming jurisdiction of the matter; and
    (b) Submit to the General Services Administration (GSA), Property 
Management Division (FBP), 1800 F Street, NW., Washington, DC 20406, a 
report of any compliance investigations concerning such violations. The 
report must contain information concerning the noncompliance, including 
the corrective action taken or contemplated, and, for cases referred to 
the Department of Justice, a copy of the transmittal letter. A copy of 
each report must be submitted also to GSA, Personal Property Management 
Policy Division (MTP), 1800 F Street, NW., Washington, DC 20405.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20803, Apr. 17, 2008]



Sec. 102-38.55  What must we do when selling personal property?

    When selling personal property, you must ensure that--
    (a) All sales are made after publicly advertising for bids, except 
as provided for negotiated sales in Sec. Sec. 102-38.100 through 102-
38.125; and
    (b) Advertising for bids must permit full and free competition 
consistent with the value and nature of the property involved.



Sec. 102-38.60  Who is responsible for the costs of care and handling
of the personal property before it is sold?

    The holding agency is responsible for the care and handling costs of 
the personal property until it is removed by the buyer, the buyer's 
designee, or an SC. The holding agency may request the SC to perform 
care and handling services in accordance with their agreement. When 
specified in the terms and conditions of sale, the SC may charge the 
buyer costs for storage when the buyer is delinquent in removing the 
property. The amount so charged may only be retained by the holding 
agency performing the care and handling in accordance with Sec. 102-
38.295.

[73 FR 20803, Apr. 17, 2008]



Sec. 102-38.65  What if we are or the holding agency is notified of 
a Federal requirement for surplus personal property before the sale
is complete?

    Federal agencies have first claim to excess or surplus personal 
property reported to the General Services Administration. When a bona 
fide need for the property exists and is expressed by a Federal agency, 
and when no like item(s) are located elsewhere, you or the holding 
agency must make the property available for transfer to the maximum 
extent practicable and prior to transfer of title to the property.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20803, Apr. 17, 2008]



Sec. 102-38.70  May the holding agency abandon or destroy personal 
property either prior to or after trying to sell it?

    (a) Yes, the holding agency may abandon or destroy personal property 
either prior to or after trying to sell it, but only when an authorized 
agency official has made a written determination that--
    (1) The personal property has no commercial value; or
    (2) The estimated cost of continued care and handling would exceed 
the estimated sales proceeds.
    (b) In addition to the provisions in paragraph (a) of this section, 
see the regulations at Sec. Sec. 102-36.305 through 102-36.330 of this 
subchapter B that are applicable to the abandonment or destruction of 
personal property in general, and excess personal property in 
particular.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20803, Apr. 17, 2008]



                         Subpart B_Sales Process

                             Methods of Sale



Sec. 102-38.75  How may we sell personal property?

    (a) You will sell personal property upon such terms and conditions 
as the head of your agency or designee deems proper to promote the 
fairness, openness, and timeliness necessary for the sale to be 
conducted in a manner most advantageous to the Government.

[[Page 148]]

When you are selling property on behalf of another agency, you must 
consult with the holding agency to determine any special or unique sales 
terms and conditions. You must also document the required terms and 
conditions of each sale, including, but not limited to, the following 
terms and conditions, as applicable:
    (1) Inspection.
    (2) Condition and location of property.
    (3) Eligibility of bidders.
    (4) Consideration of bids.
    (5) Bid deposits and payments.
    (6) Submission of bids.
    (7) Bid price determination.
    (8) Title.
    (9) Delivery, loading, and removal of property.
    (10) Default, returns, or refunds.
    (11) Modifications, withdrawals, or late bids.
    (12) Requirements to comply with applicable laws and regulations. 41 
CFR part 101-42 contains useful guidance addressing many of these 
requirements. You should also contact your agency's Office of General 
Counsel or environmental office to identify applicable Federal, State, 
or local environmental laws and regulations.
    (13) Certificate of independent price determinations.
    (14) Covenant against contingent fees.
    (15) Limitation on Government's liability.
    (16) Award of contract.
    (b) Standard government forms (e.g., Standard Form 114 series) may 
be used to document terms and conditions of the sale.
    (c) When conducting and completing a sale through electronic media, 
the required terms and conditions must be included in your electronic 
sales documentation.

[68 FR 51421, Aug. 26, 2003, as amended at 73 FR 20803, Apr. 17, 2008]



Sec. 102-38.80  Which method of sale should we use?

    (a) You may use any method of sale provided the sale is publicly 
advertised and the personal property is sold with full and open 
competition. Exceptions to the requirement for competitive bids for 
negotiated sales (including fixed price sales) are contained in 
Sec. Sec. 102-38.100 through 102-38.125. You must select the method of 
sale that will bring maximum return at minimum cost, considering factors 
such as--
    (1) Type and quantity of property;
    (2) Location of property;
    (3) Potential market;
    (4) Cost to prepare and conduct the sale;
    (5) Available facilities; and
    (6) Sales experience of the selling activity.
    (b) Methods of sale may include sealed bid sales, spot bid sales, 
auctions, or negotiated sales and may be conducted at a physical 
location or through any electronic media that is publicly accessible.

                            Competitive Sales



Sec. 102-38.85  What is a sealed bid sale?

    A sealed bid sale is a sale in which bid prices are kept 
confidential until bid opening. Bids are submitted either electronically 
or in writing according to formats specified by the selling agency, and 
all bids are held for public disclosure at a designated time and place.



Sec. 102-38.90  What is a spot bid sale?

    A spot bid sale is a sale where immediately following the offering 
of the item or lot of property, bids are examined, and awards are made 
or bids rejected on the spot. Bids are either submitted electronically 
or in writing according to formats specified by the selling agency, and 
must not be disclosed prior to announcement of award.



Sec. 102-38.95  What is an auction?

    An auction is a sale where the bid amounts of different bidders are 
disclosed as they are submitted, providing bidders the option to 
increase their bids if they choose. Bids are submitted electronically 
and/or by those physically present at the sale. Normally, the bidder 
with the highest bid at the close of each bidding process is awarded the 
property.

[[Page 149]]

                            Negotiated Sales



Sec. 102-38.100  What is a negotiated sale?

    A negotiated sale is a sale where the selling price is arrived at 
between the seller and the buyer, subject to obtaining such competition 
as is feasible under the circumstances.



Sec. 102-38.105  Under what conditions may we negotiate sales of
personal property?

    You may negotiate sales of personal property when--
    (a) The personal property has an estimated fair market value that 
does not exceed $15,000;
    (b) The disposal will be to a State, territory, possession, 
political subdivision thereof, or tax-supported agency therein, and the 
estimated fair market value of the property and other satisfactory terms 
of disposal are obtained by negotiation;
    (c) Bid prices after advertising are not reasonable and re-
advertising would serve no useful purpose;
    (d) Public exigency does not permit any delay such as that caused by 
the time required to advertise a sale;
    (e) The sale promotes public health, safety, or national security;
    (f) The sale is in the public interest under a national emergency 
declared by the President or the Congress. This authority may be used 
only with specific lot(s) of property or for categories determined by 
the Administrator of General Services for a designated period but not in 
excess of three months;
    (g) Selling the property competitively would have an adverse impact 
on the national economy, provided that the estimated fair market value 
of the property and other satisfactory terms of disposal can be obtained 
by negotiation, e.g., sale of large quantities of an agricultural 
product that impact domestic markets; or
    (h) Otherwise authorized by Title 40 of the U.S. Code or other law.



Sec. 102-38.110  Who approves our determinations to conduct negotiated
sales?

    The head of your agency (or his/her designee) must approve all 
negotiated sales of personal property.



Sec. 102-38.115  What are the specific reporting requirements for
negotiated sales?

    For negotiated sales of personal property, you must--
    (a) In accordance with 40 U.S.C. 545(e), and in advance of the sale, 
submit to the oversight committees for the General Services 
Administration (GSA) in the Senate and House, explanatory statements for 
each sale by negotiation of any personal property with an estimated fair 
market value in excess of $15,000. You must maintain copies of the 
explanatory statements in your disposal files. No statement is needed 
for negotiated sales at fixed price or for any sale made without 
advertising when authorized by law other than 40 U.S.C. 545; and
    (b) Report annually to GSA, Personal Property Management Policy 
Division (MTP), 1800 F Street, NW., Washington, DC, 20405, within 60 
calendar days after the close of each fiscal year, a listing and 
description of all negotiated sales of personal property with an 
estimated fair market value in excess of $5,000. You may submit the 
report electronically or manually (see Sec. 102-38.330).



Sec. 102-38.120  When may we conduct negotiated sales of personal
property at fixed prices (fixed price sale)?

    You may conduct negotiated sales of personal property at fixed 
prices (fixed price sale) under this section when:
    (a) The items are authorized to be sold at fixed price by the 
Administrator of General Services, as reflected in GSA Bulletin FMR B-10 
(located at http://www.gsa.gov/fmrbulletin). You may also contact the 
GSA Office of Travel, Transportation, and Asset Management (MT) at the 
address listed in Sec. 102-38.115 to determine which items are on this 
list of authorized items;
    (b) The head of your agency, or designee, determines in writing that 
such sales serve the best interest of the Government. When you are 
selling property on behalf of a holding agency, you must consult with 
the holding agency in determining whether a fixed price sale meets this 
criterion; and
    (c) You must publicize such sales to the extent consistent with the 
value and nature of the property involved, and the prices established 
must reflect

[[Page 150]]

the estimated fair market value of the property. Property is sold on a 
first-come, first-served basis. You or the holding agency may also 
establish additional terms and conditions that must be met by the 
successful purchaser in accordance with Sec. 102-38.75.

[73 FR 20803, Apr. 17, 2008]



Sec. 102-38.125  May we sell personal property at fixed prices
to State agencies?

    Yes, before offering to the public, you may offer the property at 
fixed prices (through the State Agencies for Surplus Property) to any 
States, territories, possessions, political subdivisions thereof, or 
tax-supported agencies therein, which have expressed an interest in 
obtaining the property. For additional information, see subpart G of 
this part.

                               Advertising



Sec. 102-38.130  Must we publicly advertise sales of Federal 
personal property?

    Yes, you must provide public notice of your sale of personal 
property to permit full and open competition.



Sec. 102-38.135  What constitutes a public advertisement?

    Announcement of the sale using any media that reaches the public and 
is appropriate to the type and value of personal property to be sold is 
considered public advertising. You may also distribute mailings or 
flyers of your offer to sell to prospective purchasers on mailing lists. 
Public notice should be made far enough in advance of the sale to ensure 
adequate notice, and to target your advertising efforts toward the 
market that will provide the best return at the lowest cost.



Sec. 102-38.140  What must we include in the public notice on sale 
of personal property?

    In the public notice, you must provide information necessary for 
potential buyers to participate in the sale, such as--
    (a) Date, time and location of sale;
    (b) General categories of property being offered for sale;
    (c) Inspection period;
    (d) Method of sale (i.e., spot bid, sealed bid, auction);
    (e) Selling agency; and
    (f) Who to contact for additional information.

                           Pre-Sale Activities



Sec. 102-38.145  Must we allow for inspection of the personal
property to be sold?

    Yes, you must allow for an electronic or physical inspection of the 
personal property to be sold. You must allow prospective bidders 
sufficient time for inspection. If inspection is restricted to 
electronic inspections only, due to unusual circumstances prohibiting 
physical inspection, you must notify your General Services 
Administration Regional Personal Property Office in writing, with the 
circumstances surrounding this restriction at least 3 days prior to the 
start of the screening period.



Sec. 102-38.150  How long is the inspection period?

    The length of the inspection period allowed depends upon whether the 
inspection is done electronically or physically. You should also 
consider such factors as the circumstances of sale, volume of property, 
type of property, location of the property, and accessibility of the 
sales facility. Normally, you should provide at least 7 calendar days to 
ensure potential buyers have the opportunity to perform needed 
inspections.

                              Offer to Sell



Sec. 102-38.155  What is an offer to sell?

    An offer to sell is a notice listing the terms and conditions for 
bidding on an upcoming sale of personal property, where prospective 
purchasers are advised of the requirements for a responsive bid and the 
contractual obligations once a bid is accepted.



Sec. 102-38.160  What must be included in the offer to sell?

    The offer to sell must include--
    (a) Sale date and time;
    (b) Method of sale;
    (c) Description of property being offered for sale;
    (d) Selling agency;

[[Page 151]]

    (e) Location of property;
    (f) Time and place for receipt of bids;
    (g) Acceptable forms of bid deposits and payments; and
    (h) Terms and conditions of sale, including any specific 
restrictions and limitations.



Sec. 102-38.165  Are the terms and conditions in the offer to
sell binding?

    Yes, the terms and conditions in the offer to sell are normally 
incorporated into the sales contract, and therefore binding upon both 
the buyer and the seller once a bid is accepted.



                             Subpart C_Bids

                            Buyer Eligibility



Sec. 102-38.170  May we sell Federal personal property to anyone?

    Generally, you may sell Federal personal property to anyone of legal 
age. However, certain persons or entities are debarred or suspended from 
purchasing Federal property. You must not enter into a contract with 
such a person or entity unless your agency head or designee responsible 
for the disposal action determines that there is a compelling reason for 
such an action.



Sec. 102-38.175  How do we find out if a person or entity has been
suspended or debarred from doing business with the Government?

    Refer to the List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs to ensure you do not solicit from or award 
contracts to these persons or entities. The list is available through 
subscription from the U.S. Government PublishingOffice, or 
electronically on the Internet at http://epls.arnet.gov. For policies, 
procedures, and requirements for debarring/suspending a person or entity 
from the purchase of Federal personal property, follow the procedures in 
the Federal Acquisition Regulation (FAR) subpart 9.4 (48 CFR part 9, 
subpart 9.4).

[68 FR 51421, Aug. 26, 2003; 68 FR 53219, Sept. 9, 2003]



Sec. 102-38.180  May we sell Federal personal property to a Federal 
employee?

    Yes, you may sell Federal personal property to any Federal employee 
whose agency does not prohibit their employees from purchasing such 
property. However, unless allowed by Federal or agency regulations, 
employees having nonpublic information regarding property offered for 
sale may not participate in that sale (see 5 CFR 2635.703). For purposes 
of this section, the term ``Federal employee'' also applies to an 
immediate member of the employee's household.



Sec. 102-38.185  May we sell Federal personal property to State
or local governments?

    Yes, you may sell Federal personal property to State or local 
governments. Additional guidelines on sales to State or local 
governments are contained in subpart G of this part.

                           Acceptance of Bids



Sec. 102-38.190  What is considered a responsive bid?

    A responsive bid is a bid that complies with the terms and 
conditions of the sales offering, and satisfies the requirements as to 
the method and timeliness of the submission. Only responsive bids may be 
considered for award.



Sec. 102-38.195  Must bidders use authorized bid forms?

    No, bidders do not have to use authorized bid forms; however if a 
bidder uses his/her own bid form to submit a bid, the bid may be 
considered only if--
    (a) The bidder accepts all the terms and conditions of the offer to 
sell; and
    (b) Award of the bid would result in a binding contract.



Sec. 102-38.200  Who may accept bids?

    Authorized agency representatives may accept bids for your agency. 
These individuals should meet your agency's requirements for approval of 
Government contracts.



Sec. 102-38.205  Must we accept all bids?

    No, the Government reserves the right to accept or reject any or all 
bids. You may reject any or all bids when

[[Page 152]]

such action is advantageous to the Government, or when it is in the 
public interest to do so.



Sec. 102-38.210  What happens when bids have been rejected?

    You may re-offer items for which all bids have been rejected at the 
same sale, if possible, or another sale.



Sec. 102-38.215  When may we disclose the bid results to the public?

    You may disclose bid results to the public after the sales award of 
any item or lot of property. On occasions when there is open bidding, 
usually at a spot bid sale or auction, all bids are disclosed as they 
are submitted. No information other than names may be disclosed 
regarding the bidder(s).



Sec. 102-38.220  What must we do when the highest bids received have 
the same bid amount?

    When the highest bids received have the same bid amount, you must 
consider other factors of the sale (e.g., timely removal of the 
property, terms of payment, etc.) that would make one offer more 
advantageous to the Government. However, if you are unable to make a 
determination based on available information, and the Government has an 
acceptable offer, you may re-offer the property for sale, or you may 
utilize random tiebreakers to avoid the expense of reselling the 
property.



Sec. 102-38.225  What are the additional requirements in the bid
process?

    All sales except fixed price sales must contain a certification of 
independent price determination. If there is suspicion of false 
certification or an indication of collusion, you must refer the matter 
to the Department of Justice or your agency's Office of the Inspector 
General.

                              Bid Deposits



Sec. 102-38.230  Is a bid deposit required to buy personal property?

    No, a bid deposit is not required to buy personal property. However, 
should you require a bid deposit to protect the Government's interest, a 
deposit of 20 percent of the total amount of the bid is generally 
considered reasonable.



Sec. 102-38.235  What types of payment may we accept as bid deposits?

    In addition to the acceptable types of payments in Sec. 102-38.290, 
you may also accept a deposit bond. A deposit bond may be used in lieu 
of cash or other acceptable form of deposit when permitted by the offer 
to sell, such as the Standard Form (SF) 150, Deposit Bond--Individual 
Invitation, Sale of Government Personal Property, SF 151, Deposit Bond--
Annual, Sale of Government Personal Property, and SF 28, Affidavit of 
Individual Surety. For information on how to obtain these forms, see 
Sec. 102-2.135 of subchapter A.



Sec. 102-38.240  What happens to the deposit bond if the bidder 
defaults or wants to withdraw his/her bid?

    (a) When a bid deposit is secured by a deposit bond and the bidder 
defaults, you must issue a notice of default to the bidder and the 
surety company.
    (b) When a bid deposit is secured by a deposit bond and the bidder 
wants to withdraw his/her bid, you should return the deposit bond to the 
bidder.

                                Late Bids



Sec. 102-38.245  Do we consider late bids for award?

    Consider late bids for award only when the bids were delivered 
timely to the address specified and your agency caused the delay in 
delivering the bids to the official designated to accept the bids.



Sec. 102-38.250  How do we handle late bids that are not considered?

    Late bids that are not considered must be returned to the bidder 
promptly. You must not disclose information contained in returned bids.

                   Modification or Withdrawal of Bids



Sec. 102-38.255  May we allow a bidder to modify or withdraw a bid?

    (a) Yes, a bidder may modify or withdraw a bid prior to the start of 
the sale or the time set for the opening of the bids. After the start of 
the sale, or the time set for opening the bids, the bidder will not be 
allowed to withdraw his/her bid.

[[Page 153]]

    (b) You may consider late modifications to an otherwise successful 
bid at any time, but only when it makes the terms of the bid more 
favorable to the Government.

                            Mistakes in Bids



Sec. 102-38.260  Who makes the administrative determinations regarding
mistakes in bids?

    The administrative procedures for handling mistakes in bids are 
contained in FAR 14.407, Mistakes in Bids (48 CFR 14.407). Your agency 
head, or his/her designee, may delegate the authority to make 
administrative decisions regarding mistakes in bids to a central 
authority, or a limited number of authorities in your agency, who must 
not re-delegate this authority.



Sec. 102-38.265  Must we keep records on administrative determinations?

    Yes, you must--
    (a) Maintain records of all administrative determinations made, to 
include the pertinent facts and the action taken in each case. A copy of 
the determination must be attached to its corresponding contract; and
    (b) Provide a signed copy of any related determination with the copy 
of the contract you file with the Comptroller General when requested.



Sec. 102-38.270  May a bidder protest the determinations made on sales
of personal property?

    Yes, protests regarding the validity or the determinations made on 
the sale of personal property may be submitted to the Comptroller 
General.



                      Subpart D_Completion of Sale

                                 Awards



Sec. 102-38.275  To whom do we award the sales contract?

    You must award the sales contract to the bidder with the highest 
responsive bid, unless a determination is made to reject the bid under 
Sec. 102-38.205.



Sec. 102-38.280  What happens when there is no award?

    When there is no award made, you may sell the personal property at 
another sale, or you may abandon or destroy it pursuant to Sec. 102-
36.305 of this subchapter B.

                            Transfer of Title



Sec. 102-38.285  How do we transfer title from the Government to the
buyer for personal property sold?

    (a) Generally, no specific form or format is designated for 
transferring title from the Government to the buyer for personal 
property sold. For internal control and accountability, you must execute 
a bill of sale or another document as evidence of transfer of title or 
any other interest in Government personal property. You must also ensure 
that the buyer submits any additional certifications to comply with 
specific conditions and restrictions of the sale.
    (b) For sales of vehicles, you must issue to the purchaser a 
Standard Form (SF) 97, the United States Government Certificate to 
Obtain Title to a Vehicle, or a SF 97A, the United States Government 
Certificate to Obtain a Non-Repairable or Salvage Certificate, as 
appropriate, as evidence of transfer of title. For information on how to 
obtain these forms, see Sec. 102-2.135 of this chapter.

                                Payments



Sec. 102-38.290  What types of payment may we accept?

    You must adopt a payment policy that protects the Government against 
fraud. Acceptable payments include, but are not limited to, the 
following:
    (a) U.S. currency or any form of credit instrument made payable on 
demand in U.S. currency, e.g., cashier's check, money order. Promissory 
notes and postdated credit instruments are not acceptable.
    (b) Irrevocable commercial letters of credit issued by a United 
States bank payable to the Treasurer of the United States or to the 
Government agency conducting the sale.
    (c) Credit or debit cards.

                         Disposition of Proceeds



Sec. 102-38.295  May we retain sales proceeds?

    (a) You may retain that portion of the sales proceeds, in accordance 
with

[[Page 154]]

your agreement with the holding agency, equal to your direct costs and 
reasonably related indirect costs (including your share of the 
Governmentwide costs to support the eFAS Internet portal and 
Governmentwide reporting requirements) incurred in selling personal 
property.
    (b) A holding agency may retain that portion of the sales proceeds 
equal to its costs of care and handling directly related to the sale of 
personal property by the SC (e.g., shipment to the SC, storage pending 
sale, and inspection by prospective buyers).
    (c) After accounting for amounts retained under paragraphs (a) and 
(b) of this section, as applicable, a holding agency may retain the 
balance of proceeds from the sale of its agency's personal property 
when--
    (1) It has the statutory authority to retain all proceeds from sales 
of personal property;
    (2) The property sold was acquired with non-appropriated funds as 
defined in Sec. 102-36.40 of this subchapter B;
    (3) The property sold was surplus Government property that was in 
the custody of a contractor or subcontractor, and the contract or 
subcontract provisions authorize the proceeds of sale to be credited to 
the price or cost of the contract or subcontract;
    (4) The property was sold to obtain replacement property under the 
exchange/sale authority pursuant to part 102-39 of this subchapter B; or
    (5) The property sold was related to waste prevention and recycling 
programs, under the authority of Section 607 of Public Law 107-67 
(Omnibus Consolidated and Emergency Supplemental Appropriations Act, 
1999, Pub. L. 107-67, 115 Stat. 514). Consult your General Counsel or 
Chief Financial Officer for guidance on use of this authority.

[73 FR 20803, Apr. 17, 2008]



Sec. 102-38.300  What happens to sales proceeds that neither we nor
the holding agency are authorized to retain, or that are unused?

    Any sales proceeds that are not retained pursuant to the authorities 
in Sec. 102-38.295 must be deposited as miscellaneous receipts in the 
U.S. Treasury.

                                Disputes



Sec. 102-38.305  How do we handle disputes involved in the sale of
Federal personal property?

    First contact your Office of General Counsel. Further guidance can 
be found in the Contract Disputes Act of 1978, as amended (41 U.S.C. 
601-613), and the Federal Acquisition Regulation (FAR) at 48 CFR part 
33.



Sec. 102-38.310  Are we required to use the Disputes clause in the 
sale of personal property?

    Yes, you must ensure the Disputes clause contained in Federal 
Acquisition Regulation (FAR) 52.233-1 (48 CFR part 52) is included in 
all offers to sell and contracts for the sale of personal property.



Sec. 102-38.315  Are we required to use Alternative Disputes Resolution
for sales contracts?

    No, you are not required to use Alternative Disputes Resolution 
(ADR) for sales contracts. However, you are encouraged to use ADR 
procedures in accordance with the authority and the requirements of the 
Alternative Disputes Resolution Act of 1998 (28 U.S.C. 651-658).



                   Subpart E_Other Governing Statutes



Sec. 102-38.320  Are there other statutory requirements governing the
sale of Federal personal property?

    Yes, in addition to Title 40 of the U.S. Code the sale of Federal 
personal property is governed by other statutory requirements, such as 
the Debt Collection Improvement Act of 1996 (Public Law 104-134, sec. 
31001, 110 Stat. 1321-358) and antitrust requirements that are discussed 
in Sec. 102-38.325.

                         Antitrust Requirements



Sec. 102-38.325  What are the requirements pertaining to antitrust laws?

    When the sale of personal property has an estimated fair market 
value of $3 million or more or if the sale involves a patent, process, 
technique, or invention, you must notify the Attorney General of the 
Department of Justice (DOJ) and get DOJ's opinion as to

[[Page 155]]

whether the sale would give the buyer an unfair advantage in the 
marketplace and violate any antitrust laws. Include in the notification 
the description and location of the property, method of sale and 
proposed selling price, and information on the proposed purchaser and 
intended use of the property. You must not complete the sale until you 
have received confirmation from the Attorney General that the proposed 
transaction would not violate any antitrust laws.

[68 FR 51421, Aug. 26, 2003; 68 FR 53219, Sept. 9, 2003]



                    Subpart F_Reporting Requirements



Sec. 102-38.330  Are there any reports that we must submit to the
General Services Administration?

    Yes, there are two sales reports you must submit to the General 
Services Administration (GSA), Personal Property Management Policy 
Division (MTP), 1800 F Street, NW., Washington, DC 20405--
    (a) Negotiated sales report. Within 60 calendar days after the close 
of each fiscal year, you must provide GSA with a listing and description 
of all negotiated sales with an estimated fair market value in excess of 
$5,000 (see Sec. 102-38.115). For each negotiated sale that meets this 
criterion, provide the following:
    (1) Description of the property (including quantity and condition).
    (2) Acquisition cost and date (if not known, estimate and so 
indicate).
    (3) Estimated fair market value (including date of estimate and name 
of estimator).
    (4) Name and address of purchaser.
    (5) Date of sale.
    (6) Gross and net sales proceeds.
    (7) Justification for conducting a negotiated sale.
    (b) Exchange/sale report. Within 90 calendar days after the close of 
each fiscal year, you must provide a summary report to GSA of 
transactions conducted under the exchange/sale authority under part 102-
39 of this subchapter B (see Sec. 102-39.75).



Sec. 102-38.335  Is there any additional personal property sales 
information that we must submit to the General Services Administration?

    Yes, you must report to the General Services Administration's 
(GSA's) Asset Disposition Management System (ADMS), once that capability 
is established, any sales information that GSA deems necessary.



          Subpart G_Provisions for State and Local Governments



Sec. 102-38.340  How may we sell personal property to State and 
local governments?

    You may sell Government personal property to State and local 
governments through--
    (a) Competitive sale to the public;
    (b) Negotiated sale, through the appropriate State Agency for 
Surplus Property (SASP); or
    (c) Negotiated sale at fixed price (fixed price sale), through the 
appropriate SASP. (This method of sale can be used prior to a 
competitive sale to the public, if desired.)



Sec. 102-38.345  Do we have to withdraw personal property advertised
for public sale if a State Agency for Surplus Property wants to buy it?

    No, you are not required to withdraw the item from public sale if 
the property has been advertised.



Sec. 102-38.350  Are there special provisions for State and local 
governments regarding negotiated sales?

    Yes, you must waive the requirement for bid deposits and payment 
prior to removal of the property. However, payment must be made within 
30 calendar days after purchase. If payment is not made within 30 days, 
you may charge simple interest at the rate established by the Secretary 
of the Treasury as provided in section 12 of the Contract Disputes Act 
of 1978 (41 U.S.C. 611), from the date of written demand for payment.

[[Page 156]]



Sec. 102-38.355  Do the regulations of this part apply to State
Agencies for Surplus Property (SASPs) when conducting sales?

    Yes, State Agencies for Surplus Property (SASPs) must follow the 
regulations in this part when conducting sales on behalf of the General 
Services Administration of Government personal property in their 
custody.



       Subpart H_Implementation of the Federal Asset Sales Program

    Source: 73 FR 20803, Apr. 17, 2008, unless otherwise noted.



Sec. 102-38.360  What must an executive agency do to implement 
the eFAS program?

    (a) An executive agency must review the effectiveness of all sales 
solutions, and compare them to the effectiveness (e.g., cost, level of 
service, and value added services) of the eFAS SCs. Agencies should give 
full consideration to sales solutions utilizing private sector entities, 
including small businesses, that are more effective than the solutions 
provided by any eFAS-approved SC. If the agency decides that there are 
more effective sales solutions than those solutions offered by the eFAS 
SCs, the agency must request a waiver from the milestones using the 
procedures and forms provided by the eFAS Planning Office. Waivers will 
be approved by the eFAS Planning Office upon presentation of a business 
case showing that complying with an eFAS milestone is either 
impracticable or inefficient. Waiver approval will be coordinated with 
GSA's Office of Travel, Transportation, and Asset Management. Contact 
the eFAS Planning Office at [email protected] to obtain these 
procedures and forms.
    (b) An approved waiver for meeting one of the eFAS milestones does 
not automatically waive all milestone requirements. For example, if an 
agency receives a waiver to the migration milestone, the agency must 
still (1) post asset information on the eFAS Web site and (2) provide 
post-sales data to the eFAS Planning Office in accordance with the 
content and format requirements developed by the eFAS ESC, unless 
waivers to these milestones are also requested and approved. Waivers to 
the eFAS milestones will not be permanent. Upon expiration of the waiver 
to the migration milestone, an agency must either migrate to an approved 
SC, or serve as a fully functioning SC, as soon as practicable. See the 
definition of a ``Sales Center'' at Sec. 102-38.35 for an overview of 
how agency sales solutions become SCs.
    (c) An agency which receives a waiver from the eFAS milestones must 
comply with subparts A through G of this part as if it were an SC.
    (d) An executive agency must comply with all eFAS milestones 
approved by OMB including those regarding the completion of an agency-
wide sales migration plan, the reporting of pre- and post-sales data, 
and the migration to approved SCs unless a waiver has been submitted by 
the agency and approved by the eFAS Planning Office. The eFAS milestones 
are available for viewing at http://www.gsa.gov/govsalesmilestones.



Sec. 102-38.365  Is a holding agency required to report property in
``scrap'' condition to its selected SC?

    No. Property which has no value except for its basic material 
content (scrap material) may be disposed of by the holding agency by 
sale or as otherwise provided in Sec. 102-38.70. However, the holding 
agency should consult the SC(s) selected by the holding agency as to the 
feasibility of selling the scrap material. Agencies selling scrap 
property under authority of this subpart are still required to report 
sales metrics in accordance with eFAS ESC-approved format and content.



Sec. 102-38.370  What does a holding agency do with property which
cannot be sold by its SC?

    All reasonable efforts must be afforded the SC to sell the property. 
If the property remains unsold after the time frame agreed to between 
the SC and the holding agency, the holding agency may dispose of the 
property by sale or as otherwise provided in Sec. 102-38.70. The lack 
of public interest in buying the property is evidence that the sales 
proceeds would be minimal.

[[Page 157]]

Agencies selling property under authority of this subpart are still 
required to report sales metrics in accordance with eFAS ESC-approved 
format and content.



PART 102-39-REPLACEMENT OF PERSONAL PROPERTY PURSUANT TO THE EXCHANGE
/SALE AUTHORITY--Table of Contents



                            Subpart A_General

Sec.
102-39.5 What is the exchange/sale authority?
102-39.10 What does this part cover?
102-39.15 How are the terms ``I'' and ``you'' used in this part?
102-39.20 What definitions apply to this part?
102-39.25 Which exchange/sale provisions are subject to deviation?
102-39.30 How do I request a deviation from this part?

                 Subpart B_Exchange/Sale Considerations

102-39.35 When should I consider using the exchange/sale authority?
102-39.40 Why should I consider using the exchange/sale authority?
102-39.45 When should I not use the exchange/sale authority?
102-39.50 How do I determine whether to do an exchange or a sale?
102-39.55 When should I offer property I am exchanging or selling under 
          the exchange/sale authority to other Federal agencies or State 
          Agencies for Surplus Property (SASP)?
102-39.60 What restrictions and prohibitions apply to the exchange/sale 
          of personal property?
102-39.65 What conditions apply to the exchange/sale of personal 
          property?

               Subpart C_Exchange/Sale Methods and Reports

102-39.70 What are the exchange methods?
102-39.75 What are the sales methods?
102-39.80 What are the accounting requirements for the proceeds of sale?
102-39.85 What information am I required to report?

    Authority: 40 U.S.C. 121(c); 40 U.S.C. 503.

    Source: 66 FR 48614, Sept. 21, 2001, unless otherwise noted.



                            Subpart A_General



Sec. 102-39.5  What is the exchange/sale authority?

    The exchange/sale authority is a statutory provision, (40 U.S.C. 
503), which states in part: ``In acquiring personal property, an 
executive agency may exchange or sell similar items and may apply the 
exchange allowance or proceeds of sale in whole or in part payment for 
the property acquired.''

[73 FR 50880, Aug. 29, 2008]



Sec. 102-39.10  What does this part cover?

    This part covers the exchange/sale authority, and applies to all 
personal property owned by executive agencies worldwide. For the 
exchange/sale of aircraft parts and hazardous materials, you must meet 
the requirements in this part and in parts 101-33 and 101-42 of this 
title.

[66 FR 48614, Sept. 21, 2001, as amended at 69 FR 11539, Mar. 11, 2004]



Sec. 102-39.15  How are the terms ``I'' and ``you'' used in this part?

    Use of pronouns ``I'' and ``you'' throughout this part refer to 
executive agencies.

[66 FR 48614, Sept. 21, 2001. Redesignated at 73 FR 50880, Aug. 29, 
2008]



Sec. 102-39.20  What definitions apply to this part?

    The following definitions apply to this part:
    Acquire means to procure or otherwise obtain personal property, 
including by lease (sometimes known as rent).
    Combat material means arms, ammunition, and implements of war listed 
in the U.S. munitions list (22 CFR part 121).
    Excess property means any personal property under the control of any 
Federal agency that is no longer required for that agency's needs or 
responsibilities, as determined by the agency head or designee.
    Exchange means to replace personal property by trade or trade-in 
with the supplier of the replacement property.
    Exchange/sale means to exchange or sell non-excess, non-surplus 
personal

[[Page 158]]

property and apply the exchange allowance or proceeds of sale in whole 
or in part payment for the acquisition of similar property.
    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/her direction).
    Historic item means property having added value for display purposes 
because its historical significance is greater than its fair market 
value for continued use. Items that are commonly available and remain in 
use for their intended purpose, such as military aircraft still in use 
by active or reserve units, are not historic items.
    Replacement means the process of acquiring personal property to be 
used in place of personal property that is still needed but:
    (1) No longer adequately performs the tasks for which it is used; or
    (2) Does not meet the agency's need as well as the personal property 
to be acquired.
    Service Life Extension Program (SLEP) means the modification of a 
personal property item undertaken to extend the life of the item beyond 
that which was previously planned. SLEPs extend capital asset life by 
retrofit, major modification, remanufacturing, betterment, or 
enhancement.
    Similar means the acquired item(s) and replaced item(s):
    (1) Are identical; or
    (2) Fall within a single Federal Supply Classification (FSC) Group 
of property (includes any and all forms of property within a single FSC 
Group); or
    (3) Are parts or containers for similar end items; or
    (4) Are designed or constructed for the same purpose (includes any 
and all forms of property regardless of the FSC Group to which they are 
assigned).
    Surplus property means excess personal property not required for the 
needs of any Federal agency, as determined by GSA under part 102-37 of 
this chapter.

[66 FR 48614, Sept. 21, 2001, as amended at 73 FR 50880, Aug. 29, 2008]



Sec. 102-39.25  Which exchange/sale provisions are subject to 
deviation?

    All of the provisions in this part are subject to deviation (upon 
presentation of adequate justification) except those mandated by 
statute. See the link on ``Exchange/Sale'' at www.gsa.gov/
personalpropertypolicy for additional information on requesting 
deviations from this part.

[73 FR 50880, Aug. 29, 2008]



Sec. 102-39.30  How do I request a deviation from this part?

    See part 102-2 of this chapter (41 CFR part 102-2) to request a 
deviation from the requirements of this part.

[73 FR 50880, Aug. 29, 2008]



                 Subpart B_Exchange/Sale Considerations



Sec. 102-39.35  When should I consider using the exchange/sale
authority?

    You should consider using the exchange/sale authority when replacing 
personal property.

[73 FR 50880, Aug. 29, 2008]



Sec. 102-39.40  Why should I consider using the exchange/sale 
authority?

    You should consider using the exchange/sale authority to reduce the 
cost of replacement personal property. When you have personal property 
that is wearing out or obsolete and must be replaced, you should 
consider either exchanging or selling that property and using the 
exchange allowance or sales proceeds to offset the cost of the 
replacement personal property. Conversely, if you choose not to replace 
the property using the exchange/sale authority, you may declare it as 
excess and dispose of it through the normal disposal process as 
addressed in part 102-36 of this chapter. Keep in mind, however, that 
any net proceeds from the eventual sale of that property as surplus 
generally must be forwarded to the miscellaneous receipts account at the 
United States Treasury and thus

[[Page 159]]

would not be available to you. You may use the exchange/sale authority 
in the acquisition of personal property even if the acquisition is under 
a services contract, as long as the property acquired under the services 
contract is similar to the property exchanged or sold (e.g., for a SLEP, 
exchange allowances or sales proceeds would be available for replacement 
of similar items, but not for services).

[73 FR 50880, Aug. 29, 2008]



Sec. 102-39.45  When should I not use the exchange/sale authority?

    You should not use the exchange/sale authority if the exchange 
allowance or estimated sales proceeds for the property will be 
unreasonably low. You must either abandon or destroy such property, or 
declare the property excess, in accordance with part 102-36 of this 
chapter. Further, you must not use the exchange/sale authority if the 
transaction(s) would violate any other applicable statute or regulation.

[66 FR 48614, Sept. 21, 2001, as amended at 69 FR 11539, Mar. 11, 2004. 
Redesignated at 73 FR 50880, Aug. 29, 2008]



Sec. 102-39.50  How do I determine whether to do an exchange
or a sale?

    You must determine whether an exchange or sale will provide the 
greater return for the Government. When estimating the return under each 
method, consider all related administrative and overhead costs.

[66 FR 48614, Sept. 21, 2001. Redesignated at 73 FR 50880, Aug. 29, 
2008]



Sec. 102-39.55  When should I offer property I am exchanging or 
selling under the exchange/sale authority to other Federal agencies
or State Agencies for Surplus Property (SASP)?

    If you have property to replace which is eligible for exchange/sale, 
you should first, to the maximum extent practicable, solicit:
    (a) Federal agencies known to use or distribute such property. If a 
Federal agency is interested in acquiring and paying for the property, 
you should arrange for a reimbursable transfer. Reimbursable transfers 
may also be conducted with the Senate, the House of Representatives, the 
Architect of the Capitol and any activities under the Architect's 
direction, the District of Columbia, and mixed-ownership Government 
corporations. When conducting a reimbursable transfer, you must:
    (1) Do so under terms mutually agreeable to you and the recipient.
    (2) Not require reimbursement of an amount greater than the 
estimated fair market value of the transferred property.
    (3) Apply the transfer proceeds in whole or part payment for 
property acquired to replace the transferred property; and
    (b) State Agencies for Surplus Property (SASPs) known to have an 
interest in acquiring such property. If a SASP is interested in 
acquiring the property, you should consider selling it to the SASP by 
negotiated sale at fixed price under the conditions specified at Sec. 
102-38.125 of this title. The sales proceeds must be applied in whole or 
part payment for property acquired to replace the transferred property.

[66 FR 48614, Sept. 21, 2001, as amended at 69 FR 11539, Mar. 11, 2004. 
Redesignated at 73 FR 50880, Aug. 29, 2008]



Sec. 102-39.60  What restrictions and prohibitions apply to the
exchange/sale of personal property?

    Unless a deviation is requested of and approved by GSA as addressed 
in part 102-2 of this chapter and the provisions of Sec. Sec. 102-39.25 
and 102-39.30, you must not use the exchange/sale authority for:
    (a) The following FSC groups of personal property:
    10 Weapons.
    11 Nuclear ordnance.
    42 Firefighting, rescue, and safety equipment.
    44 Nuclear reactors (FSC Class 4470 only).
    51 Hand tools.
    54 Prefabricated structure and scaffolding (FSC Class 5410 
Prefabricated and Portable Buildings, FSC Class 5411 Rigid Wall 
Shelters, and FSC Class 5419 Collective Modular Support System only).
    68 Chemicals and chemical products, except medicinal chemicals.
    84 Clothing, individual equipment, and insignia.


[[Page 160]]


    Note to Sec. 102-39.60(a):
    Under no circumstances will deviations be granted for FSC Class 
1005, Guns through 30mm. Deviations are not required for Department of 
Defense (DoD) property in FSC Groups 10 (for classes other than FSC 
Class 1005), 12 and 14 for which the applicable DoD demilitarization 
requirements, and any other applicable regulations and statutes are met.

    (b) Materials in the National Defense Stockpile (50 U.S.C. 98-98h) 
or the Defense Production Act inventory (50 U.S.C. App. 2093).
    (c) Nuclear Regulatory Commission-controlled materials unless you 
meet the requirements of Sec. 101-42.1102-4 of this title.
    (d) Controlled substances, unless you meet the requirements of Sec. 
101-42.1102-3 of this title.
    (e) Property with a condition code of scrap, as defined at FMR 102-
36.40, except:
    (1) Property that had utility and value at the point in time when a 
determination was made to use the exchange/sale authority;
    (2) Property that was otherwise eligible for exchange/sale, but was 
coded as scrap due to damage (e.g., accident or natural disaster); or
    (3) Scrap gold for fine gold.
    (f) Property that was originally acquired as excess or forfeited 
property or from another source other than new procurement, unless such 
property has been in official use by the acquiring agency for at least 1 
year. You may exchange or sell forfeited property in official use for 
less than 1 year if the head of your agency determines that a continuing 
valid requirement exists, but the specific item in use no longer meets 
that requirement, and that exchange or sale meets all other requirements 
of this part.
    (g) Property that is dangerous to public health or safety without 
first rendering such property innocuous or providing for adequate 
safeguards as part of the exchange/sale.
    (h) Combat material without demilitarizing it or obtaining a 
demilitarization waiver or other necessary clearances from the 
Department of Defense Demilitarization Office.
    (i) Flight Safety Critical Aircraft Parts (FSCAP) and Critical 
Safety Items (CSI) unless you meet the provisions of Sec. 102-33.370 of 
this title.
    (j) Acquisition of unauthorized replacement property.
    (k) Acquisition of replacement property that violates any:
    (1) Restriction on procurement of a commodity or commodities;
    (2) Replacement policy or standard prescribed by the President, the 
Congress, or the Administrator of General Services; or
    (3) Contractual obligation.
    (l) Vessels subject to 40 U.S.C. 548.
    (m) Aircraft and aircraft parts, unless there is full compliance 
with all exchange/sale provisions in part 102-33 of this chapter (41 CFR 
part 102-33).

[66 FR 48614, Sept. 21, 2001; 66 FR 51095, Oct. 5, 2001, as amended at 
69 FR 11539, Mar. 11, 2004; 71 FR 20900, Apr. 24, 2006. Redesignated at 
73 FR 50880, Aug. 29, 2008; 75 FR 24820, May 6, 2010; 76 FR 67372, Nov. 
1, 2011]



Sec. 102-39.65  What conditions apply to the exchange/sale of personal
property?

    You may use the exchange/sale authority only if you meet all of the 
following conditions:
    (a) The property exchanged or sold is similar to the property 
acquired;
    (b) The property exchanged or sold is not excess or surplus and you 
have a continuing need for similar property;
    (c) The property exchanged or sold was not acquired for the 
principal purpose of exchange or sale;
    (d) When replacing personal property, the exchange allowance or 
sales proceeds from the disposition of that property may only be used to 
offset the cost of the replacement property, not services; and
    (e) Except for transactions involving books and periodicals in your 
libraries, you document the basic facts associated with each exchange/
sale transaction. At a minimum, the documentation must include:
    (1) The FSC Group of the items exchanged or sold, and the items 
acquired;
    (2) The number of items exchanged or sold, and the number of items 
acquired;
    (3) The acquisition cost and exchange allowance or net sales 
proceeds of the items exchanged or sold, and the acquisition cost of the 
items acquired;
    (4) The date of the transaction(s);
    (5) The parties involved; and

[[Page 161]]

    (6) A statement that the transactions comply with the requirements 
of this part 102-39.

    Note to Sec. 102-39.65: In acquiring items for historical 
preservation or display at Federal museums, you may exchange historic 
items in the museum property account without regard to the FSC group, 
provided the exchange transaction is documented and certified by the 
head of your agency to be in the best interests of the Government and 
all other provisions of this part are met. The documentation must 
contain a determination that the item exchanged and the item acquired 
are historic items.

[73 FR 50881, Aug. 29, 2008]



               Subpart C_Exchange/Sale Methods and Reports



Sec. 102-39.70  What are the exchange methods?

    Exchange of property may be accomplished by either of the following 
methods:
    (a) The supplier (e.g., a Government agency, commercial or private 
organization, or an individual) delivers the replacement property to one 
of your organizational units and removes the property being replaced 
from that same organizational unit.
    (b) The supplier delivers the replacement property to one of your 
organizational units and removes the property being replaced from a 
different organizational unit.

[66 FR 48614, Sept. 21, 2001. Redesignated at 73 FR 50880, Aug. 29, 
2008]



Sec. 102-39.75  What are the sales methods?

    (a) You must use the methods, terms, and conditions of sale, and the 
forms prescribed in part 102-38 of this title, in the sale of property 
being replaced, except for the provisions of Sec. Sec. 102-38.100 
through 102-38.115 of this title regarding negotiated sales. Section 
3709, Revised Statutes (41 U.S.C. 5), specifies the following conditions 
under which property being replaced can be sold by negotiation, subject 
to obtaining such competition as is feasible:
    (1) The reasonable value involved in the contract does not exceed 
$500; or
    (2) Otherwise authorized by law.
    (b) You may sell property being replaced by negotiation at fixed 
prices in accordance with the provisions of Sec. 102-38.120 and 102-
38.125 of this title.

[66 FR 48614, Sept. 21, 2001, as amended at 69 FR 11539, Mar. 11, 2004. 
Redesignated at 73 FR 50880, Aug. 29, 2008]



Sec. 102-39.80  What are the accounting requirements for exchange 
allowances or proceeds of sale?

    You must account for exchange allowances or proceeds of sale in 
accordance with the general finance and accounting rules applicable to 
you. Except as otherwise authorized by law, all exchange allowances or 
proceeds of sale under this part will be available during the fiscal 
year in which the property was exchanged or sold and for one fiscal year 
thereafter for the purchase of replacement property. Any proceeds of 
sale not applied to replacement purchases during this time must be 
deposited in the United States Treasury as miscellaneous receipts.

[73 FR 50881, Aug. 29, 2008, as amended at 75 FR 24820, May 6, 2010]



Sec. 102-39.85  What information am I required to report?

    (a) You must submit, within 90 calendar days after the close of each 
fiscal year, a summary report in a format of your choice on the 
exchange/sale transactions made under this part during the fiscal year 
(except for transactions involving books and periodicals in your 
libraries). The report must include:
    (1) A list by Federal Supply Classification Group of property sold 
under this part showing the:
    (i) Number of items sold;
    (ii) Acquisition cost; and
    (iii) Net proceeds.
    (2) A list by Federal Supply Classification Group of property 
exchanged under this part showing the:
    (i) Number of items exchanged;
    (ii) Acquisition cost; and
    (iii) Exchange allowance.
    (b) Submit your report electronically or by mail to the General 
Services Administration, Office of Travel, Transportation and Asset 
Management (MT), 1800 F Street, NW., Washington, DC 20405.
    (c) Report control number: 1528-GSA-AN.
    (d) If you make no transactions under this part during a fiscal 
year,

[[Page 162]]

you must submit a report stating that no transactions occurred.

[66 FR 48614, Sept. 21, 2001, as amended at 71 FR 20900, Apr. 24, 2006. 
Redesignated at 73 FR 50880, Aug. 29, 2008]



PART 102-40-UTILIZATION AND DISPOSITION OF PERSONAL PROPERTY WITH 
SPECIAL HANDLING REQUIREMENTS--Table of Contents



                      Subpart A_General Provisions

Sec.
102-40.5 What does this part cover?
102-40.10 What is the governing authority for this part?
102-40.15 Who must comply with the provisions in this part?
102-40.20 To whom do ``we'', ``you'', and their variants refer?
102-40.25 How do we request a deviation from these requirements and who 
          can approve it?

                               Definitions

102-40.30 What definitions apply to this part?

                       Subpart B_Responsibilities

102-40.35 What types of personal property require special handling?
102-40.40 What are our responsibilities concerning personal property 
          requiring special handling?
102-40.45 What must we do when we have identified personal property with 
          special handling requirements?
102-40.50 What must we do when we no longer need personal property with 
          special handling requirements?
102-40.55 Do we report all excess personal property with special 
          handling requirements to GSA?
102-40.60 May we reassign hazardous materials?
102-40.65 Who is responsible for the custody of hazardous materials and 
          property requiring special handling?
102-40.70 Who is responsible for the care and handling of hazardous 
          materials and property requiring special handling?

   Subpart C_Transfer and Donation of Personal Property With Special 
                          Handling Requirements

102-40.75 What must we do when reporting excess personal property with 
          special handling requirements?
102-40.80 Is personal property requiring special handling available for 
          transfer or donation?
102-40.85 Is donee certification required for the donation of personal 
          property requiring special handling?
102-40.90 Must we establish additional requirements for the inspection 
          of personal property with special handling requirements?
102-40.95 Who pays for the costs incident to the transfer of personal 
          property with special handling requirements?

 Subpart D_Sale of Personal Property With Special Handling Requirements

102-40.100 May we sell personal property with special handling 
          requirements?
102-40.105 May we use any sales method to sell personal property that 
          requires special handling?
102-40.110 What must we include in the sales terms and conditions when 
          selling personal property with special handling requirements?
102-40.115 Are certifications required from the purchaser when selling 
          personal property with special handling requirements?
102-40.120 What precautions must we take during the sales process for 
          personal property requiring special handling?
102-40.125 May we dispose of personal property requiring special 
          handling by abandonment or destruction?

    Subpart E_Categories of Personal Property With Special Handling 
                              Requirements

102-40.130 What categories of personal property require special 
          handling?
102-40.135 How do we manage acid-contaminated and explosive-contaminated 
          property?
102-40.140 How do we handle all-terrain vehicles (ATVs)?
102-40.145 How do we handle ammunition and ammunition components?
102-40.150 How do we handle animals and plants?
102-40.155 How do we handle asbestos?
102-40.160 How do we handle controlled substances?
102-40.165 How do we handle drugs, biologicals, and reagents other than 
          controlled substances?
102-40.170 How do we handle electronic products?
102-40.175 How do we handle firearms?
102-40.180 How do we handle hazardous materials?
102-40.185 How do we handle lead-containing paints and items bearing 
          lead-containing paint?
102-40.190 How do we handle medical devices?
102-40.195 How do we handle Munitions List Items (MLIs)?

[[Page 163]]

102-40.200 How do we handle Commerce Control List Items (CCLIs)?
102-40.205 How do we handle national stockpile material?
102-40.210 How do we handle Nuclear Regulatory Commission-controlled 
          materials?
102-40.215 How do we handle ozone depleting substances (ODSs)?
102-40.220 How do we handle polychlorinated biphenyls (PCBs)?
102-40.225 How do we handle precious metals?
102-40.230 How do we handle universal waste(s) (UWs)?
102-40.235 How do we handle motor vehicles not suitable for highway use?

Appendix A to Part 102-40--Federal Supply Classes (FSC) Composed 
          Predominantly of Hazardous Items
Appendix B to Part 102-40--Federal Supply Classes and Groups Which 
          Contain a Significant Number of Hazardous Items

    Authority: 40 U.S.C. 121(c).

    Source: 80 FR 7353, Feb. 10, 2015, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 102-40.5  What does this part cover?

    This part provides guidance regarding the utilization, transfer, 
donation, sale, and other disposal of Government personal property with 
special handling requirements (i.e., hazardous materials, dangerous 
property, etc.) located in the United States, the District of Columbia, 
the U.S. Virgin Islands, American Samoa, Guam, Puerto Rico, the Northern 
Mariana Islands, Federated States of Micronesia, the Marshall Islands, 
and Palau. For guidance regarding the disposal of personal property 
located outside of these areas, see Sec. Sec. 102-36.380 through 102-
36.400 of this subchapter; however, the disposal of personal property 
located outside of these areas should conform to the provisions in this 
part, whenever feasible, in the interest of promoting safety, security, 
and environmental stewardship.



Sec. 102-40.10  What is the governing authority for this part?

    40 U.S.C. 121(c) authorizes the Administrator of General Services to 
prescribe regulations necessary to perform functions under this part.



Sec. 102-40.15  Who must comply with the provisions in this part?

    All executive agencies must comply with the provisions of this part 
unless authorized by specific, separate statutory authority to do 
otherwise. Also, pursuant to 40 U.S.C. 549(b)(1), state agencies for 
surplus property (SASPs) must comply with the provisions of this part 
related to the donation of surplus property with special handling 
requirements. Legislative and judicial agencies are encouraged to follow 
these provisions.



Sec. 102-40.20  To whom do ``we,'' ``you,'' and their variants refer?

    The pronouns ``we,'' ``you,'' and their variants throughout this 
part refer to the executive agency, or other entity using these 
regulations, unless otherwise indicated.



Sec. 102-40.25  How do we request a deviation from these requirements
and who can approve it?

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

                               Definitions



Sec. 102-40.30  What definitions apply to this part?

    The following definitions apply to this part:
    Acid-contaminated property means property that may cause burns or 
toxicosis when improperly handled due to acid residues adhering to or 
trapped within the material.
    Ammunition as defined in 18 U.S.C. 921(a)(17), means ammunition or 
cartridge cases, primers, bullets, or propellant powder designed for use 
in any firearm.
    Ammunition components means the individual parts of ammunition, 
including cartridge cases, primers, bullets/projectiles, and propellant 
powder.
    Biologicals means hazardous materials associated with the products 
and operations of applied biology and/or biochemistry, especially 
serums, vaccines, etc., produced from microorganisms.
    Certified electronic product means any electronic product which 
bears the manufacturer's certification label or

[[Page 164]]

tag (21 CFR 1010.2) indicating that the product meets applicable 
radiation safety performance standards prescribed by the Food and Drug 
Administration (FDA) under 21 CFR part 1020.
    Commerce Control List Item (CCLI) means property identified on the 
Commerce Control List (15 CFR part 774, supp. 1) subject to export 
controls under the Export Administration Act of 1979, as amended (50 
App. U.S.C. 2401-2420) and implemented by the Export Administration 
Regulations (15 CFR part 730). Items may be placed on the list for 
reasons including, but not limited to, technology transfer, scarcity of 
materials, crime control, and national security.
    Controlled substances means--
    (1) Any narcotic, depressant, stimulant, or hallucinogenic drug, or 
any other drug or substance included in Schedules I, II, III, IV, or V 
of section 202 of the Controlled Substances Act (21 U.S.C. 812), except 
exempt chemical preparations and mixtures and excluded substances 
contained in 21 CFR part 1308; or
    (2) Any other drug or substance that the Attorney General determines 
to be subject to control under Subchapter I of the Controlled Substances 
Act (21 U.S.C. 801, et seq.); or
    (3) Any other drug or substance that by international treaty, 
convention, or protocol is to be controlled by the United States.
    Demilitarization means, as defined by the Department of Defense 
(DOD) in the Defense Material Disposition Manual, DOD 4160.21-M, to be 
the act of destroying the military offensive or defensive advantages 
inherent in certain types of equipment or material. The term includes 
mutilation, dumping at sea, scrapping, melting, burning, or alteration 
designed to prevent the further use of this equipment and material for 
its originally intended military or lethal purpose and applies equally 
to material in unserviceable or serviceable condition that has been 
screened through an Inventory Control Point and declared excess or 
foreign excess.
    Electronic Product means any item powered by electricity that has 
logic circuitry enabling the item to perform its intended function.
    Explosive-contaminated property means property that may ignite or 
explode when exposed to shock, flame, sparks, or other high temperature 
sources due to residual explosive material in joints, angles, cracks, or 
around bolts.
    Extremely hazardous material means property hazardous to the extent 
that it generally requires special handling such as licensing and 
training of handlers, protective clothing, and special containers and 
storage. Because of its extreme flammability, toxicity, corrosivity or 
other perilous qualities, it could constitute an immediate danger or 
threat to life and property and which usually have specialized uses 
under controlled conditions. It is also material which have been 
determined by the holding agency to endanger public health and safety or 
the environment if released to the general public.
    Firearm, as defined in 18 U.S.C. 921(a)(3), means:
    (1) Any weapon (including a starter gun) which will or is designed 
to or may readily be converted to expel a projectile by the action of an 
explosive;
    (2) The frame or receiver of any such weapon;
    (3) Any firearm muffler or firearm silencer; or
    (4) Any destructive device. Such term does not include an antique 
firearm.
    Hazardous material means property that is deemed a hazardous 
material, chemical substance or mixture, or hazardous waste under the 
Federal hazardous materials transportation law (49 U.S.C. 5101, et 
seq.), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6901, et seq.), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 
2601, et seq.). Generally, hazardous materials have one or more of the 
following characteristics:
    (1) Are carcinogens (according to Occupational Safety and Health 
Administration (OSHA) regulations at 29 CFR part 1910), toxic or highly 
toxic agents, reproductive toxins, irritants, corrosives, hepatotoxins, 
nephrotoxins, neurotoxins, agents that act on the hematopoietic system, 
and agents that damage the lungs, skin, eyes, or mucous membranes;
    (2) Are combustible liquids, compressed gases, explosives, flammable

[[Page 165]]

liquids, flammable solids, organic peroxides, oxidizers, pyrophorics, 
unstable (reactive) or water-reactive;
    (3) Are radioactive to the extent it requires special handling;
    (4) Identify hazards on associated SDS, MSDS, or HMIS documentation;
    (5) Possess special characteristics which, in the opinion of the 
holding agency, could be hazardous to health, safety, or the environment 
if improperly handled, stored, transported, disposed of, or otherwise 
improperly used.
    (6) Materials that, in the course of normal handling, use or 
storage, may produce or release dusts, gases, fumes, vapors, mists or 
smoke having any of the above characteristics.
    Hazardous waste means those materials or substances, the handling 
and disposal of which are governed by 40 CFR part 261. Hazardous 
materials generally become hazardous wastes when they are no longer 
suitable for their intended or valid alternate purpose, or for resource 
recovery. Some solid (non-hazardous) wastes are predetermined hazardous 
wastes upon generation (40 CFR part 261, subpart D); some are determined 
hazardous wastes when they exhibit ignitability, corrosivity, 
reactivity, or extraction procedure toxicity. Hazardous materials having 
an expired shelf life should be reclassified as hazardous waste if 
required by Federal and/or state environmental laws or regulations. 
Before reclassification, the shelf life may be extended if supported by 
results of tests and recertification performed by authorized personnel 
in accordance with applicable regulations.
    Lead-containing paint means paint or other similar surface coating 
material containing lead or lead compounds in excess of 0.06 percent of 
the weight of the total nonvolatile content of the paint or the weight 
of the dried paint film.
    Medical device means any health-care product that does not achieve 
its principal intended purposes by chemical action in or on the body or 
by being metabolized. Medical devices are categorized in the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 301, et seq.). Potential hazards 
of these devices include chemical and heavy metal hazards, and 
biohazards.
    Munitions List Item (MLI) means property and related technical data 
designated as defense articles and defense services pursuant to sections 
2778 and 2794(7) of the Arms Export Control Act (22 U.S.C. 2778 and 
2794(7)).
    Noncertified Electronic Product means any electronic product for 
which there is an applicable radiation safety performance standard 
prescribed or hereafter prescribed by the FDA under 21 CFR part 1020, 
and which the manufacturer has not certified as meeting such standard. 
The non-certification may be due to either:
    (1) Manufacture of the product before the effective date of the 
standard; or
    (2) The product was exempted from the applicable standard and is so 
labeled.
    Nuclear Regulatory Commission-Controlled Material means material 
subject to the controls of the Nuclear Regulatory Commission (NRC) 
pursuant to the Energy Reorganization Act of 1974. The materials are 
defined as follows:
    (1) Byproduct material. Any radioactive material (except special 
nuclear material) yielded in or made radioactive by exposure to the 
radiation, incident to the process of producing or utilizing special 
nuclear material. (See 10 CFR part 30).
    (2) Source material. Uranium or thorium, or any combination thereof, 
in any physical or chemical form or ores which contain by weight, one-
twentieth of one percent (0.05%) or more of uranium, thorium, or any 
combination thereof. Source material does not include special nuclear 
material. (See 10 CFR part 40).
    (3) Special nuclear material. Plutonium, uranium 233, uranium 
enriched in the isotope 233 or in the isotope 235, any other materials 
which the NRC, pursuant to the Atomic Energy Act of 1954 (42 U.S.C. 
2011, et seq.), including any amendments thereto, determined to be 
special nuclear material, or any material artificially enriched by any 
of the foregoing, but does not include source material. (See 10 CFR part 
70).
    Perishable means an item subject to rapid deterioration, spoilage or 
death, when removed from special storage conditions or care, such as 
fresh food, animals, and plants.

[[Page 166]]

    Precious metal means gold, silver, and platinum group metals 
(platinum, palladium, iridium, rhodium, osmium, and ruthenium).
    Radiation Safety Performance Standards. Certain electronic items or 
components emitting hazardous electronic radiation are subject to 
performance standards (21 CFR part 1020). You must follow FDA policies 
related to acquisition, use, and disposal of items identified by the FDA 
or other authority for which performance standards are established. See 
21 CFR 1000.15 for examples of electronic items that are required to 
follow radiation safety performance standards. Several types of 
electronic radiation (and examples of items that may emit that type of 
radiation) include: ionizing electromagnetic radiation (television 
receivers); ultraviolet electromagnetic radiation (tanning and 
therapeutic lamps); infrared and microwave electromagnetic radiation 
(certain alarm systems); and, laser emissions (certain cauterizing, 
burning, and welding devices).
    Reagent means any hazardous material used to detect or measure 
another substance or to convert one substance into another by means of 
the reactions it causes.
    Safety Data Sheet (SDS) means the documentation, as required by 29 
CFR 1910.1200, identifying the potential hazards associated with the 
specific category of product or property. Sources of SDS information may 
be the manufacturer, distributor, or the procuring agency. Related 
documentation, such as a Material Safety Data Sheet (MSDS) may also 
provide information on hazards associated with assets handled under this 
part.
    Universal Waste(s) mean(s) any of the following hazardous waste that 
is/are managed under the universal waste requirements of 40 CFR part 
273:
    (1) Batteries as described in 40 CFR 273.2;
    (2) Pesticides as described in 40 CFR 273.3;
    (3) Mercury-containing equipment (including thermostats) as 
described in 40 CFR 273.4 and as defined at 40 CFR 273.9; and
    (4) Light bulbs containing mercury (such as fluorescent bulbs) as 
described in 40 CFR 273.5.



                       Subpart B_Responsibilities



Sec. 102-40.35  What types of personal property require special handling?

    Personal property requiring special handling includes property 
containing hazardous materials or property which exhibits dangerous 
characteristics such that improper use, storage, transportation or 
disposal may lead to potential safety, health, environmental, economic, 
or national security risks. In many situations, the use, storage, 
transportation or disposal of these items is governed by Federal, state, 
and local laws. Personal property requiring special handling may also 
include animals and plants which may perish if not handled 
appropriately, as well as perishable products that may lose their 
utility if not handled appropriately.



Sec. 102-40.40  What are our responsibilities concerning personal
property requiring special handling?

    You are responsible for--
    (a) Identifying and accounting for property with special handling 
requirements;
    (b) Complying with applicable Federal, state, and local laws and 
regulations concerning the handling, storage, labeling, use, and final 
disposition of such property;
    (c) Ensuring adequate storage and safeguarding of such property, 
e.g., secured or limited access storage areas, warning signs, and 
protective clothing and equipment; and
    (d) Transporting materials requiring special handling in accordance 
with Department of Transportation (DOT), EPA, state and local 
regulations.



Sec. 102-40.45  What must we do when we have identified personal
property with special handling requirements?

    You must properly mark, tag, or label personal property with special 
handling requirements in accordance with applicable Federal law, 
including the Occupational Safety and Health Administration requirements 
(29 CFR

[[Page 167]]

1910.1200), regarding the actual or potential hazard associated with the 
property, and ensure that such information is maintained and perpetuated 
in the official agency property records. Labeling requirements for 
substances that are excluded from the requirements of 29 CFR 1910.1200 
are found in the references listed in 29 CFR 1910.1200(b)(5) and (6).



Sec. 102-40.50  What must we do when we no longer need personal
property with special handling requirements?

    Except for the items listed in Sec. 102-40.55, you must report 
excess personal property with special handling requirements that you no 
longer need to GSA for Federal and donation screening (see Sec. 102-
36.215 of this subchapter for how to report excess personal property to 
GSA). The report to GSA must clearly identify property requiring special 
handling, and all related hazards, precautions, and handling 
requirements related to this property. You must dispose of property not 
required to be reported to GSA in accordance with applicable Federal, 
state, and local laws and regulations, and your agency procedures. See 
Sec. 102-40.125 for policy regarding disposal of property requiring 
special handling by abandonment or destruction. Disposal must be 
accomplished so as to preserve as much as possible, any civilian utility 
or commercial value of the property.



Sec. 102-40.55  Do we report all excess personal property with special
handling requirements to GSA?

    No. Because of their characteristics, certain items are not subject 
to the usual disposal procedures. You are not required to report to GSA 
excess personal property with special handling requirements in any of 
the following categories listed below.
    (a) Extremely hazardous personal property. You must dispose of 
extremely hazardous personal property not reported to GSA in accordance 
with applicable demilitarization requirements, EPA regulations, state 
and local laws or regulations, and other Federal laws, regulations or 
guidelines. However, if time and circumstances permit, this material may 
be reported to GSA to optimize use of this already-acquired material. 
When an item that is determined to be extremely hazardous property 
becomes excess, the holding agency should notify the appropriate GSA 
regional personal property office, which will determine if the property 
should be reported using Report of Excess Personal Property, Standard 
Form (SF) 120 or another method. At a minimum, you must identify the 
item, and describe the actual or potential hazard(s) associated with the 
handling, storage, or use of the item(s). This GSA regional office will 
determine the utilization, donation, sales or other disposal 
requirements, and provide appropriate guidance to the holding agency.
    (b) Hazardous wastes. You must dispose of hazardous wastes not 
reported to GSA in accordance with applicable demilitarization 
requirements, EPA regulations, state and local laws or regulations, and 
other Federal laws, regulations or guidelines.
    (c) Perishables. You may dispose of perishables with no further 
utility by abandonment or destruction when it is not detrimental to 
public health or safety (see the abandonment/destruction provisions in 
Sec. 102-40.125 and in part 102-36 of this subchapter). Although there 
is no requirement to report perishables to GSA if their spoilage is 
imminent (see Sec. 102-36.220), perishables that have a longer time 
before spoilage and are clearly able to be used may be reported to GSA 
in accordance with part 102-36. When reporting perishables to GSA, you 
should annotate the Report for Excess Personal Property, SF 120 or 
electronic reporting form to show whether there is a specific expiration 
date for the perishable item and whether such date is an original or 
extended date.
    (d) EPA research and cleanup materials. The EPA, under its 
independent authority, may transfer accountability for hazardous 
materials deemed by EPA to be research materials to Federal, state, and 
local agencies, research institutions, or commercial businesses to 
conduct research or to clean-up a contaminated site.



Sec. 102-40.60  May we reassign hazardous materials?

    Yes, when hazardous materials are reassigned within an executive 
agency,

[[Page 168]]

information on the actual or potential hazard must be included in the 
documentation effecting the reassignment, and the recipient organization 
must perpetuate in the inventory or control records visibility of the 
nature of the actual or potential hazard.



102-40.65  Who is responsible for the custody of hazardous materials
and property requiring special handling?

    The holding agency is responsible for the custody of hazardous 
materials and property requiring special handling. Custody of these 
items may be transferred in whole or in part to another Federal agency 
with that receiving agency's consent.



Sec. 102-40.70  Who is responsible for the care and handling of
hazardous materials and property requiring special handling?

    (a) The holding agency is responsible for the care and handling of 
hazardous materials and property requiring special handling until the 
time the property has:
    (1) Completed the disposal process; and
    (2) Been transferred, donated, sold or destroyed, as authorized by 
this part. The nature of this material may require extra precautions, 
processes or equipment, thereby increasing the cost of care and 
handling. The costs associated with performing care and handling may be 
charged to the Federal agency or donation recipient in accordance with 
Sec. 102-40.95.
    (b) When transferring personal property to another federal agency, 
failure to disclose hazards or special handling requirements may result 
in the transferring agency being liable for additional costs incurred by 
the recipient agency, when authorized by applicable law and policy.



   Subpart C_Transfer and Donation of Personal Property With Special 
                          Handling Requirements



Sec. 102-40.75  What must we do when reporting excess personal 
property with special handling requirements?

    You must include with your report of excess personal property a 
complete description of the characteristics of the property, use or 
disposal restrictions, and the actual or potential hazard(s) associated 
with the use, handling, or storage of the item. You should include a 
Safety Data Sheet (SDS), Material Safety Data Sheet (MSDS), or Hazardous 
Material Information System (HMIS) record (or equivalent) if available. 
The physical item which requires special handling must also be marked so 
as to identify its special characteristic(s).



Sec. 102-40.80  Is personal property requiring special handling 
available for transfer or donation?

    Generally, yes, with the exceptions contained in this part, personal 
property requiring special handling is available for transfer or 
donation in accordance with parts 102-36 and 102-37 of this subchapter, 
respectively. Surplus personal property identified as hazardous material 
not required for transfer as excess personal property to Federal 
agencies should normally be made available for donation. However, state 
agencies should not acquire hazardous materials without first ensuring 
that there are known eligible donees for such property. Moreover, all 
transfer and donation documents must include a complete description of 
the actual or potential hazard(s) associated with the handling, storage, 
use, or disposal of the item. Also, any continuing restrictions or 
instructions must be clearly identified on these documents.



Sec. 102-40.85  Is donee certification required for the donation of
personal property requiring special handling?

    Yes, the transfer document must contain a full description of the 
actual or potential hazard(s) and restriction(s) associated with the 
handling, storage, use, transportation or disposal of the

[[Page 169]]

item. GSA will not approve a donation to a State Agency for Surplus 
Property (SASP) unless an eligible donee has been identified. This 
subpart does not prohibit a SASP from bringing an item requiring special 
handling into its warehouse or other place of storage, provided that 
this storage is of a temporary nature, that the storage arrangement is 
agreeable to all parties involved in the donation, and that the storage 
location has the necessary facilities, gear, and trained personnel to 
handle, store, protect, and transport the property. In addition, the 
following certification (or an equivalent) must be signed by the donee:

    I (We), the undersigned, hereby certify that the donee has knowledge 
and understanding of the nature of the property hereby donated which 
requires special handling, and will comply with all applicable Federal, 
state, and local laws, ordinances, and regulations with respect to the 
care, handling, storage, shipment, and disposal of the property. The 
donee agrees and certifies that the United States shall not be liable 
for personal injuries to, disabilities of, or death of the donee or the 
donee's employees, or any other person arising from or incident to the 
donation of the property, its use, or its final disposition. 
Additionally, the donee agrees and certifies to hold the United States 
harmless from and shall indemnify the United States against any or all 
debts, liabilities, judgments, costs, demands, suits, actions, or claims 
of any nature arising from or incident to the donation of the property, 
its use, or final disposition.

________________________________________________________________________
Name and title of Donee (print or type)

________________________________________________________________________
Signature of Donee



Sec. 102-40.90  Must we establish additional requirements for the 
inspection of personal property with special handling requirements?

    Yes, you are responsible for establishing appropriate safeguards and 
providing instructions for personal protection to screeners who are 
inspecting property with special handling requirements. Also, it is the 
responsibility of the state agency and/or donee to comply with DOT 
regulations (49 CFR parts 171 through 177) when transporting hazardous 
material. Any costs incident to repacking or recontainment will be borne 
by the state agency and/or donee. Also, state agencies and/or donees 
will comply with EPA's Resource Conservation and Recovery Act (40 CFR 
parts 261 through 265) including its application to transporters, 
storers, users, and permitting of hazardous wastes.



Sec. 102-40.95  Who pays for the costs incident to the transfer of
personal property with special handling requirements?

    You may charge the Federal agency or the SASP any costs you incur in 
packing, preparing for shipment, and transporting property with special 
handling requirements (see parts 102-36 and 102-37 of this subchapter).



 Subpart D_Sale of Personal Property With Special Handling Requirements



Sec. 102-40.100  May we sell personal property with special handling 
requirements?

    Generally, yes, you may sell personal property with special handling 
requirements through an authorized Sales Center, provided that the 
property has been reported in accordance with subpart B and C of this 
part, when you:
    (a) Comply with applicable Federal, state, and local laws and 
regulations, including part 102-38 of this subchapter; and
    (b) Follow applicable precautions including but not limited to 
proper packaging of the property, labeling with appropriate warning 
signs, and allowing for inspection of the property with proper 
safeguards.



Sec. 102-40.105  May we use any sales method to sell personal
property that requires special handling?

    Yes, unless specifically restricted as to sales methods by 
provisions in subpart E of this part, you may use any of the sales 
methods provided in part 102-38 of this subchapter, but you must:
    (a) Advertise and conduct sales of such property separately from 
other sales;
    (b) Store and display such property in a safe and controlled manner 
as required by applicable statutes and/or regulations;
    (c) Indicate if the property is being sold only for scrap, and/or if 
there are any use requirements or restrictions;

[[Page 170]]

    (d) Comply with the requirements of other Federal, state, and local 
laws and regulations; and
    (e) Conduct the sale through an agency authorized to sell Federal 
property in accordance with part 102-38 of this subchapter.



Sec. 102-40.110  What must we include in the sales terms and conditions
when selling personal property with special handling requirements?

    In addition to the recommended sales terms and conditions contained 
in part 102-38 of this subchapter, when selling personal property with 
special handling requirements you must include the following in the 
sales terms and conditions:
    (a) A full description of the actual or potential hazard(s) 
associated with handling, storage, or use of the item, as well as any 
use requirements, restrictions, or limitations;
    (b) An SDS, MSDS, or HMIS when available;
    (c) A certification, executed by a duly authorized agency official, 
that the item is appropriately labeled and packaged in accordance with 
applicable regulatory and statutory requirements;
    (d) Any additional requirements the purchaser must comply with prior 
to removal, e.g., demilitarization on-site;
    (e) The necessary steps the purchaser must take in the handling and 
transportation of the property when the property is sold; and
    (f) A statement that it is the purchaser's responsibility to comply 
with all applicable Federal, state, local, and export laws and 
regulations to ensure the proper registration, licensing, possession, 
transportation, and subsequent use, resale or disposal of the property. 
You must use the following certification (or an equivalent 
certification) when offering for sale an item requiring special 
handling. Failure to sign the certification may result in the bid being 
rejected as nonresponsive:

    The undersigned bidder hereby certifies that if awarded a contract 
under this invitation for bids, the bidder will comply with all 
applicable Federal, state, and local laws, ordinances, and regulations 
with respect to the care, handling, storage, shipment, resale, export, 
or other use of the material hereby purchased. The bidder will hold the 
United States harmless from and indemnify the United States against any 
or all debts, liabilities, judgments, costs, demands, suits, actions, or 
other claims of any nature arising from or incident to the handling, 
use, storage, shipment, resale, export, or other disposition of the 
items purchased.

________________________________________________________________________
Name of bidder (print or type)

________________________________________________________________________
Signature of bidder



Sec. 102-40.115  Are certifications required from the purchaser when
selling personal property with special handling requirements?

    Yes, in addition to receiving a certification that the purchaser 
will comply with all Federal, state, and local laws and regulations with 
respect to the care, handling, storage, shipment, and disposal of 
personal property with special handling requirements (see certification 
at Sec. 102-40.110), you must obtain from the purchaser a certification 
that the purchaser will comply with any additional requirements 
associated with the property, such as demilitarization, export controls 
on CCLI, or mutilation requirements for flight safety critical aircraft 
parts. These additional requirements may be imposed by any law, 
regulation, or policy.



Sec. 102-40.120  What precautions must we take during the sales 
process for personal property requiring special handling?

    (a) It is your responsibility to prepare items with special handling 
requirements for sale, provide all necessary information to ensure that 
prospective bidders are informed of hazards and special processing 
requirements, and identify precautions that bidders should take to 
protect themselves while inspecting, packing or moving items with 
special handling requirements. You must make any safety gear or 
equipment needed during the sales process available to prospective 
bidders and others involved in the inspection, packing or moving of 
these items.
    (b) Unless authorized by the appropriate GSA regional office, you 
must not sell extremely hazardous property unless the property is 
rendered innocuous or adequate safeguards are provided. Such property 
must be rendered

[[Page 171]]

innocuous in a manner so as to preserve the utility or commercial value 
of the property.



Sec. 102-40.125  May we dispose of personal property requiring special
handling by abandonment or destruction?

    Yes, you may dispose of personal property requiring special handling 
by abandonment or destruction. However, in addition to the requirements 
for the abandonment or destruction of property in Sec. Sec. 102-36.305 
through 102-36.330 of this subchapter, you must also satisfy applicable 
Federal, state, and local waste disposal and air and water pollution 
control standards, laws, and regulations. You must ensure that such 
property, including empty hazardous material containers, not be 
abandoned until made safe, demilitarized, reduced to scrap, or otherwise 
made innocuous. You should also preserve, as much as possible, any 
civilian utility or commercial value of the property (see Sec. 102-
40.50.) National security classified items must be declassified or 
destroyed in accordance with holding agency regulations.



    Subpart E_Categories of Personal Property With Special Handling 
                              Requirements



Sec. 102-40.130  What categories of personal property require special
handling?

    Many categories of personal property have special handling 
requirements in compliance with applicable Federal, state, and local 
regulations and ordinances for their handling, transportation, storage, 
disposal and use. See appendix A to this part for a listing of Federal 
Supply Classifications (FSCs) containing predominately hazardous items 
and appendix B to this part for a listing of FSCs containing a 
significant number of hazardous items. See Sec. Sec. 102-40.130 through 
102-40.235 for special handling instructions for some categories of 
property for which Federal property managers are likely to have 
responsibility.



Sec. 102-40.135  How do we manage acid-contaminated and explosive
-contaminated property?

    (a) Acid-contaminated or explosive-contaminated property is 
considered extremely hazardous property and is not reported to GSA for 
subsequent transfer or donation. However, you should notify GSA of this 
property in accordance with Sec. 102-40.55. If the property is not 
transferred or donated, you may dispose of such property by sale, in 
accordance with subpart D of this part and with the condition that the 
purchaser sufficiently decontaminates the property to the degree that it 
is no longer extremely hazardous. Also, such property must be properly 
labeled in accordance with Sec. 102-40.45 and should not be abandoned. 
When destroyed, such destruction should be accomplished under Sec. 102-
40.125.
    (b) When selling acid or explosive contaminated property, the sales 
terms and sales documentation must both include the following 
certification, or an equivalent certification, which must be signed by 
the successful bidder.

    It is hereby certified that the undersigned purchaser will comply 
with all the applicable Federal, state, and local laws, ordinances and 
regulations with respect to the care, handling, storage, and shipment, 
resale, export, and other use of the materials, hereby purchased, and 
that he/she is a user of, or dealer in, said materials. This 
certification is made in accordance with and subject to the penalties of 
Title 18, Section 1001, the United States Code, Crime and Criminal 
Procedures.

________________________________________________________________________
Name of purchaser (print or type)

________________________________________________________________________
Signature of purchaser



Sec. 102-40.140  How do we handle all-terrain vehicles (ATVs)?

    (a) Three-wheeled and four-wheeled all-terrain vehicles (ATVs) can 
be exchanged with a dealer under the provisions of part 102-39 of this 
subchapter. Three-wheeled ATVs not exchanged must be mutilated in a 
manner to prevent operational use and may be sold only as salvage or 
scrap. Four-wheeled ATVs not exchanged may be offered for transfer and 
donation only when documented in accordance with Sec. Sec. 102-40.75 
and 102-40.80. In addition, any transfer

[[Page 172]]

or donation documentation for four-wheeled ATVs must require the 
recipient to acknowledge that the recipient will follow regulations and 
guidelines published by the Consumer Product Safety Commission related 
to these items, including age recommendations, restrictions on usage, 
and operator training. Four-wheeled ATVs not exchanged, transferred, or 
donated may be offered for sale as either salvage or scrap only after 
they have been mutilated in a manner to prevent operational use. Four-
wheeled ATVs must not be released to the public after donee use, nor may 
they be released to the public after Federal use if the ATVs are not 
donated.
    (b) A donation transfer document must contain a full description of 
the actual or potential hazard(s) and restriction(s) associated with the 
handling, storage, use, transportation or disposal of the item. In 
addition, the following certification (or an equivalent) must be signed 
by the donee:

    I (We), the undersigned, hereby certify that the donee has knowledge 
and understanding of the nature of the property hereby donated which 
requires special handling, and will comply with all applicable Federal, 
state, and local laws, ordinances, and regulations with respect to the 
care, handling, storage, shipment, and disposal of the property. The 
donee agrees and certifies that the United States shall not be liable 
for personal injuries to, disabilities of, or death of the donee or the 
donee's employees, or any other person arising from or incident to the 
donation of the property, its use, or its final disposition. 
Additionally, the donee agrees and certifies to hold the United States 
harmless from and shall indemnify the United States against any or all 
debts, liabilities, judgments, costs, demands, suits, actions, or claims 
of any nature arising from or incident to the donation of the property, 
its use, or final disposition.

________________________________________________________________________
Name and title of Donee (print or type)

________________________________________________________________________
Signature of Donee



Sec. 102-40.145  How do we handle ammunition and ammunition 
components?

    (a) Report usable ammunition to GSA for possible transfer to a 
Federal agency. You must not donate surplus ammunition, but you may 
donate surplus ammunition components to eligible donation recipients. 
You may sell non-expended ammunition and ammunition components (expended 
and non-expended) only to companies licensed to perform manufacturing/
remanufacturing processes under the provisions of 18 U.S.C. 923 or other 
Federal law or regulation or to companies allowed to purchase ammunition 
components under local and state laws. If the ammunition is regulated 
pursuant to the National Firearms Act (NFA) or any other Federal 
regulation, then the ammunition can only be disposed of in accordance 
with applicable regulation. Ammunition greater than .50 caliber can, in 
some instances, be regulated under the NFA. You must follow any 
demilitarization requirements. When selling ammunition and ammunition 
components, the sales terms and sales documentation must both include 
the following certification, or an equivalent certification, which must 
be signed by the successful bidder:

    Item No. ----contains ammunition or ammunition components offered 
for sale in this invitation. The undersigned certifies that he/she will 
comply with all applicable local, state, and Federal laws and 
regulations concerning ammunition or ammunition components.
    If the item being sold is scrap ammunition, the undersigned 
certifies that he/she is licensed to perform manufacturing/
remanufacturing under the provisions of 18 U.S.C. 923 or other Federal 
law or regulation.
    If the item being sold is a scrap ammunition component, the 
undersigned certifies that these scrap ammunition components will not be 
used for the original manufactured purpose.

________________________________________________________________________
License issuing authority and license number

________________________________________________________________________
Name of bidder (print or type)

________________________________________________________________________
Signature of bidder

    (b) In addition to sales as described in paragraph (a) of this 
section, expended ammunition cartridge cases may also be transferred or 
donated when the recipient certifies that the spent brass will be 
reloaded and used only for law enforcement purposes. If there is no 
Federal or state donation interest in the cases, and a sale of the scrap 
is not feasible, cartridge cases may be disposed of using abandonment

[[Page 173]]

or destruction procedures under Sec. 102-40.125. The recipient must 
certify that the expended cartridge cases will not be used for the 
original manufactured purpose.
    (c) The transportation of primers or propellant powder is governed 
by 49 CFR parts 171 through 180.



Sec. 102-40.150  How do we handle animals and plants?

    (a) Whenever possible, you should report live animals and plants to 
GSA for transfer, donation or sale. They are, however, considered 
perishables and may be disposed of by abandonment or destruction 
procedures in accordance with the authority contained in Sec. 102-
40.125. Abandonment or destruction procedures may be used for animals 
other than those specifically addressed below, where warranted for 
humane purposes.
    (b) Unfit horses and mules may be humanely euthanized or put out to 
pasture in accordance with 40 U.S.C. 1308 and agency policies. Transfers 
of unfit horses or mules to Federal agencies must be conducted in 
accordance with part 102-36 of this subchapter. In the event that a 
transfer of these animals can be made to a humane organization, the 
transfer may be conducted under procedures contained in part 102-37 of 
this subchapter.
    (c) Under 40 U.S.C. 555, you may transfer canines formerly used in 
the performance of law enforcement duties to an individual experienced 
in handling canines in the performance of those duties, in accordance 
with agency policy and procedures. For example, the ``individual'' may 
be the current handler of that canine or a previous handler.



Sec. 102-40.155  How do we handle asbestos?

    (a) Items with asbestos content must be handled in accordance with 
the EPA regulations found at 40 CFR part 61, subpart M. Further 
information on laws and regulations related to asbestos may be found at 
www.epa.gov/asbestos.
    (b) Report to GSA excess personal property containing nonfriable 
asbestos, as defined in 40 CFR 61.141, for subsequent transfer, donation 
or sale in accordance with parts 102-36 through 102-38 of this 
subchapter. Nonfriable asbestos materials cannot:
    (1) When dry, be crumbled, pulverized, or reduced to powder by hand 
pressure; or
    (2) Contain asbestos which is bonded or otherwise rendered 
unavailable for release into the atmosphere through normal usage. All 
disposal documentation related to personal property containing 
nonfriable asbestos, such as exchange/sale, reporting, transfer, 
donation, and sales documents, must include a warning statement that the 
item may contain asbestos and must not be cut, crushed, sanded, 
disassembled or otherwise altered. The property must also be labeled or 
marked with such warning statements.
    (c) You must use a warning such as the following on the 
documentation reporting or requesting the exchange/sale, transfer, 
donation or sale of an item containing asbestos:

                                 WARNING

    This property contains asbestos. Inhaling asbestos fibers may cause 
cancer. Do not release fibers by cutting, crushing, sanding, 
disassembling, or otherwise altering this property. End users and new 
owners, if transferred, should be warned. OSHA standards for personnel 
protection are codified at 29 CFR 1910.1001. EPA disposal standards are 
codified at 40 CFR part 61. State and local authorities may have 
additional restrictions on the disposal of items containing asbestos.

    (d) Property containing asbestos should be labeled with a warning 
such as the following:

                                 WARNING

    This property contains asbestos. Inhaling asbestos fibers may cause 
cancer. Do not release fibers by cutting, crushing, sanding, 
disassembling, or otherwise altering this property.

    (e) Nonfriable asbestos that is not transferred, donated, or sold 
may be abandoned as provided in Sec. 102-40.125 and part 102-36 of this 
subchapter. If destroyed by burial, items containing friable or 
nonfriable asbestos must be disposed of by burial at a site that meets 
the requirements of 40 CFR 61.154.

[[Page 174]]

    (f) Friable asbestos materials that contain more than one percent 
asbestos by weight and can, by hand pressure, be crumbled, pulverized, 
or reduced to powder, thus allowing for potential release of asbestos 
fibers into the air. Property containing friable asbestos normally is 
not to be transferred, donated or sold. Notwithstanding these 
provisions, holding agencies, on a case-by-case basis, may request 
approval from GSA Central Office, with consultation from the EPA, to 
transfer, donate or sell such property if in the judgment of the holding 
agency, special circumstances warrant such action.
    (g) Excess personal property known to contain friable asbestos shall 
neither be reported to GSA nor transferred among Federal agencies 
excepted as noted in paragraph (f) of this section.
    (h) Surplus property containing friable asbestos is to be neither 
donated nor sold. Such property is disposed of under paragraph (i) of 
this section.
    (i) Excess and surplus property containing friable asbestos is to be 
disposed of by burial in a site that meets the EPA requirements of 40 
CFR 61.156. Holding agencies should contact the nearest office of the 
EPA for assistance with regard to the disposal of materials containing 
asbestos, with the exception of DOD, who should contact the Defense 
Logistics Agency (DLA).



Sec. 102-40.160  How do we handle controlled substances?

    (a) You are not required to report excess controlled substances to 
GSA, but you should make reasonable efforts to transfer them to Federal 
agencies in accordance with Drug Enforcement Administration (DEA) 
regulations (21 CFR part 1307). The recipient agency must certify that 
it is authorized to procure the particular controlled substance and 
provide the registration number on the Certificate of Registration, 
issued by the DEA. See the transfer procedures in FMR part 102-36 (41 
CFR part 102-36).
    (b) You must not donate controlled substances.
    (c) In accordance with sales procedures specified in part 102-38 of 
this subchapter, and under the conditions specified in this paragraph, 
you may sell controlled substances by sealed bid only, to bidders who 
have registered with the DEA to manufacture, distribute, or dispense of 
the particular controlled substance. As a condition of sale, the bidder 
must submit verification of DEA registration. Prior to finalizing the 
sale, you must obtain confirmation from the DEA of the bidder's status 
as a registered manufacturer, distributor or dispenser of controlled 
substances.
    (1) The invitation for bids for controlled substances must list only 
controlled substances and must only be distributed to bidders who are 
registered with the DEA, Department of Justice, to manufacture, 
distribute or dispense of the controlled substances being sold. In 
addition, the following statement, or an equivalent statement, must be 
included in the sales terms and conditions when selling controlled 
substances:

    The bidder shall complete, sign, and return with his/her bid, the 
certificate as contained in this invitation. No award will be made or 
sale consummated until after this agency has obtained from the Drug 
Enforcement Administration, Department of Justice, verification that the 
bidder is registered to manufacture, distribute, or dispense those 
controlled substances which are the subject of the award.

    (2) The following certification, or an equivalent certification, 
must be made a part of the invitation for bids and contract to be 
completed and signed by the bidder and returned with the bid. Failure to 
sign the certification may result in the bid being rejected as 
nonresponsive:

    The undersigned bidder certifies that he/she is Registered with the 
Drug Enforcement Administration, Department of Justice, as a 
manufacturer, distributor, or dispenser of the controlled substances for 
which a bid is submitted and the registration number is: ----.
    This certification is made in accordance with and subject to the 
penalties of Title 18, Section 1001, United States Code, Crime and 
Criminal procedures.

________________________________________________________________________
Name of bidder (print or type)

________________________________________________________________________
Signature of bidder

________________________________________________________________________

[[Page 175]]

Address of bidder (print or type)

________________________________________________________________________
City, State, Zip code

    (d) As a condition precedent to making an award for the sale of 
surplus controlled substances, holding agencies should follow procedures 
provided by the DEA in 21 CFR part 1310.
    (e) You must not abandon controlled substances. You must destroy 
controlled substances in such a manner as to ensure total destruction to 
preclude any further use, and ensure such destruction is in compliance 
with DEA regulations, 21 CFR part 1307, or other procedures approved by 
DEA, and coordinate with local air and water pollution control 
authorities when required. Destruction must be witnessed and certified 
by two employees of your agency, unless DEA directs otherwise. The 
following certification, or an equivalent certification, must be used to 
document the destruction of controlled substances:

    We, the undersigned, have witnessed the destruction of the 
(controlled substance(s)) described herein and in the manner of 
destruction and on the date stated herein:

Certification of destruction of: ------

________________________________________________________________________
Manner in which destruction was performed

________________________________________________________________________
Date

________________________________________________________________________
Witness

________________________________________________________________________
Date

________________________________________________________________________
Witness

________________________________________________________________________
Date



Sec. 102-40.165  How do we handle drugs, biologicals, and reagents
other than controlled substances?

    (a) Drugs, biologicals, and reagents other than controlled 
substances may be transferred to another Federal agency for official 
purposes under procedures specified in part 102-36 of this subchapter. 
For donation of drugs, biologicals, or reagents other than controlled 
substances, follow the procedures in part 102-37 of this subchapter, and 
paragraph (c) of this section.
    (b) Drugs, biologicals, and reagents other than controlled 
substances must be clearly identified when they are unfit for human use. 
As a general rule, you must destroy drugs, biologicals, and reagents 
unfit for human use, with destruction performed by an agency employee 
and witnessed and certified by two additional representatives of your 
agency. Similarly, destruction of this property held by a SASP or donee 
must be destroyed by a SASP employee and witnessed by two additional 
SASP employees. Destruction shall be coordinated with local air and 
water pollution control authorities, when required. However, you may 
report such property to GSA for subsequent transfer or donation for the 
purpose of animal experimental use when the property is unfit due to 
expired shelf life. The following certification, or an equivalent 
certification, must be used and retained by the Federal agency or SASP 
to document the destruction of drugs, biologicals, and reagents:

    We, the undersigned, have witnessed the destruction of the (drugs, 
biologicals, and reagents) described in the foregoing certification in 
the manner of destruction and on the date stated herein:

Certification of destruction of: ------

________________________________________________________________________
Manner in which destruction was performed

________________________________________________________________________
Date

________________________________________________________________________
Witness

________________________________________________________________________
Date

________________________________________________________________________
Witness

________________________________________________________________________
Date

    (c) When donating drugs, biologicals, or reagents other than 
controlled substances, the SASP shall obtain a certification from the 
donee indicating that the items donated will be safeguarded, dispensed, 
and administered under competent supervision and in accordance with 
Federal, state, and local laws and regulations. Surplus drugs, 
biologicals, and reagents requested for donation by state agencies will 
not be transported by the state agency or

[[Page 176]]

stored in its warehouse prior to distribution to donees. Arrangements 
will be made by the state agency for the donee to make direct pickup at 
the holding agency after approval by GSA and after notification by the 
holding agency that the property is ready for pickup. Additionally, 
Transfer Order Surplus Personal Property, SF 123 from a state agency 
requesting surplus drugs, biologicals, and reagents for donation will 
not be processed or approved by GSA until it has been determined by the 
GSA donation representative that the specific donee is legally licensed 
to administer, dispense, store, or distribute such property. A copy of 
the donee's license, registration, or other legal authorization to 
administer, dispense, store, or distribute such property should be 
attached and made a part of the SF 123. The administration or use of 
drugs, biologicals, and reagents must be in compliance with the Federal 
Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 301, et seq.).
    (d) The sale of any unexpired drugs, biologicals, or reagents must 
be in accordance with rules published by the Food and Drug 
Administration (FDA). You may sell drugs, biologicals, and reagents 
other than controlled substances, only to those entities legally 
qualified to engage in the sale, manufacture or distribution of such 
items and a certification or evidence of licensing must accompany the 
bids. An entity is legally qualified when a Federal agency (e.g., the 
Department of Health and Human Services, the DEA, or the Department of 
Agriculture) or state agency having legal or regulatory oversight over 
that commodity has approved the entity to engage in the designated 
activity.
    (1) When selling drugs, biologicals, and reagents other than 
controlled substances, the following condition of sale (or an equivalent 
condition of sale) must be used:

    The bidder shall complete, sign, and return with his/her bid the 
certification as contained in this invitation. No award will be made or 
sale consummated until after this agency has determined that the bidder 
is legally licensed to engage in the manufacture, sale, or distribution 
of drugs.

    (2) The following certification, or an equivalent certification, 
must be made a part of the invitation for bids (and contract), to be 
completed and signed by the bidder, and returned with the bid with a 
copy of his/her license. Failure to sign the certification may result in 
the bid being rejected as nonresponsive.

    The undersigned bidder certifies that he/she is legally licensed to 
engage in the manufacture, sale, or distribution of drugs, and proof of 
his/her license to deal in such materials is furnished with this bid. 
This certification is made in accordance with and subject to the 
penalties of Title 18, Section 1001, United States Code, Crime and 
Criminal procedures.

________________________________________________________________________
Name of bidder (print or type)

________________________________________________________________________
Signature of bidder

________________________________________________________________________
Address of bidder (print or type)

________________________________________________________________________
City, State, Zip code



Sec. 102-40.170  How do we handle electronic products?

    (a) Additional guidance regarding the disposal and reporting of 
Federal electronic products is found under FMR part 102-36 (41 CFR part 
102-36).
    (b) Excess electronic products, certified and noncertified, meeting 
radiation safety performance standards or electronic products which are 
not required to meet such performance standards must be reported to GSA 
for transfer to Federal agencies in accordance with part 102-36 of this 
subchapter and may be donated or sold in accordance with parts 102-37 
and 102-38 of this subchapter, respectively.
    (c) Excess electronic products NOT meeting radiation safety 
performance standards must be reported to GSA for transfer to Federal 
agencies in accordance with FMR part 102-36 (41 CFR part 102-36) and may 
be donated or sold in accordance with parts 102-37 and 102-38 of this 
subchapter, respectively. The report to GSA, and any subsequent 
transfer, donation, or sales documents, must include a statement that 
the items are not in compliance with applicable radiation safety 
performance standards and specify the standard which is not being met. 
Additionally, the recipient must acknowledge that

[[Page 177]]

they are aware of the potential danger in handling or using such items.
    (d) Donation documentation for items not meeting radiation safety 
performance standards must contain the following certification, or an 
equivalent certification, signed by the donee before release:

    I (We), the undersigned, hereby certify that the donee has knowledge 
and understanding of the potential danger in using the product without a 
radiation test to determine the acceptability for use and/or 
modification to bring it into compliance with the radiation safety 
performance standards prescribed for the item under 21 CFR parts 1010 
through 1050, and agrees to accept the item from the holding agency for 
donation under those conditions. The undersigned further agrees that the 
Government shall not be liable for personal injuries to, disabilities 
of, or death of the donee or the donee's employees, or any other person 
arising from or incident to the donation of the item, its use, or its 
final disposition. The undersigned also agrees to hold the Government 
harmless from any or all debts, liabilities, judgments, costs, demands, 
suits, actions, or claims of any nature arising from or incident to the 
donation of the item, its use, or its final disposition.

________________________________________________________________________
Name of Donee (print or type)

________________________________________________________________________
Signature of Donee

    (e) Sales documents listing electronic products not meeting safety 
performance standards must also clearly warn purchasers that the items 
may not be in compliance with FDA radiation safety performance standards 
prescribed pursuant to 21 CFR parts 1010 through 1050 and that the 
purchaser assumes all risks associated with the use or resale of the 
items. The following type of warning will be placed on the sales 
documentation:

                                 WARNING

    Purchasers are warned that the item purchased herewith may not be in 
compliance with Food and Drug Administration radiation safety 
performance standards prescribed pursuant to 21 CFR parts 1010 through 
1050, and use may result in personal injury unless modified. The 
purchaser agrees that the United States shall not be liable for personal 
injuries to, disabilities of, or death of the purchaser, the purchaser's 
employees, or to any other persons arising from or incident to the 
purchase of this item, its use, or disposition. The purchaser shall hold 
the United States harmless from and shall indemnify the United States 
against any or all debts, liabilities, judgments, costs, demands, suits, 
actions, or claims of any nature arising from or incident to the 
purchase, use or resale of this item. The purchaser agrees to notify any 
subsequent purchaser of this property of the potential for personal 
injury in using this item without a radiation survey to determine the 
acceptability for use and/or modification to bring it into compliance 
with the radiation safety performance standards prescribed for the item 
under 21 CFR parts 1010 through 1050, unless authorized by 21 CFR 1002.4 
to have the dealer or distributor hold and preserve.

    (f) You must dispose of all electronic products in accordance with 
all Federal and state laws, including the Solid Waste Disposal Act (42 
U.S.C. 6901, et seq.) and Executive Order 13423, Strengthening Federal 
Environmental, Energy, and Transportation Management. You should also be 
aware of the prohibitions and liabilities contained in 42 U.S.C. 9607.
    (g) When donating or selling electronic products, the sales terms 
and sales documentation, or donation document, must include the 
following certification, or an equivalent certification, which must be 
signed by the donee or successful bidder:

    It is hereby certified that the undersigned purchaser or donee will 
comply with all the applicable Federal, state, and local laws, 
ordinances and regulations with respect to the care, handling, storage, 
disposal, and shipment, resale, export, or other use of the electronic 
products, hereby purchased or donated, and that he/she is a user of, or 
dealer in, said products. This certification is made in accordance with 
and subject to the penalties of Title 18, Section 1001, the United 
States Code, Crime and Criminal Procedures.
    When recycling electronic products, purchaser or donee should use 
any national standards, best management practices, or existing 
certification programs for recyclers in addition to Federal, state, and 
local laws, ordinances and regulations. In the absence of national 
standards, best management practices, or a national certification 
program for recyclers, the purchaser/donee should use ``EPA's Guidelines 
for Materials Management'' found at http://www.epa.gov/epawaste/
index.htm

________________________________________________________________________
Name of purchaser or donee (print or type)

________________________________________________________________________
Signature of purchaser or donee

    (h) Additionally, noncertified and certified electronic products 
must be

[[Page 178]]

abandoned under the provisions of Sec. 102-40.125.



Sec. 102-40.175  How do we handle firearms?

    (a) You must submit reports and transfer documents on excess 
firearms to GSA (8QSC), Denver, CO 80225-0506. GSA will approve 
transfers of firearms only to those Federal agencies authorized to 
acquire firearms for official use, and may require additional written 
justification from the requesting agency.
    (b) GSA may donate only surplus hand guns, rifles, shotguns, and 
individual light automatic weapons previously used by the Federal 
Government, with less than .50 caliber in Federal Supply Classification 
(FSC) 1005, and rifle and shoulder fired grenade launchers in FSC 1010, 
with a disposal condition code of 4 or better (see condition codes in 
Sec. 102-36.240 of this subchapter). Only eligible law enforcement 
entities whose primary function is the enforcement of applicable 
Federal, state, and/or local laws, and whose compensated law enforcement 
officers have powers to apprehend and arrest, may obtain these donated 
firearms for law enforcement purposes.
    (c)(1) For purposes of donation under paragraph (b) of this section, 
each Transfer Order Surplus Personal Property SF 123 must be accompanied 
by a conditional transfer document, signed by both the intended donee 
agency and the SASP, which includes the special terms, conditions, 
restrictions, and other forms or information required for the transfer 
of the donated firearms. Restrictions on donated firearms are perpetual 
and may not be amended by the SASP without prior written approval from 
GSA. Donated firearms must be released or shipped directly from the 
Federal donor agency to the designated donee.
    (2) If the firearms to be donated are subject to the National 
Firearms Act, 26 U.S.C. Chapter 53, (e.g., machineguns, silencers, 
short-barrel rifles, short-barrel shotguns, firearms over .50 caliber or 
with a bore diameter of more than \1/2\ inch, and destructive devices) 
the SF 123 must be accompanied by an ATF Form 10, Application for 
Registration of Firearms Acquired by Certain Governmental Entities, 
completed by the donee agency as specified in 27 CFR 479.104. Upon 
approval of the donation by the SASP, the Form 10 shall be forwarded in 
accordance with the form's instructions. The Chief, National Firearms 
Act Branch, shall notify the donee agency of ATF registration of the 
donated firearms by returning the approved Form 10 to the donee agency. 
The donee agency shall provide a copy of the approved Form 10 to the 
SASP who shall retain a copy of the approved Form 10 and attach it to 
the SF 123. Firearms shall not be released for shipment until the ATF 
Form 10 has been approved by the ATF and a copy provided to the SASP. 
The registration of any firearms on ATF Form 10 is for official use only 
and subsequent transfers will be approved only to other Governmental 
entities for official use and in accordance with paragraph (e)(2) of 
this section. If you have questions concerning whether particular 
firearms are subject to the National Firearms Act, contact the Firearms 
Technology Industry Services Branch, ATF, at (304) 616-4300 or FIRE--
[email protected]
    (d) When authorized by circumstances described in paragraphs (e), 
(f), (g), or (i) of this section, the destruction of firearms must be 
performed by an entity authorized by your agency head or designee. The 
destruction must be witnessed by two additional agency employees 
authorized by the agency head or designee.
    (e)(1) When the approved donee agency no longer needs the donated 
firearms, the donee agency must notify the SASP. The SASP may, with GSA 
approval and in accordance with paragraph (e)(2) of this section, 
reassign firearms to another donee agency within the state or to a donee 
agency in another state through the appropriate SASP. In such a case, 
transfer of the firearms must be between eligible donee agencies only. 
No SASP is eligible to take custody of the firearms. If the firearms are 
not sought for reassignment, the donee agency and a representative from 
the SASP, or designee, must witness destruction of the firearms and 
complete and sign a certificate of destruction, which will be maintained 
by the SASP. If firearms subject to the National Firearms Act are 
destroyed, the SASP shall notify

[[Page 179]]

the Chief, National Firearms Act Branch, ATF, so the destruction can be 
noted in the National Firearms Registration and Transfer Record.
    (2) If the firearms sought for reassignment are subject to the 
National Firearms Act, the firearms must be transferred in accordance 
with 27 CFR 479.90. This regulation requires that the donor agency 
submit an ATF Form 5, Application for Tax Exempt Transfer and 
Registration of Firearm, which must be approved prior to transfer of the 
firearms. Donor agencies wishing to reassign firearms subject to the 
National Firearms Act shall submit a completed ATF Form 5 to the SASP 
along with the request to reassign the firearms to another donee agency. 
The SASP shall forward the ATF Form 5 to the Chief, National Firearms 
Act Branch. If transfer is approved by the ATF, the donor agency will 
receive a copy of the Form 5, with approval noted thereon, from the 
Chief, National Firearms Act Branch, ATF. The donor agency shall provide 
a copy of the approved Form 5 to the SASP at which time the reassignment 
shall be approved.
    (f) You must not abandon firearms. You must destroy unneeded 
firearms by crushing, cutting, breaking, or deforming each firearm in a 
manner to ensure that each firearm is rendered completely inoperative 
and incapable of being made operable for any purpose except the recovery 
of basic material content. Destruction of firearms must be performed as 
stated in paragraphs (d) and (e) of this section.
    (g) You must not dispose of functional or repairable firearms under 
an exchange/sale transaction or by sale. Surplus firearms may be sold 
only for scrap after total destruction as described in paragraph (f) of 
this section to ensure that the firearms are rendered completely 
inoperative and to preclude their being made operative. Such sale shall 
be conducted under part 102-38 of this subchapter.
    (h)(1) Except as provided in paragraph (h)(2) of this section, 
firearms received as foreign gifts may be offered for transfer to 
Federal agencies or sold to the gift recipient in accordance with part 
102-42 of this subchapter. If sold to the gift recipient, a 
certification signed by the gift recipient certifying compliance with 
all Federal, state, and local laws regarding purchase and possession of 
firearms must be received by the gift recipient's agency and the agency 
conducting the sale prior to the sale and release of such firearm to the 
gift recipient.
    (2) Firearms subject to the National Firearms Act, 26 U.S.C. Chapter 
53 that are received as foreign gifts cannot be lawfully transferred to 
an individual gift recipient. These firearms must remain the property of 
the United States or may be transferred to a donee agency in accordance 
with paragraphs (b) and (c) of this section. In addition, all firearms 
must also be transferred, shipped, received, and possessed in accordance 
with the Gun Control Act of 1968. Persons having questions concerning 
compliance with the Gun Control Act should contact the nearest ATF field 
office.
    (i) Firearms that are forfeited, voluntarily abandoned, or unclaimed 
as described in 40 U.S.C. 1306 and 40 U.S.C. 552, must be reported to 
GSA for disposal in accordance with Sec. 102-41.195 of this subchapter. 
GSA will direct the disposition of these firearms under this section.



Sec. 102-40.180  How do we handle hazardous materials?

    (a) You may use any of the following methods for the identification 
of hazardous materials:
    (1) As part of the process under current acquisition standards, 
manufacturers must provide SDSs or similar documentation to identify 
potential hazards. SDSs are also prescribed by OSHA under 29 CFR part 
1910.
    (2) An automated database maintained by GSA Federal Acquisition 
Service contains MSDSs for all GSA-procured hazardous materials. To 
request an MSDS, you may send an email to [email protected], or call, Toll 
Free: 866-588-7659, DSN: 465-5097, or Commercial: 816-926-5097.
    (3) A collection of hazard-related information in DOD's HMIS 
provides transportation and disposal information.
    (4) Appendix A to this part contains a list of the Federal Supply 
Classes

[[Page 180]]

(FSC) of property that are composed predominantly of hazardous items.
    (5) When information is not available under paragraphs (a)(1), (2), 
(3), or (4) of this section, contact the manufacturer, the procuring 
agency, or your technical staff for assistance in obtaining the SDS, 
MSDS, or HMIS information.
    (b) You must verify items with an expired shelf life or reclassify 
them as hazardous wastes when required by Federal, state, or local 
environmental laws or regulations. If the item has been determined 
hazardous, the owning Federal agency must document the accountable 
inventory record accordingly. If the item has not been appropriately 
labeled by the manufacturer or distributor, the owning agency must 
appropriately label, mark, or tag the item in accordance with OSHA 
requirements (29 CFR 1919.1200) regarding the actual potential hazard 
associated with the handling, storage, or use of the item.
    (c) For transportation of hazardous materials, see 49 CFR parts 171 
through 180.
    (d) For disposal of hazardous materials, see Sec. Sec. 102-40.35 
through 102-40.125.
    (e) Unless authorized by GSA, extremely hazardous property may not 
be sold unless it is rendered innocuous, mutilated or otherwise made 
safe. You should, however, render such property innocuous in a manner so 
as to preserve the maximum utility or commercial value of the property 
when possible.



Sec. 102-40.185  How do we handle lead-containing paints and items 
bearing lead-containing paint?

    (a) You may transfer, donate or sell such items in compliance with 
restrictions and requirements found in the Consumer Product Safety 
Commission regulations set forth in 16 CFR part 1303. The transfer, 
donation or sales documents must clearly describe these leaded items and 
why they require special handling, and identify the danger inherent in 
the use or disposal of such paint and items bearing lead-containing 
paint. You must not abandon such items or their containers. You must 
destroy them in a way that will prohibit future acquisition and use, and 
in a manner authorized by law and regulation. Any removal (stripping) of 
lead paint incident to disposal must be accomplished in conformance with 
Federal regulations and industry guidelines such as those promulgated by 
the EPA (http://www.epa.gov) or OSHA (http://www.osha.gov).
    (b) If disposal of the items described in paragraph (a) of this 
section is allowable, the following must be placed on the items:
    (1) The following warning:

                                 WARNING

Contains Lead. Dried Film of This Paint May be Harmful if Eaten or 
Chewed.

    (2) The following additional statement or its practical equivalent 
on their labels:
    Do not apply on toys and other children's articles, furniture or 
interior surfaces of any dwelling or facility which may be occupied or 
used by children. Do not apply on exterior surfaces of dwelling units, 
such as window sills, porches, stairs or railings, to which children may 
be commonly exposed.

                      Keep Out of Reach of Children

    (c) Donation documentation (including the SF 123) must contain the 
following certification, or an equivalent certification:

    The property requested herein shall be used only as specified in 16 
CFR part 1303 and in no case shall be in contact with children. I, the 
undersigned, agree the United States shall not be liable for personal 
injuries to, disabilities of or death of the donee's employees, or any 
other person arising from or incident to the donation of this property, 
its use or its final disposition; and to hold the United States harmless 
from, and shall indemnify the United States against, any or all debts, 
liabilities, judgments, costs, demands, suits, actions or claims of any 
nature arising from or incident to the donation of this property, its 
use or its final disposition.

________________________________________________________________________
Name of donee (print or type)

________________________________________________________________________
Signature of donee

    (d) When selling lead-containing paint or items bearing lead-
containing paint, the sales terms and sales documentation must include 
this certification, or an equivalent certification. Failure to sign the 
certification where it appears as a sales term may result in the bid 
being rejected as nonresponsive:


[[Page 181]]


    I, the undersigned, certify that I have read and fully comprehend 
the aforementioned terms and conditions of this sale. I shall comply 
with the applicable Consumer Product Safety Commission regulations set 
forth in 16 CFR part 1303 if I am the successful bidder. I further agree 
the United States shall not be liable for personal injuries to, 
disabilities of, or death of any persons arising from or incident to the 
sale of this property, its uses or its final disposition; and to hold 
the United States harmless from, and shall indemnify the United States 
against, any or all debts, liabilities, judgments, costs, demands, 
suits, actions, or claims of any nature arising from or incident to the 
sale of this property, its use, or its final disposition.

________________________________________________________________________
Name of bidder (print or type)

________________________________________________________________________
Signature of bidder



Sec. 102-40.190  How do we handle medical devices?

    (a) Medical devices are subject to the laws and regulations 
administered by FDA. Provisions of the governing statute, the Federal 
Food, Drug, and Cosmetic Act, appear in 21 U.S.C. 301, et seq. FDA 
regulations covering medical devices are found in 21 CFR chapter I, 
subpart H. The Act prohibits the movement in interstate commerce of 
medical devices that are adulterated or misbranded (21 U.S.C. 331). The 
Act authorizes FDA to initiate civil proceedings to seize or enjoin the 
distribution of such items (21 U.S.C. 334), and to report any violations 
to a U.S. Attorney for prosecution, after such individual is given 
notice and a hearing (21 U.S.C. 335).
    (b) Prescription devices are subject to additional Federal, state, 
local, and other applicable laws. Federal law requires that prescription 
devices be in the possession of either: Persons lawfully engaged in the 
manufacture, transportation, storage, or wholesale or retail 
distribution of such device; or, practitioners licensed by their states. 
Federal law also requires that prescription devices be sold only to, or 
on the prescription or order of, a licensed practitioner for use in the 
course of his or her professional practice, and that the devices are 
labeled in a specific manner.
    (c) Non-Federal recipients must certify in writing that such 
property will be used, resold or transported in conformance with FDA 
regulations. Any proposed destruction of medical equipment must be 
coordinated with local health and sanitation officials.



Sec. 102-40.195  How do we handle Munitions List Items (MLIs)?

    (a) Munitions List Items (MLIs) are listed in 22 CFR part 121. A 
system of demilitarization codes identifies the extent of alteration or 
destruction necessary when transferring or selling MLIs. The appropriate 
code is normally assigned to items when they enter the supply system of 
the Department of Defense (DOD) or a civilian agency. Refer to DOD 
4160.21-M-1 (Change No. 1) for a complete description of the DOD program 
and the requirements to be followed for property owned, procured by or 
under the control of DOD. The DOD manual is available from the Defense 
Logistics Agency, 8725 John J. Kingman Road, Fort Belvoir, VA 22060. If 
your agency uses another system of identifying items requiring 
demilitarization, you must provide a detailed description of that system 
to the General Services Administration, Mail Code MA, 1800 F Street NW., 
Washington, DC 20405, Attn: Director, Personal Property Policy.
    (b) When disposing of MLIs, you must perpetuate these 
demilitarization codes; alert those to whom you are transferring or 
selling property that the item may require demilitarization; and perform 
any required demilitarization, or provide any documentation or 
certifications in accordance with the DOD demilitarization manual, DOD 
4160.21-M-1 (Change No. 1), or other agency policy manual if the MLIs 
are not governed by the DOD demilitarization manual.
    (c) Disposal of MLIs will follow the provisions of parts 102-36, 
102-37, and 102-38 of this subchapter unless different disposal 
procedures are required by law or your agency regulation issued in 
support of 22 U.S.C. 2778.



Sec. 102-40.200  How do we handle Commerce Control List Items (CCLIs)?

    (a) CCLIs are subject to the controls of 15 CFR parts 738 and 774. 
Export licenses are required for transfer of items to the countries 
listed in 15 CFR part 738, supp. 1. CCLIs may also be

[[Page 182]]

identified by the demilitarization code assigned to the item in the DOD 
supply system.
    (b) When disposing of CCLIs, you must notify the recipient that the 
item may be subject to Department of Commerce export licensing 
requirements when transported out of the U.S., for reasons of national 
security, crime control, technology transfer, and scarcity of materials. 
Furthermore:
    (1) The recipient must be informed that this notification must pass 
to all subsequent recipients of the item.
    (2) When being sold, completed end-use certificates are required of 
all bidders. An end-use certificate is a statement signed by a 
prospective recipient indicating the intended designation and 
disposition of CCLIs to be acquired, and acknowledging U.S. export 
licensing requirements.
    (3) All disposal activity must conform to the requirements of 15 
CFR, chapter VII, subchapter C.



Sec. 102-40.205  How do we handle national stockpile material?

    In accordance with 40 U.S.C. 113(e)(6), materials acquired for the 
national stockpile, the supplemental stockpile, or materials or 
equipment acquired under section 303 of the Defense Production Act of 
1950, as amended (50 App. U.S.C. 2093), are not covered by the Federal 
Management Regulation. The disposal of these assets is governed by 50 
U.S.C. 98d, 98e, and 98f.



Sec. 102-40.210  How do we handle Nuclear Regulatory Commission-
controlled materials?

    The Nuclear Regulatory Commission (NRC) has exclusive control over 
licensing, use, transfer, and disposition of NRC-controlled materials. 
Direct all inquiries to the U.S. Nuclear Regulatory Commission, 
Washington, DC 20555.



Sec. 102-40.215  How do we handle ozone depleting substances (ODSs)?

    Handle ODSs in accordance with Federal and state laws and 
regulations. Prior to disposal of ODSs removed or reclaimed from 
facilities or equipment, including disposal as part of a contract, trade 
or donation, coordinate with the Defense Ozone Depleting Substances 
Reserve Program Office to determine if the recovered ODS is a critical 
requirement for DOD missions. Direct inquiries to the Defense Ozone 
Depleting Substances Reserve Program Office, Defense Supply Center, 
Richmond, Virginia; email: [email protected]; phone: (804) 279-
3064. Additional guidance is available from EPA at: http://www.epa.gov/
ozone/title6/608/608fact.htmloverview.



Sec. 102-40.220  How do we handle polychlorinated biphenyls (PCBs)?

    (a) In accordance with EPA regulations (40 CFR 761.1 and 761.3), 
property defined by EPA as excluded polychlorinated biphenyl (PCB) 
products may be transferred, donated or sold in accordance with parts 
102-36, 102-37, or 102-38 of this subchapter. For additional guidance on 
PCB classifications and other Federal restrictions, contact: Director, 
National Program Chemicals Division (NPCD), (7404), Office of Pollution 
Prevention and Toxics, 1200 Pennsylvania Avenue NW., Washington, DC or 
visit the EPA's Web site at: http://www.epa.gov/waste/hazard/tsd/pcbs/
index.htm. You should also contact state regulatory agencies since some 
states regulate at a stricter level than the Federal Government.
    (b) Property defined by the EPA in 40 CFR 761.3 as either a PCB item 
or PCB must be labeled or marked with a warning statement that the item 
contains PCB and must be handled and disposed of in accordance with EPA 
regulations (40 CFR part 761), DOT regulations (49 CFR parts 171 through 
180), and applicable state laws.
    (1) PCB items and PCBs may be transferred or donated, provided:
    (i) The items are intact, non-leaking, and totally enclosed.
    (ii) All transfers orders or transfer documents must cite the 
specific provision in 40 CFR part 761 that permits continued use of the 
item, and contains a certification that the property has been inspected 
by the transferee and complies with all the use, inspection, labeling, 
and other provisions of 40 CFR part 761.
    (iii) The recipient must annotate its property accountability 
records to reflect the nature and extent of the PCB content and must 
provide the specific

[[Page 183]]

authorization covering the use of this item from 40 CFR part 761. If 
tests are conducted to ascertain the nature and extent of PCB 
contamination, the recipient must furnish the GSA regional office with a 
copy of the test results. This information will be perpetuated on any 
notification or release document when the agency disposes of the 
property.
    (iv) If PCBs or PCB items are donated to service educational 
activities or to public airports, the Department of Defense and the 
Federal Aviation Administration, respectively, must obtain the warning 
and certification as described in paragraph (e) of this section.
    (v) The recipient certifies to you that the item will be handled and 
disposed of in accordance with EPA regulation 40 CFR part 761, DOT 
regulations 49 CFR parts 171 through 180, and other applicable Federal 
and state laws.
    (2) PCB and PCB items not transferred or donated must be destroyed 
or otherwise disposed of under EPA regulations and applicable state 
laws. You must not sell any PCB or PCB item unless 40 CFR part 761 
authorizes the sale and continued use of the specific item.
    (c) You must not transfer, donate, or sell items with an unknown 
level of concentrations of PCBs.
    (d) Property containing PCBs and PCB items should be labeled with a 
warning such as the following:

    Caution--This item contains PCBs (poly- chlorinated biphenyls), a 
toxic environmental contaminant requiring special handling and disposal 
in accordance with the U.S. Environmental Protection Agency regulations 
(40 CFR part 761), applicable state laws, and 41 CFR 102-40.215. For 
proper disposal information, contact the nearest EPA office. For 
transportation requirements, see 49 CFR parts 171 through 180.

    (e) The SASP must have the following certification, or an equivalent 
certification, on all transfer paperwork where PCBs are involved.

                        WARNING AND CERTIFICATION

    The undersigned donee is aware that the item(s) listed as containing 
polychlorinated biphenyls (PCBs), a toxic environmental contaminant, 
require(s) special handling and disposal in accordance with U.S. 
Environmental Protection Agency regulation (40 CFR part 761) and U.S. 
Department of Transportation regulations codified in 49 CFR parts 171 
through 180. The donee certifies that this item (or these items) will be 
handled and disposed of in accordance with applicable Federal statutes 
and regulations and applicable state laws. This certification is made in 
accordance with and subject to the penalties of Title 18, Section 1001, 
the United States Code, Crime and Criminal Procedures.
________________________________________________________________________
Name and title of donee (print or type)
________________________________________________________________________
Signature of donee



Sec. 102-40.225  How do we handle precious metals?

    (a) You must identify activities in your organization that generate 
precious metals; recover precious metals created from work processes, 
such as photographic film developing, and identify equipment or 
materials containing recoverable precious metals; and adequately control 
precious metals in your custody. Federal civil agencies may participate 
in the DOD Precious Metal Recovery Program (PMRP) in accordance with 
this subpart, and have an Inter-Agency Service Agreement (ISA) in effect 
between the Defense Logistics Agency (DLA) and individual Federal civil 
agencies. You may acquire recovered fine precious metals as Government 
Furnished Material or for other authorized uses by submitting a request 
to the Commander, Defense Supply Center, Philadelphia (DSCP), 700 
Robbins Avenue, Philadelphia, Pennsylvania 19111-5096.
    (b) Precious metals will be sold in accordance with this subpart and 
part 102-38 of this subchapter.
    (c) Sales of precious metals will be processed as follows:
    (1) Require a bid deposit appropriate to the circumstances of the 
sale;
    (2) Certify all forms of bid deposit and payments; and
    (3) Include in the invitation for bids only precious and 
semiprecious materials as may be available for sale at that time.
    (d) Each agency generating scrap precious metals and also having a 
continuing need for fine precious metals may arrange for the acceptance 
of scrap precious metals for fine precious metals with a private 
contractor or the DLA.

[[Page 184]]



Sec. 102-40.230  How do we handle universal waste(s) (UWs)?

    When disposing of universal waste, follow the instructions on the 
Web sites below, which contain descriptions of the commodities 
addressed, as well as the handling and disposal requirements from the 
relevant sections of 40 CFR part 273:
    (a) Batteries. http://www.epa.gov/osw/hazard/wastetypes/universal/
batteries.htm;
    (b) Pesticides. http://www.epa.gov/epawaste/hazard/wastetypes/
universal/pesticides.htm;
    (c) Mercury-containing equipment. http://www.epa.gov/epawaste/
hazard/wastetypes/universal/mce.htm; and
    (d) Mercury-containing light bulbs (such as fluorescent bulbs). 
http://www.epa.gov/osw/hazard/wastetypes/universal/lamps/index.htm.



Sec. 102-40.235  How do we handle motor vehicles not suitable for
highway use?

    Refer to subpart H of part 102-34 of this subchapter for the general 
policies regarding disposal of motor vehicles. Some Government-owned 
motor vehicles might receive such extensive damage as a result of an 
accident, event or other activity, that they are no longer suitable for 
utilization, donation, or sale for highway use. Such vehicles may only 
be donated or sold for salvage or scrap. Prior to disposal of damaged 
motor vehicles, you must evaluate known damage to determine their 
suitability for continued highway use. When a determination is made that 
a vehicle is unfit for continued highway use, you must include such 
information in the property record and subsequent reports. When selling 
such vehicles, provide an appropriate warning statement in the 
solicitation regarding vehicle condition that the vehicle cannot be 
titled for highway use. See Sec. 102-34.305 of this subchapter (note to 
Sec. 102-34.305(a)(2)) if the vehicle is not designed or not legal for 
operation on highways.



 Sec. Appendix A to Part 102-40--Federal Supply Classes (FSC) Composed 
                    Predominantly of Hazardous Items

------------------------------------------------------------------------
               FSC                             Nomenclature
------------------------------------------------------------------------
6810............................  Chemicals.
6820............................  Dyes.
6830............................  Gases: Compressed & liquefied.
6840............................  Pest control agents & disinfectants.
6850............................  Misc. chemical specialties.
7930............................  Cleaning & polishing compounds &
                                   preparations.
8010............................  Paints, dopes, varnishes, & related
                                   products.
8030............................  Preservative & sealing compounds.
8040............................  Adhesives.
9110............................  Fuels, solid.
9130............................  Liquid propellants & fuels, petroleum
                                   base.
9135............................  Liquid propellant fuels & oxidizers,
                                   chemical base.
9140............................  Fuel oils.
9150............................  Oils & greases: cutting, lubricating,
                                   & hydraulic.
9160............................  Misc. waxes, oils, & fats.
------------------------------------------------------------------------



Sec. Appendix B to Part 102-40--Federal Supply Classes and Groups Which 
             Contain a Significant Number of Hazardous Items

    Note: If an item is determined to be hazardous material as defined 
in Sec. 102-40.30, a Material Safety Data Sheet (or equivalent) should 
accompany the item even though the Federal Supply Class or Group is not 
listed in this table.

----------------------------------------------------------------------------------------------------------------
                                                                             Examples of hazardous materials
      Federal supply class/group                     Title                      requiring identification
----------------------------------------------------------------------------------------------------------------
1370..................................  Pyrotechnics..................  Warning fuse, fire starter.
1375..................................  Demolition materials..........  Explosive device.
2520..................................  Vehicular power transmission    Items containing asbestos.
                                         components.

[[Page 185]]

 
2530..................................  Vehicular brake, steering,      Items containing asbestos.
                                         axle, wheel, and track
                                         components.
2540..................................  Vehicular furniture and         Items containing asbestos.
                                         accessories.
2640..................................  Tire rebuilding and tire and    Items containing flammable or toxic
                                         tube repair materials.          compounds.
Group 28..............................  Engines, turbines, and          Engine valves containing metallic
                                         components.                     sodium.
Group 29..............................  Engine accessories............  Engine valves containing metallic
                                                                         sodium.
Group 30..............................  Mechanical power transmission   Equipment containing hazardous hydraulic
                                         equipment.                      fluid, including PCBs.
Group 34..............................  Metalworking machinery........  Equipment containing hazardous hydraulic
                                                                         fluids, including PCBs.
3433..................................  Gas welding, heat cutting, and  Compressed gases.
                                         metalizing equipment.
3439..................................  Miscellaneous welding,          Hazardous items such as cleaners, acids,
                                         soldering, and brazing          flux, and supplies that contain or
                                         supplies and accessories.       produce hazardous fumes.
3610..................................  Printing, duplication, and      Flammable or toxic lithographic
                                         bookbinding equipment.          solutions.
3655..................................  Gas generating and dispensing   Items that produce hazardous fumes.
                                         systems, fixed or mobile.
3680..................................  Foundry machinery, related      Flammable or toxic casting compounds.
                                         equipment and supplies.
4240..................................  Safety and rescue equipment...  Items which involve oxygen, compressed
                                                                         gases, or contain emitting charges.
5610..................................  Mineral construction            Hazardous items such as cutback asphalt,
                                         materials, bulk.                deck and floor covering, deck and
                                                                         surface underlay compound, sealing
                                                                         compound, flight deck compound.
5660..................................  Wallboard, building paper, and  Asbestos cloth which has loose fibers or
                                         thermal insulation materials.   particles that may become airborne and
                                                                         materials containing formaldehyde.
5820..................................  Radio and television            Circuit cooler items that contain gases
                                         communication equipment,        that are regarded as hazardous to the
                                         except airborne.                earth's ozone layer.
5835..................................  Sound recording and             Recording tape cleaners that contain
                                         reproducing equipment.          hazardous cleaning fluids.
5910..................................  Capacitors....................  Items that contain polychlorinated
                                                                         biphenyls (PCBs) or sulfuric acid.
5915..................................  Filters and networks..........  Items that contain polychlorinated
                                                                         biphenyls (PCBs).
5920..................................  Fuses and lighting arresters..  Items containing radioactive material.
5925..................................  Circuit breakers..............  Items containing radioactive material.
5930..................................  Switches......................  Items containing radioactive material.
5935..................................  Connectors, electrical........  Kits that contain flammable chemicals.
5950..................................  Coils and transformers........  Items containing polychlorinated
                                                                         biphenyls (PCBs).
5960..................................  Electron tubes and associated   Tubes that contain radioactive isotopes
                                         hardware.                       and require warning labels and
                                                                         magnetron tubes, which require special
                                                                         precautions when being prepared for air
                                                                         shipment.
5965..................................  Headsets, handsets,             Items containing magnetic material.
                                         microphones, and speakers.
5970..................................  Electrical insulators and       Items containing flammable solvents.
                                         insulating materials.
5975..................................  Electrical hardware and         Items containing asbestos.
                                         supplies.
5985..................................  Antennas, waveguides, and       Kits that contain flammable chemicals.
                                         related equipment.
5999..................................  Miscellaneous electrical and    Contact plates that contain beryllium.
                                         oxide electronic components.
Group 61..............................  Electric wire and power and     Power factor capacitors containing PCBs.
                                         distribution equipment.
6120..................................  Transformers: Distribution and  Transformers containing PCBs.
                                         power station.
6135..................................  Batteries, primary............  Lead-acid, lithium, and mercury
                                                                         batteries and alkaline (with
                                                                         electrolyte).
6140..................................  Batteries, secondary..........  Items that are wet or moist containing
                                                                         corrosive or other hazardous compounds.
6145..................................  Wire and cable, electrical....  Insulated wire containing asbestos.
6220..................................  Electric vehicular lights and   Items that contain mercury.
                                         fixtures.
6230..................................  Electric portable and hand      Items that contain wet batteries.
                                         lighting equipment.
6240..................................  Electric lamps................  Items that contain mercury.
6260..................................  Nonelectrical lighting          Items that contain mercury.
                                         fixtures.
6350..................................  Miscellaneous signal and        Items that contain wet batteries or
                                         security detection systems.     radioactive material.
6505..................................  Drugs, biologicals, and         Hazardous items as defined in Sec. 102-
                                         official reagents.              40.30.
6508..................................  Medicated cosmetics and         Hazardous items as defined in Sec. 102-
                                         toiletries.                     40.30, subject to DOT Hazardous
                                                                         Materials Regulations.
6510..................................  Surgical dressing materials...  Items containing flammable solvents.

[[Page 186]]

 
6520..................................  Dental instruments, equipment,  Items containing flammable solvents,
                                         and supplies.                   mercury or asbestos.
6525..................................  X-ray equipment and supplies:   Items containing hazardous chemicals,
                                         medical, dental, veterinary.    solvents.
6625..................................  Electrical and electronic       Items containing radioactive materials.
                                         properties measuring and
                                         testing instruments.
6640..................................  Laboratory equipment and        Items containing flammable compounds,
                                         supplies.                       mercury or asbestos.
6685..................................  Pressure, temperature, and      Items containing mercury or compressed
                                         humidity measuring and          gases.
                                         controlling instruments.
6740..................................  Photographic..................  Items containing radioactive compounds.
6750..................................  Photographic supplies.........  Items containing hazardous chemicals,
                                                                         solvents, thinners, and cements.
6780..................................  Photographic sets, kits, and    Items containing hazardous chemicals,
                                         outfits.                        solvents, thinners, and cements.
7360..................................  Sets, kits, and outfits; food   Items containing compressed gases such
                                         preparation and serving.        as fire extinguishers.
7510..................................  Office supplies...............  Hazardous items, such as thinners,
                                                                         cleaning fluids, flammable inks, and
                                                                         varnishes.
8405..................................  Outerwear, men's..............  Maintenance kits containing flammable
                                                                         solvents.
8410..................................  Outerwear, women's............  Maintenance kits containing flammable
                                                                         solvents.
8415..................................  Clothing, special purpose.....  Maintenance kits containing flammable
                                                                         solvents.
8465..................................  Individual equipment..........  Maintenance kits containing flammable
                                                                         solvents.
8510..................................  Perfumes, toilet preparations,  Shipping containers and pressurized
                                         and powders.                    containers with flammable or
                                                                         nonflammable propellants.
8520..................................  Toilet soap, shaving            Shipping containers and pressurized
                                         preparations, and dentifrices.  containers with flammable or
                                                                         nonflammable propellants.
8720..................................  Fertilizers...................  Items containing weed and pest control
                                                                         or other harmful ingredients or because
                                                                         of their composition, are hazardous.
9390..................................  Miscellaneous fabricated        Items containing flammable solvents or
                                         nonmetallic materials.          asbestos.
9920..................................  Smokers' articles and matches.  Lighter fuel and matches only.
9930..................................  Memorials; cemeteries and       Items containing formaldehyde or its
                                         mortuary equipment and          solutions.
                                         supplies.
----------------------------------------------------------------------------------------------------------------



PART 102-41-DISPOSITION OF SEIZED, FORFEITED, VOLUNTARILY ABANDONED,
AND UNCLAIMED PERSONAL PROPERTY--Table of Contents



                      Subpart A_General Provisions

Sec.
102-41.5 What does this part cover?
102-41.10 To whom do ``we'', ``you'', and their variants refer?
102-41.15 How do we request a deviation from these requirements and who 
          can approve it?

                               Definitions

102-41.20 What definitions apply to this part?

                             Responsibility

102-41.25 Who retains custody and is responsible for the reporting, 
          care, and handling of property covered by this part?
102-41.30 What is GSA's role in the disposition of property covered by 
          this part?
102-41.35 Do we report to GSA all seized personal property subject to 
          judicial forfeiture as well as forfeited, voluntarily 
          abandoned, or unclaimed personal property not retained for 
          official use?

             Subpart B_Seized or Forfeited Personal Property

102-41.40 How is personal property forfeited?
102-41.45 May we place seized personal property into official use before 
          the forfeiture process is completed?
102-41.50 May we retain forfeited personal property for official use?
102-41.55 Where do we send the reports for seized or forfeited personal 
          property?
102-41.60 Are there special requirements in reporting seized or 
          forfeited personal property to GSA?
102-41.65 What happens to forfeited personal property that is 
          transferred or retained for official use?
102-41.70 Are transfers of forfeited personal property reimbursable?
102-41.75 May we retain the proceeds from the sale of forfeited personal 
          property?

            Subpart C_Voluntarily Abandoned Personal Property

102-41.80 When is personal property voluntarily abandoned?
102-41.85 What choices do I have for retaining or disposing of 
          voluntarily abandoned personal property?

[[Page 187]]

102-41.90 What happens to voluntarily abandoned personal property 
          retained for official use?
102-41.95 Where do we send the reports for voluntarily abandoned 
          personal property?
102-41.100 What information do we provide when reporting voluntarily 
          abandoned personal property to GSA?
102-41.105 What happens to voluntarily abandoned personal property when 
          reported to GSA?
102-41.110 Are transfers of voluntarily abandoned personal property 
          reimbursable?
102-41.115 May we retain the proceeds received from the sale of 
          voluntarily abandoned personal property?

                  Subpart D_Unclaimed Personal Property

102-41.120 How long must we hold unclaimed personal property before 
          disposition?
102-41.125 What choices do I have for retaining or disposing of 
          unclaimed personal property?
102-41.130 What must we do when we retain unclaimed personal property 
          for official use?
102-41.135 How much reimbursement do we pay the former owner when he or 
          she files a claim for unclaimed personal property that we no 
          longer have?
102-41.140 When do we report to GSA unclaimed personal property not 
          retained for official use?
102-41.145 Where do we send the reports for unclaimed personal property?
102-41.150 What special information do we provide on reports of 
          unclaimed personal property?
102-41.155 Is unclaimed personal property available for transfer to 
          another Federal agency?
102-41.160 May we retain the reimbursement from transfers of unclaimed 
          personal property?
102-41.165 May we require reimbursement for the costs incurred in the 
          transfer of unclaimed personal property?
102-41.170 Is unclaimed personal property available for donation?
102-41.175 May we sell unclaimed personal property?
102-41.180 May we retain the proceeds from the sale of unclaimed 
          personal property?

         Subpart E_Personal Property Requiring Special Handling

102-41.185 Are there certain types of forfeited, voluntarily abandoned, 
          or unclaimed property that must be handled differently than 
          other property addressed in this part?

                                Firearms

102-41.190 May we retain forfeited, voluntarily abandoned, or unclaimed 
          firearms for official use?
102-41.195 How do we dispose of forfeited, voluntarily abandoned, or 
          unclaimed firearms not retained for official use?
102-41.200 Are there special disposal provisions for firearms that are 
          seized and forfeited for a violation of the National Firearms 
          Act?

               Forfeited Distilled Spirits, Wine, and Beer

102-41.205 Do we report all forfeited distilled spirits, wine, and beer 
          to GSA for disposal?

                           Drug Paraphernalia

102-41.210 What are some examples of drug paraphernalia?
102-41.215 Do we report to GSA all forfeited, voluntarily abandoned, or 
          unclaimed drug paraphernalia not required for official use?
102-41.220 Is drug paraphernalia forfeited under 21 U.S.C. 863 available 
          for transfer to other Federal agencies or donation through a 
          State agency for surplus property (SASP)?
102-41.225 Are there special provisions to reporting and transferring 
          drug paraphernalia forfeited under 21 U.S.C. 863?
102-41.230 May SASPs pick up or store donated drug paraphernalia in 
          their distribution centers?
102-41.235 May we sell forfeited drug paraphernalia?

    Authority: 40 U.S.C. 121(c).

    Source: 71 FR 41370, July 21, 2006, unless otherwise noted.



                      Subpart A_General Provisions



Sec. 102-41.5  What does this part cover?

    (a) This part covers the disposition of seized, forfeited, 
voluntarily abandoned, and unclaimed personal property under the custody 
of any Federal agency located in the United States, the U.S. Virgin 
Islands, American Samoa, Guam, the Commonwealth of Puerto Rico, the 
Northern Mariana Islands, the Federated States of Micronesia, the 
Marshall Islands, and Palau. Disposition of such personal property 
located elsewhere must be in accordance with holding agency regulations. 
Please see Sec. 102-36.380 of this subchapter B regarding the disposal 
of foreign excess. The General Services Administration (GSA) does not 
normally

[[Page 188]]

accept responsibility for disposal of property located outside the 
United States and its territories. Additional guidance on disposition of 
seized, forfeited, voluntarily abandoned, and unclaimed personal 
property that requires special handling (e.g., firearms, hazardous 
materials) is contained in part 101-42 of this title. Additional 
guidance on the disposition of firearms (as scrap only), distilled 
spirits, wine, beer, and drug paraphernalia is provided in subpart E of 
this part.
    (b) These regulations do not include disposal of seized, forfeited, 
voluntarily abandoned, and unclaimed personal property covered under 
authorities outside of the following statutes:
    (1) 40 U.S.C. 552, Abandoned or Unclaimed Property on Government 
Premises.
    (2) 40 U.S.C. 1306, Disposition of Abandoned or Forfeited Property.
    (3) 26 U.S.C. 5688, Forfeited Distilled Spirits, Wines, and Beer.
    (4) 26 U.S.C. 5872, Forfeited Firearms.
    (5) 21 U.S.C. 863, Drug Paraphernalia.



Sec. 102-41.10  To whom do ``we'', ``you'', and their variants refer?

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



Sec. 102-41.15  How do we request a deviation from these requirements
and who can approve it?

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

                               Definitions



Sec. 102-41.20  What definitions apply to this part?

    The following definitions apply to this part:
    Beer means an alcoholic beverage made from malted cereal grain, 
flavored with hops, and brewed by slow fermentation.
    Distilled spirits, as defined in the Federal Alcohol Administration 
Act (27 U.S.C. 211), means ethyl alcohol; hydrated oxide of ethyl; or 
spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, 
including all dilutions and mixtures thereof, for non-industrial use.
    Drug paraphernalia means any equipment, product, or material 
primarily intended or designed for use in manufacturing, compounding, 
converting, concealing, processing, preparing, or introducing into the 
human body a controlled substance in violation of the Controlled 
Substances Act (see 21 U.S.C. 863). It includes items primarily for use 
in injecting, ingesting, inhaling, or otherwise introducing marijuana, 
cocaine, hashish, hashish oil, PCP, or amphetamines into the human body.
    Eleemosynary institution means any nonprofit health or medical 
institution that is organized and operated for charitable purposes.
    Firearms means any weapon, silencer, or destructive device designed 
to, or readily convertible to, expel a projectile by the action of an 
explosive, as defined in the Internal Revenue Code (26 U.S.C. 5845). 
Excludes antique firearms as defined in 26 U.S.C. 5845(g).
    Forfeited property means personal property that the Government has 
acquired ownership of through a summary process or court order pursuant 
to any law of the United States.
    Seized property means personal property that has been confiscated by 
a Federal agency, and whose care and handling will be the responsibility 
of the agency until final ownership is determined by the judicial 
process.
    Unclaimed property means personal property unknowingly abandoned and 
found on premises owned or leased by the Government, i.e., lost and 
found property.
    Voluntarily abandoned property means personal property abandoned to 
any Federal agency in a way that immediately vests title to the property 
in the Government. There must be written or circumstantial evidence that 
the property was intentionally and voluntarily abandoned. This evidence 
should be clear that the property was not simply lost by the owner.
    Wine means the fermented juice of a plant product, as defined in 27 
U.S.C. 211.

[[Page 189]]

                             Responsibility



Sec. 102-41.25  Who retains custody and is responsible for the
reporting, care, and handling of property covered by this part?

    You, the holding agency, normally retain physical custody of the 
property and are responsible for its care and handling pending final 
disposition. With the exception of property listed in Sec. 102-41.35, 
you must report promptly to the GSA forfeited, voluntarily abandoned, or 
unclaimed personal property not being retained for official use and 
seized property on which proceedings for forfeiture by court decree are 
being started or have begun. In general, the procedures for reporting 
such property parallel those for reporting excess personal property 
under part 102-36 of this subchapter B.



Sec. 102-41.30  What is GSA's role in the disposition of property 
covered by this part?

    (a) Seized property subject to court proceedings for forfeiture. (1) 
If the seizing agency files a request for the property for its official 
use, the GSA Region 3/National Capital Region will apply to the court 
for an order to turn the property over to the agency should forfeiture 
be decreed. If no such request has been filed, GSA will determine 
whether retention of the property for Federal official use is in the 
Government's best interest, and, if so, will apply to the court to order 
delivery of the property to--
    (i) Any other Federal agency that requests it; or
    (ii) The seizing agency to be retained for a reasonable time in case 
the property may later become necessary to any agency for official use.
    (2) In the event that the property is not ordered by competent 
authority to be forfeited to the United States, it may be returned to 
the claimant.
    (b) Forfeited, voluntarily abandoned, or unclaimed property. When 
forfeited, voluntarily abandoned, or unclaimed property is reported to 
GSA for disposal, GSA will direct its disposition by--
    (1) Transfer to another Federal agency;
    (2) Donation to an eligible recipient, if the property is not needed 
by a Federal agency and there are no requirements for reimbursement to 
satisfy the claims of owners, lien holders, or other lawful claimants;
    (3) Sale; or
    (4) Abandonment and destruction in accordance with Sec. 102-36.305 
of this subchapter B.



Sec. 102-41.35  Do we report to GSA all seized personal property
subject to judicial forfeiture as well as forfeited, voluntarily
abandoned, or unclaimed personal property not retained for official
use?

    Yes, send GSA reports of excess (see Sec. 102-36.125 of this 
subchapter B) for all seized personal property subject to judicial 
forfeiture as well as forfeited, voluntarily abandoned, or unclaimed 
personal property not required for official use, except the following, 
whose disposition is covered under other statutes and authorities:
    (a) Forfeited firearms or munitions of war seized by the Department 
of Commerce and transferred to the Department of Defense (DOD) pursuant 
to 22 U.S.C. 401.
    (b) Forfeited firearms directly transferable to DOD by law.
    (c) Seeds, plants, or misbranded packages seized by the Department 
of Agriculture.
    (d) Game animals and equipment (other than vessels, including cargo) 
seized by the Department of the Interior.
    (e) Files of papers and undeliverable mail in the custody of the 
United States Postal Service.
    (f) Articles in the custody of the Department of Commerce Patent and 
Trademark Office that are in violation of laws governing trademarks or 
patents.
    (g) Unclaimed and voluntarily abandoned personal property subject to 
laws and regulations of the U.S. Customs and Border Protection, 
Department of Homeland Security.
    (h) Property seized in payment of or as security for debts arising 
under the internal revenue laws.
    (i) Lost, abandoned, or unclaimed personal property the Coast Guard 
or the military services are authorized to dispose of under 10 U.S.C. 
2575.
    (j) Property of deceased veterans left on a Government facility 
subject to 38 U.S.C. 8501.

[[Page 190]]

    (k) Controlled substances reportable to the Drug Enforcement 
Administration, Department of Justice, Washington, DC 20537.
    (l) Forfeited, condemned, or voluntarily abandoned tobacco, snuff, 
cigars, or cigarettes which, if offered for sale, will not bring a price 
equal to the internal revenue tax due and payable thereon; and which is 
subject to destruction or delivery without payment of any tax to any 
hospital maintained by the Federal Government for the use of present or 
former members of the military.
    (m) Property determined appropriate for abandonment/destruction (see 
Sec. 102-36.305 of this subchapter B).
    (n) Personal property where handling and disposal is governed by 
specific legislative authority notwithstanding Title 40 of the United 
States Code.



             Subpart B_Seized or Forfeited Personal Property



Sec. 102-41.40  How is personal property forfeited?

    Personal property that has been seized by a Federal agency may be 
forfeited through court decree (judicial forfeiture) or administratively 
forfeited if the agency has specific authority without going through the 
courts.



Sec. 102-41.45  May we place seized personal property into official
use before the forfeiture process is completed?

    No, property under seizure and pending forfeiture cannot be placed 
into official use until a final determination is made to vest title in 
the Government.



Sec. 102-41.50  May we retain forfeited personal property for official
use?

    Yes, you may retain for official use personal property forfeited to 
your agency, except for property you are required by law to sell. 
Retention of large sedans and limousines for official use is only 
authorized under the provisions of part 102-34 of this subchapter B. 
Except for the items noted in Sec. 102-41.35, report to GSA all 
forfeited personal property not being retained for official use.



Sec. 102-41.55  Where do we send the reports for seized or forfeited
personal property?

    (a) Except for the items noted in paragraph (b) of this section, 
report seized or forfeited personal property not retained for official 
use to the General Services Administration, Property Management Branch 
(3FPD), Washington, DC 20407.
    (b) Report aircraft, firearms, and vessels to the regional GSA 
Property Management Branch office specified in Sec. 102-36.125 of this 
subchapter B.



Sec. 102-41.60  Are there special requirements in reporting seized
or forfeited personal property to GSA?

    Yes, in addition to the information required in Sec. 102-36.235 of 
this subchapter B for reporting excess, you must indicate--
    (a) Whether the property--
    (1) Was forfeited in a judicial proceeding or administratively 
(without going through a court);
    (2) Is subject to pending court proceedings for forfeiture, and, if 
so, the name of the defendant, the place and judicial district of the 
court from which the decree will be issued, and whether you wish to 
retain the property for official use;
    (b) The report or case number under which the property is listed; 
and
    (c) The existence or probability of a lien, or other accrued or 
accruing charges, and the amount involved.



Sec. 102-41.65  What happens to forfeited personal property that is
transferred or retained for official use?

    Except for drug paraphernalia (see Sec. Sec. 102-41.210 through 
102-41.235), forfeited personal property retained for official use or 
transferred to another Federal agency under this subpart loses its 
identity as forfeited property. When no longer required for official 
use, you must report it to GSA as excess for disposal in accordance with 
part 102-36 of this subchapter B. You must follow the additional 
provisions of subpart E of this part and part 101-42 of Chapter 101, 
Federal Property Management Regulations in this title when disposing of 
firearms, distilled spirits, wine, beer, and drug paraphernalia.

[[Page 191]]



Sec. 102-41.70  Are transfers of forfeited personal property 
reimbursable?

    Recipient agencies do not pay for the property. However, you may 
charge the recipient agency all costs you incurred in storing, packing, 
loading, preparing for shipment, and transporting the property. If there 
are commercial charges incident to forfeiture prior to the transfer, the 
recipient agency must pay these charges when billed by the commercial 
organization. Any payment due to lien holders or other lawful claimants 
under a judicial forfeiture must be made in accordance with provisions 
of the court decree.



Sec. 102-41.75  May we retain the proceeds from the sale of forfeited
personal property?

    No, you must deposit the sales proceeds in the U.S. Treasury as 
miscellaneous receipts, unless otherwise directed by court decree or 
specifically authorized by statute.



            Subpart C_Voluntarily Abandoned Personal Property



Sec. 102-41.80  When is personal property voluntarily abandoned?

    Personal property is voluntarily abandoned when the owner of the 
property intentionally and voluntarily gives up title to such property 
and title vests in the Government. The receiving agency ordinarily 
documents receipt of the property to evidence its voluntary 
relinquishment. Evidence of the voluntary abandonment may be 
circumstantial.



Sec. 102-41.85  What choices do I have for retaining or disposing 
of voluntarily abandoned personal property?

    You may either retain or dispose of voluntarily abandoned personal 
property based on the following circumstances:
    (a) If your agency has a need for the property, you may retain it 
for official use, except for large sedans and limousines which may only 
be retained for official use as authorized under part 102-34 of this 
subchapter B. See Sec. 102-41.90 for how retained property must be 
handled.
    (b) If your agency doesn't need the property, you should determine 
whether it may be abandoned or destroyed in accordance with the 
provisions at FMR 102-36.305 through 102-36.330. Furthermore, in 
addition to the circumstances when property may be abandoned or 
destroyed without public notice at FMR 102-36.330, voluntarily abandoned 
property may also be abandoned or destroyed without public notice when 
the estimated resale value of the property is less than $500.
    (c) If the property is not retained for official use or abandoned or 
destroyed, you must report it to GSA as excess in accordance with Sec. 
102-41.95.



Sec. 102-41.90  What happens to voluntarily abandoned personal
property retained for official use?

    Voluntarily abandoned personal property retained for official use or 
transferred to another Federal agency under this subpart loses its 
identity as voluntarily abandoned property. When no longer required for 
official use, you must report it to GSA as excess, or abandon/destroy 
the property, in accordance with part 102-36 of this subchapter B.



Sec. 102-41.95  Where do we send the reports for voluntarily abandoned 
personal property?

    Except for aircraft, firearms, and vessels, report voluntarily 
abandoned personal property to the regional GSA Property Management 
Branch office for the region in which the property is located. Report 
aircraft, firearms, and vessels to the regional GSA Property Management 
Branch office specified in Sec. 102-36.125 of this subchapter B.



Sec. 102-41.100  What information do we provide when reporting
voluntarily abandoned personal property to GSA?

    When reporting voluntarily abandoned personal property to GSA, you 
must provide a description and location of the property, and annotate 
that the property was voluntarily abandoned.

[[Page 192]]



Sec. 102-41.105  What happens to voluntarily abandoned personal property
when reported to GSA?

    Voluntarily abandoned personal property reported to GSA will be made 
available for transfer, donation, sale, or abandonment/destruction in 
accordance with parts 102-36, 102-37, 102-38, and Sec. Sec. 102-36.305 
through 102-36.330 of this subchapter B, respectively. You must follow 
the additional provisions of Sec. Sec. 102-41.190 through 102-41.235 
and part 101-42 of Chapter 101, Federal Property Management Regulations 
in this title when disposing of firearms and other property requiring 
special handling.



Sec. 102-41.110  Are transfers of voluntarily abandoned personal
property reimbursable?

    No, all transfers of voluntarily abandoned personal property will be 
without reimbursement. However, you may charge the recipient agency all 
costs you incurred in storing, packing, loading, preparing for shipment, 
and transporting the property.



Sec. 102-41.115  May we retain the proceeds received from the sale
of voluntarily abandoned personal property?

    No, you must deposit the sales proceeds in the U.S. Treasury as 
miscellaneous receipts unless your agency has specific statutory 
authority to do otherwise.



                  Subpart D_Unclaimed Personal Property



Sec. 102-41.120  How long must we hold unclaimed personal property
before disposition?

    You must generally hold unclaimed personal property for 30 calendar 
days from the date it was found. Unless the previous owner files a 
claim, title to the property vests in the Government after 30 days, and 
you may retain or dispose of the property in accordance with this part. 
However, see the following sections for handling of unclaimed personal 
property under specific circumstances.



Sec. 102-41.125  What choices do I have for retaining or disposing
of unclaimed personal property?

    You may either retain or dispose of unclaimed abandoned personal 
property based on the following circumstances:
    (a) If your agency has a need for the property, you may retain it 
for official use if you have held the unclaimed property for 30 calendar 
days and the former owner has not filed a claim. After 30 days, title 
vests in the Government and you may retain the unclaimed property for 
official use. Large sedans and limousines which may only be retained for 
official use as authorized under part 102-34 of this subchapter B. See 
Sec. 102-41.130 for how retained property must be handled.
    (b) If your agency doesn't need the property, you should determine 
whether it may be immediately abandoned or destroyed in accordance with 
the provisions at FMR 102-36.305 through 102-36.330. You are not 
required to hold unclaimed property for 30 days, if you decide to 
abandon or destroy it. Title to the property immediately vests in the 
Government in these circumstances. In addition to the circumstances when 
property may be abandoned or destroyed without public notice at FMR 102-
36.330, unclaimed personal property may also be abandoned or destroyed 
without public notice when the estimated resale value of the property is 
less than $500. See Sec. 102-41.135 for procedures to be followed if a 
claim is filed.
    (c) If the property is not retained for official use or abandoned or 
destroyed, you must report it to GSA as excess in accordance with Sec. 
102-41.140.



Sec. 102-41.130  What must we do when we retain unclaimed personal
property for official use?

    (a) You must maintain records of unclaimed personal property 
retained for official use for 3 years after title vests in the 
Government to permit identification of the property should the former 
owner file a claim for the property. You must also deposit funds 
received from disposal of such property in a special account to cover 
any valid claim filed within this 3-year period.
    (b) When you no longer need the unclaimed property which you have

[[Page 193]]

placed in official use, report it as excess in the same manner as other 
excess property under part 102-36 of this subchapter B.



Sec. 102-41.135  How much reimbursement do we pay the former owner
when he or she files a claim for unclaimed personal property that
we no longer have?

    If the property was sold, reimbursement of the property to the 
former owner must not exceed any proceeds from the disposal of such 
property, less the costs of the Government's care and handling of the 
property. If the property was abandoned or destroyed in accordance with 
Sec. 102-41.125, or otherwise used or transferred, reimbursement of the 
property to the former owner must not exceed the estimated resale value 
of the property at the time of the vesting of the property with the 
Government, less costs incident to the care and handling of the 
property, as determined by the General Services Administration, Office 
of Travel, Transportation, and Asset Management (MT), Washington DC, 
20405.



Sec. 102-41.140  When do we report to GSA unclaimed personal property 
not retained for official use?

    After you have held the property for 30 calendar days and no one has 
filed a claim for it, the title to the property vests in the Government. 
If you decide not to retain the property for official use, report it as 
excess to GSA in accordance with part 102-36 of this subchapter B.



Sec. 102-41.145  Where do we send the reports for unclaimed personal
property?

    Except for the items noted in Sec. 102-36.125 of this subchapter B, 
report unclaimed personal property to the regional GSA Property 
Management Branch office for the region in which the property is 
located.



Sec. 102-41.150  What special information do we provide on reports
of unclaimed personal property?

    On reports of unclaimed personal property, you must provide the 
report or case number assigned by your agency, property description and 
location, and indicate the property as unclaimed and the estimated fair 
market value.



Sec. 102-41.155  Is unclaimed personal property available for transfer
to another Federal agency?

    Yes, unclaimed personal property is available for transfer to 
another Federal agency, but only after 30 calendar days from the date of 
finding such property and no claim has been filed by the former owner, 
and with fair market value reimbursement from the recipient agency. The 
transferred property then loses its identity as unclaimed property and 
becomes property of the Government, and when no longer needed it must be 
reported excess in accordance with part 102-36 of this subchapter B.



Sec. 102-41.160  May we retain the reimbursement from transfers of
unclaimed personal property?

    No, you must deposit the reimbursement from transfers of unclaimed 
personal property in a special account for a period of 3 years pending a 
claim from the former owner. After 3 years, you must deposit these funds 
into miscellaneous receipts of the U.S. Treasury unless your agency has 
statutory authority to do otherwise.



Sec. 102-41.165  May we require reimbursement for the costs incurred 
in the transfer of unclaimed personal property?

    Yes, you may require reimbursement from the recipient agency of any 
direct costs you incur in the transfer of the unclaimed property (e.g., 
storage, packing, preparation for shipping, loading, and 
transportation).



Sec. 102-41.170  Is unclaimed personal property available for 
donation?

    No, unclaimed personal property is not available for donation 
because reimbursement at fair market value is required.



Sec. 102-41.175  May we sell unclaimed personal property?

    Yes, you may sell unclaimed personal property after title vests in 
the Government (as provided for in Sec. 102-41.120) and when there is 
no Federal interest. You may sell unclaimed personal property subject to 
the same terms and

[[Page 194]]

conditions as applicable to surplus personal property and in accordance 
with part 102-38 of this subchapter B.



Sec. 102-41.180  May we retain the proceeds from the sale of unclaimed
personal property?

    No, you must deposit proceeds from the sale of unclaimed personal 
property in a special account to be maintained for a period of 3 years 
pending a possible claim by the former owner. After the 3-year period, 
you must deposit the funds in the U.S. Treasury as miscellaneous 
receipts or in such other agency accounts when specifically authorized 
by statute.



         Subpart E_Personal Property Requiring Special Handling



Sec. 102-41.185  Are there certain types of forfeited, voluntarily 
abandoned, or unclaimed property that must be handled differently 
than other property 
          addressed in this part?

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

                                Firearms



Sec. 102-41.190  May we retain forfeited, voluntarily abandoned,
or unclaimed firearms for official use?

    Generally, no; you may retain forfeited, voluntarily abandoned, or 
unclaimed firearms only when you are statutorily authorized to use 
firearms for official purposes.



Sec. 102-41.195  How do we dispose of forfeited, voluntarily 
abandoned, or unclaimed firearms not retained for official use?

    Report forfeited, voluntarily abandoned, or unclaimed firearms not 
retained for official use to the General Services Administration, 
Property Management Branch (7FP-8), Denver, CO 80225-0506 for disposal 
in accordance with Sec. 101-42.1102-10 of the Federal Property 
Management Regulations in this title.



Sec. 102-41.200  Are there special disposal provisions for firearms 
that are seized and forfeited for a violation of the National
Firearms Act?

    Yes, firearms seized and forfeited for a violation of the National 
Firearms Act (26 U.S.C. 5801--5872) are subject to the disposal 
provisions of 26 U.S.C. 5872(b). When there is no contrary judgment or 
action under such forfeiture, GSA will direct the disposition of the 
firearms. GSA may--
    (a) Authorize retention for official use by the Treasury Department;
    (b) Transfer to an executive agency for use by it; or
    (c) Order the firearms destroyed.

               Forfeited Distilled Spirits, Wine, and Beer



Sec. 102-41.205  Do we report all forfeited distilled spirits, 
wine, and beer to GSA for disposal?

    (a) Yes, except do not report distilled spirits, wine, and beer not 
fit for human consumption or for medicinal, scientific, or mechanical 
purposes. When reporting, indicate quantities and kinds, proof rating, 
and condition for shipping. GSA (3FPD) may transfer such property to 
another Federal agency for official purposes, or donate it to eligible 
eleemosynary institutions for medicinal purposes only.
    (b) Forfeited distilled spirits, wine, and beer that are not 
retained for official use by the seizing agency or transferred or 
donated to eligible recipients by GSA must be destroyed. You must 
document the destruction with a record of the time and location, 
property description, and quantities destroyed.

                           Drug Paraphernalia



Sec. 102-41.210  What are some examples of drug paraphernalia?

    Some examples of drug paraphernalia are--
    (a) Metal, wooden, acrylic, glass, stone, plastic or ceramic pipes 
with or without screens, permanent screens, hashish heads, or punctured 
metal bowls;
    (b) Water pipes;
    (c) Carburetion tubes and devices;
    (d) Smoking and carburetion masks;

[[Page 195]]

    (e) Roach clips (objects used to hold burning material, such as a 
marijuana cigarette, that has become too small or too short to be held 
in the hand);
    (f) Miniature spoons with level capacities of one-tenth cubic 
centimeter or less;
    (g) Chamber pipes;
    (h) Carburetor pipes;
    (i) Electric pipes;
    (j) Air-driven pipes;
    (k) Chillums;
    (l) Bongs;
    (m) Ice pipes or chillers;
    (n) Wired cigarette papers; or
    (o) Cocaine freebase kits.



Sec. 102-41.215  Do we report to GSA all forfeited, voluntarily
abandoned, or unclaimed drug paraphernalia not required for
official use?

    No, only report drug paraphernalia that has been seized and 
forfeited for a violation of 21 U.S.C. 863. Unless statutorily 
authorized to do otherwise, destroy all other forfeited, voluntarily 
abandoned, or unclaimed drug paraphernalia. You must ensure the 
destruction is performed in the presence of two witnesses (employees of 
your agency), and retain in your records a signed certification of 
destruction.



Sec. 102-41.220  Is drug paraphernalia forfeited under 21 U.S.C. 863
available for transfer to other Federal agencies or donation through
a State Agency for  Surplus Property (SASP)?

    Yes, but GSA will only transfer or donate forfeited drug 
paraphernalia for law enforcement or educational purposes and only for 
use by Federal, State, or local authorities. Federal or State Agencies 
for Surplus Property (SASP) requests for such items must be processed 
through the General Services Administration, Property Management Branch 
(3FPD), Washington, DC 20407. The recipient must certify on the transfer 
document that the drug paraphernalia will be used for law enforcement or 
educational purposes only.



Sec. 102-41.225  Are there special provisions to reporting and
transferring drug paraphernalia forfeited under 21 U.S.C. 863?

    Yes, you must ensure that such drug paraphernalia does not lose its 
identity as forfeited property. Reports of excess and transfer documents 
for such drug paraphernalia must include the annotation that the 
property was seized and forfeited under 21 U.S.C. 863.



Sec. 102-41.230  May SASPs pick up or store donated drug paraphernalia
in their distribution centers?

    No, you must release donated drug paraphernalia directly to the 
donee as designated on the transfer document.



Sec. 102-41.235  May we sell forfeited drug paraphernalia?

    No, you must destroy any forfeited drug paraphernalia not needed for 
transfer or donation and document the destruction as specified in Sec. 
102-41.215.



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 necessary?
102-42.45 What is my agency's responsibility for establishing procedures 
          for obtaining an appraisal?
102-42.50 What types of appraisals may my agency consider?
102-42.55 What does the employing agency do with the appraisal?

[[Page 196]]

                            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 
          Vice President or a member of their 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?

           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: 40 U.S.C. 121(c); sec. 515, 5 U.S.C. 7342 (91 Stat. 862).

    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 and disposition of gifts of more 
than minimal value 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 of this subchapter B.

[71 FR 28778, May 18, 2006]

                               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.

[[Page 197]]

    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;
    (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 that is at or below the dollar value established by GSA 
and published in a Federal Management Regulation (FMR) Bulletin at 
www.gsa.gov/personalpropertypolicy.
    (1) GSA will adjust the definition of minimal value 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.
    (2) An employing agency may, by regulation, specify a lower value 
than this Government-wide value for its agency employees.
    Spouse means any individual who is lawfully married (unless legally 
separated), including an individual married to a person of the same sex 
who was legally married in a state or other jurisdiction (including a 
foreign country), that recognizes such marriages, regardless of whether 
or not the individual's state of residency recognizes such marriages. 
The term spouse does not include individuals in a formal relationship 
recognized by a state, which is other than lawful marriage; it also does 
not include individuals in a marriage in a jurisdiction outside the 
United States that is not recognized as a lawful marriage under United 
States law.

[65 FR 45539, July 24, 2000, as amended at 68 FR 56496, Sept. 4, 2002; 
70 FR 2318, Jan. 12, 2005; 71 FR 28778, May 18, 2006; 73 FR 7475, Feb. 
8, 2008; 76 FR 30551, May 26, 2011; 79 FR 18477, Apr. 2, 2014; 80 FR 
21190, Apr. 17, 2015]

                     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

[[Page 198]]

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 
102-37 of this subchapter B.
    (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 
102-38 of this subchapter B.
    (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.

[65 FR 45539, July 24, 2000, as amended at 71 FR 28778, May 18, 2006]



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

    (a) The employing agency retains custody of gifts and decorations 
that 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 an appraisal necessary?

    An appraisal is necessary when--
    (a) An employee indicates an interest in purchasing a gift or 
decoration. In this situation, the appraisal must be obtained before the 
gift or decoration is reported to GSA for screening (see 102-42.20); or
    (b) GSA requires the employing agency to obtain an appraisal of a 
gift or decoration that the agency has retained for official use and no 
longer needs before accepting the agency's report of the item as excess 
personal property; or
    (c) The policy of one's own agency requires it, pursuant to 5 U.S.C. 
7342(g).

    Note to Sec. 102-42.40 paragraphs (a) and (b):
    Refer to Sec. 102-42.50 for how appraisals under these two 
situations are handled.

[74 FR 2396, Jan. 15, 2009]

[[Page 199]]



Sec. 102-42.45  What is my agency's responsibility for establishing
procedures for obtaining an appraisal?

    The employing agency is responsible for establishing its own 
procedure for obtaining an appraisal that represents the value of the 
gift in the United States. This applies to all gifts, even when the 
recipient wishes to retain and/or purchase the gift. Appraisals are 
required for gifts that are personalized (e.g., Books signed by the 
author, Gifts personally labeled).

[74 FR 2396, Jan. 15, 2009]



Sec. 102-42.50  What types of appraisals may my agency consider?

    Your agency may allow--
    (a) Written commercial appraisals conducted by an appraisal firm or 
trade organization; and
    (b) Retail value appraisals where the value of the gift may be 
ascertained by reviewing current and reliable non-discounted retail 
catalogs, retail price lists, or retail Web site valuations.

[74 FR 2396, Jan. 15, 2009]



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

    When an appraisal is necessary under Sec. 102-42.40, the employing 
agency must include the appraisal with the Standard Form (SF) 120, 
Report of Excess Personal Property, and send it to GSA in accordance 
with the requirements of Sec. 102-42.95. By attaching the appraisal, 
the employing agency is certifying that the value cited is the retail 
value/appraised value of the item in the United States in U.S. dollars 
on the date set forth on the appraisal.

[74 FR 2396, Jan. 15, 2009]

                            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 Vice President or a member of their family?

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

[71 FR 28778, May 18, 2006]



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

[[Page 200]]

    (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, 
Utilization and Donation Program Division (QSCA), 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.
------------------------------------------------------------------------
(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.
------------------------------------------------------------------------


[65 FR 45539, July 24, 2000, as amended at 74 FR 2396, Jan. 15, 2009]



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

[[Page 201]]

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 102-37 of this subchapter B.

[65 FR 45539, July 24, 2000, as amended at 71 FR 28778, May 18, 2006]



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 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

[[Page 202]]

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 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. Sales must be conducted and documented in accordance 
with part 102-38 of this subchapter B.

[68 FR 56496, Sept. 4, 2003, as amended at 71 FR 28778, May 18, 2006]



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

[[Page 203]]

    (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 102-38 of this subchapter B.

[65 FR 45539, July 24, 2000, as amended at 71 FR 28778, May 18, 2006]

[[Page 204]]



                       SUBCHAPTER C_REAL PROPERTY





PART 102-71-GENERAL--Table of Contents



Sec.
102-71.5 What is 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 [Reserved]
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. 121(c).

    Source: 70 FR 67786, Nov. 8, 2005, unless otherwise noted.



Sec. 102-71.5  What is 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 
GSA's Public Buildings Service (PBS), operating under, or subject to, 
the authorities of the Administrator of General Services. These policies 
cover the acquisition, management, utilization, and disposal of real 
property by Federal agencies that initiate and have decision-making 
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.
    (k) Utility services.
    (l) Location of space.



Sec. 102-71.15  [Reserved]



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

    The following definitions apply to GSA's real property policies:
    Airport means any area of land or water that is used, or intended 
for use, for the landing and takeoff of aircraft, and any appurtenant 
areas that are used, or intended for use, for airport buildings or other 
airport facilities or rights-of-way, together with all airport buildings 
and facilities located thereon.
    Alteration means remodeling, improving, extending, or making other 
changes to a facility, exclusive of maintenance repairs that are 
preventive in nature. The term includes planning, engineering, 
architectural work, and other similar actions.
    Carpool means a group of two or more people regularly using a motor 
vehicle for transportation to and from work on a continuing basis.
    Commercial activities, within the meaning of subpart D, part 102-74 
of this chapter, are activities undertaken for the primary purpose of 
producing a profit for the benefit of an individual or organization 
organized for profit. (Activities where commercial aspects are 
incidental to the primary purpose of expression of ideas or advocacy of 
causes are not commercial activities for purposes of this part.)
    Cultural activities include, but are not limited to, films, 
dramatics, dances, musical presentations, and fine art exhibits, whether 
or not these activities are intended to make a profit.
    Decontamination means the complete removal or destruction by 
flashing of explosive powders; the neutralizing and cleaning-out of acid 
and corrosive materials; the removal, destruction, or neutralizing of 
toxic, hazardous or infectious substances; and the complete removal and 
destruction by burning or detonation of live ammunition from 
contaminated areas and buildings.

[[Page 205]]

    Designated Official is the highest ranking official of the primary 
occupant agency of a Federal facility, or, alternatively, a designee 
selected by mutual agreement of occupant agency officials.
    Disabled employee means an employee who has a severe, permanent 
impairment that for all practical purposes precludes the use of public 
transportation, or an employee who is unable to operate a car as a 
result of permanent impairment who is driven to work by another. 
Priority may require certification by an agency medical unit, including 
the Department of Veterans Affairs or the Public Health Service.
    Disposal agency means the Executive agency designated by the 
Administrator of General Services to dispose of surplus real or personal 
property.
    Educational activities mean activities such as (but not limited to) 
the operation of schools, libraries, day care centers, laboratories, and 
lecture or demonstration facilities.
    Emergency includes bombings and bomb threats, civil disturbances, 
fires, explosions, electrical failures, loss of water pressure, chemical 
and gas leaks, medical emergencies, hurricanes, tornadoes, floods, and 
earthquakes. The term does not apply to civil defense matters such as 
potential or actual enemy attacks that are addressed by the U.S. 
Department of Homeland Security.
    Executive means a Government employee with management 
responsibilities who, in the judgment of the employing agency head or 
his/her designee, requires preferential assignment of parking 
privileges.
    Executive agency means an Executive department specified in section 
101 of title 5; a military department specified in section 102 of such 
title; an independent establishment as defined in section 104(1) of such 
title; and a wholly owned Government corporation fully subject to the 
provisions of chapter 91 of title 31.
    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 agency buildings manager means the buildings manager 
employed by GSA or a Federal agency that has been delegated real 
property management and operation authority from GSA.
    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.
    Flame-resistant means meeting performance standards as described by 
the National Fire Protection Association (NFPA Standard No. 701). 
Fabrics labeled with the Underwriters Laboratories Inc., classification 
marking for flammability are deemed to be flame resistant for purposes 
of this part.
    Foot-candle is the illumination on a surface one square foot in area 
on which there is a uniformly distributed flux of one lumen, or the 
illuminance produced on a surface all points of which are at a distance 
of one foot from a directionally uniform point source of one candela.
    GSA means the U.S. General Services Administration, acting by or 
through the Administrator of General Services, or a designated official 
to whom functions under this part have been delegated by the 
Administrator of General Services.
    Highest and best use means the most likely use to which a property 
can be put, which will produce the highest monetary return from the 
property, promote its maximum value, or serve a public or institutional 
purpose. The highest and best use determination must be based on the 
property's economic potential, qualitative values (social and 
environmental) inherent in the property itself, and other utilization 
factors controlling or directly affecting land use (e.g., zoning, 
physical characteristics, private and public uses in the vicinity, 
neighboring improvements, utility services, access, roads, location,

[[Page 206]]

and environmental and historical considerations). Projected highest and 
best use should not be remote, speculative, or conjectural.
    Indefinite quantity contract (commonly referred to as term contract) 
provides for the furnishing of an indefinite quantity, within stated 
limits, of specific property or services during a specified contract 
period, with deliveries to be scheduled by the timely placement of 
orders with the contractor by activities designated either specifically 
or by class.
    Industrial property means any real property and related personal 
property that has been used or that is suitable to be used for 
manufacturing, fabricating, or processing of products; mining 
operations; construction or repair of ships and other waterborne 
carriers; power transmission facilities; railroad facilities; and 
pipeline facilities for transporting petroleum or gas.
    Landholding agency means the Federal agency that has accountability 
for the property involved. For the purposes of this definition, 
accountability means that the Federal agency reports the real property 
on its financial statements and inventory records.
    Landing area means any land or combination of water and land, 
together with improvements thereon and necessary operational equipment 
used in connection therewith, which is used for landing, takeoff, and 
parking of aircraft. The term includes, but is not limited to, runways, 
strips, taxiways, and parking aprons.
    Life cycle cost is the total cost of owning, operating, and 
maintaining a building over its useful life, including its fuel and 
energy costs, determined on the basis of a systematic evaluation and 
comparison of alternative building systems; except that in the case of 
leased buildings, the life cycle cost shall be calculated over the 
effective remaining term of the lease.
    Limited combustible means rigid materials or assemblies that have 
fire hazard ratings not exceeding 25 for flame spread and 150 for smoke 
development when tested in accordance with the American Society for 
Testing and Materials, Test E 84, Surface Burning Characteristics of 
Building Materials.
    Maintenance, for the purposes of part 102-75, entitled ``Real 
Property Disposal,'' of this chapter, means the upkeep of property only 
to the extent necessary to offset serious deterioration; also such 
operation of utilities, including water supply and sewerage systems, 
heating, plumbing, and air-conditioning equipment, as may be necessary 
for fire protection, the needs of interim tenants, and personnel 
employed at the site, and the requirements for preserving certain types 
of equipment. For the purposes of part 102-74, entitled ``Facility 
Management,'' of this chapter, maintenance means preservation by 
inspection, adjustment, lubrication, cleaning, and the making of minor 
repairs. Ordinary maintenance means routine recurring work that is 
incidental to everyday operations; preventive maintenance means work 
programmed at scheduled intervals.
    Management means the safeguarding of the Government's interest in 
property, in an efficient and economical manner consistent with the best 
business practices.
    Nationally recognized standards encompasses any standard or 
modification thereof that--
    (1) Has been adopted and promulgated by a nationally recognized 
standards-producing organization under procedures whereby those 
interested and affected by it have reached substantial agreement on its 
adoption; or
    (2) Was formulated through consultation by appropriate Federal 
agencies in a manner that afforded an opportunity for diverse views to 
be considered.
    No commercial value means real property, including related personal 
property, which has no reasonable prospect of producing any disposal 
revenues.
    Nonprofit organization means an organization identified in 26 U.S.C. 
501(c).
    Normally furnished commercially means consistent with the level of 
services provided by a commercial building operator for space of 
comparable quality and housing tenants with comparable requirements. 
Service levels are based on the effort required to service space for a 
five-day week, one eight-hour shift schedule.

[[Page 207]]

    Occupancy Emergency Organization means the emergency response 
organization comprised of employees of Federal agencies designated to 
perform the requirements established by the Occupant Emergency Plan.
    Occupant agency means an organization that is assigned space in a 
facility under GSA's custody and control.
    Occupant Emergency Plan means procedures developed to protect life 
and property in a specific federally occupied space under stipulated 
emergency conditions.
    Occupant Emergency Program means a short-term emergency response 
program. It establishes procedures for safeguarding lives and property 
during emergencies in particular facilities.
    Postal vehicle means a Government-owned vehicle used for the 
transportation of mail, or a privately owned vehicle used under contract 
with the U.S. Postal Service for the transportation of mail.
    Protection means the provisions of adequate measures for prevention 
and extinguishment of fires, special inspections to determine and 
eliminate fire and other hazards, and necessary guards to protect 
property against thievery, vandalism, and unauthorized entry.
    Public area means any area of a building under the control and 
custody of GSA that is ordinarily open to members of the public, 
including lobbies, courtyards, auditoriums, meeting rooms, and other 
such areas not assigned to a lessee or occupant agency.
    Public body means any State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, or any 
political subdivision, agency, or instrumentality of the foregoing.
    Public building means:
    (1) Any building that 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 Veterans Affairs installations used for 
hospital or domiciliary purposes.
    (ix) Excluded by the President.
    Real property means:
    (1) Any interest in land, together with the improvements, 
structures, and fixtures located thereon (including prefabricated 
movable structures, such as Butler-type storage warehouses and Quonset 
huts, and house trailers with or without undercarriages), and 
appurtenances thereto, under the control of any Federal agency, except--
    (i) The public domain;
    (ii) Lands reserved or dedicated for national forest or national 
park purposes;
    (iii) Minerals in lands or portions of lands withdrawn or reserved 
from the public domain that the Secretary of the Interior determines are 
suitable for disposition under the public land mining and mineral 
leasing laws;
    (iv) Lands withdrawn or reserved from the public domain but not 
including lands or portions of lands so withdrawn or reserved that the 
Secretary of the Interior, with the concurrence of the Administrator of 
General Services, determines are not suitable for return to the public 
domain for disposition under the general public land laws because such 
lands are substantially changed in character by improvements or 
otherwise; and

[[Page 208]]

    (v) Crops when designated by such agency for disposition by 
severance and removal from the land.
    (2) Improvements of any kind, structures, and fixtures under the 
control of any Federal agency when designated by such agency for 
disposition without the underlying land (including such as may be 
located on the public domain, on lands withdrawn or reserved from the 
public domain, on lands reserved or dedicated for national forest or 
national park purposes, or on lands that are not owned by the United 
States) excluding, however, prefabricated movable structures, such as 
Butler-type storage warehouses and Quonset huts, and house trailers 
(with or without undercarriages).
    (3) Standing timber and embedded gravel, sand, or stone under the 
control of any Federal agency, whether designated by such agency for 
disposition with the land or by severance and removal from the land, 
excluding timber felled, and gravel, sand, or stone excavated by or for 
the Government prior to disposition.
    Recognized labor organization means a labor organization recognized 
under title VII of the Civil Service Reform Act of 1978 (Pub. L. 95-
454), as amended, governing labor-management relations.
    Recreational activities include, but are not limited to, the 
operations of gymnasiums and related facilities.
    Regional Officer, within the meaning of part 102-74, subpart D of 
this chapter, means the Federal official designated to supervise the 
implementation of the occasional use provisions of 40 U.S.C. 581(h)(2). 
The Federal official may be an employee of GSA or a Federal agency that 
has delegated authority from GSA to supervise the implementation of the 
occasional use provisions of 40 U.S.C. 581(h)(2).
    Related personal property means any personal property--
    (1) That is an integral part of real property or is related to, 
designed for, or specially adapted to the functional or productive 
capacity of the real property and the removal of which would 
significantly diminish the economic value of the real property (normally 
common use items, including but not limited to general-purpose 
furniture, utensils, office machines, office supplies, or general-
purpose vehicles, are not considered to be related personal property); 
or
    (2) That is determined by the Administrator of General Services to 
be related to the real property.
    Repairs means those additions or changes that are necessary for the 
protection and maintenance of property to deter or prevent excessive or 
rapid deterioration or obsolescence, and to restore property damaged by 
storm, flood, fire, accident, or earthquake.
    Ridesharing means the sharing of the commute to and from work by two 
or more people, on a continuing basis, regardless of their relationship 
to each other, in any mode of transportation, including, but not limited 
to, carpools, vanpools, buspools, and mass transit.
    State means the fifty States, political subdivisions thereof, the 
District of Columbia, the Commonwealths of Puerto Rico and Guam, and the 
territories and possessions of the United States.
    Unit price agreement provides for the furnishing of an indefinite 
quantity, within stated limits, of specific property or services at a 
specified price, during a specified contract period, with deliveries to 
be scheduled by the timely placement of orders upon the lessor by 
activities designated either specifically or by class.
    Unusual hours means work hours that are frequently required to be 
varied and do not coincide with any regular work schedule. This category 
includes time worked by individuals who regularly or frequently work 
significantly more than 8 hours per day. Unusual hours does not include 
time worked by shift workers, by those on alternate work schedules, and 
by those granted exceptions to the normal work schedule (e.g., flex-
time).
    Upon approval from GSA means when an agency either has a delegation 
of authority document from the Administrator of General Services or 
written approval from the Administrator or his/her designee before 
proceeding with a specified action.
    Vanpool means a group of at least 8 persons using a passenger van or 
a commuter bus designed to carry 10 or more passengers. Such a vehicle 
must be used for transportation to and from work in a single daily round 
trip.

[[Page 209]]

    Zonal allocations means the allocation of parking spaces on the 
basis of zones established by GSA in conjunction with occupant agencies. 
In metropolitan areas where this method is used, all agencies located in 
a designated zone will compete for available parking in accordance with 
instructions issued by GSA. In establishing this procedure, GSA will 
consult with all affected agencies.



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



                      Subpart A_General Provisions

Sec.
102-72.5 What is the scope of this part?
102-72.10 What basic policy governs delegation of authority to Federal 
          agencies?

                    Subpart B_Delegation of Authority

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 Administrative 
          Contracting Officer (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?
102-72.66 Do Executive agencies have a delegation of authority to 
          perform ancillary repair and alteration projects in federally 
          owned buildings under the jurisdiction, custody or control of 
          GSA?
102-72.67 What work is covered under an ancillary repair and alteration 
          delegation?
102-72.68 What preconditions must be satisfied before an Executive 
          agency may exercise the delegated authority to perform an 
          individual ancillary repair and alteration project?
102-72.69 What additional terms and conditions apply to an Executive 
          agencies' delegation of ancillary repair and alteration 
          authority?
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?
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?


[[Page 210]]


    Authority: 40 U.S.C. 121(c), (d) and (e).

    Source: 70 FR 67789, Nov. 8, 2005, unless otherwise noted.



                      Subpart A_General Provisions



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

    The real property policies contained in this part apply to Federal 
agencies, including GSA's 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.



                    Subpart B_Delegation of Authority



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 and agency special purpose space 
delegations (see Sec. 102-73.140 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 up to 19,999 rentable square feet of 
general purpose space for terms of up to 20 years and below prospectus 
level requirements, 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 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 do not change the lease term length or the amount 
of space under lease.

[70 FR 67789, Nov. 8, 2005, as amended at 73 FR 2167, Jan. 14, 2008]



Sec. 102-72.35  What are the requirements for obtaining an
Administrative Contracting Officer (ACO) delegation from GSA?

    When Federal agencies do not exercise the delegation of authority 
for general purpose space mentioned in Sec. 102-72.30(b) of this part, 
GSA may consider granting an ACO delegation when Federal agencies--

[[Page 211]]

    (a) Occupy at least 90 percent of the building's GSA-controlled 
space, or 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, as specified in the GSA Customer Guide to Real Property.



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. 102-72.66  Do Executive agencies have a delegation of authority
to perform ancillary repair and alteration projects in federally
owned buildings under the jurisdiction, custody or control of GSA?

    Yes. Executive agencies, as defined in Sec. 102-71.20, are hereby 
delegated the authority to perform ancillary repair and alteration work 
in federally owned buildings under the jurisdiction, custody or control 
of GSA in accordance with the terms, conditions and limitations set 
forth in Sec. Sec. 102-72.67 through 102-72.69.

[74 FR 12273, Mar. 24, 2009]



Sec. 102-72.67  What work is covered under an ancillary repair
and alteration delegation?

    (a) For purposes of this delegation, ancillary repair and alteration 
projects are those--
    (1) Where an Executive agency has placed an order from a vendor 
under a GSA Multiple Award Schedule and ancillary repair and alteration 
services

[[Page 212]]

also are available from that same vendor as a Special Item Number (SIN);
    (2) Where the ancillary repair and alteration work to be performed 
is associated solely with the repair, alteration, delivery, or 
installation of products or services also purchased under the same GSA 
Multiple Award Schedule;
    (3) That are routine and non-complex in nature, such as routine 
painting or carpeting, simple hanging of drywall, basic electrical or 
plumbing work, landscaping, and similar non-complex services; and
    (4) That are necessary to be performed to use, execute or implement 
successfully the products or services purchased from the GSA Multiple 
Award Schedule.
    (b) Ancillary repair and alteration projects do not include--
    (1) Major or new construction of buildings, roads, parking lots, and 
other facilities;
    (2) Complex repair and alteration of entire facilities or 
significant portions of facilities; or
    (3) Architectural and engineering services procured pursuant to 40 
U.S.C. 1101-1104.

[74 FR 12273, Mar. 24, 2009]



Sec. 102-72.68  What preconditions must be satisfied before an
Executive agency may exercise the delegated authority to perform
an individual ancillary repair and alteration project?

    The preconditions that must be satisfied before an Executive agency 
may perform ancillary repair and alteration work are as follows:
    (a) The ordering agency must order both the products or services and 
the ancillary repair and alteration services under the same GSA Multiple 
Award Schedule from the same vendor;
    (b) The value of the ancillary repair and alteration work must be 
less than or equal to $100,000 (for work estimated to exceed $100,000, 
the Executive agency must contact the GSA Assistant Regional 
Administrator, Public Buildings Service, in the region where the work is 
to be performed to request a specific delegation);
    (c) All terms and conditions applicable to the acquisition of 
ancillary repair and alteration work as required by the GSA Multiple 
Award Schedule ordering procedures must be satisfied;
    (d) The ancillary repair and alteration work must not be in a 
facility leased by GSA or in any other leased facility acquired under a 
lease delegation from GSA; and
    (e) As soon as reasonably practicable, the Executive agency must 
provide the building manager with a detailed scope of work, including 
cost estimates, and schedule for the project, and such other information 
as may be reasonably requested by the building manager, so the building 
manager can determine whether or not the proposed work is reasonably 
expected to have an adverse effect on the operation and management of 
the building, the building's structural, mechanical, electrical, 
plumbing, or heating and air conditioning systems, the building's 
aesthetic or historic features, or the space or property of any other 
tenant in the building. The Executive agency must obtain written 
approval from the building manager prior to placing an order for any 
ancillary repair and alteration work.

[74 FR 12273, Mar. 24, 2009]



Sec. 102-72.69  What additional terms and conditions apply to an
Executive agencies' delegation of ancillary repair and alteration
authority?

    (a) Before commencing any ancillary repair and alteration work, the 
Executive agency shall deliver, or cause its contractor to deliver, to 
the building manager evidence that the contractor has obtained at least 
$5,000,000 comprehensive general public liability and property damage 
insurance policies to cover claims arising from or relating to the 
contractor's operations that cause damage to persons or property; such 
insurance shall name the United States as an additional insured.
    (b) The Executive agency shall agree that GSA has no responsibility 
or liability, either directly or indirectly, for any contractual claims 
or disputes that arise out of or relate to the performance of ancillary 
repair and alteration work, except to the extent such claim or dispute 
arises out of or relates to the wrongful acts or negligence of GSA's 
agents or employees.

[[Page 213]]

    (c) The Executive agency shall agree to administer and defend any 
claims and actions, and shall be responsible for the payment of any 
judgments rendered or settlements agreed to, in connection with contract 
claims or other causes of action arising out of or relating to the 
performance of the ancillary repair and alteration work.
    (d) For buildings under GSA's custody and control, GSA shall have 
the right, but not the obligation, to review the work from time to time 
to ascertain that it is being performed in accordance with the approved 
project requirements, schedules, plans, drawings, specifications, and 
other related construction documents. The Executive agency shall 
promptly correct, or cause to be corrected, any non-conforming work or 
property damage identified by GSA, including damage to the space or 
property of any other tenant in the building, at no cost or expense to 
GSA.
    (e) The Executive agency shall remain liable and financially 
responsible to GSA for any and all personal or property damage caused, 
in whole or in part, by the acts or omissions of the Executive agency, 
its employees, agents, and contractors.
    (f) If the cost or expense to GSA to operate the facility is 
increased as a result of the ancillary repair and alteration project, 
the Executive agency shall be responsible for any such costs or 
expenses.
    (g) Disputes between the Executive agency and GSA arising out of the 
ancillary repair and alteration work will, to the maximum extent 
practicable, be resolved informally at the working level. In the event a 
dispute cannot be resolved informally, the matter shall be referred to 
GSA's Public Buildings Service. The Executive agency agrees that, in the 
event GSA's Public Buildings Service and the Executive agency fail to 
resolve the dispute, they shall refer it for resolution to the 
Administrator of General Services, whose decision shall be binding.

[74 FR 12273, Mar. 24, 2009]



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.



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 102-75, subpart F of this chapter.

[[Page 214]]



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

    Law enforcement and related security functions were transferred to 
the Department of Homeland Security upon its establishment in 2002. The 
Homeland Security Act authorizes the Secretary of Homeland Security, in 
consultation with the Administrator of General Services, to issue 
regulations necessary for the protection and administration of property 
owned or occupied by the Federal Government and persons on the property. 
Notwithstanding the foregoing, GSA retained all powers, functions and 
authorities necessary for the operation, maintenance, and protection of 
buildings and grounds owned and occupied by the Federal Government and 
under the jurisdiction, custody, or control of GSA.



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

    An Executive agency may request a security delegation from GSA by 
submitting a written request with the detailed basis for the requested 
delegation to the Assistant Regional Administrator, PBS, in the region 
where the building is located. A request for multiple buildings in 
multiple regions should be directed to the Commissioner of PBS. The 
delegation may be granted where the requesting agency demonstrates a 
compelling need for the delegated authority and the delegation is not 
inconsistent with the authorities of any other law enforcement agency.



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



                      Subpart A_General Provisions

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 may Federal 
          agencies provide?

              United States Postal Service-Controlled Space

102-73.20 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?

                       Locating Federal Facilities

102-73.25 What policies must Executive agencies comply with in locating 
          Federal facilities?

                          Historic Preservation

102-73.30 What historic preservation provisions must Federal agencies 
          comply with prior to acquiring, constructing, or leasing 
          space?

                         Prospectus Requirements

102-73.35 Is a prospectus required for all acquisition, construction, or 
          alteration projects?
102-73.40 What happens if the dollar value of the project exceeds the 
          prospectus threshold?

                     Subpart B_Acquisition by Lease

102-73.45 When may Federal agencies consider leases of privately owned 
          land and buildings to satisfy their space needs?
102-73.50 Are Federal agencies that possess independent statutory 
          authority to acquire leased space subject to requirements of 
          this part?
102-73.55 On what basis must Federal agencies acquire leases?
102-73.60 With whom may Federal agencies enter into lease agreements?
102-73.65 Are there any limitations on leasing certain types of space?

[[Page 215]]

102-73.70 Are Executive agencies required to acquire leased space by 
          negotiation?
102-73.75 What functions must Federal agencies perform with regard to 
          leasing building space?
102-73.80 Who is authorized to contact lessors, offerors, or potential 
          offerors concerning space leased or to be leased?
102-73.85 Can agencies with independent statutory authority to lease 
          space have GSA perform the leasing functions?
102-73.90 What contingent fee policy must Federal agencies apply to the 
          acquisition of real property by lease?
102-73.95 How are Federal agencies required to assist GSA?

                 Competition in Contracting Act of 1984

102-73.100 Is the Competition in Contracting Act of 1984, as amended 
          (CICA), applicable to lease acquisition?

            National Environmental Policy Act of 1969 (NEPA)

102-73.105 What policies must Federal agencies follow to implement the 
          requirements of NEPA when acquiring real property by lease?

                           Lease Construction

102-73.110 What rules must Executive agencies follow when acquiring 
          leasehold interests in buildings constructed for Federal 
          Government use?

                Price Preference for Historic Properties

102-73.115 Must Federal agencies offer a price preference to space in 
          historic properties when acquiring leased space?
102-73.120 How much of a price preference must Federal agencies give 
          when acquiring leased space using the lowest price technically 
          acceptable source selection process?
102-73.125 How much of a price preference must Federal agencies give 
          when acquiring leased space using the best value tradeoff 
          source selection process?

                      Leases With Purchase Options

102-73.130 When may Federal agencies consider acquiring leases with 
          purchase options?

                              Scoring Rules

102-73.135 What scoring rules must Federal agencies follow when 
          considering leases and leases with purchase options?

                    Delegations of Leasing Authority

102-73.140 When may agencies that do not possess independent leasing 
          authority lease space?

                      Categorical Space Delegations

102-73.145 What is a categorical space delegation?
102-73.150 What is the policy for categorical space delegations?
102-73.155 What types of space can Federal agencies acquire with a 
          categorical space delegation?

                    Special Purpose Space Delegations

102-73.160 What is an agency special purpose space delegation?
102-73.165 What is the policy for agency special purpose space 
          delegations?
102-73.170 What types of special purpose space may the Department of 
          Agriculture lease?
102-73.175 What types of special purpose space may the Department of 
          Commerce lease?
102-73.180 What types of special purpose space may the Department of 
          Defense lease?
102-73.185 What types of special purpose space may the Department of 
          Energy lease?
102-73.190 What types of special purpose space may the Federal 
          Communications Commission lease?
102-73.195 What types of special purpose space may the Department of 
          Health and Human Services lease?
102-73.196 What types of special purpose space may the Department of 
          Homeland Security lease?
102-73.200 What types of special purpose space may the Department of the 
          Interior lease?
102-73.205 What types of special purpose space may the Department of 
          Justice lease?
102-73.210 What types of special purpose space may the Office of Thrift 
          Supervision lease?
102-73.215 What types of special purpose space may the Department of 
          Transportation lease?
102-73.220 What types of special purpose space may the Department of the 
          Treasury lease?
102-73.225 What types of special purpose space may the Department of 
          Veterans Affairs lease?

              Limitations on the Use of Delegated Authority

102-73.230 When must Federal agencies submit a prospectus to lease real 
          property?
102-73.235 What is the maximum lease term that a Federal agency may 
          agree to when it has been delegated lease acquisition 
          authority from GSA?
102-73.240 What policy must Federal agencies follow to acquire official 
          parking spaces?

[[Page 216]]

            Subpart C_Acquisition by Purchase or Condemnation

                                Buildings

102-73.245 When may Federal agencies consider purchase of buildings?
102-73.250 Are agencies required to adhere to the policies for locating 
          Federal facilities when purchasing buildings?
102-73.255 What factors must Executive agencies consider when purchasing 
          sites?

                                  Land

102-73.260 What land acquisition policy must Federal agencies follow?
102-73.265 What actions must Federal agencies take to facilitate land 
          acquisition?

                            Just Compensation

102-73.270 Are Federal agencies required to provide the owner with a 
          written statement of the amount established as just 
          compensation?
102-73.275 What specific information must be included in the summary 
          statement for the owner that explains the basis for just 
          compensation?
102-73.280 Where can Federal agencies find guidance on how to appraise 
          the value of properties being acquired by the Federal 
          Government?
102-73.285 [Reserved]
102-73.290 Are there any prohibitions when a Federal agency pays ``just 
          compensation'' to a tenant?

                Expenses Incidental to Property Transfer

102-73.295 What property transfer expenses must Federal agencies cover 
          when acquiring real property?

                           Litigation Expenses

102-73.300 Are Federal agencies required to pay for litigation expenses 
          incurred by a property owner because of a condemnation 
          proceeding?

                      Relocation Assistance Policy

102-73.305 What relocation assistance policy must Federal agencies 
          follow?

    Authority: 40 U.S.C. 121(c); Sec. 3(c), Reorganization Plan No. 18 
of 1950 (40 U.S.C. 301 note); Sec. 1-201(b), E.O. 12072, 43 FR 36869, 3 
CFR, 1978 Comp., p. 213.

    Source: 70 FR 67791, Nov. 8, 2005, unless otherwise noted.



                      Subpart A_General Provisions



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

    The real property policies contained in this part apply to Federal 
agencies, including GSA's 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?

    When seeking to acquire space, Federal agencies should first seek 
space in Government-owned and Government-leased buildings. If suitable 
Government-controlled space is unavailable, Federal 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
may Federal agencies provide?

    Federal agencies, upon approval from GSA, may provide real estate 
acquisition and related services, including leasing (with or without 
purchase options), building and/or site purchase, condemnation, and 
relocation assistance. For information on the design and construction of 
Federal facilities, see part 102-76 of this chapter.

              United States Postal Service-Controlled Space



Sec. 102-73.20  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 and 
determining that no such space is available to meet its needs, 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, as specified in 
the ``Agreement Between General Services Administration and the United 
States Postal Service Covering Real and Personal Property Relationships 
and Associated Services,'' dated July 1985.

[[Page 217]]

                       Locating Federal Facilities



Sec. 102-73.25  What policies must Executive agencies comply with in 
locating Federal facilities?

    Executive agencies must comply with the location policies in this 
part and part 102-83 of this chapter.

                          Historic Preservation



Sec. 102-73.30  What historic preservation provisions must Federal
agencies comply with prior to acquiring, constructing, or leasing 
space?

    Prior to acquiring, constructing, or leasing space, 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. Federal agencies can find 
guidance on protecting, enhancing, and preserving historic and cultural 
property in part 102-78 of this chapter.

                         Prospectus Requirements



Sec. 102-73.35  Is a prospectus required for all acquisition,
construction, or alteration projects?

    No, a prospectus is not required if the dollar value of a project 
does not exceed the prospectus threshold. 40 U.S.C. 3307 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. The current 
prospectus threshold value for each fiscal year can be accessed by 
entering GSA's Web site at http://www.gsa.gov and then inserting 
``prospectus thresholds'' in the search mechanism in the upper right-
hand corner of the page.



Sec. 102-73.40  What happens if the dollar value of the project
exceeds the prospectus threshold?

    Projects require approval by the Senate and the House of 
Representatives if the dollar value of a project exceeds the prospectus 
threshold. To obtain this approval, the Administrator of General 
Services will transmit the proposed prospectuses to Congress for 
consideration by the Senate and the House of Representatives. 
Furthermore, as indicated in Sec. 102-72.30(b), the general purpose 
lease delegation authority is restricted to below the prospectus 
threshold, and therefore, GSA must conduct all lease acquisitions over 
the threshold.



                     Subpart B_Acquisition by Lease



Sec. 102-73.45  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 met satisfactorily 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.
    (c) Federal agencies cannot provide for the completion of a new 
building within a reasonable time.



Sec. 102-73.50  Are Federal agencies that possess independent statutory
authority to acquire leased space subject to requirements of this part?

    No, Federal agencies possessing independent statutory authority to 
acquire leased space are not subject to GSA authority and, therefore, 
may not be subject to the requirements of this part. However, lease 
prospectus approval requirements of 40 U.S.C. Section 3307 may still 
apply appropriations to lease of space for public purposes under an 
agency's independent leasing authority.



Sec. 102-73.55  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

[[Page 218]]

with prevailing market rates for comparable facilities in the community.



Sec. 102-73.60  With whom may Federal agencies enter into lease a
greements?

    Federal agencies, upon approval from GSA, may enter into lease 
agreements with any person, partnership, corporation, or other public or 
private entity, provided that such lease agreements do not bind the 
Government for periods in excess of twenty years (40 U.S.C. 585(a)). 
Federal agencies may not enter into lease agreements with persons who 
are barred from contracting with the Federal Government (e.g., Members 
of Congress or debarred or suspended contractors).



Sec. 102-73.65  Are there any limitations on leasing certain types 
of space?

    Yes, the limitations on leasing certain types of 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. 3307(f)(1)).
    (b) However, Federal agencies may lease such space if the 
Administrator of General Services first determines that leasing such 
space is necessary to meet requirements that cannot be met in public 
buildings, and then submits such determination to the Committee on 
Environment and Public Works of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives in 
accordance with 40 U.S.C. 3307(f)(2).



Sec. 102-73.70  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, as amended (CICA) (41 U.S.C. 253(a)).



Sec. 102-73.75  What functions must Federal agencies perform with
regard to leasing building space?

    Federal agencies, upon approval from GSA, must perform all functions 
of leasing building space, and land incidental thereto, for their use 
except as provided in this subpart.



Sec. 102-73.80  Who is authorized to contact lessor, offerors, or 
potential offerors concerning space leased or to be leased?

    No one, except the Contracting Officer or his or her designee, may 
contact lessors, offerors, or potential offerors concerning space leased 
or to be leased for the purpose of making oral or written representation 
or commitments or agreements with respect to the terms of occupancy of 
particular space, tenant improvements, alterations and repairs, or 
payment for overtime services.



Sec. 102-73.85  Can agencies with independent statutory authority
to lease space have GSA perform the leasing functions?

    Yes, upon request, GSA may perform, on a reimbursable basis, all 
functions of leasing building space, and land incidental thereto, for 
Federal agencies possessing independent statutory authority to lease 
space. However, GSA reserves the right to accept or reject reimbursable 
leasing service requests on a case-by-case basis.



Sec. 102-73.90  What contingent fee policy must Federal agencies
apply to the acquisition of real property by lease?

    Federal agencies must apply the contingent fee policies in 48 CFR 
3.4 to all negotiated and sealed bid contracts for the acquisition of 
real property by lease. Federal agencies must appropriately adapt the 
representations and covenants required by that subpart for use in leases 
of real property for Government use.



Sec. 102-73.95  How are Federal agencies required to assist GSA?

    The heads of Federal agencies must--
    (a) Cooperate with and assist the Administrator of General Services 
in carrying out his responsibilities respecting office buildings and 
space;

[[Page 219]]

    (b) Take measures to give GSA early notice of new or changing space 
requirements;
    (c) Seek to economize their requirements for space; and
    (d) Continuously review their needs for space in and near the 
District of Columbia, taking into account the feasibility of 
decentralizing services or activities that can be carried on elsewhere 
without excessive costs or significant loss of efficiency.

                 Competition in Contracting Act of 1984



Sec. 102-73.100  Is the Competition in Contracting Act of 1984,
as amended (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, 41 U.S.C. 253.

            National Environmental Policy Act of 1969 (NEPA)



Sec. 102-73.105  What policies must Federal agencies follow to
implement the requirements of NEPA when acquiring real property
by lease?

    Federal agencies must follow the NEPA policies identified in 
Sec. Sec. 102-76.40 and 102-76.45 of this chapter.

                           Lease Construction



Sec. 102-73.110  What rules must Executive agencies follow when
acquiring leasehold interests in buildings constructed for Federal
Government use?

    When acquiring leasehold interests in buildings to be constructed 
for Federal Government use, Executive agencies must--
    (a) Establish detailed building specifications before agreeing to a 
contract that will result in the construction of a building;
    (b) Use competitive procedures;
    (c) Inspect every building during construction to ensure that the 
building complies with the Government's specifications;
    (d) Evaluate every building after completion of construction to 
determine that the building complies with the Government's 
specifications; and
    (e) Ensure that any contract that will result in the construction of 
a building contains provisions permitting the Government to reduce the 
rent during any period when the building does not comply with the 
Government's specifications.

                Price Preference for Historic Properties



Sec. 102-73.115  Must Federal agencies offer a price preference to
space in historic properties when acquiring leased space?

    Yes, Federal agencies must give a price preference to space in 
historic properties when acquiring leased space using either the lowest 
price technically acceptable or the best value tradeoff source selection 
processes.



Sec. 102-73.120  How much of a price preference must Federal agencies
give when acquiring leased space using the lowest price technically
acceptable source  selection process?

    Federal agencies must give a price evaluation preference to space in 
historic properties as follows:
    (a) First to suitable historic properties within historic districts, 
a 10 percent price preference.
    (b) If no suitable historic property within an historic district is 
offered, or the 10 percent preference does not result in such property 
being the lowest price technically acceptable offer, the Government will 
give a 2.5 percent price preference to suitable non-historic developed 
or undeveloped sites within historic districts.
    (c) If no suitable non-historic developed or undeveloped site within 
an historic district is offered, or the 2.5 percent preference does not 
result in such property being the lowest price technically acceptable 
offer, the Government will give a 10 percent price preference to 
suitable historic properties outside of historic districts.
    (d) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.

[[Page 220]]



Sec. 102-73.125  How much of a price preference must Federal agencies 
give when acquiring leased space using the best value tradeoff source 
selection process?

    When award will be based on the best value tradeoff source selection 
process, which permits tradeoffs among price and non-price factors, the 
Government will give a price evaluation preference to historic 
properties as follows:
    (a) First to suitable historic properties within historic districts, 
a 10 percent price preference.
    (b) If no suitable historic property within an historic district is 
offered or remains in the competition, the Government will give a 2.5 
percent price preference to suitable non-historic developed or 
undeveloped sites within historic districts.
    (c) If no suitable non-historic developed or undeveloped site within 
an historic district is offered or remains in the competition, the 
Government will give a 10 percent price preference to suitable historic 
properties outside of historic districts.
    (d) Finally, if no suitable historic property outside of historic 
districts is offered, no historic price preference will be given to any 
property offered.

                      Leases With Purchase Options



Sec. 102-73.130  When may Federal agencies consider acquiring leases 
with purchase options?

    Agencies may consider leasing with a purchase option at or below 
fair market value, consistent with the lease-purchase scoring rules, 
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.
    (c) Leasing with a purchase option is otherwise in the best interest 
of the Government.

                              Scoring Rules



Sec. 102-73.135  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.)

                    Delegations of Leasing Authority



Sec. 102-73.140  When may agencies that do not possess independent
leasing authority lease space?

    Federal agencies may perform for themselves all functions necessary 
to acquire leased space in buildings and land incidental thereto when--
    (a) The authority may be delegated (see Sec. 102-72.30) on the 
different types of delegations related to real estate leasing);
    (b) The space may be leased for no rental, or for a nominal 
consideration of $1 per annum, and is limited to terms not to exceed 1 
year;
    (c) Authority has been requested by an Executive agency and a 
specific delegation has been granted by the Administrator of General 
Services;
    (d) A categorical delegation has been granted by the Administrator 
of General Services for space to accommodate particular types of agency 
activities, such as military recruiting offices or space for certain 
county level agricultural activities (see Sec. 102-73.155 for a listing 
of categorical delegations); or
    (e) The required space is found by the Administrator of General 
Services to be wholly or predominantly utilized for the special purposes 
of the agency to occupy such space and is not generally suitable for use 
by other agencies. Federal agencies must obtain prior approval from the 
GSA regional office having jurisdiction for the proposed leasing action, 
before initiating a leasing action involving 2,500 or more square feet 
of such special purpose space. GSA's approval must be based upon a 
finding that there is no vacant Government-owned or leased space 
available that will meet the agency's requirements. Agency special 
purpose

[[Page 221]]

space delegations can be found in Sec. Sec. 102-73.170 through 102-
73.225.

                      Categorical Space Delegations



Sec. 102-73.145  What is a categorical space delegation?

    A categorical space delegation is a standing delegation of authority 
from the Administrator of General Services to a Federal agency to 
acquire a type of space identified in Sec. 102-73.155, subject to 
limitations in this part.



Sec. 102-73.150  What is the policy for categorical space delegations?

    Subject to the limitations cited in Sec. Sec. 102-73.230 through 
102-73.240, all Federal agencies are authorized to acquire the types of 
space listed in Sec. 102-73.155 and, except where otherwise noted, may 
lease space for terms, including all options, of up to 20 years.



Sec. 102-73.155  What types of space can Federal agencies acquire
with a categorical space delegation?

    Federal agencies can use categorical space delegations to acquire--
    (a) Space to house antennas, repeaters, or transmission equipment;
    (b) Depots, including, but not limited to, stockpiling depots and 
torpedo net depots;
    (c) Docks, piers, and mooring facilities (including closed storage 
space required in combination with such facilities);
    (d) Fumigation areas;
    (e) Garage space (may be leased only on a fiscal year basis);
    (f) Greenhouses;
    (g) Hangars and other airport operating facilities including, but 
not limited to, flight preparation space, aircraft storage areas, and 
repair shops;
    (h) Hospitals, including medical clinics;
    (i) Housing (temporary), including hotels (does not include quarters 
obtained pursuant to temporary duty travel or employee relocation);
    (j) Laundries;
    (k) Quarantine facilities for plants, birds, and other animals;
    (l) Ranger stations, i.e., facilities that typically include small 
offices staffed by one or more uniformed employees, and may include 
sleeping/family quarters, parking areas, garages, and storage space. 
Office space within ranger stations is minimal and does not comprise a 
majority of the space. (May also be referred to as guard stations, 
information centers, or kiosks);
    (m) Recruiting space for the armed forces (lease terms, including 
all options, limited to 5 years);
    (n) Schools directly related to the special purpose function(s) of 
an agency;
    (o) Specialized storage/depot facilities, such as cold storage; 
self-storage units; and lumber, oil, gasoline, shipbuilding materials, 
and pesticide materials/equipment storage (general purpose warehouse 
type storage facilities not included); and
    (p) Space for short-term use (such as conferences and meetings, 
judicial proceedings, and emergency situations).

                    Special Purpose Space Delegations



Sec. 102-73.160  What is an agency special purpose space delegation?

    An agency special purpose space delegation is a standing delegation 
of authority from the Administrator of General Services to specific 
Federal agencies to lease their own special purpose space (identified in 
Sec. Sec. 102-73.170 through 102-73.225), subject to limitations in 
this part.



Sec. 102-73.165  What is the policy for agency special purpose space
delegations?

    Subject to the limitations on annual rental amounts, lease terms, 
and leases on parking spaces cited in Sec. Sec. 102-73.230 through 102-
73.240, the agencies listed below are authorized to acquire special 
purpose space associated with that agency and, except where otherwise 
noted, may lease such space for terms, including all options, of up to 
20 years. The agencies and types of space subject to special purpose 
space delegations are specified in Sec. Sec. 102-73.170 through 102-
73.225.



Sec. 102-73.170  What types of special purpose space may the
Department of Agriculture lease?

    The Department of Agriculture is delegated the authority to lease 
the following types of special purpose space:

[[Page 222]]

    (a) Cotton classing laboratories (lease terms, including all 
options, limited to 5 years).
    (b) Land (if unimproved, may be leased only on a fiscal year basis).
    (c) Miscellaneous storage by cubic foot or weight basis.
    (d) Office space when required to be located in or adjacent to 
stockyards, produce markets, produce terminals, airports, and other 
ports (lease terms, including all options, limited to 5 years).
    (e) Space for agricultural commodities stored in licensed warehouses 
and utilized under warehouse contracts.
    (f) Space utilized in cooperation with State and local governments 
or their instrumentalities (extension services) where the cooperating 
State or local government occupies a portion of the space and pays a 
portion of the rent.



Sec. 102-73.175  What types of special purpose space may the 
Department of Commerce lease?

    The Department of Commerce is delegated authority to lease the 
following types of special purpose space:
    (a) Space required by the Census Bureau in connection with 
conducting the decennial census (lease terms, including all options, 
limited to 5 years).
    (b) Laboratories for testing materials, classified or ordnance 
devices, calibration of instruments, and atmospheric and oceanic 
research (lease terms, including all options, limited to 5 years).
    (c) Maritime training stations.
    (d) Radio stations.
    (e) Land (if unimproved, may be leased only on a fiscal year basis).
    (f) National Weather Service meteorological facilities.



Sec. 102-73.180  What types of special purpose space may the 
Department of Defense lease?

    The Department of Defense is delegated authority to lease the 
following types of special purpose space:
    (a) Air Force--Civil Air Patrol Liaison Offices and land incidental 
thereto when required for use incidental to, in conjunction with, and in 
close proximity to airports, including aircraft and warning stations (if 
unimproved, land may be leased only on a fiscal year basis; for space, 
lease terms, including all options, limited to 5 years).
    (b) Armories.
    (c) Film library in the vicinity of Washington, DC.
    (d) Mess halls.
    (e) Ports of embarkation and debarkation.
    (f) Post exchanges.
    (g) Postal Concentration Center, Long Island City, NY.
    (h) Recreation centers.
    (i) Reserve training space.
    (j) Service clubs.
    (k) Testing laboratories (lease terms, including all options, 
limited to 5 years).



Sec. 102-73.185  What types of special purpose space may the 
Department of Energy lease?

    The Department of Energy, as the successor to the Atomic Energy 
Commission, is delegated authority to lease facilities housing the 
special purpose or special location activities of the old Atomic Energy 
Commission.



Sec. 102-73.190  What types of special purpose space may the 
Federal Communications Commission lease?

    The Federal Communications Commission is delegated authority to 
lease monitoring station sites.



Sec. 102-73.195  What types of special purpose space may the 
Department of Health and Human Services lease?

    The Department of Health and Human Services is delegated authority 
to lease laboratories (lease terms, including all options, limited to 5 
years).



Sec. 102-73.196  What types of special purpose space may the 
Department of Homeland Security lease?

    The Department of Homeland Security is delegated authority to lease 
whatever space its organizational units or components had authority to 
lease prior to the creation of the Department of Homeland Security, 
including--
    (a) Border patrol offices similar in character and utilization to 
police stations, involving the handling of prisoners, firearms, and 
motor vehicles, regardless of location (lease terms, including all 
options limited to 5 years);
    (b) Space for the U.S. Coast Guard oceanic unit, Woods Hole, MA; and

[[Page 223]]

    (c) Space for the U.S. Coast Guard port security activities.



Sec. 102-73.200  What types of special purpose space may the 
Department of the Interior lease?

    The Department of the Interior is delegated authority to lease the 
following types of special purpose space:
    (a) Space in buildings and land incidental thereto used by field 
crews of the Bureau of Reclamation, Bureau of Land Management, and the 
Geological Survey in areas where no other Government agencies are 
quartered (unimproved land may be leased only on a fiscal year basis).
    (b) National Parks/Monuments Visitors Centers consisting primarily 
of special purpose space (e.g., visitor reception, information, and rest 
room facilities) and not general office or administrative space.



Sec. 102-73.205  What types of special purpose space may the
Department of Justice lease?

    The Department of the Justice is delegated authority to lease the 
following types of special purpose space:
    (a) U.S. marshals office in any Alaska location (lease terms, 
including all options, limited to 5 years).
    (b) Space used for storage and maintenance of surveillance vehicles 
and seized property (lease terms, including all options, limited to 5 
years).
    (c) Space used for review and custody of records and other 
evidentiary materials (lease terms, including all options, limited to 5 
years).
    (d) Space used for trial preparation where space is not available in 
Federal buildings, Federal courthouses, USPS facilities, or GSA-leased 
buildings (lease terms limited to not more than 1 year).



Sec. 102-73.210  What types of special purpose space may the Office
of Thrift Supervision lease?

    The Office of Thrift Supervision is delegated authority to lease 
space for field offices of Examining Divisions required to be located 
within Office of Thrift Supervision buildings or immediately adjoining 
or adjacent to such buildings (lease terms, including all options, 
limited to 5 years).



Sec. 102-73.215  What types of special purpose space may the 
Department of Transportation lease?

    The Department of Transportation is delegated authority to lease the 
following types of special purpose space (or real property):
    (a) Land for the Federal Aviation Administration (FAA) at airports 
(unimproved land may be leased only on a fiscal year basis).
    (b) General purpose office space not exceeding 10,000 square feet 
for the FAA at airports in buildings under the jurisdiction of public or 
private airport authorities (lease terms, including all options, limited 
to 5 years).



Sec. 102-73.220  What types of special purpose space may the 
Department of the Treasury lease?

    The Department of the Treasury is delegated authority to lease the 
following types of special purpose space:
    (a) Space and land incidental thereto for the use of the Comptroller 
of the Currency, as well as the operation, maintenance and custody 
thereof (if unimproved, land may be leased only on a fiscal year basis; 
lease term for space, including all options, limited to 5 years).
    (b) Aerostat radar facilities necessary for U.S. Custom Service 
mission activities.



Sec. 102-73.225  What types of special purpose space may the 
Department of Veterans Affairs lease?

    The Department of Veterans Affairs is delegated authority to lease 
the following types of special purpose space:
    (a) Guidance and training centers located at schools and colleges.
    (b) Space used for veterans hospitals, including outpatient and 
medical-related clinics, such as drug, mental health, and alcohol.

              Limitations on the Use of Delegated Authority



Sec. 102-73.230  When must Federal agencies submit a prospectus
to lease real property?

    In accordance with 40 U.S.C. 3307, Federal agencies must submit a 
prospectus to the Administrator of General Services for leases involving 
a net annual rental, excluding services and

[[Page 224]]

utilities, in excess of the prospectus threshold provided in 40 U.S.C. 
3307. Agencies must be aware that prospectus thresholds are indexed and 
change each year.



Sec. 102-73.235  What is the maximum lease term that a Federal agency
may agree to when it has been delegated lease acquisition authority from GSA?

    Pursuant to GSA's authority to enter into lease agreements contained 
in 40 U.S.C. 585(a)(2), agencies delegated the authorities outlined 
herein may enter into leases for the term specified in the delegation. 
In those cases where agency special purposes space delegations include 
the authority to acquire unimproved land, the land may be leased only on 
a fiscal year basis.



Sec. 102-73.240  What policy must Federal agencies follow to acquire 
official parking spaces?

    Federal agencies that need parking must utilize available 
Government-owned or leased facilities. Federal agencies must make 
inquiries regarding availability of such Government-controlled space to 
GSA regional offices and document such inquiries. If no suitable 
Government-controlled facilities are available, an agency may use its 
own procurement authority to acquire parking by service contract.



            Subpart C_Acquisition by Purchase or Condemnation

                                Buildings



Sec. 102-73.245  When may Federal agencies consider purchase of 
buildings?

    A Federal agency may consider purchase of buildings on a case-by-
case basis if it has landholding authority and 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.
    (d) When otherwise in the best interests of the Government.



Sec. 102-73.250  Are agencies required to adhere to the policies for
locating Federal facilities when purchasing buildings?

    Yes, when purchasing buildings, agencies must comply with the 
location policies in this part and part 102-83 of this chapter.



Sec. 102-73.255  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 
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 Order 12072 (August 16, 1978, 43 FR 
36869) and Executive Order 13006 (40 U.S.C. 3306 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 102-75, subpart B, of this chapter.
    (b) A site adjacent to or in the proximity of an existing Federal 
building that 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 
``Brownfields'' program).
    (d) Purchase options to secure the future availability of a site.
    (e) All applicable location policies in this part and part 102-83 of 
this chapter.

[[Page 225]]

                                  Land



Sec. 102-73.260  What land acquisition policy must Federal agencies
follow?

    Federal agencies must follow the land acquisition policy in the 
Uniform Relocation Assistance and Real Property Acquisition Policies 
Act, as amended, 42 U.S.C. 4651-4655, which--
    (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. 102-73.265  What actions must Federal agencies take to facilitate
land acquisition?

    To facilitate land acquisition, Federal agencies must, among other 
things--
    (a) Appraise the real property before starting negotiations and give 
the owner (or the owner's representative) the opportunity to accompany 
the appraiser during the inspection;
    (b) Establish an amount estimated to be the just compensation before 
starting negotiations and promptly offer to acquire the property for 
this full amount;
    (c) Try to negotiate with owners on the price;
    (d) Pay the agreed purchase price to the property owner, or in the 
case of a condemnation, deposit payment in the registry of the court, 
for the benefit of the owner, before requiring the owner to surrender 
the property; and
    (e) Provide property owners (and occupants) at least 90 days' notice 
of displacement before requiring anyone to move. If a Federal agency 
permits the owner to keep possession for a short time after acquiring 
the owner's property, Federal agencies must not charge rent in excess of 
the property's fair rental value to a short-term occupier.

                            Just Compensation



Sec. 102-73.270  Are Federal agencies required to provide the owner
with a written statement of the amount established as just
compensation?

    Yes, Federal agencies must provide the owner with a written 
statement of this amount and summarize the basis for it. When it is 
appropriate, Federal agencies must separately state the just 
compensation for the property to be acquired and damages to the 
remaining real property.



Sec. 102-73.275  What specific information must be included in
the summary statement for the owner that explains the basis for
just compensation?

    The summary statement must--
    (a) Identify the real property and the estate or interest the 
Federal agency is acquiring;
    (b) Identify the buildings, structures, and other improvements the 
Federal agency considers part of the real property for which just 
compensation is being offered;
    (c) State that the Federal agency based the estimate of just 
compensation on the Government's estimate of the property's fair market 
value. If only part of a property or less than a full interest is being 
acquired, Federal agencies must explain how they determined the just 
compensation for it; and
    (d) State that the Government's estimate of just compensation is at 
least as much as the property's approved appraisal value.



Sec. 102-73.280  Where can Federal agencies find guidance on how 
to appraise the value of properties being acquired by the Federal
Government?

    The Interagency Land Acquisition Conference has developed, 
promulgated, and adopted the Uniform Appraisal Standards for Federal 
Land Acquisitions, sometimes referred to as the ``Yellow Book.'' The 
Interagency Land Acquisition Conference, established on November 27, 
1968, by invitation of the Attorney General, is a voluntary organization 
composed of the many Federal agencies engaged in the acquisition of real 
estate for public uses. The ``Yellow Book'' is published

[[Page 226]]

by the Appraisal Institute in cooperation with the U.S. Department of 
Justice and is available in hard copy or on the Department of Justice's 
internet Web site at http://www.usdoj.gov/enrd/land-ack/.



Sec. 102-73.285  [Reserved]



Sec. 102-73.290  Are there any prohibitions when a Federal agency 
pays ``just compensation'' to a tenant?

    Yes, Federal agencies must not--
    (a) Duplicate any payment to the tenant otherwise authorized by law; 
and
    (b) Pay a tenant unless the landowner disclaims all interests in the 
tenant's improvements. In consideration for any such payment, the tenant 
must assign, transfer, and release to the Federal agency all of its 
right, title, and interest in the improvements. The tenant may reject 
such payment under this subpart and obtain payment for its property 
interests according to other sections of applicable law.

                Expenses Incidental to Property Transfer



Sec. 102-73.295  What property transfer expenses must Federal agencies
cover when acquiring real property?

    Federal agencies must--
    (a) Reimburse property owners for all reasonable expenses actually 
incurred for recording fees, transfer taxes, documentary stamps, 
evidence of title, boundary surveys, legal descriptions of the real 
property, and similar expenses needed to convey the property to the 
Federal Government;
    (b) Reimburse property owners for all reasonable expenses actually 
incurred for penalty costs and other charges to prepay any existing, 
recorded mortgage that a property owner entered into in good faith and 
that encumbers the real property;
    (c) Reimburse property owners for all reasonable expenses actually 
incurred for the prorated part of any prepaid real property taxes that 
cover the period after the Federal Government gets title to the property 
or effective possession of it, whichever is earlier; and
    (d) Whenever possible, directly pay the costs identified in this 
section, so property owners will not have to pay them and then seek 
reimbursement from the Government.

                           Litigation Expenses



Sec. 102-73.300  Are Federal agencies required to pay for litigation
expenses incurred by a property owner because of a condemnation 
proceeding?

    Federal agencies must pay reasonable expenses for attorneys, 
appraisals, and engineering fees that a property owner incurs because of 
a condemnation proceeding, if any of the following are true:
    (a) The court's final judgment is that the Federal agency cannot 
acquire the real property by condemnation.
    (b) The Federal agency abandons the condemnation proceeding other 
than under an agreed-on settlement.
    (c) The court renders a judgment in the property owner's favor in an 
inverse condemnation proceeding or the Federal agency agrees to settle 
such proceeding.

                      Relocation Assistance Policy



Sec. 102-73.305  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, as amended, 42 U.S.C. 4651-4655, to 
eligible owners and tenants of property purchased for use by Federal 
agencies in accordance with the implementing regulations found in 49 CFR 
part 24. Appropriate relocation assistance means that the Federal agency 
must pay the displaced person for actual--
    (a) Reasonable moving expenses (in moving himself, his family, and 
business);
    (b) Direct losses of tangible personal property as a result of 
moving or discontinuing a business;
    (c) Reasonable expenses in searching for a replacement business or 
farm; and
    (d) Reasonable expenses necessary to reestablish a displaced farm, 
nonprofit

[[Page 227]]

organization, or small business at its new site, but not to exceed 
$10,000.



PART 102-74-FACILITY MANAGEMENT--Table of Contents



                      Subpart A_General Provisions

Sec.
102-74.5 What is the scope of this part?
102-74.10 What is the basic facility management policy?

                      Subpart B_Facility Management

102-74.15 What are the facility management responsibilities of occupant 
          agencies?

                           Occupancy Services

102-74.20 What are occupancy services?
102-74.25 What responsibilities do Executive agencies have regarding 
          occupancy services?
102-74.30 What standard in providing occupancy services must Executive 
          agencies follow?
102-74.35 What building services must Executive agencies provide?

                           Concession Services

102-74.40 What are concession services?
102-74.45 When must Federal agencies provide concession services?
102-74.50 Are Federal agencies required to give blind vendors priority 
          in operating vending facilities?
102-74.55 Are vending facilities authorized under the Randolph-Sheppard 
          Act operated by permit or contract?
102-74.60 Are Federal agencies required to give blind vendors priority 
          in operating cafeterias?
102-74.65 Are cafeterias authorized under the Randolph-Sheppard Act 
          operated by permit or contract?
102-74.70 Are commercial vendors and nonprofit organizations required to 
          operate vending facilities by permit or contractual 
          arrangement?
102-74.75 May Federal agencies sell tobacco products in vending machines 
          in Government-owned and leased space?
102-74.80-102-74.95 [Reserved]

                          Conservation Program

102-74.100 What are conservation programs?

                             Asset Services

102-74.105 What are asset services?
102-74.110 What asset services must Executive agencies provide?
102-74.115 What standard in providing asset services must Executive 
          agencies follow?
102-74.120 Is a prospectus required to be submitted before emergency 
          alterations can be performed?
102-74.125 Are prospectuses required for reimbursable alteration 
          projects?
102-74.130 When a prospectus is required, can GSA prepare a prospectus 
          for a reimbursable alteration project?
102-74.135 Who selects construction and alteration projects that are to 
          be performed?
102-74.140 On what basis does the Administrator select construction and 
          alteration projects?
102-74.145 What information must a Federal agency submit to GSA after 
          the agency has identified a need for construction or 
          alteration of a public building?
102-74.150 Who submits prospectuses for the construction or alteration 
          of public buildings to the Congressional committees?

                           Energy Conservation

102-74.155 What energy conservation policy must Federal agencies follow 
          in the management of facilities?
102-74.160 What actions must Federal agencies take to promote energy 
          conservation?
102-74.165 What energy standards must Federal agencies follow for 
          existing facilities?
102-74.170 May exceptions to the energy conservation policies in this 
          subpart be granted?
102-74.175 Are Government-leased buildings required to conform with the 
          policies in this subpart?
102-74.180 What illumination levels must Federal agencies maintain on 
          Federal facilities?
102-74.185 What heating and cooling policy must Federal agencies follow 
          in Federal facilities?
102-74.190 Are portable heaters, fans, and other such devices allowed in 
          Government-controlled facilities?
102-74.195 What ventilation policy must Federal agencies follow?
102-74.200 What information are Federal agencies required to report to 
          the Department of Energy (DOE)?

                               Ridesharing

102-74.205 What Federal facility ridesharing policy must Executive 
          agencies follow?
102-74.210 What steps must Executive agencies take to promote 
          ridesharing at Federal facilities?
102-74.215-102-74.225 [Reserved]

                       Occupant Emergency Program

102-74.230 Who is responsible for establishing an occupant emergency 
          program?

[[Page 228]]

102-74.235 Are occupant agencies required to cooperate with the 
          Designated Official in the implementation of the emergency 
          plans and the staffing of the emergency organization?
102-74.240 What are Federal agencies' occupant emergency 
          responsibilities?
102-74.245 Who makes the decision to activate the Occupant Emergency 
          Organization?
102-74.250 What information must the Designated Official use to make a 
          decision to activate the Occupant Emergency Organization?
102-74.255 How must occupant evacuation or relocation be accomplished 
          when there is immediate danger to persons or property, such as 
          fire, explosion, or the discovery of an explosive device (not 
          including a bomb threat)?
102-74.260 What action must the Designated Official initiate when there 
          is advance notice of an emergency?

                           Parking Facilities

102-74.265 Who must provide for the regulation and policing of parking 
          facilities?
102-74.270 Are vehicles required to display parking permits in parking 
          facilities?
102-74.275 May Federal agencies authorize lessors or parking management 
          contractors to manage, regulate, and police parking 
          facilities?
102-74.280 Are privately owned vehicles converted for propane 
          carburetion permitted in underground parking facilities?
102-74.285 How must Federal agencies assign priority to parking spaces 
          in controlled areas?
102-74.290 May Federal agencies allow employees to use parking spaces 
          not required for official needs?
102-74.295 Who determines the number of employee parking spaces for each 
          facility?
102-74.300 How must space available for employee parking be allocated 
          among occupant agencies?
102-74.305 How must Federal agencies assign available parking spaces to 
          their employees?
102-74.310 What measures must Federal agencies take to improve the 
          utilization of parking facilities?

                                 Smoking

102-74.315 What is the smoking policy for interior space in Federal 
          facilities?
102-74.320 Are there any exceptions to the smoking policy for interior 
          space in Federal facilities?
102-74.325 Are designated smoking areas authorized in interior space?
102-74.330 What smoking restrictions apply to outside areas under 
          Executive branch control?
102-74.335 Who is responsible for furnishing and installing signs 
          concerning smoking restrictions in the building, and in and 
          around building entrance doorways and air intake ducts?
102-74.340 Who is responsible for monitoring and controlling areas 
          designated for smoking by an agency head and for identifying 
          those areas with proper signage?
102-74.345 Does the smoking policy in this part apply to the judicial 
          branch?
102-74.350 Are agencies required to meet their obligations under the 
          Federal Service Labor-Management Relations Act where there is 
          an exclusive representative for the employees prior to 
          implementing this smoking policy?
102-74.351 If a state or local government has a smoke-free ordinance 
          that is more strict than the smoking policy for Federal 
          facilities, does the state or local law or Federal policy 
          control?

                      Accident and Fire Prevention

102-74.355 With what accident and fire prevention standards must Federal 
          facilities comply?
102-74.360 What are the specific accident and fire prevention 
          responsibilities of occupant agencies?

                  Subpart C_Conduct on Federal Property

                              Applicability

102-74.365 To whom does this subpart apply?

                               Inspection

102-74.370 What items are subject to inspection by Federal agencies?

                          Admission to Property

102-74.375 What is the policy on admitting persons to Government 
          property?

                        Preservation of Property

102-74.380 What is the policy concerning the preservation of property?

                  Conformity With Signs and Directions

102-74.385 What is the policy concerning conformity with official signs 
          and directions?

                              Disturbances

102-74.390 What is the policy concerning disturbances?

                                Gambling

102-74.395 What is the policy concerning gambling?

                        Narcotics and Other Drugs

102-74.400 What is the policy concerning the possession and use of 
          narcotics and other drugs?

[[Page 229]]

                           Alcoholic Beverages

102-74.405 What is the policy concerning the use of alcoholic beverages?

                 Soliciting, Vending and Debt Collection

102-74.410 What is the policy concerning soliciting, vending and debt 
          collection?

                   Posting and Distributing Materials

102-74.415 What is the policy for posting and distributing materials?

        Photographs for News, Advertising or Commercial Purposes

102-74.420 What is the policy concerning photographs for news, 
          advertising or commercial purposes?

                         Dogs and Other Animals

102-74.425 What is the policy concerning dogs and other animals on 
          Federal property?

                              Breastfeeding

102-74.426 May a woman breastfeed her child in a Federal building or on 
          Federal property?

                    Vehicular and Pedestrian Traffic

102-74.430 What is the policy concerning vehicular and pedestrian 
          traffic on Federal property?

                               Explosives

102-74.435 What is the policy concerning explosives on Federal property?

                                 Weapons

102-74.440 What is the policy concerning weapons on Federal property?

                            Nondiscrimination

102-74.445 What is the policy concerning discrimination on Federal 
          property?

                                Penalties

102-74.450 What are the penalties for violating any rule or regulation 
          in this subpart?

                   Impact on Other Laws or Regulations

102-74.455 What impact do the rules and regulations in this subpart have 
          on other laws or regulations?

              Subpart D_Occasional Use of Public Buildings

102-74.460 What is the scope of this subpart?

                         Application for Permit

102-74.465 Is a person or organization that wishes to use a public area 
          required to apply for a permit from a Federal agency?
102-74.470 What information must persons or organizations submit so that 
          Federal agencies may consider their application for a permit?
102-74.475 If an applicant proposes to use a public area to solicit 
          funds, is the applicant required to make a certification?

                                 Permits

102-74.480 How many days does a Federal agency have to issue a permit 
          following receipt of a completed application?
102-74.485 Is there any limitation on the length of time of a permit?
102-74.490 What if more than one permit is requested for the same area 
          and time?
102-74.495 If a permit involves demonstrations or activities that may 
          lead to civil disturbances, what action must a Federal agency 
          take before approving such a permit application?

         Disapproval of Applications or Cancellation of Permits

102-74.500 Can Federal agencies disapprove permit applications or cancel 
          issued permits?
102-74.505 What action must Federal agencies take after disapproving an 
          application or canceling an issued permit?

                                 Appeals

102-74.510 How may the disapproval of a permit application or 
          cancellation of an issued permit be appealed?
102-74.515 Will the affected person or organization and the Federal 
          agency buildings manager have an opportunity to state their 
          positions on the issues?
102-74.520 How much time does the Regional Officer have to affirm or 
          reverse the Federal agency buildings manager's decision after 
          receiving the notification of appeal from the affected person 
          or organization?

                             Schedule of Use

102-74.525 May Federal agencies reserve time periods for the use of 
          public areas for official Government business or for 
          maintenance, repair, and construction?

                              Hours of Use

102-74.530 When may public areas be used?

                           Services and Costs

102-74.535 What items may Federal agencies provide to permittees free of 
          charge?
102-74.540 What are the items for which permittees must reimburse 
          Federal agencies?
102-74.545 May permittees make alterations to the public areas?

[[Page 230]]

102-74.550 What items are permittees responsible for furnishing?

                                 Conduct

102-74.555 What rules of conduct must all permittees observe while on 
          Federal property?

                   Non-affiliation With the Government

102-74.560 May Federal agencies advise the public of the presence of any 
          permittees and their non-affiliation with the Federal 
          Government?

        Subpart E_Installing, Repairing, and Replacing Sidewalks

102-74.565 What is the scope of this subpart?
102-74.570 Are State and local governments required to fund the cost of 
          installing, repairing, and replacing sidewalks?
102-74.575 How do Federal agencies arrange for work on sidewalks?
102-74.580 Who decides when to replace a sidewalk?

                           Subpart F_Telework

102-74.585 What Federal facility telework policy must Executive agencies 
          follow?
102-74.590 What steps must agencies take to implement these laws and 
          policies?
102-74.595 How can agencies obtain guidance, assistance, and oversight 
          regarding alternative workplace arrangements from GSA?
102-74.600 Should Federal agencies utilize telework centers?

Appendix to Part 102-74--Rules and Regulations Governing Conduct on 
          Federal Property

    Authority: 40 U.S.C. 121(c); Executive Order 12191, 45 FR 7997, 3 
CFR, 1980 Comp., p 138.

    Source: 70 FR 67798, Nov. 8, 2005, unless otherwise noted.



                      Subpart A_General Provisions



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's 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 accomplishes 
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.



                      Subpart B_Facility Management



Sec. 102-74.15  What are the facility management responsibilities
of occupant agencies?

    Occupants of facilities under the custody and control of Federal 
agencies must--
    (a) Cooperate to the fullest extent with all pertinent facility 
procedures and regulations;
    (b) Promptly report all crimes and suspicious circumstances 
occurring on Federally controlled property first to the regional Federal 
Protective Service, and as appropriate, the local responding law 
enforcement authority;
    (c) Provide training to employees regarding protection and responses 
to emergency situations; and
    (d) Make recommendations for improving the effectiveness of 
protection in Federal facilities.

                           Occupancy Services



Sec. 102-74.20  What are occupancy services?

    Occupancy services are--
    (a) Building services (see Sec. 102-74.35);
    (b) Concession services (see Sec. 102-74.40); and
    (c) Conservation programs (see Sec. 102-74.100).



Sec. 102-74.25  What responsibilities do Executive agencies have
regarding occupancy services?

    Executive agencies, upon approval from GSA, must manage, administer

[[Page 231]]

and enforce the requirements of agreements (such as Memoranda of 
Understanding) and contracts that provide for the delivery of occupancy 
services.



Sec. 102-74.30  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 controlled facilities to conform to statutory requirements 
and to implement cost-reduction efforts.



Sec. 102-74.35  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. 902 on P.O.W./M.I.A. flag 
display days.

                           Concession Services



Sec. 102-74.40  What are concession services?

    Concession services are any food or snack services provided by a 
Randolph-Sheppard Act vendor, commercial contractor or nonprofit 
organization (see definition in Sec. 102-71.20 of this chapter), in 
vending facilities such as--
    (a) Vending machines;
    (b) Sundry facilities;
    (c) Prepackaged facilities;
    (d) Snack bars; and
    (e) Cafeterias.



Sec. 102-74.45  When must Federal agencies provide concession 
services?

    Federal agencies, upon approval from GSA, must provide concession 
services where building population supports such services and when the 
availability of existing commercial services is insufficient to meet 
Federal agency needs. Prior to establishing concessions, Federal 
agencies must ensure that--
    (a) The proposed concession will be established and operated in 
conformance with applicable policies, safety, health and sanitation 
codes, laws, regulations, etc., and will not contravene the terms of any 
lease or other contractual arrangement; and
    (b) Sufficient funds are legally available to cover all costs for 
which the Government may be responsible.



Sec. 102-74.50  Are Federal agencies required to give blind vendors
priority in operating vending facilities?

    With certain exceptions, the Randolph-Sheppard Act (20 U.S.C. 107 et 
seq.) requires that blind persons licensed by a State licensing agency 
under the provisions of the Randolph-Sheppard Act be authorized to 
operate vending facilities on Federal property, including leased 
buildings. The Department of Education (ED) is responsible for the 
administration of the Randolph-Sheppard Act as set forth at 34 CFR part 
395. The ED designates individual State licensing agencies with program 
administration responsibility. The Randolph-Sheppard Act and its 
implementing regulations require that Federal property managers give 
priority to and notify the State licensing agencies in writing of any 
opportunity.



Sec. 102-74.55  Are vending facilities authorized under the Randolph
-Sheppard Act operated by permit or contract?

    Vending facilities are authorized by permit. As set forth in 34 CFR 
part 395, the Federal property manager approves and signs State 
licensing agency permits that authorize States to license blind vendors 
to operate vending facilities (including vending machines) on Federal 
property.



Sec. 102-74.60  Are Federal agencies required to give blind vendors
priority in operating cafeterias?

    Yes. Federal agencies are required to give Randolph-Sheppard vendors 
priority in the operation of cafeterias when the State licensing agency 
is in

[[Page 232]]

the competitive range as set forth at 34 CFR part 395.



Sec. 102-74.65  Are cafeterias authorized under the Randolph-Sheppard 
Act operated by permit or contract?

    They are operated by contract. As set forth at 34 CFR part 395, the 
Federal property manager contracts with the State licensing agency to 
license blind vendors to operate cafeterias on Federal property.



Sec. 102-74.70  Are commercial vendors and nonprofit organizations
required to operate vending facilities by permit or contractual
arrangement?

    Commercial vendors and nonprofit organizations must operate vending 
facilities, including cafeterias, under a contractual arrangement with 
Federal agencies.



Sec. 102-74.75  May Federal agencies sell tobacco products in vending
machines in Government-owned and leased space?

    No. Section 636 of Public Law 104-52 prohibits the sale of tobacco 
products in vending machines in Government-owned and leased space. The 
Administrator of GSA or the head of an Agency may designate areas not 
subject to the prohibition, if minors are prohibited and reports are 
made to the appropriate committees of Congress.



Sec. Sec. 102-74.80--102-74.95  [Reserved]

                          Conservation Programs



Sec. 102-74.100  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).

                             Asset Services



Sec. 102-74.105  What are asset services?

    Asset services include repairs (other than those minor repairs 
identified in Sec. 102-74.35(a)), alterations and modernizations for 
real property assets. Typically, these are the types of repairs and 
alterations necessary to preserve or enhance the value of the real 
property asset.



Sec. 102-74.110  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. 102-74.35(a)), alterations, and modernizations for real 
property assets. For repairs and alterations projects for which the 
estimated cost exceeds the prospectus threshold, Federal agencies must 
follow the prospectus submission and approval policy identified in this 
part and part 102-73 of this chapter.



Sec. 102-74.115  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.



Sec. 102-74.120  Is a prospectus required to be submitted before
emergency alterations can be performed?

    No. A prospectus does not need to be submitted before emergency 
alterations are performed, but GSA must submit a prospectus as soon as 
possible after the emergency. Federal agencies must immediately alter a 
building if the alteration protects people, buildings, or equipment, 
saves lives, and/or avoids further property damage. Federal agencies can 
take these actions in an emergency before GSA submits a prospectus on 
the alterations to the Senate Committee on Environment and Public Works 
and the House Committee on Transportation and Infrastructure.

[[Page 233]]



Sec. 102-74.125  Are prospectuses required for reimbursable alteration
projects?

    A project that is to be financed in whole or in part from funds 
appropriated to the requesting agency may be performed without a 
prospectus if--
    (a) Payment is made from agency appropriations that are not subject 
to 40 U.S.C. 3307; and
    (b) GSA's portion of the cost, if any, does not exceed the 
prospectus threshold.



Sec. 102-74.130  When a prospectus is required, can GSA prepare a 
prospectus for a reimbursable alteration project?

    Yes, if requested by a Federal agency, GSA will prepare a prospectus 
for a reimbursable alteration project.



Sec. 102-74.135  Who selects construction and alteration projects 
that are to be performed?

    The Administrator of General Services selects construction and 
alteration projects to be performed.



Sec. 102-74.140  On what basis does the Administrator select 
construction and alteration projects?

    The Administrator selects projects based on a continuing 
investigation and survey of the public building needs of the Federal 
Government. These projects must be equitably distributed throughout the 
United States, with due consideration given to each project's 
comparative urgency.



Sec. 102-74.145  What information must a Federal agency submit to GSA
after the agency has identified a need for construction or alteration
of a public building?

    Federal agencies identifying a need for construction or alteration 
of a public building must provide information, such as a description of 
the work, location, estimated maximum cost, and justification to the 
Administrator of General Services.



Sec. 102-74.150  Who submits prospectuses for the construction or 
alteration of public buildings to the Congressional committees?

    The Administrator of General Services must submit prospectuses for 
public building construction or alteration projects to the Senate 
Committee on Environment and Public Works and the House Committee on 
Transportation and Infrastructure for approval.

                           Energy Conservation



Sec. 102-74.155  What energy conservation policy must Federal agencies
follow in the management of facilities?

    Federal agencies must--
    (a) Comply with the energy conservation guidelines in 10 CFR part 
436 (Federal Energy Management and Planning Programs); and
    (b) Observe the energy conservation policies cited in this part.



Sec. 102-74.160  What actions must Federal agencies take to promote
energy conservation?

    Federal agencies must--
    (a) Turn off lights and equipment when not needed;
    (b) Not block or impede ventilation; and
    (c) Keep windows and other building accesses closed during the 
heating and cooling seasons.



Sec. 102-74.165  What energy standards must Federal agencies follow
for existing facilities?

    Existing Federal facilities must meet the energy standards 
prescribed by the American Society of Heating, Refrigerating, and Air 
Conditioning Engineers and the Illuminating Engineering Society of North 
American in ASHRAE/IES Standard 90A-1980, as amended by the Department 
of Energy. Federal agencies must apply these energy standards where they 
can be achieved through life cycle, cost effective actions.



Sec. 102-74.170  May exceptions to the energy conservation policies 
in this subpart be granted?

    Yes, the Federal agency buildings manager may grant exceptions to 
the foregoing policies in this subpart to enable agencies to accomplish 
their missions more effectively and efficiently.

[[Page 234]]



Sec. 102-74.175  Are Government-leased buildings required to conform
with the policies in this subpart?

    Yes, all new lease contracts must be in conformance with the 
policies prescribed in this subpart. Federal agencies must administer 
existing lease contracts in accordance with these policies to the 
maximum extent feasible.



Sec. 102-74.180  What illumination levels must Federal agencies 
maintain on Federal facilities?

    Except where special circumstances exist, Federal agencies must 
maintain illumination levels at--
    (a) 50 foot-candles at work station surfaces, measured at a height 
of 30 inches above floor level, during working hours (for visually 
difficult or critical tasks, additional lighting may be authorized by 
the Federal agency buildings manager);
    (b) 30 foot-candles in work areas during working hours, measured at 
30 inches above floor level;
    (c) 10 foot-candles, but not less than 1 foot-candle, in non-work 
areas, during working hours (normally this will require levels of 5 
foot-candles at elevator boarding areas, minimum of 1 foot-candle at the 
middle of corridors and stairwells as measured at the walking surface, 1 
foot-candle at the middle of corridors and stairwells as measured at the 
walking surface, and 10 foot-candles in storage areas); and
    (d) Levels essential for safety and security purposes, including 
exit signs and exterior lights.



Sec. 102-74.185  What heating and cooling policy must Federal 
agencies follow in Federal facilities?

    Within the limitations of the building systems, Federal agencies 
must--
    (a) Operate heating and cooling systems in the most overall energy 
efficient and economical manner;
    (b) Maintain temperatures to maximize customer satisfaction by 
conforming to local commercial equivalent temperature levels and 
operating practices;
    (c) Set heating temperatures no higher than 55 degrees Fahrenheit 
during non-working hours;
    (d) Not provide air-conditioning during non-working hours, except as 
necessary to return space temperatures to a suitable level for the 
beginning of working hours;
    (e) Not permit reheating, humidification and simultaneous heating 
and cooling; and
    (f) Operate building systems as necessary during extreme weather 
conditions to protect the physical condition of the building.



Sec. 102-74.190  Are portable heaters, fans and other such devices
allowed in Government-controlled facilities?

    Federal agencies are prohibited from operating portable heaters, 
fans, and other such devices in Government-controlled facilities unless 
authorized by the Federal agency buildings manager.



Sec. 102-74.195  What ventilation policy must Federal agencies follow?

    During working hours in periods of heating and cooling, Federal 
agencies must provide ventilation in accordance with ASHRAE Standard 62, 
Ventilation for Acceptable Indoor Air Quality, where physically 
practical. Where not physically practical, Federal agencies must provide 
the maximum allowable amount of ventilation during periods of heating 
and cooling and pursue opportunities to increase ventilation up to 
current standards. ASHRAE Standard 62 is available from ASHRAE 
Publications Sales, 1791 Tullie Circle NE, Atlanta, GA 30329-2305.



Sec. 102-74.200  What information are Federal agencies required to
report to the Department of Energy (DOE)?

    Federal agencies, upon approval of GSA, must report to the DOE the 
energy consumption in buildings, facilities, vehicles, and equipment 
within 45 calendar days after the end of each quarter as specified in 
the DOE Federal Energy Usage Report DOE F 6200.2 Instructions.

                               Ridesharing



Sec. 102-74.205  What Federal facility ridesharing policy must
Executive agencies follow?

    (a) In accordance with Executive Order 12191, ``Federal Facility 
Ridesharing Program'' (3 CFR, 1980 Comp.,

[[Page 235]]

p. 138), 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.
    (b) In accordance with the Federal Employees Clean Air Incentives 
Act (Public Law 103-172), the Federal Government is required to take 
steps to improve the air quality, and to reduce traffic congestion by 
providing for the establishment of programs that encourage Federal 
employees to commute to work by means other than single-occupancy motor 
vehicles.
    (c) In accordance with the Transportation Equity Act for the 21st 
Century (Public Law 105-178), employers, including the Federal 
Government, are to offer employees transportation fringe benefits.



Sec. 102-74.210  What steps must Executive agencies take to promote 
ridesharing at Federal facilities?

    (a) Under Executive Order 12191, ``Federal Facility Ridesharing 
Program,'' agencies shall--
    (1) Establish an annual ridesharing goal for each facility; and
    (2) Cooperate with State and local ridesharing agencies where such 
agencies exist.
    (b) Under the Federal Employees Clean Air Incentives Act (Public Law 
103-172), agencies shall--
    (1) Issue transit passes or similar vouchers to exchange for transit 
passes;
    (2) Furnish space, facilities, and services to bicyclists;
    (3) Provide non-monetary incentives as provided by other provisions 
of law or other authority; and
    (4) Submit biennially to GSA (as directed in House of 
Representatives Report 103-356, dated November 10, 1993) a report that 
covers--
    (i) Agency programs offered under Public law 103-172;
    (ii) Description of each program;
    (iii) Extent of employee participation in, and costs to the 
Government associated with, each program;
    (iv) Assessment of environmental or other benefits realized from 
these programs; and
    (v) Other matters that may be appropriate under Public Law 103-172.
    (c) In accordance with the Transportation Equity Act for the 21st 
Century, agencies may (in lieu of or in combination with other commuter 
benefits) provide fringe benefits to qualified commuters, at no cost, by 
giving them a monthly pretax payroll deduction to support and encourage 
the use of mass transportation systems.



Sec. Sec. 102-74.215--102-74.225  [Reserved]

                       Occupant Emergency Program



Sec. 102-74.230  Who is responsible for establishing an occupant
emergency program?

    The Designated Official (as defined in Sec. 102-71.20 of this 
chapter) is responsible for developing, implementing and maintaining an 
Occupant Emergency Plan (as defined in Sec. 102-71.20 of this chapter). 
The Designated Official's responsibilities include establishing, 
staffing and training an Occupant Emergency Organization with agency 
employees. Federal agencies, upon approval from GSA, must assist in the 
establishment and maintenance of such plans and organizations.



Sec. 102-74.235  Are occupant agencies required to cooperate with the 
Designated Official in the implementation of the emergency plans and 
the staffing of the emergency organization?

    Yes, all occupant agencies of a facility must fully cooperate with 
the Designated Official in the implementation of the emergency plans and 
the staffing of the emergency organization.



Sec. 102-74.240  What are Federal agencies' occupant emergency 
responsibilities?

    Federal agencies, upon approval from GSA, must--
    (a) Provide emergency program policy guidance;
    (b) Review plans and organizations annually;
    (c) Assist in training of personnel;
    (d) Otherwise provide for the proper administration of Occupant 
Emergency

[[Page 236]]

Programs (as defined in Sec. 102-71.20 of this chapter);
    (e) Solicit the assistance of the lessor in the establishment and 
implementation of plans in leased space; and
    (f) Assist the Occupant Emergency Organization (as defined in Sec. 
102-71.20 of this chapter) by providing technical personnel qualified in 
the operation of utility systems and protective equipment.



Sec. 102-74.245  Who makes the decision to activate the Occupant
Emergency Organization?

    The decision to activate the Occupant Emergency Organization must be 
made by the Designated Official, or by the designated alternate 
official. After normal duty hours, the senior Federal official present 
must represent the Designated Official or his/her alternates and must 
initiate action to cope with emergencies in accordance with the plans.



Sec. 102-74.250  What information must the Designated Official use to
make a decision to activate the Occupant Emergency Organization?

    The Designated Official must make a decision to activate the 
Occupant Emergency Organization based upon the best available 
information, including--
    (a) An understanding of local tensions;
    (b) The sensitivity of target agency(ies);
    (c) Previous experience with similar situations;
    (d) Advice from the Federal agency buildings manager;
    (e) Advice from the appropriate Federal law enforcement official; 
and
    (f) Advice from Federal, State, and local law enforcement agencies.



Sec. 102-74.255  How must occupant evacuation or relocation be
accomplished when there is immediate danger to persons or property,
such as fire, explosion or the discovery of an explosive device 
(not including a bomb threat)?

    The Designated Official must initiate action to evacuate or relocate 
occupants in accordance with the plan by sounding the fire alarm system 
or by other appropriate means when there is immediate danger to persons 
or property, such as fire, explosion or the discovery of an explosive 
device (not including a bomb threat).



Sec. 102-74.260  What action must the Designated Official initiate 
when there is advance notice of an emergency?

    The Designated Official must initiate appropriate action according 
to the plan when there is advance notice of an emergency.

                           Parking Facilities



Sec. 102-74.265  Who must provide for the regulation and policing 
of parking facilities?

    Federal agencies, upon approval from GSA, must provide for any 
necessary regulation and policing of parking facilities, which may 
include--
    (a) The issuance of traffic rules and regulations;
    (b) The installation of signs and markings for traffic control 
(Signs and markings must conform with the Manual on Uniform Traffic 
Control Devices published by the Department of Transportation);
    (c) The issuance of citations for parking violations; and
    (d) The immobilization or removal of illegally parked vehicles.



Sec. 102-74.270  Are vehicles required to display parking permits 
in parking facilities?

    When the use of parking space is controlled as in Sec. 102-74.265, 
all privately owned vehicles other than those authorized to use 
designated visitor or service areas must display a parking permit. This 
requirement may be waived in parking facilities where the number of 
available spaces regularly exceeds the demand for such spaces.



Sec. 102-74.275  May Federal agencies authorize lessors or parking 
management contractors to manage, regulate and police parking
facilities?

    Yes, Federal agencies, upon approval from GSA, may authorize lessors 
or parking management contractors to manage, regulate and police parking 
facilities.

[[Page 237]]



Sec. 102-74.280  Are privately owned vehicles converted for propane 
carburetion permitted in underground parking facilities?

    Federal agencies must not permit privately owned vehicles converted 
for propane carburetion to enter underground parking facilities unless 
the owner provides to the occupant agency and the Federal agency 
buildings manager the installer's certification that the installation 
methods and equipment comply with National Fire Protection Association 
(NFPA) Standard No. 58.



Sec. 102-74.285  How must Federal agencies assign priority to parking 
spaces in controlled areas?

    Federal agencies must reserve official parking spaces, in the 
following order of priority, for--
    (a) Official postal vehicles at buildings containing the U.S. Postal 
Service's mailing operations;
    (b) Federally owned vehicles used to apprehend criminals, fight 
fires and handle other emergencies;
    (c) Private vehicles owned by Members of Congress (but not their 
staffs);
    (d) Private vehicles owned by Federal judges (appointed under 
Article III of the Constitution), which may be parked in those spaces 
assigned for the use of the Court, with priority for them set by the 
Administrative Office of the U.S. Courts;
    (e) Other Federally owned and leased vehicles, including those in 
motor pools or assigned for general use;
    (f) Service vehicles, vehicles used in child care center operations, 
and vehicles of patrons and visitors (Federal agencies must allocate 
parking for disabled visitors whenever an agency's mission requires 
visitor parking); and
    (g) Private vehicles owned by employees, using spaces not needed for 
official business.
    However, in major metropolitan areas, Federal agencies may determine 
that allocations by zone would make parking more efficient or equitable, 
taking into account the priority for official parking set forth in this 
section.



Sec. 102-74.290  May Federal agencies allow employees to use parking
spaces not required for official needs?

    Yes, Federal agencies may allow employees to use parking spaces not 
required for official needs.



Sec. 102-74.295  Who determines the number of employee parking spaces
for each facility?

    The Federal agency buildings manager must determine the total number 
of spaces available for employee parking. Typically, Federal agencies 
must make a separate determination for each parking facility. However, 
in major metropolitan areas, Federal agencies may determine that 
allocations by zone would make parking more efficient or more equitably 
available.



Sec. 102-74.300  How must space available for employee parking be 
allocated among occupant agencies?

    The Federal agency buildings manager must allocate space available 
for employee parking among occupant agencies on an equitable basis, such 
as by allocating such parking in proportion to each agency's share of 
building space, office space or total employee population, as 
appropriate. In certain cases, Federal agencies may allow a third party, 
such as a board composed of representatives of agencies sharing space, 
to determine proper parking allocations among the occupant agencies.



Sec. 102-74.305  How must Federal agencies assign available parking 
spaces to their employees?

    Federal agencies must assign available parking spaces to their 
employees using the following order of priority:
    (a) Severely disabled employees (see definition in Sec. 102-71.20 
of this chapter).
    (b) Executive personnel and persons who work unusual hours.
    (c) Vanpool/carpool vehicles.
    (d) Privately owned vehicles of occupant agency employees that are 
regularly used for Government business at least 12 days per month and 
that qualify for reimbursement of mileage and travel expenses under 
Government travel regulations.

[[Page 238]]

    (e) Other privately owned vehicles of employees, on a space-
available basis. (In locations where parking allocations are made on a 
zonal basis, GSA and affected agencies may cooperate to issue additional 
rules, as appropriate.)



Sec. 102-74.310  What measures must Federal agencies take to improve
the utilization of parking facilities?

    Federal agencies must take all feasible measures to improve the 
utilization of parking facilities, including--
    (a) The conducting of surveys and studies;
    (b) The periodic review of parking space allocations;
    (c) The dissemination of parking information to occupant agencies;
    (d) The implementation of parking incentives that promote 
ridesharing;
    (e) The use of stack parking practices, where appropriate; and
    (f) The employment of parking management contractors and 
concessionaires, where appropriate.

                                 Smoking



Sec. 102-74.315  What is the smoking policy for interior space in
Federal facilities?

    Pursuant to Executive Order 13058, ``Protecting Federal Employees 
and the Public From Exposure to Tobacco Smoke in the Federal Workplace'' 
(3 CFR, 1997 Comp., p. 216), it is the policy of the executive branch to 
establish a smoke-free environment for Federal employees and members of 
the public visiting or using Federal facilities. The smoking of tobacco 
products is prohibited in all interior space owned, rented or leased by 
the executive branch of the Federal Government.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.320  Are there any exceptions to the smoking policy for
interior space in Federal facilities?

    Yes, the smoking policy does not apply in--
    (a) Any residential accommodation for persons voluntarily or 
involuntarily residing, on a temporary or long-term basis, in a building 
owned, leased or rented by the Federal Government;
    (b) Portions of Federally owned buildings leased, rented or 
otherwise provided in their entirety to non-Federal parties;
    (c) Places of employment in the private sector or in other non-
Federal Governmental units that serve as the permanent or intermittent 
duty station of one or more Federal employees; and
    (d) Instances where an agency head establishes limited and narrow 
exceptions that are necessary to accomplish agency missions. Such 
exceptions must be in writing, approved by the agency head and, to the 
fullest extent possible, provide protection of nonsmokers from exposure 
to environmental tobacco smoke. Authority to establish such exceptions 
may not be delegated.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.325  Are designated smoking areas authorized in interior
space?

    No, unless specifically established by an agency head as provided by 
Sec. 102-74.320(d). A previous exception for designated smoking areas 
is being eliminated. All designated interior smoking areas will be 
closed effective June 19, 2009. This six-month phase-in period is 
designed to establish a fixed but reasonable time for implementing this 
policy change. This phase-in period will provide agencies with time to 
comply with their obligations under the Federal Service Labor-Management 
Relations Act, as amended, 5 U.S.C. Ch. 71, Labor-Management Relations, 
in those circumstances where there is an exclusive union representative 
for the employees.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.330  What smoking restrictions apply to outside areas 
under Executive branch control?

    Effective June 19, 2009, smoking is prohibited in courtyards and 
within twenty-five (25) feet of doorways and air intake ducts on outdoor 
space under the jurisdiction, custody or control of GSA. This six-month 
phase-in period is designed to establish a fixed but reasonable time for 
implementing this policy change. This phase-in period will provide 
agencies with time to comply with their obligations under the Federal 
Service Labor-Management Relations Act, as amended, 5

[[Page 239]]

U.S.C. Ch. 71, Labor-Management Relations, in those circumstances where 
there is an exclusive union representative for the employees.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.335  Who is responsible for furnishing and installing
signs concerning smoking restrictions in the building, and in and 
around building entrance doorways and air intake ducts?

    Federal agency building managers are responsible for furnishing and 
installing suitable, uniform signs in the building, and in and around 
building entrance doorways and air intake ducts, reading ``No Smoking,'' 
``No Smoking Except in Designated Areas,'' ``No Smoking Within 25 Feet 
of Doorway,'' or ``No Smoking Within 25 Feet of Air Duct,'' as 
applicable.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.340  Who is responsible for monitoring and controlling
areas designated for smoking by an agency head and for identifying
those areas with proper signage?

    Agency heads are responsible for monitoring and controlling areas 
designated by them under Sec. 102-74.320(d) for smoking and identifying 
these areas with proper signage. Suitable, uniform signs reading 
``Designated Smoking Area'' must be furnished and installed by the 
occupant agency.

[73 FR 77518, Dec. 19, 2008]



Sec. 102-74.345  Does the smoking policy in this part apply to the
judicial branch?

    This smoking policy applies to the judicial branch when it occupies 
space in buildings controlled by the executive branch. Furthermore, the 
Federal Chief Judge in a local jurisdiction may be deemed to be 
comparable to an agenc