[Title 41 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 1997 Edition]
[From the U.S. Government Publishing Office]


          41



          Public Contracts and Property Management



[[Page i]]

          CHAPTERS 102 TO 200

          Revised as of July 1, 1997
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF JULY 1, 1997

          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1997



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



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

  Title 41:
      Subtitle C--Federal Property Management Regulations 
                                                                                System (Continued):


        Chapters 102--104 [Reserved]
          Chapter 105--General Services Administration               7
          Chapter 109--Department of Energy Property 
          Management Regulations                                   181
          Chapter 114--Department of the Interior                  271
          Chapter 115--Environmental Protection Agency             273
          Chapter 128--Department of Justice                       275
      Subtitle D--Other Provisions Relating to Property 
                                                                                Management [Reserved]


  Finding Aids:
    Table of CFR Titles and Chapters..........................     293
    Alphabetical List of Agencies Appearing in the CFR........     309
    Redesignation Table.......................................     319
    List of CFR Sections Affected.............................     321

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

   Cite this Code:  CFR                                                         
                                                                                                                
   To cite the regulations in this volume use title, part                       
   and section number. Thus, 41 CFR 105-1.000-50 refers to                     
   title 41, part 105-1, section 000-50.                                       
                                  ----------------------------------------------------------                    
                                                                                                                


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                               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, 1997), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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

OMB CONTROL NUMBERS

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

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

OBSOLETE PROVISIONS

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

CFR INDEXES AND TABULAR GUIDES

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

REPUBLICATION OF MATERIAL

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

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
SALES
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Customer Service call 202-512-1803.

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

July 1, 1997.



[[Page vii]]



                               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 2).

    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 Information Resources Management Regulations in chapter 
201 of subtitle E and the Federal Travel Regulation System in chapters 
301--304 of subtitle F are 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, 1997.

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

    For this volume Cheryl E. Sirofchuck was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page viii]]



 
[[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
Chapters 102-104 [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

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

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




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                       CHAPTERS 102-104 [RESERVED]




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

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              CHAPTER 105--GENERAL SERVICES ADMINISTRATION




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

Part                                                                Page
105-1           Introduction................................           9
105-8           Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by General Services 
                    Administration..........................          11
105-50          Provision of special or technical services 
                    to State and local units of government..          22
105-51          Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally-assisted programs.............          27
105-53          Statement of organization and functions.....          27
105-54          Advisory committee management...............          34
105-55          Collection of claims owed the United States.          45
105-56          Salary offset for indebtedness of General 
                    Services Adminstration employees to the 
                    United States...........................          49
105-57          Collection of debts by tax refund offset....          54
105-60          Public availability of agency records and 
                    informational materials.................          55
105-62          Document security and declassification......          66
105-64          Regulations implementing the Privacy Act of 
                    1974....................................          70
105-67          Sale of personal property...................          80
105-68          Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................          80
105-69          New restrictions on lobbying................          99
105-70          Implementation of the Program Fraud Civil 
                    Remedies Act of 1986....................         111
105-71          Uniform administrative requirements for 
                    grants and cooperative agreements with 
                    State and local governments.............         126
105-72          Uniform administrative requirements for 
                    grants and agreements with institutions 
                    of higher education, hospitals, and 
                    other non-profit organizations..........         153
105-735         Standards of conduct........................         180

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PART 105-1--INTRODUCTION--Table of Contents




Sec.
105-1.000-50  Scope of part.

                   Subpart 105-1.1--Regulations System

105-1.100  Scope of subpart.
105-1.101  General Services Administration Property Management 
          Regulations.
105-1.101-50  Exclusions.
105-1.102  Relationship of GSPMR to FPMR.
105-1.104  Publication of GSPMR.
105-1.106  Applicability.
105-1.109  Numbering.
105-1.109-50  General plan.
105-1.109-51  Arrangement.
105-1.109-52  Cross-references.
105-1.110  Deviation.
105-1.150  Citation.

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

    Source: 39 FR 25231, July 9, 1974, unless otherwise noted.



Sec. 105-1.000-50   Scope of part.

    This part describes the method by which the General Services 
Administration (GSA) implements and supplements the Federal Property 
Management Regulations (FPMR) and implements certain regulations 
prescribed by other agencies. It contains procedures that implement and 
supplement part 101-1 of the FPMR.



                   Subpart 105-1.1--Regulations System



Sec. 105-1.100   Scope of subpart.

    This subpart establishes the General Services Administration 
Property Management Regulations (GSPMR) and provides certain 
introductory material.



Sec. 105-1.101   General Services Administration Property Management Regulations.

    The General Services Administration Property Management Regulations 
(GSPMR) include the GSA property management policies and procedures 
which, together with the Federal Property Management Regulations, 
certain regulations prescribed by other agencies, and various GSA orders 
govern the management of property and records and certain related 
activities of GSA. They may contain policies and procedures of interest 
to other agencies and the general public and are prescribed by the 
Administrator of General Services in this chapter 105.



Sec. 105-1.101-50   Exclusions.

    (a) Certain GSA property management and related policies and 
procedures which come within the scope of this chapter 105 nevertheless 
may be excluded therefrom when there is justification. These exclusions 
may include the following categories:
    (1) Subject matter that bears a security classification;
    (2) Policies and procedures that are expected to be effective for a 
period of less than 6 months;
    (3) Policies and procedures that are effective on an experimental 
basis for a reasonable period;
    (4) Policies and procedures pertaining to other functions of GSA as 
well as property management functions and there is need to make the 
issuance available simultaneously to all GSA employees involved; and
    (5) Where speed of issuance is essential, numerous changes are 
required in chapter 105, and all necessary changes cannot be made 
promptly.
    (b) Property management policies and procedures issued in other than 
the FPMR system format under paragraphs (a)(4) and (5) of this section, 
shall be codified into chapter 105 at the earliest practicable date, but 
in any event not later than 6 months from date of issuance.



Sec. 105-1.102  Relationship of GSPMR to FPMR.

    (a) GSPMR implement and supplement the FPMR and implement certain 
other regulations. They are part of the General Services Administration 
Regulations System. Material published in the FPMR (which has 
Governmentwide applicability) becomes effective throughout GSA upon the 
effective date of the particular FPMR material. In general, the FPMR 
that are implemented and supplemented shall not be repeated, 
paraphrased, or otherwise restated in chapter 105.
    (b) Implementing is the process of expanding upon the FPMR or other 
Government-wide regulations. Supplementing is the process of prescribing 
material for which there is no

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counterpart in the Government-wide regulations.
    (c) GSPMR may deviate from the regulations that are implemented when 
a deviation (see Sec. 105-1.110) is authorized in and explicitly 
referenced to such regulations. Where chapter 105 contains no material 
implementing the FPMR, the FPMR shall govern.



Sec. 105-1.104   Publication of GSPMR.

    (a) Most GSPMR are published in the Federal Register. This practice 
helps to ensure that interested business concerns, other agencies, and 
the public are apprised of GSA policies and procedures pertaining to 
property and records management and certain related activities.
    (b) Most GSPMR are published in cumulative form in chapter 105 of 
title 41 of the Code of Federal Regulations. The Federal Register and 
title 41 of the Code of Federal Regulations may be purchased from the 
Superintendent of Documents, Government Printing Office, Washington, 
D.C. 20402.



Sec. 105-1.106   Applicability.

    Chapter 105 applies to the management of property and records and to 
certain other programs and activities of GSA. Unless otherwise 
specified, chapter 105 applies to activities outside as well as within 
the United States.



Sec. 105-1.109   Numbering.



Sec. 105-1.109-50   General plan.

    Chapter 105 is divided into parts, subparts, and further 
subdivisions as necessary.



Sec. 105-1.109-51   Arrangement.

    (a) Parts 105-2 through 105-49 are used for GSPMR that implement 
regulations in the corresponding parts of chapter 101. This practice 
results in comparable grouping by subject area without establishment of 
subchapters.
    (b) Parts 105-50 and above are used for GSPMR that supplement 
regulations in the FPMR and implement regulations of other agencies. 
Part numbers are assigned so as to accomplish a similar subject area 
grouping. Regulations on advisory committee management are recodified as 
part 105-54 to place them in the appropriate subject area category. 
Regulations on standards of conduct remain in part 105-735 because the 
number 735 identifies regulations of the U.S. Civil Service Commission 
and various civil agencies on this subject.



Sec. 105-1.109-52   Cross-references.

    (a) Within chapter 105, cross-references to the FPMR shall be made 
in the same manner as used within the FPMR. Illustrations of cross-
references to the FPMR are:

    (1) Part 101-3;
    (2) Subpart 101-3.1;
    (3) Sec. 101-3.413-5.

    (b) Within chapter 105, cross-references to parts, subparts, 
sections, and subsections of chapter 105 shall be made in a manner 
generally similar to that used in making cross-references to the FPMR. 
For example, this paragraph would be referenced as Sec. 105-1.109-52(b).



Sec. 105-1.110   Deviation.

    (a) In the interest of establishing and maintaining uniformity to 
the greatest extent feasible, deviations; i.e., the use of any policy or 
procedure in any manner that is inconsistent with a policy or procedure 
prescribed in the Federal Property Management Regulations, are 
prohibited unless such deviations have been requested from and approved 
by the Administrator of General Services or his authorized designee. 
Deviations may be authorized by the Administrator of General Services or 
his authorized designee when so doing will be in the best interest of 
the Government. Request for deviations shall clearly state the nature of 
the deviation and the reasons for such special action.
    (b) Requests for deviations from the FPMR shall be sent to the 
General Services Administration for consideration in accordance with the 
following:
    (1) For onetime (individual) deviations, requests shall be sent to 
the address provided in the applicable regulation. Lacking such 
direction, requests shall be sent to the Administrator of General 
Services, Washington, DC 20405.

[[Page 11]]

    (2) For class deviations, requests shall be sent to only the 
Administrator of General Services.

[55 FR 1673, Jan. 18, 1990]



Sec. 105-1.150   Citation.

    (a) In formal documents, such as legal briefs, citations of chapter 
105 material shall include a citation to title 41 of the Code of Federal 
Regulations or other titles as appropriate; e.g., 41 CFR 105-1.150.
    (b) Any section of chapter 105, for purpose of brevity, may be 
informally identified as ``GSPMR'' followed by the section number. For 
example, this paragraph would be identified as ``GSPMR 105-1.150(b).''



PART 105-8--ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS OR ACTIVITIES CONDUCTED BY GENERAL SERVICES ADMINISTRATION--Table of Contents




Sec.
105-8.101  Purpose.
105-8.102  Application.
105-8.103  Definitions.
105-8.104--105-8.109  [Reserved]
105-8.110  Self-evaluation.
105-8.111  Notice.
105-8.112--105-8.129  [Reserved]
105-8.130  General prohibitions against discrimination.
105-8.131--105-8.139  [Reserved]
105-8.140  Employment.
105-8.141--105-8.147  [Reserved]
105-8.148  Consultation with the Architectural and Transportation 
          Barriers Compliance Board.
105-8.149  Program accessibility: Discrimination prohibited.
105-8.150  Program accessibility: Existing facilities.
105-8.150-1  General.
105-8.150-2  Methods.
105-8.150-3  Time period for compliance.
105-8.150-4  Transition plan.
105-8.151  Program accessibility: New construction and alterations.
105-8.152  Program accessibility: Assignment of space.
105-8.153  Program accessibility: Interagency cooperation.
105-8.153-1  General.
105-8.153-2  Requests from occupant agencies.
105-8.154  Program accessibility: Exceptions.
105-8.155--105-8.159  [Reserved]
105-8.160  Communications.
105-8.161--105-8.169  [Reserved]
105-8.170  Compliance procedures.
105-8.170-1  Applicability.
105-8.170-2  Employment complaints.
105-8.170-3  Responsible Official.
105-8.170-4  Filing a complaint.
105-8.170-5  Notification to the Architectural and Transportation 
          Barriers Compliance Board.
105-8.170-6  Acceptance of complaint.
105 8.170-7  Investigation/conciliation.
105-8.170-8  Letter of findings.
105-8.170-9  Filing an appeal.
105-8.170-10  Acceptance of appeals.
105-8.170-11  Hearing.
105-8.170-12  Decision.
105-8.170-13  Delegation.
105-8.171  Complaints against an occupant agency.

    Authority: 29 U.S.C. 794.

    Source: 56 FR 9871, Mar. 8, 1991, unless otherwise noted.



Sec. 105-8.101   Purpose.

    The purpose of this part is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 105-8.102   Application.

    This part applies to all programs or activities conducted by the 
agency, except for programs or activities conducted outside the United 
States that do not involve individuals with handicaps in the United 
States.



Sec. 105-8.103   Definitions.

    For purposes of this part, the term--
    Agency means the General Services Administration (GSA), except when 
the context indicates otherwise.
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in and enjoy the benefits of programs or 
activities conducted by GSA. For example, auxiliary aids useful for 
persons with impaired vision include readers, Brailed materials, audio

[[Page 12]]

recordings, and other similar services and devices. Auxiliary aids 
useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation program means programs conducted by the agency 
that have preservation of historic properties as a primary purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment. As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term ``Physical or mental 
impairment'' includes, but is not limited to, such diseases and 
conditions as orthopedic, visual, speech, and hearing impairments, 
cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, 
cancer, heart disease, diabetes, mental retardation, emotional illness, 
and drug addiction and alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (a) of this 
definition but is treated by the agency as having such an impairment.
    Official or Responsible Official means the Director of the Civil 
Rights Division of the General Services Administration or his or her 
designee.
    Qualified individual with handicaps means--
    (1) With respect to any agency program or activity under which a 
person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (2) With respect to any other program or activity, an individual 
with handicaps who meets the essential eligibility requirements for 
participation

[[Page 13]]

in, or receipt of benefits from, that program or activity; and
    (3) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this part by Sec. 105-8.140.
    Respondent means the organizational unit in which a complainant 
alleges that discrimination occurred.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810); 
the Civil Rights Restoration Act of 1987 (Pub. L. 100-259, 102 Stat. 
28); and Handicapped Program Technical Amendments Act of 1988 (Pub. L. 
100-630, 102 Stat. 3312). As used in this part, section 504 applies only 
to programs or activities conducted by the agency and not to federally 
assisted programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration of historic properties.
Secs. 105-8.104--105-8.109  [Reserved]



Sec. 105-8.110  Self-evaluation.

    (a) The agency shall, by March 9, 1992, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this part, and, to the extent modification of 
any such policies and practices is required, the agency shall proceed to 
make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A list of interested persons consulted;
    (2) A description of the areas examined and any problems identified 
and;
    (3) A description of any modifications made or to be made.



Sec. 105-8.111   Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this part and its applicability 
to the programs or activities conducted by the agency, and make such 
information available to them in such manner as the Administrator finds 
necessary to apprise such persons of the protections against 
discrimination assured them by section 504 and this part.
Secs. 105-8.112--105-8.129  [Reserved]



Sec. 105-8.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (1) The agency, in providing any aid, benefit, or service, may not, 
directly or through contractual, licensing, or other arrangements, on 
the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to

[[Page 14]]

provide qualified individuals with handicaps with aid, benefits, or 
services that are as effective as those provided to others;
    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards; or
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licenses or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by part.
    (b) The exclusion of persons without handicaps from the benefits of 
a program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this part.
    (c) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.
Secs. 105-8.131--105-8.139  [Reserved]



Sec. 105-8.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subjected to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1613, shall apply to employment in federally conducted 
programs or activities.
Secs. 105-8.141--105-8.147  [Reserved]



Sec. 105-8.148  Consultation with the Architectural and Transportation Barriers Compliance Board.

    GSA shall consult with the Architectural and Transportation Barriers 
Compliance Board (ATBCB) in carrying out its responsibilities under this 
part concerning architectural barriers in facilities that are subject to 
GSA control. GSA shall also consult with the ATBCB in providing 
technical assistance to other Federal agencies with respect to 
overcoming architectural barriers in facilities. The agency's Public 
Buildings Service shall implement this section.



Sec. 105-8.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Secs. 105-8.150 and 105-8.154, no 
qualified individual with handicaps shall, because

[[Page 15]]

the agency's facilities are inaccessible to or unusable by individuals 
with handicaps, be denied the benefits of, be excluded from 
participation in, or otherwise be subjected to discrimination under any 
program or activity conducted by the agency.



Sec. 105-8.150  Program accessibility: Existing facilities.



Sec. 105-8.150-1  General.

    The agency shall operate each program or activity so that the 
program or activity, when viewed in its entirety, is readily accessible 
to and usable by individuals with handicaps. This section does not--
    (a) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps; or
    (b) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property.



Sec. 105-8.150-2   Methods.

    (a) General. The agency may comply with the requirements of 
Sec. 105-8.150 through such means as redesign of equipment, reassignment 
of services to accessible buildings, assignment of aides to 
beneficiaries, home visits, delivery of services at alternate accessible 
sites, alteration of existing facilities and construction of new 
facilities, use of accessible rolling stock, or any other methods that 
result in making its programs or activities readily accessible to and 
usable by individuals with handicaps. The agency is not required to make 
structural changes in existing facilities where other methods are 
effective in achieving compliance with this section. The agency, in 
making alterations to existing buildings, shall meet accessibility 
requirements to the extent compelled by the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), and any regulations 
implementing it. In choosing among available methods for meeting the 
requirements of this section, the agency shall give priority to those 
methods that offer programs and activities to qualified individuals with 
handicaps in the most integrated setting appropriate.
    (b) Historic preservation programs. In meeting the requirements of 
Sec. 105-8.105-1 in historic preservation programs, the agency shall 
give priority to methods that provide physical access to individuals 
with handicaps. In cases where a physical alteration to a historic 
property is not required because of Secs. 105-8.105-1(b) or 105-8.154 
alternative methods of achieving program accessibility include--
    (1) Using audio-visual materials and devices to depict those 
portions of a historic property that cannot otherwise be made 
accessible;
    (2) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (3) Adopting other innovative methods.



Sec. 105-8.150-3  Time period for compliance.

    The agency shall comply with the obligations established under 
Sec. 105-8.150 by May 7, 1991; except where structural changes in 
facilities are undertaken, such changes shall be made by March 8, 1994, 
but in any event as expeditiously as possible.



Sec. 105-8.150-4  Transition plan.

    In the event that structural changes to facilities will be 
undertaken to achieve program accessibility, the agency shall develop, 
by March 9, 1992; the transition plan setting forth the steps necessary 
to complete such changes. The agency shall provide an opportunity to 
interested persons, including individuals with handicaps or 
organizations representing individuals with handicaps, to participate in 
the development of the transition plan by submitting comments (both oral 
and written). A copy of the transition plan shall be made available for 
public inspection. The plan shall, at a minimum--
    (a) Identify physical obstacles in the facilities occupied by GSA 
that limit the accessibility of its programs or activities to 
individuals with handicaps;

[[Page 16]]

    (b) Describe in detail the methods that will be used to make the 
facilities accessible;
    (c) Specify the schedule for taking the steps necessary to achieve 
compliance with Sec. 105-8.150 and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (d) Indicate the official responsible for implementation of the 
plan.



Sec. 105-8.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, of for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Sec. 105.8.152  Program accessibility: Assignment of space.

    (a) When GSA assigns or reassigns space to an agency, it shall 
consult with the agency to ensure that the assignment or reassignment 
will not result in one or more of the agency's programs or activities 
being inaccessible to individuals with handicaps.
    (b) Prior to the assignment or reassignment of space to an agency, 
GSA shall inform the agency of the accessibility, and/or the absence of 
accessibility features, of the space in which GSA intends to locate the 
agency. If the agency informs GSA that the use of the space will result 
in one or more of the agency's programs being inaccessible, GSA shall 
take one or more of the following actions to make the programs 
accessible:
    (1) Arrange for alterations, improvements, and repairs to buildings 
and facilities;
    (2) Locate and provide alternative space that will not result in one 
or more of the agency's programs being inaccessible; or
    (3) Take any other actions that result in making this agency's 
programs accessible.

The responsibility for payment to make the physical changes in the space 
shall be assigned on a case-by-case basis as agreed to by GSA and the 
user agency, dependent on individual circumstances.
    (c) GSA may not require the agency to accept space that results in 
one or more of the agency's programs being inaccessible.



Sec. 105-8.153  Program accessibility: Interagency cooperation.



Sec. 105-8.153-1  General.

    GSA, upon request from an occupant agency engaged in the development 
of a transition plan under section 504, shall participate with the 
occupant agency in the development and implementation of the transition 
plan and shall provide information and guidance to the occupant agency. 
Upon request, GSA shall conduct space inspections to assist the agency 
in determining whether a current assignment of space results in one or 
more of the occupant agency's programs or activities being inaccessible. 
GSA shall provide the occupant agency with a written summary of 
significant findings and recommendations, together with data concerning 
programmed repairs and alterations planned by GSA and alterations that 
can be effected by the agency.



Sec. 105-8.153-2  Requests from occupant agencies.

    (a) Upon receipt of an occupant agency's request for new space, 
additional space, relocation to accessible space, alterations, or other 
actions under GSA's control that are needed to ensure program 
accessibility in the requesting agency's program(s) as required by the 
agency's section 504 transition plan, GSA shall assist or advise the 
requesting agency in providing or arranging for the requested action 
within the timeframes specified in the requesting agency's transition 
plan.
    (b) If the requested action cannot be completed within the time 
frame specified in an agency's transition plan, GSA shall so advise the 
requesting agency within 30 days of the request by submitting, after 
consultation with the agency, a revised schedule specifying the date by 
which the action shall be

[[Page 17]]

completed. If the delay in completing the action results in or continues 
the inaccessibility of the requesting agency's program, GSA and the 
agency shall, after consultation, take interim measures to make the 
agency's program accessible.
    (c) If GSA determines that it is unable to take the requested 
action, GSA shall--
    (1) Within 30 days, set forth in writing to the requesting agency 
the reasons for denying the agency's request, and
    (2) Within 90 days, propose to the requesting agency other methods 
for making the agency's program accessible.
    (d) Receipt of a copy of an occupant agency's transition plan under 
section 504 shall constitute notice to GSA of the requested actions in 
the transition plan and of the times frames which the actions are 
required to be completed.



Sec. 105-8.154  Program accessibility: Exceptions.

    Sections 105-8.150, 105-8.152, and 105-8.153 do not require GSA to 
take any action that it can demonstrate would result in a fundamental 
alteration in the nature of a program or activity or in undue financial 
and administrative burdens. In those circumstances where GSA personnel 
believe that the proposed action would fundamentally alter the program 
or activity or would result in undue financial and administrative 
burdens, the agency has the burden of proving that compliance would 
result in such alteration or burdens. The decision that compliance would 
result in such alteration or burdens must be made by the Administrator 
or his or her designee after considering all resources available for use 
in the funding and operation of the conducted program or activity, and 
must be accompanied by a written statement of the reasons for reaching 
that conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
Secs. 105-8.155--105-8.159  [Reserved]



Sec. 105-8.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 150.8.160 would 
result in such alteration or burdens.

[[Page 18]]

The decision that compliance would result in such alteration or burdens 
must be made by the Administrator or his or her designee after 
considering all agency resources available for use in the funding and 
operation of the conducted program or activity and must be accompanied 
by a written statement of the reasons for reaching that conclusion. If 
an action required to comply with Sec. 105-8.160 would result in such an 
alteration or such burdnes, the agency shall take any other action that 
would not result in such an alteration or such burdens but would 
nevertheless ensure that, to the maximum extent possible, individuals 
with handicaps receive the benefits and services of the program or 
activity.
Secs. 105-8.161--105-8.169  [Reserved]



Sec. 105-8.170  Compliance procedures.



Sec. 105-8.170-1  Applicability.

    Except as provided in Sec. 105-8.170-2, Secs. 105-8.170 through 105-
8.170-13 apply to all allegations of discrimination on the basis of 
handicap in programs or activities conducted by the agency.



Sec. 105-8.170-2  Employment complaints.

    The agency shall process complaints alleging violations of section 
504 with respect to employment according to the procedures established 
by the Equal Employment Opportunity Commission in 29 CFR part 1613 
pursuant to section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791).



Sec. 105-8.170-3  Responsible Official.

    The Responsible Official shall coordinate implementation of 
Secs. 105-8.170 through 105-8.170-13.



Sec. 105-8.170-4  Filing a complaint.

    (a) Who may file a complaint. Any person who believes that he or she 
has been subjected to discrimination prohibited by this part may by him 
or herself or by his or her authorized representative file a complaint 
with the Official. Any persons who believes that any specific class of 
persons has been subjected to discrimination prohibited by this part and 
who is a member of that class or the authorized representative of a 
member of that class may file a complaint with the Official.
    (b) Confidentiality. The Official shall hold in confidence the 
identity of any person submitting a complaint, unless the person submits 
written authorization otherwise, and except to the extent necessary to 
carry out the purposes of this part, including the conduct of any 
investigation, hearing, or proceeding under this part.
    (c) When to file. Complaints shall be filed within 180 days of the 
alleged act of discrimination. The Official may extend this time limit 
for good cause shown. For purposes of determining when a complaint is 
timely filed under this section, a complaint mailed to the agency shall 
be deemed filed on the date it is postmarked. Any other complaint shall 
be deemed filed on the date it is recevied by the agency.
    (d) How to file. Complaints may be delivered or mailed to the 
Administrator, the Responsibile Official, or other agency officials. 
Complaints should be sent to the Director of Civil Rights, Civil Rights 
Division (AKC), General Services Administration, 18th and F Streets, 
NW., Washington, DC 20405. If any agency official other than the 
Official receives a complaint, he or she shall forward the complaint to 
the Official immediatley.



Sec. 105-8.170-5  Notification to the Architectural and Transportation Barriers Compliance Board.

    The agency shall prepare and forward comprehensive quarterly reports 
to the Architectural and Transportation Barriers Compliance Board 
containing information regarding complaints received alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps. The agency shall not include 
in the report the identity of any complainant.



Sec. 105-8.170-6  Acceptance of complaint.

    (a) The Official shall accept a complete complaint that is filed in 
accordance with Sec. 105-8.170-4 and over which the agency has 
jurisdiction. The Official shall notify the complainant and

[[Page 19]]

the respondent of receipt and acceptance of the complaint.
    (b) If the Official receives a complaint that is not complete, he or 
she shall notify the complainant within 30 days of receipt of the 
incomplete complaint that additional information is needed. If the 
complainant fails to complete the complaint within 30 days of receipt of 
this notice, the Official shall dismiss the complaint without prejudice.
    (c) The Official may reject a complaint, or a position thereof, for 
any of the following reasons:
    (1) It was not filed timely and the extension of the 180-day period 
as provided in Sec. 105-8.170-4(c) is denied;
    (2) It consists of an allegation identical to an allegation 
contained in a previous complaint filed on behalf of the same 
complainant(s) which is pending in the agency or which has been resolved 
or decided by the agency; or
    (3) It is not within the purview of this part.
    (d) If the Official receives a complaint over which the agency does 
not have jurisdiction, the Official shall promptly notify the 
complainant and shall make reasonable efforts to refer the complaint to 
the appropriate Government entity.



Sec. 105-8.170-7  Investigation/conciliation.

    (a) Within 180 days of the receipt of a complete complaint, the 
Official shall complete the investigation of the complaint, attempt 
informal resolution, and if no informal resolution is achieved, issue a 
letter of findings. The 180-day time limit may be extended with the 
permission of the Assistant Attorney General. The investigation should 
include, where appropriate, a review of the practices and policies that 
led to the filing of the complaint, and other circumstances under which 
the possible noncompliance with this part occurred.
    (b) The Official may require agency employees to cooperate in the 
investigation and attempted resolution of complaints. Employees who are 
required by the Official to participate in any investigation under this 
section shall do so as part of their official duties and during the 
course of regular duty hours.
    (c) The Official shall furnish the complainant and the respondent a 
copy of the investigative report promptly after receiving it from the 
investigator and provide the complainant and the respondent with an 
opportunity for informal resolution of the complaint.
    (d) If a complaint is resolved informally, the terms of the 
agreement shall be reduced to writing and signed by the complainant and 
respondent. The agreement shall be made part of the complaint file with 
a copy of the agreement provided to the complainant and the respondent. 
The written agreement may include a finding on the issue of 
discrimination and shall describe any corrective action to which the 
complainant and the respondent have agreed.
    (e) The written agreement shall remain in effect until all 
corrective actions to which the complainant and the respondent have 
agreed upon have been completed. The complainant may reopen the 
complaint in the event that the agreement is not carried out.



Sec. 105-8.170-8  Letter of findings.

    If an informal resolution of the complaint is not reached, the 
Official shall, within 180 days of receipt of the complete complaint, 
notify the complainant and the respondent of the results of the 
investigation in a letter sent by certified mail, return receipt 
requested. The letter shall contain, at a minimum, the following:
    (a) Findings of fact and conclusions of law;
    (b) A description of a remedy for each violation found;
    (c) A notice of the right of the complainant and the respondent to 
appeal to the Special Counsel for Ethics and Civil Rights; and
    (d) A notice of the right of the complainant and the respondent to 
request a hearing.



Sec. 105-8.170-9  Filing an appeal.

    (a) Notice of appeal to the Special Counsel for Ethics and Civil 
Rights, with or without a request for hearing, shall be filed by the 
complainant or the

[[Page 20]]

respondent with the Responsible Official within 30 days of receipt of 
the letter of findings required by
Sec. 105-8.170-7.
    (b) If a timely appeal without a request for hearing is filed by a 
party, any other party may file a written request for a hearing within 
the time limit specified in Sec. 105-8.170-9(a) or within 10 days of the 
date on which the first timely appeal without a request for hearing was 
filed, whichever is later.
    (c) If no party requests a hearing, the Responsible Official shall 
promptly transmit the notice of appeal and investigative record to the 
Special Counsel for Ethics and Civil Rights.
    (d) If neither party files an appeal within the time prescribed in 
Sec. 105-8.170-9(a) the Responsible Official shall certify, at the 
expiration of the time, that the letter of findings is the final agency 
decision on the complaint.



Sec. 105-8.170-10  Acceptance of appeals.

    The Special Counsel shall accept and process any timely appeal. A 
party may appeal to the Deputy Administrator from a decision of the 
Special Counsel that an appeal is untimely. This appeal shall be filed 
within 15 days of receipt of the decision from the Special Counsel.



Sec. 105-8.170-11  Hearing.

    (a) Upon a timely request for a hearing, the Special Counsel shall 
take the necessary action to obtain the services of an Administrative 
law judge (ALJ) to conduct the hearing. The ALJ shall issue a notice to 
all parties specifying the date, time, and place of the scheduled 
hearing. The hearing shall be commenced no earlier than 15 days after 
the notice is issued and no later than 60 days after the request for a 
hearing is filed, unless all parties agree to a different date, or there 
are other extenuating circumstances.
    (b) The complainant and respondent shall be parties to the hearing. 
Any interested person or organization may petition to become a party or 
amicus curiae. The ALJ may, in his or her discretion, grant such a 
petition if, in his or her opinion, the petitioner has a legitimate 
interest in the proceedings and the participation will not unduly delay 
the outcome and may contribute materially to the proper disposition of 
the proceedings.
    (c) The hearing, decision, and any administrative review thereof 
shall be conducted in conformity with 5 U.S.C. 554-557 (sections 5-8 of 
the Administrative Procedure Act). The ALJ shall have the duty to 
conduct a fair hearing, to take all necessary action to avoid delay, and 
to maintain order. He or she shall have all powers necessary to these 
ends, including (but not limited to) the power to--
    (1) Arrange and change the date, time, and place of hearings and 
prehearing conferences and issue notices thereof;
    (2) Hold conferences to settle, simplify, or determine the issue in 
a hearing, or to consider other matters that may aid in the expeditious 
disposition of the hearing;
    (3) Require parties to state their position in writing with respect 
to the various issues in the hearing and to exchange such statements 
with all other parties;
    (4) Examine witnesses and direct witnesses to testify;
    (5) Receive, rule on, exclude, or limit evidence;
    (6) Rule on procedural items pending before him or her; and
    (7) Take any action permitted to the ALJ as authorized by this part, 
or by the provisions of the Administrative Procedure Act (5 U.S.C. 551-
559).
    (d) Technical rules of evidence shall not apply to hearings 
conducted pursuant to Sec. 105-8.170-11, but rules or principles 
designed to assure production of credible evidence available and to 
subject testimony to cross-examination shall be applied by the ALJ 
whenever reasonably necessary. The ALJ may exclude irrelevant, 
immaterial, or unduly repetitious evidence. All documents and other 
evidence offered or taken for the record shall be open to examination by 
the parties and opportunity shall be given to refute facts and arguments 
advanced on either side of the issues. A transcript shall be made of the 
oral evidence except to the extent the substance thereof is stipulated 
for the record. All decisions shall be based upon the hearing record.

[[Page 21]]

    (e) The costs and expenses for the conduct of a hearing shall be 
allocated as follows:
    (1) Persons employed by the agency shall, upon request to the agency 
by the ALJ, be made available to participate in the hearing and shall be 
on official duty status for this purpose. They shall not receive witness 
fees.
    (2) Employees of other Federal agencies called to testify at a 
hearing shall, at the request of the ALJ and with the approval of the 
employing agency, be on official duty status during any period of 
absence from normal duties caused by their testimony, and shall not 
receive witness fees.
    (3) The fees and expenses of other persons called to testify at a 
hearing shall be paid by the party requesting their appearance.
    (4) The ALJ may require the agency to pay travel expenses necessary 
for the complainant to attend the hearing.
    (5) The respondent shall pay the required expenses and charges for 
the ALJ and court reporter.
    (6) All other expenses shall be paid by the party, the intervening 
party, or amicus curiae incurring them.
    (f) The ALJ shall submit in writing recommended findings of fact, 
conclusions of law, and remedies to all parties and the Special Counsel 
for Ethics and Civil Rights within 30 days after receipt of the hearing 
transcripts, or within 30 days after the conclusion of the hearing if no 
transcript is made. This time limit may be extended with the permission 
of the Special Counsel.
    (g) Within 15 days after receipt of the recommended decision of the 
ALJ any party may file exceptions to the decision with the Speical 
Counsel. Thereafter, each party will have ten days to file reply 
exceptions with the Special Counsel.



Sec. 105-8.170-12  Decision.

    (a) The Special Counsel shall make the decision of the agency based 
on information in the investigative record and, if a hearing is held, on 
the hearing record. The decision shall be made within 60 days of receipt 
of the transmittal of the notice of appeal and investitive record 
pursuant to Sec. 105-8.170-9(c) or after the period for filing 
exceptions ends, which ever is applicable. If the Special Counsel for 
Ethics and Civil Rights determines that he or she needs additional 
information from any party, he or she shall request the information and 
provide the other party or parties an opportunity to respond to that 
information. The Special Counsel shall have 60 days from receipt of the 
additional information to render the decision on the appeal. The Special 
Counsel shall transmit his or her decision by letter to the parties. The 
time limits established in this paragraph may be extended with the 
permission of the Assistant Attorney General. The decision shall set 
forth the findings, remedial action required, and reasons for the 
decision. If the decision is based on a hearing record, the Special 
Counsel shall consider the recommended decision of the ALJ and render a 
final decision based on the entire record. The Special Counsel may also 
remand the hearing record to the ALJ for a fuller development of the 
record.
    (b) Any respondent required to take action under the terms of the 
decision of the agency shall do so promptly. The Official may require 
periodic compliance reports specifying--
    (1) The manner in which compliance with the provisions of the 
decision has been achieved;
    (2) The reasons any action required by the final decision has not 
yet been taken; and
    (3) The steps being taken to ensure full compliance. The Official 
may retain responsibility for resolving disagreements that arise between 
the parties over interpretation fo the final agency decision or for 
specific adjudicatory decisions arising out of implementation.



Sec. 105-8.170-13  Delegation.

    The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.



Sec. 105-8.171  Complaints against an occupant agency.

    (a) Upon notification by an occupant agency that it has received a 
complete complaint alleging that the agency's

[[Page 22]]

program is inaccessible because existing facilities under GSA's control 
are not accessible and usable by individuals with handicaps, GSA shall 
be jointly responsible with the agency for resolving the complaint and 
shall participate in making findings of fact and conclusions of law in 
prescribing and implementing appropriate remedies for each violation 
found.
    (b) GSA shall make reasonable efforts to follow the time frames for 
complaint resolution that go into effect under the notifying occupant 
agency's compliance procedures when it receives a complete complaint.
    (c) Receipt of a copy of the complete complaint by GSA shall 
constitute notification to GSA for purposes of Sec. 105-8.171(a).



PART 105-50--PROVISION OF SPECIAL OR TECHNICAL SERVICES TO STATE AND LOCAL UNITS OF GOVERNMENT--Table of Contents




Sec.
105-50.000  Scope of part.
105-50.001  Definitions.
105-50.001-1  State.
105-50.001-2  Political subdivision or local government.
105-50.001-3  Unit of general local government.
105-50.001-4  Special-purpose unit of local government.
105-50.001-5  Specialized or technical services.
105-50.001-6  GSA.

                  Subpart 105-50.1--General Provisions

105-50.101  Purpose.
105-50.102  Applicability.
105-50.103  Policy.
105-50.104  Limitations.
105-50.105  Coordination of requests.
105-50.106  GSA response to requests.

       Subpart 105-50.2--Services Available From General Services 
                             Administration

105-50.201  Agencywide mission.
105-50.202  Specific services.
105-50.202-1  Copies of statistical or other studies.
105-50.202-2  Preparation of or assistance in the conduct of statistical 
          or other studies.
105-50.202-3  Training.
105-50.202-4  Technical assistance incident to Federal surplus personal 
          property.
105-50.202-5  Data processing services.
105-50.202-6  Communications services.
105-50.202-7  Technical information and advice.

      Subpart 105-50.3--Principles Governing Reimbursements to GSA

105-50.301  Established fees.
105-50.302  Special fee schedules.
105-50.303  Cost basis in lieu of fees.
105-50.304  Services provided through revolving funds.
105-50.304a  Deposits.
105-50.305  Exemptions.

                        Subpart 105-50.4--Reports

105-50.401  Reports submitted to the Congress.
105-50.402  Reports submitted to the Office of Management and Budget.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c) and sec. 302, 
82 Stat. 1102; 42 U.S.C. 4222.

    Source: 41 FR 21451, May 26, 1976, unless otherwise noted.



Sec. 105-50.000   Scope of part.

    This part prescribes rules and procedures governing the provision of 
special or technical services to State and local units of government by 
GSA. This part also prescribes principles governing reimbursements for 
such services.



Sec. 105-50.001   Definitions.

    The following definitions are established for terms used in this 
part.



Sec. 105-50.001-1   State.

    State means any of the several States of the United States, the 
District of Columbia, Puerto Rico, any territory or possession of the 
United States, or any agency or instrumentality of a State, but does not 
include the governments of the political subdivisions of the State.



Sec. 105-50.001-2   Political subdivision or local government.

    Political subdivision or local government means a local unit of 
government, including specifically a county, municipality, city, town, 
township, or a school or other special district created by or pursuant 
to State law.

[[Page 23]]



Sec. 105-50.001-3   Unit of general local government.

    Unit of general local government means any city, county, town, 
parish, village, or other general purpose political subdivision of a 
State.



Sec. 105-50.001-4   Special-purpose unit of local government.

    Special-purpose unit of local government means any special district, 
public-purpose corporation, or other strictly limited-purpose political 
subdivision of a State, but shall not include a school district.



Sec. 105-50.001-5   Specialized or technical services.

    Specialized or technical services means statistical and other 
studies and compilations, development projects, technical tests and 
evaluations, technical information, training activities, surveys, 
reports, documents, and any other similar service functions which any 
department or agency of the executive branch of the Federal Government 
is especially equipped and authorized by law to perform.



Sec. 105-50.001-6   GSA.

    GSA means the General Services Administration.



                  Subpart 105-50.1--General Provisions



Sec. 105-50.101   Purpose.

    (a) This part 105-50 implements the provisions of Title III of the 
Intergovernmental Cooperation Act of 1968 (82 Stat. 1102, 42 U.S.C. 
4221-4225), the purpose of which is stated as follows:

    It is the purpose of this title to encourage intergovernmental 
cooperation in the conduct of specialized or technical services and 
provision of facilities essential to the administration of State or 
local governmental activities, many of which are nationwide in scope and 
financed in part by Federal funds; to enable state and local governments 
to avoid unnecessary duplication of special service functions; and to 
authorize all departments and agencies of the executive branch of the 
Federal Government which do not have such authority to provide 
reimbursable specialized or technical services to State and local 
governments.

    (b) This part is consistent with the rules and regulations 
promulgated by the Director, Office of Management and Budget, in the 
Office of Management and Budget Circular No. A-97, dated August 29, 
1969, issued pursuant to section 302 of the cited Act (42 U.S.C. 4222).



Sec. 105-50.102   Applicability.

    This part is applicable to all organizational elements of GSA 
insofar as the services authorized to be performed in subpart 105-50.2 
fall within their designated functional areas.



Sec. 105-50.103   Policy.

    It is the policy of GSA to cooperate to the maximum extent possible 
with State and local units of government in providing the specialized or 
technical services authorized within the limitations set forth in 
Sec. 105-50.104.



Sec. 105-50.104   Limitations.

    The specialized or technical services provided under this part may 
be provided, in the discretion of the Administrator of General Services, 
only under the following conditions:
    (a) Such services will be provided only to the States, political 
subdivisions thereof, and combinations or associations of such 
governments or their agencies and instrumentalities.
    (b) Such services will be provided only upon the written request of 
a State or political subdivision thereof. Requests normally will be made 
by the chief executives of such entities and will be addressed to the 
General Services Administration as provided in Sec. 105-50.105.
    (c) Such services will not be provided unless GSA is providing 
similar services for its own use under the policies set forth in the 
Office of Management and Budget Circular No. A-76 Revised, dated August 
30, 1967, subject: Policies for acquiring commercial or industrial 
products and services for Government use. In addition, in accordance 
with the policies set forth in Circular No. A-76, the requesting entity 
must certify that such services cannot be procured reasonably and 
expeditiously through ordinary business channels.
    (d) Such services will not be provided if they require any additions 
of staff or

[[Page 24]]

involve outlays for additional equipment or other facilities solely for 
the purpose of providing such services, except where the costs thereof 
are charged to the user of such services. Further, no staff additions 
may be made which impede the implementation of, or adherence to, the 
employment ceilings contained in the Office of Management and Budget 
allowance letters.
    (e) Such services will be provided only upon payment or provision 
for reimbursement by the unit of government making the request of 
salaries and all other identifiable direct and indirect costs of 
performing such services. For cost determination purposes, GSA will be 
guided by the policies set forth in the Office of Management and Budget 
Circular No. A-25, dated September 23, 1959, subject: User charges.



Sec. 105-50.105   Coordination of requests.

    (a) All inquiries of a general nature concerning services GSA can 
provide shall be addressed to the General Services Administration (BR), 
Washington, D.C. 20405. The Director of Management Services, Office of 
Administration, shall serve as the central coordinator for such 
inquiries and shall assign them to the appropriate organizational 
element of GSA for expeditious handling.
    (b) Requests for specific services may be addressed directly to 
Heads of Services and Staff Offices and to Regional Administrators. 
Section 105-50.202 describes the specific services GSA can provide.
    (c) If the proper GSA organizational element is not known to the 
State or local unit of government, the request shall be addressed as in 
paragraph (a) of this section to ensure appropriate handling.



Sec. 105-50.106   GSA response to requests.

    (a) Direct response to each request shall be made by the Head of the 
applicable Service or Staff Office or Regional Administrator. He shall 
outline the service to be provided and the fee or reimbursement 
required. Any special conditions concerning time and priority, etc., 
shall be stated. Written acceptance by the authorized State or local 
governmental entity shall constitute a binding agreement.
    (b) Heads of Services and Staff Offices and Regional Administrators 
shall maintain complete records and controls of services provided on a 
calendar year basis to facilitate accurate, annual reporting, as 
required in Sec. 105-50.401.



       Subpart 105-50.2--Services Available From General Services 
                             Administration



Sec. 105-50.201   Agencywide mission.

    (a) In its role as a central property management agency, GSA 
constructs, leases, operates, and maintains office and other space: 
procures and distributes supplies; coordinates and provides for the 
economic and efficient purchase, lease, sharing, and maintenance of 
automatic data processing equipment by Federal agencies; manages 
stockpiles of materials maintained for use in national emergencies; 
transfers excess real and personal property among Federal agencies for 
further use; disposes of surplus real and personal property, by donation 
or otherwise, as well as materials excess to stockpile requirements; 
operates centralized data processing centers and telecommunications and 
motor pool systems; operates the National Archives and Presidential 
libraries; and provides a variety of records management services, 
including the operation of centers for storing and administering 
records, as well as other common services.
    (b) Special or technical services may be provided by many 
organizational elements of GSA with respect to their functional areas, 
but the requesting State or local agency needs only to know that the 
service desired is related to one or more of the functional areas 
described above and direct its request as provided for under Sec. 105-
50.105. State and local units of government are also encouraged to 
consult the ``Catalog of Federal Domestic Assistance'' as a more 
complete guide to the many other Federal assistance programs available 
to them. The catalog, issued annually and updated periodically by the 
Office of Management and Budget, is available through the Superintendent 
of

[[Page 25]]

Documents, Government Printing Office, Washington, DC 20402.



Sec. 105-50.202   Specific services.

    Within the functional areas identified in Sec. 105-50.201, GSA can 
provide the services hereinafter described.



Sec. 105-50.202-1   Copies of statistical or other studies.

    This material includes a copy of any existing statistical or other 
studies and compilations, results of technical tests and evaluations, 
technical information, surveys, reports, and documents, and any such 
materials which may be developed or prepared in the future to meet the 
needs of the Federal Government or to carry out normal program 
responsibilities of GSA.



Sec. 105-50.202-2   Preparation of or assistance in the conduct of statistical or other studies.

    (a) This service includes preparation of statistical or other 
studies and compilations, technical tests and evaluations, technical 
information, surveys, reports, and documents and assistance in the 
conduct of such activities and in the preparation of such materials, 
provided they are of a type similar to those which GSA is authorized by 
law to conduct or prepare and when resources are available.
    (b) Specific areas in which GSA can conduct or participate in the 
conduct of studies include:
    (1) Space management, including assignment and utilization;
    (2) Supply management, including laboratory tests and evaluations;
    (3) Management of motor vehicles;
    (4) Archives and records management;
    (5) Automatic data processing systems; and
    (6) Telecommunications and teleprocessing systems and services.



Sec. 105-50.202-3   Training.

    (a) This training consists of the type which GSA is authorized by 
law to conduct for Federal personnel and others or which is similar to 
such training.
    (b) Descriptions of the specific training courses conducted by GSA 
are published annually in the Interagency Training Programs bulletin, 
copies of which are available from the U.S. Civil Service Commission, 
Washington, D.C. 20415.



Sec. 105-50.202-4   Technical assistance incident to Federal surplus personal property.

    Technical assistance will be provided in the screening and selection 
of surplus personal property under existing laws, provided such aid 
primarily strengthens the ability of the recipient in developing its own 
capacity to prepare proposals.



Sec. 105-50.202-5   Data processing services.

    GSA will develop ADP logistical feasibility studies, software, 
systems analyses, and programs. To the extent that data processing 
capabilities are available, GSA will also assist in securing data 
processing services on a temporary, short term basis from other Federal 
facilities or Federal Data Processing Centers.



Sec. 105-50.202-6   Communications services.

    GSA will continue to make its bulk rate circuit ordering services 
available for use by State and local governments. Under a revised tariff 
effective December 12, 1971, GSA will bill the State and local 
governments for their share of the TEL PAK costs. Services provided 
prior to December 12, 1971, will be billed by the contractors under the 
former arrangements. In addition, certain activities, such as surplus 
property agencies which have frequent communications with Federal 
agencies, will be given access to the Federal Telecommunications System 
switchboards.



Sec. 105-50.202-7   Technical information and advice.

    GSA will provide technical information, personnel management systems 
services, and technical advice on improving logistical and management 
services which GSA normally provides for itself or others under existing 
authorities.

[[Page 26]]



      Subpart 105-50.3--Principles Governing Reimbursements to GSA



Sec. 105-50.301   Established fees.

    Where there is an established schedule of fees for services to other 
Government agencies or the public, the schedule shall be used as the 
basis for reimbursement for like services furnished to State and local 
governments.



Sec. 105-50.302   Special fee schedules.

    Where there is no established schedule of fees for types of service 
which are ordinarily reimbursed on a fee basis, such schedules may be 
developed and promulgated in conjunction with the Office of 
Administration. The fees so established shall cover all direct costs, 
such as salaries of personnel involved plus personnel benefits, travel, 
and other related expenses and all indirect costs such as management, 
supervisory, and staff support expenses determined or estimated from the 
best available records in GSA. Periodically, fees shall be reviewed for 
adequacy of recovery and adjusted as necessary.



Sec. 105-50.303   Cost basis in lieu of fees.

    Where the cost of services is to be recovered on other than a fee 
basis, upon receipt of a request from a State or local government for 
such services, a written reply shall be prepared by the service or staff 
office receiving the request stating the basis for reimbursement for the 
services to be performed. The proposal shall be based on an estimate of 
all direct costs, such as salaries of personnel involved plus personnel 
benefits, travel, and other related expenses and on such indirect costs 
as management, supervisory, and staff support expenses. An appropriate 
surcharge may be developed to recover these indirect costs. The terms 
thereof shall be concurred in by the Director of Administration. 
Acceptance in writing by the requester shall constitute a binding 
agreement between GSA and the requesting governmental unit.



Sec. 105-50.304   Services provided through revolving funds.

    Where the service furnished is of the type which GSA is now billing 
through revolving funds, reimbursement shall be obtained from State and 
local governments on the same basis; i.e., the same pricing method, 
billing forms, and billing support shall be used.



Sec. 105-50.304a   Deposits.

    Reimbursements to GSA for furnishing special or technical services 
to State and local units of government will be deposited to the credit 
of the appropriation from which the cost of providing such services has 
been paid or is to be charged if such reimbursements are authorized. 
Otherwise, the reimbursements will be credited to miscellaneous receipts 
in the U.S. Treasury (42 U.S.C. 4223).



Sec. 105-50.305   Exemptions.

    (a) Single copies of existing reports covering studies and 
statistical compilations and other data or publications for which there 
is no established schedule of fees shall be furnished without charge 
unless significant expense is incurred in reproducing the material, in 
which instance the actual cost thereof shall be charged.
    (b) GSA may, pursuant to section 302 of the Intergovernmental 
Personnel Act of 1970 (42 U.S.C. 4742), admit employees of State and 
local units of government to training programs established for 
professional, administrative, or technical personnel and may waive the 
requirement for reimbursement in whole or in part.



                        Subpart 105-50.4--Reports



Sec. 105-50.401   Reports submitted to the Congress.

    (a) The Administrator of General Services will furnish annually to 
the respective Committees on Government Operations of the Senate and the 
House of Representatives a summary report on the scope of the services 
provided under Title III of the act and this part.
    (b) Heads of Services and Staff Offices and all Regional 
Administrators shall furnish the Director of Management Services, OAD, 
by no later than January 15 of each year, the following information 
concerning services provided during the preceding calendar year to State 
and local units of government:

[[Page 27]]

    (1) A brief description of the services provided, including any 
other pertinent data;
    (2) The State and/or local unit of government involved; and
    (3) The cost of GSA to provide the service, including the amount of 
reimbursement, if any, made by the benefitting government.
    (c) Reports Control Symbol LAW-27-OA is assigned to this report.



Sec. 105-50.402   Reports submitted to the Office of Management and Budget.

    Copies of the foregoing reports will be submitted by the 
Administrator to the Office of Management and Budget not later than 
March 30 of each year.



PART 105-51--UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents




    Authority: Sec. 213, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).



Sec. 105-51.001  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (Title IV 
of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) are set forth 
in 49 CFR part 24.

[52 FR 48024, Dec. 17, 1987; 54 FR 8913, Mar. 2, 1989]



PART 105-53--STATEMENT OF ORGANIZATION AND FUNCTIONS--Table of Contents




Sec.
105-53.100  Purpose.

                           Subpart A--General

105-53.110  Creation and authority.
105-53.112  General statement of functions.
105-53.114  General statement of organization.
105-53.116  General regulations.
105-53.118  Locations of material available for public inspection.
105-53.120  Address and telephone numbers.

                       Subpart B--Central Offices

105-53.130  Office of the Administrator.
105-53.130-1  [Reserved]
105-53.130-2  Office of Ethics and Civil Rights.
105-53.130-3  Office of the Executive Secretariat.
105-53.130-4  Office of Small and Disadvantaged Business Utilization.
105-53.131  Office of Inspector General.
105-53.132  GSA Board of Contract Appeals.
105-53.133  Information Security Oversight Office.
105-53.134  Office of Administration.
105-53.135  [Reserved]
105-53.136  Office of Congressional Affairs
105-53.137  Office of Acquisition Policy.
105-53.138  Office of General Counsel.
105-53.139  Office of the Comptroller.
105-53.140  Office of Operations and Industry Relations.
105-53.141  Office of Policy Analysis.
105-53.142  Office of Public Affairs.
105-53.143  Information Resources Management Service.
105-53.144  Federal Property Resources Service.
105-53.145  Federal Supply Service.
105-53.146  [Reserved]
105-53.147  Public Buildings Service.

                       Subpart C--Regional Offices

105-53.150  Organization and functions.
105-53.151  Geographic composition, addresses, and telephone numbers.

    Authority: 5 U.S.C. 552(a)(1), Pub. L. 90-23, 81 Stat. 54 sec. 
(a)(1); 40 U.S.C. 486(c), Pub. L. 81-152, 63 Stat. 390, sec. 205(c).

    Source: 48 FR 25200, June 6, l983, unless otherwise noted.



Sec. 105-53.100  Purpose.

    This part is published in accordance with 5 U.S.C. 552 and is a 
general description of the General Services Administration.



                           Subpart A--General



Sec. 105-53.110  Creation and authority.

    The General Services Administration was established by section 101 
of the Federal Property and Administrative Services Act of 1949 (63 
Stat. 377), effective July 1, 1949. The act consolidated and transferred 
to the agency a variety

[[Page 28]]

of real and personal property and related functions fomerly assigned to 
various agencies. Subsequent laws and Executive orders assigned other 
related functions and programs.



Sec. 105-53.112  General statement of functions.

    The General Services Administration, as a major policy maker, 
provides guidance and direction to Federal agencies in a number of 
management fields. GSA formulates and prescribes a variety of 
Governmentwide policies relating to procurement and contracting; real 
and personal property management; transportation, public transportation, 
public utilities and telecommunications management; automated data 
processing management; records management; the use and disposal of 
property; and the information security program. In addition to its 
policy role, GSA also provides a variety of basic services in the 
aforementioned areas to other Government agencies. A summary description 
of these services is presented by organizational component in subpart B.

[54 FR 26741, June 26, 1989]



Sec. 105-53.114  General statement of organization.

    The General Services Administration is an independent agency in the 
executive branch of the Government. The work of the agency as a whole is 
directed by the Administrator of General Services, who is assisted by 
the Deputy Administrator. A summary description of each of GSA's major 
functions and organizational components is presented in subparts B and 
C.



Sec. 105-53.116  General regulations.

    Regulations of the General Services Administration and its 
components are codified in the Code of Federal Regulations in title 1, 
chapters I and II; title 32, chapter XX; title 41, chapters 1, 5, 101, 
105, and 201; and title 48, chapters 1 and 5. Titles 1, 32, 41, and 48 
of the Code of Federal Regulations are available for review at most 
legal and depository libraries and at the General Services 
Administration Central Office and regional offices. Copies may be 
purchased from the Superintendent of Documents, Government Printing 
Office, Washington, DC 20402.

[49 FR 24995, June 19, 1984]



Sec. 105-53.118  Locations of material available for public inspection.

    GSA maintains reading rooms containing materials available for 
public inspection and copying at the following locations:
    (a) General Services Administration, 18th & F Streets, NW., Library 
(Room 1033), Washington, DC 20405. Telephone 202-535-7788.
    (b) Business Service Center, General Services Administration, 10 
Causeway Street, Boston, MA 02222. Telephone: 617-565-8100.
    (c) Business Service Center, General Services Administration, 26 
Federal Plaza, NY, NY 10278. Telephone: 212-264-1234.
    (d) Business Service Center, General Services Administration, 
Seventh & D Streets, SW., Room 1050, Washington, DC 20407. Telephone: 
202-472-1804.
    (e) Business Service Center, General Services Administration, Ninth 
& Market Streets, Room 5151, Philadelphia, PA 19107. Telephone: 215-597-
9613.
    (f) Business Service Center, General Services Administration, 
Richard B. Russell Federal Building, U.S. Courthouse, 75 Spring Street, 
SW., Atlanta, GA 30303, Telephone: 404/331-5103.
    (g) Business Service Center, General Services Administration, 230 
South Dearborn Street, Chicago, IL 60604. Telephone: 312-353-5383.
    (h) Business Service Center, General Services Administration, 1500 
East Bannister Road, Kansas City, MO 64131. Telephone: 816-926-7203.
    (i) Business Service Center, General Services Administration, 819 
Taylor Street, Fort Worth, TX 76102. Telephone: 817-334-3284.
    (j) Business Service Center, General Services Administration, Denver 
Federal Center, Denver, CO 80225. Telephone: 303-236-7408.
    (k) Business Service Center, General Services Administration, 525 
Market Street, San Francisco, CA 94105. Telephone: 415-974-9000.
    (l) Business Service Center, General Services Administration, 300 
North Los Angeles Street, Room 3259, Los Angeles, CA 90012. Telephone: 
213-688-3210.

[[Page 29]]

    (m) Business Service Center, General Services Administration, GSA 
Center, Auburn, WA 98001. Telephone: 206-931-7957.

[48 FR 25200, June 6, 1983, as amended at 49 FR 24995, June 19, 1984; 50 
FR 26363, June 26, 1985; 51 FR 23229, June 26, 1986; 52 FR 23657, June 
24, 1987; 53 FR 23761, June 24, 1988]



Sec. 105-53.120  Address and telephone numbers.

    The Office of the Administrator; Office of Ethics and Civil Rights; 
Office of the Executive Secretariat; Office of Small and Disadvantaged 
Business Utilization; Office of Inspector General; GSA Board of Contract 
Appeals; Information Security Oversight Office; Office of 
Administration; Office of Congressional Affairs; Office of Acquisition 
Policy; Office of General Counsel; Office of the Comptroller; Office of 
Operations and Industry Relations; Office of Policy Analysis; Office of 
Public Affairs; Information Resources Management Service; Federal 
Property Resources Service; and Public Buildings Service are located at 
18th and F Streets NW., Washington, DC 20405. The Federal Supply Service 
is located at Crystal Mall Building 4, 1941 Jefferson Davis Highway, 
Arlington, VA, however, the mailing address is Washington, DC 20406. The 
telephone number for the above addresses is 202-472-1082. The addresses 
of the eleven regional offices are provided in Sec. 105-53.151.

[54 FR 26741, June 26, 1989]



                       Subpart B--Central Offices



Sec. 105-53.130  Office of the Administrator.

    The Administrator of General Services, appointed by the President 
with the advice and consent of the Senate, directs the execution of all 
programs assigned to the General Services Administration. The Deputy 
Administrator, who is appointed by the Administrator, assists in 
directing agency programs and coordinating activities related to the 
functions of the General Services Administration.
Sec. 105-53.130-1  [Reserved]



Sec. 105-53.130-2  Office of Ethics and Civil Rights.

    The Office of Ethics and Civil Rights, headed by the Special Counsel 
for Ethics and Civil Rights, is responsible for developing, directing, 
and monitoring the agency's programs governing employee standards of 
ethical conduct, equal employment opportunity, and civil rights. It is 
the focal point for the agency's implementation of the Ethics in 
Government Act of 1978. The principal statutes covering the Civil Rights 
Program are Titles VI and VII of the Civil Rights Act of 1964, Title IX 
of the Educational Amendments Act of 1972, sections 501 and 504 of the 
Vocational Rehabilitation Act of 1973, the Age Discrimination in 
Employment Act of 1975, and the Equal Pay Act.

[53 FR 23761, June 24, 1988]



Sec. 105-53.130-3  Office of the Executive Secretariat.

    The Office of the Executive Secretariat, headed by the Director of 
the Executive Secretariat, is responsible for policy coordination, 
correspondence control, and various administrative tasks in support of 
the Administrator and Deputy Administrator.



Sec. 105-53.130-4  Office of Small and Disadvantaged Business Utilization.

    (a) Creation and authority. Public Law 95-507, October 14, 1978, an 
amendment to the Small Business Act and the Small Business Investment 
Act of 1958, established in each Federal agency having procurement 
authority the Office of Small and Disadvantaged Business Utilization. 
Each office is headed by a Director of Small and Disadvantaged Business 
Utilization. The Director is appointed by the head of the agency or 
department.
    (b) Functions. The Director of Small and Disadvantaged Business 
Utilization is responsible for the implementation and execution of the 
functions and duties under Sections 8 and 15 of the Small Business Act 
to include the issuance of policy direction and guidance.

[[Page 30]]

The office provides information, assistance, and counseling to business 
concerns, including small businesses, small socially and economically 
disadvantaged persons, women-owned businesses, labor surplus area 
concerns, and workshops operated by the blind and other severely 
handicapped persons. The office also conducts outreach, liaison, source 
listings, and seminars for small and disadvantaged businesses and 
coordinates and promotes procurement programs and policies.



Sec. 105-53.131  Office of Inspector General.

    (a) Creation and authority. Public Law 95-452, known as the 
Inspector General Act of 1978, consolidated existing audit and 
investigation functions and established an Office of Inspector General 
in 11 major domestic departments and agencies, including GSA. Each 
office is headed by an Inspector General appointed by the President with 
the advice and consent of the Senate.
    (b) Functions. The Office of Inspector General is responsible for 
policy direction and conduct of audit, inspection, and investigation 
activities relating to programs and operations of GSA; and maintaining 
liaison with other law enforcement agencies, the Department of Justice, 
and United States Attorneys on all matters relating to the detection and 
prevention of fraud and abuse. The Inspector General reports 
semiannually to the Congress through the Administrator concerning fraud, 
abuses, other serious problems, and deficiencies of agency programs and 
operations; recommends corrective action; and reports on progress made 
in implementing these actions.



Sec. 105-53.132  GSA Board of Contract Appeals.

    (a) Creation and Authority. The GSA Board of Contract Appeals 
(GSBCA), headed by the Chairman, GSA Board of Contract Appeals, was 
established on February 28, 1979, by the Administrator of General 
Services as an independent administrative/judicial tribunal under the 
provisions of the Contract Disputes Act of 1978 (Pub. L. 95-563). The 
Board was granted additional authority pursuant to the Brooks Act, 40 
U.S.C. 759(f) (Pub. L. 99-591).
    (b) Functions. The GSBCA hears, considers, and decides disputes 
between contractors and GSA and other executive departments, agencies, 
and commissions under the provisions of the Contract Disputes Act of 
1978, the ``Disputes'' clause of contracts, and in connection with 
contract related claims. The Board furnishes hearing examiners for the 
Suspension and Debarment Board which serves as the factfinder in 
suspension and proposed debarment matters. The Suspension and Debarment 
Board provides the suspending official with a determination as to 
whether adequate evidence exists to support the cause for suspension, 
delivers written findings of fact to the debarring official which 
resolve any facts in dispute based on a preponderance of the evidence 
and determines whether a cause for debarment exists. The Board also 
serves as an ad hoc body convened to consider any other type of dispute, 
including appeals involving violations of post-Federal employment 
restrictions pursuant to the Ethics in Govenment Act of 1978. 
Additionally, the Board hears, considers, and decides ADP protests by 
interested parties pursuant to the Brooks Act, 40 U.S.C. 759(f).
    (c) Regulations. Regulations pertaining to GSBCA programs are 
published in 41 CFR part 5A-60. Information on availability of the 
regulations is provided in Sec. 105-53.116.

[48 FR 25200, June 6, 1983, as amended at 53 FR 23761, June 24, 1988]



Sec. 105-53.133  Information Security Oversight Office.

    (a) Creation and authority. The Information Security Oversight 
Office (ISOO), headed by the Director of ISOO, who is appointed by the 
Administrator with the approval of the President, was established by the 
Administrator on November 20, 1978, under the provisions of Executive 
Order 12065. Effective August 1, 1982, this authority is based upon 
Executive Order 12356, which superseded E.O. 12065.
    (b) Functions. ISOO oversees and ensures, under the general policy 
direction of the National Security Council, Government-wide 
implementation of the information security program established by 
Executive order.

[[Page 31]]

    (c) Regulations. Regulations pertaining to ISOO Programs are 
published in 32 CFR chapter XX, part 2000 et seq.



Sec. 105-53.134  Office of Administration.

    The Office of Administration, headed by the Associate Administrator 
for Administration, participates in the executive leadership of the 
agency; providing advice on the formulation of major policies and 
procedures, particularly those of a critical or controversial nature, to 
the Administrator and Deputy Administrator. The Office plans and 
administers programs in organization, productivity improvement, position 
management, training, staffing, position classification and pay 
administration, employee relations, workers' compensation, career 
development, GSA internal security, reporting requirements, regulations, 
internal directives, records correspondence procedures, Privacy and 
Freedom of Information Acts, printing and duplicating, mail, 
telecommunications, graphic design, cooperative administrative support, 
and support for congressional field offices. The office also serves as 
the central point of control for audit and inspection reports from the 
Inspector General and the Comptroller General of the United States; and 
manages the GSA internal controls evaluation, improvement, and reporting 
program. In addition, the office includes a secretariat to oversee 
Federal advisory committees.

[54 FR 26741, June 26, 1989]
Sec. 105-53.135  [Reserved]



Sec. 105-53.136  Office of Congressional Affairs.

    The Office of Congressional Affairs, headed by the Associate 
Administrator for Congressional Affairs, is responsible for directing 
and coordinating the legislative and congressional activities of GSA.

[54 FR 26742, June 26, 1989]



Sec. 105-53.137  Office of Acquisition Policy.

    (a) Functions. The Office of Acquisition Policy (OAP), headed by the 
Associate Administrator for Acquisition Policy, serves as the single 
focal point for GSA acquisition and contracting matters and is 
responsible for ensuring that the GSA procurement process is executed in 
compliance with all appropriate public laws and regulations and is based 
on sound business judgment. Also, OAP exercises Governmentwide 
acquisition responsibilities through its participation with the 
Department of Defense and the National Aeronautics and Space 
Administration in the development and publication of the Federal 
Acquisition Regulation.
    (b) Regulations. Regulations pertaining to OAP programs are 
published in 48 CFR chapter 1, Federal Acquisition Regulation (FAR), and 
in 48 CFR chapter 5, General Services Acquisition Regulation (GSAR). 
Information on availability of the regulations is provided in Sec. 105-
53.116.

[52 FR 23657, June 24, 1987]



Sec. 105-53.138  Office of General Counsel.

    Functions. The Office of General Counsel (OGC), headed by the 
General Counsel, is responsible for providing all legal services to the 
services, programs offices, staff offices, and regions of GSA with the 
exception of certain legal activities of the Office of Inspector General 
and legal activities of the Board of Contract Appeals; drafts 
legislation proposed by GSA; furnishes legal advice required in 
connection with reports on legislation proposed by other agencies; 
provides liaison on legal matters with other Federal agencies; 
coordinates with the Department of Justice in litigation matters; and 
reviews and gives advice on matters of contract policy and contract 
operations.



Sec. 105-53.139  Office of the Comptroller.

    (a) Functions. The Office of the Comptroller, headed by the 
Comptroller, is responsible for centralized agencywide budget and 
accounting functions; overall allocation and administrative control of 
agencywide resources and financial management programs; planning, 
developing, and directing GSA's executive management information system; 
and overseeing implementation of OMB Circular A-76 agencywide.
    (b) Regulations. Regulations pertaining to the Office of the 
Comptroller's programs are published in 41 CFR part 101-2. Information 
on availability of

[[Page 32]]

the regulations is provided in Sec. 105-53.116.

[51 FR 23230, June 26, 1986, as amended at 53 FR 23762, June 24, 1988; 
54 FR 26742, June 26, 1989]



Sec. 105-53.140  Office of Operations and Industry Relations.

    The Office of Operations and Industry Relations, headed by the 
Associate Administrator for Operations and Industry Relations, is 
responsible for formulating GSA-wide policy that relates to regional 
operations, supervising GSA's Regional Administrators, and planning and 
coordinating GSA business and industry relations and customer liaison 
activities.

[54 FR 26742, June 26, 1989]



Sec. 105-53.141  Office of Policy Analysis.

    The Office of Policy Analysis, headed by the Associate Administrator 
for Policy Analysis, is responsible for providing analytical support, 
independent, objective information concerning management policies and 
programs, and technical and analytical assistance in the areas of policy 
analysis and resource allocation to the Administrator, senior officials, 
and organizations in GSA.

[51 FR 23230, June 26, 1986]



Sec. 105-53.142  Office of Public Affairs.

    The Office of Public Affairs, headed by the Associate Administrator 
for Public Affairs, is responsible for the planning, implementation, and 
coordination of GSA public information and public events and employee 
communication activities, and managing and operating the Consumer 
Information Center.

[51 FR 23230, June 26, 1986]



Sec. 105-53.143  Information Resources Management Service.

    (a) Creation and authority. The Information Resources Management 
Service (IRMS), headed by the Commissioner, Information Resources 
Management Service, was established as the Office of Information 
Resources Management on August 17, 1982 and subsequently redesignated as 
IRMS on November 17, 1985, by the Administrator of General Services. The 
Information Resources Management Service was assigned responsibility for 
administering the Governmentwide information resources management 
program, including records management, and procurement, management, and 
use of automatic data processing and telecommunications resources.
    (b) Functions. IRMS is responsible for directing and managing 
Governmentwide programs for the procurement and use of automatic data 
processing (ADP), office information systems, and telecommunications 
equipment and services; developing and coordinating Governmentwide 
plans, policies, procedures, regulations, and publications pertaining to 
ADP; telecommunications and records management activities; managing and 
operating the Information Technology Fund; managing and operating the 
Federal Telecommunications System (FTS); planning and directing programs 
for improving Federal records and information management practices 
Governmentwide; managing and operating the Federal Information Centers; 
developing and overseeing GSA policy concerning automated information 
systems, equipment, and facilities; and providing policy and program 
direction for the GSA Emergency Preparedness and Disaster Support 
Programs.
    (c) Regulations. Regulations pertaining to IRMS programs are 
published in 41 CFR chapter 201, Federal Information Resources 
Management Regulation (FIRMR), and 48 CFR chapters 1 and 5. Information 
on availability of the regulations is provided in Sec. 105-53.116.

[51 FR 23230, June 26, 1986, as amended at 52 FR 23657, June 24, 1987]



Sec. 105-53.144  Federal Property Resources Service.

    (a) Creation and authority. The Federal Property Resources Service 
(FPRS), headed by the Commissioner, Federal Property Resources Service, 
was established on July 18, 1978, by the Administrator of General 
Services to carry out the utilization and disposal functions for real 
and related personal property.
    (b) Functions. FPRS is responsible for utilization surveys of 
Federal real

[[Page 33]]

property holdings; the reuse of excess real property; and the disposal 
of surplus real property.
    (c) Regulations. Regulations pertaining to FPRS programs are 
published in 41 CFR chapter 1, 41 CFR chapter 101, subchapter H, and 48 
CFR chapter 1. Information on availability of the regulations is 
provided in Sec. 105-53.116

[54 FR 26742, June 26, 1989]



Sec. 105-53.145  Federal Supply Service.

    (a) Creation and authority. The Federal Supply Service (FSS), headed 
by the Commissioner, FSS, was established on December 11, 1949, by the 
Administrator of General Services to supersede the Bureau of Federal 
Supply of the Department of the Treasury which was abolished by the 
Federal Property and Administrative Services Act of 1949. The Federal 
Supply Service has been known previously as the Office of Personal 
Property and the Office of Federal Supply and Services.
    (b) Functions. FSS is responsible for determining supply 
requirements; procuring personal property and nonpersonal services; 
transferring excess (except ADP equipment) and donating and selling 
surplus personal property; managing GSA's Governmentwide transportation, 
traffic management, travel, fleet management, and employee relocation 
programs; auditing of transportation bills paid by the Government and 
subsequent settlement of claims; developing Federal standard purchase 
specifications and Commercial Item Descriptions; standardizing 
commodities purchased by the Federal Government; cataloging items of 
supply procured by civil agencies; and ensuring continuity of supply 
operations during defense emergency conditions.
    (c) Regulations. Regulations pertaining to FSS programs are 
published in 41 CFR chapters 1 and 5; 41 CFR chapter 101, subchapters A, 
E, G, and H; and in 48 CFR chapters 1 and 5. Information on availability 
of the regulations is provided in Sec. 105-53.116.

[49 FR 24996, June 19, 1984, as amended at 51 FR 23230, June 26, 1986]
Sec. 105-53.146  [Reserved]



Sec. 105-53.147  Public Buildings Service.

    (a) Creation and authority. The Public Buildings Service (PBS), 
headed by the Commissioner, Public Buildings Service, was established on 
December 11, 1949, by the Administrator of General Services to supersede 
the Public Buildings Administration, which was abolished by the Federal 
Property and Administrative Services Act of 1949.
    (b) Functions. PBS is responsible for the design, construction, 
management, maintenance, operation, alteration, extension, remodeling, 
preservation, repair, improvement, protection, and control of buildings, 
both federally owned and leased, in which are provided housing 
accommodations for Government activities; the acquisition, utilization, 
custody, and accountability for GSA real property and related personal 
property; representing the consumer interests of the Federal executive 
agencies before Federal and State rate regulatory commissions and 
providing procurement support and contracting for public utilities 
(except telecommunications); the Safety and Environmental Management 
Program for GSA managed Government-owned and-leased facilities; 
providing for the protection and enhancement of the cultural environment 
for federally owned sites, structures, and objects of historical, 
architectural, or archaeological significance; ensuring that Federal 
work space is used more effectively and efficiently; providing 
leadership in the development and maintenance of needed property 
management information systems for the Government; and coordination of 
GSA activities towards improving the environment, as required by the 
National Environmental Policy Act of 1959.
    (c) Regulations. Regulations pertaining to PBS programs are 
published in 41 CFR chapter 1, 41 CFR chapter 101, subchapters D and H; 
and in 48 CFR chapter 1. Information on availability of the regulations 
is provided in Sec. 105-53.116.

[48 FR 25200, June 6, 1983, as amended at 49 FR 24996, June 19, 1984; 52 
FR 23658, June 24, 1987]

[[Page 34]]



                       Subpart C--Regional Offices



Sec. 105-53.150  Organization and functions.

    Regional offices have been established in 11 cities throughout the 
United States. Each regional office is headed by a Regional 
Administrator who reports to the Associate Administrator for Operations 
and Industry Relations. The geographic composition of each region is 
shown in Sec. 105-53.151.

[54 FR 26742, June 26, 1989]



Sec. 105-53.151  Geographic composition, addresses, and telephone numbers.

            Regional Offices--General Services Administration

                           Region and Address

    No. 1. (Comprising the States of Connecticut, Maine, Massachusetts, 
New Hampshire, Rhode Island, and Vermont); Boston FOB, 10 Causeway 
Street, Boston, MA 02222. Telephone: 617-565-5860.
    No. 2. (Comprising the States of New Jersey and New York, the 
Commonwealth of Puerto Rico, and the Virgin Islands); 26 Federal Plaza, 
New York, NY 10278. Telephone: 212-264-2600.
    No. 3. (Comprising the States of Maryland, Virginia (except those 
jurisdictions within the National Capital Region boundaries), West 
Virginia, Pennsylvania, and Delaware); Ninth and Market Streets, 
Philadelphia, PA 19107. Telephone 215-597-1237.
    No. 4. (Comprising the States of Alabama, Florida, Georgia, 
Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee); 
75 Spring Street, SW., Atlanta, GA 30303. Telephone: 404-331-3200.
    No. 5. (Comprising the States of Illinois, Indiana, Michigan, 
Minnesota, Ohio, and Wisconsin); 230 South Dearborn Street, Chicago, IL 
60604. Telephone: 312-353-5395.
    No. 6. (Comprising the States of Iowa, Kansas, Missouri, and 
Nebraska); 1500 East Bannister Road, Kansas City, MO 64131. Telephone: 
816-926-7201.
    No. 7. (Comprising the States of Arkansas, Louisiana, New Mexico, 
Oklahoma, and Texas); 819 Taylor Street, Fort Worth, TX 76102. 
Telephone: 817-334-2321.
    No. 8. (Comprising the States of Colorado, Montana, North Dakota, 
South Dakota, Utah, and Wyoming); Building 41, Denver Federal Center, 
Denver, CO 80225. Telephone: 303-236-7329.
    No. 9. (Comprising Guam and the States of Arizona, California, 
Hawaii, and Nevada); 525 Market Street, San Francisco, CA 94105. 
Telephone : 415-974-9147.
    No. 10. (Comprising the States of Alaska, Idaho, Oregon, and 
Washington); GSA Center, Auburn, WA 98001. Telephone: 206-931-7000.
    National Capital Region. (Comprising the District of Columbia; 
Counties of Montgomery and Prince Georges in Maryland; and the City of 
Alexandria and the Counties of Arlington, Fairfax, Loudoun, and Prince 
William in Virginia); Seventh and D Streets, SW., Washington, DC 20407. 
Telephone: 202-472-1100.

[51 FR 23231, June 26, 1986, as amended at 52 FR 23658, June 24, 1987; 
53 FR 23762, June 24, 1988; 54 FR 26742, June 26, 1989]



PART 105-54 ADVISORY COMMITTEE MANAGEMENT--Table of Contents




Sec.
105-54.000  Scope of part.

                  Subpart 105-54.1--General Provisions

105-54.101  Applicability.
105-54.102  Definitions.
105-54.103  Policy.
105-54.104  Responsibilities.

         Subpart 105-54.2--Establishment of Advisory Committees

105-54.200  Scope of subpart.
105-54.201  Proposals for establishing advisory committees.
105-54.202  Review and approval of proposals.
105-54.203  Advisory committee charters.
105-54.203-1  Preparation of charters.
105-54.203-2  Active charters file.
105-54.203-3  Submission to Library of Congress.
105-54.204  Advisory committee membership.

             Subpart 105-54.3--Advisory Committee Procedures

105-54.300  Scope of subpart.
105-54.301  Meetings.
105-54.302  Committee records and reports.
105-54.303  Fiscal and administrative provisions.
105-54.304  Cost guidelines.
105-54.305  Renewal of advisory committees.
105-54.306  Amendment of advisory committee charters.
105-54.307  Termination of advisory committees.
105-54.308  Responsibilities of the Administrator.
105-54.309  Added responsibilities of service and staff office heads and 
          regional administrators.
105-54.310  Advisory committee duties of the GSA Committee Management 
          Officer.
105-54.311  Complaint procedures.

[[Page 35]]

                        Subpart 105-54.4--Reports

105-54.400  Scope of subpart.
105-54.401  Reports on GSA Federal Advisory Committees.

    Authority: Pub. L. 92-463 dated October 6, 1972, as amended; and 5 
U.S.C. 552.

    Source: 53 FR 40224, Oct. 14, 1988, unless otherwise noted.



Sec. 105-54.000  Scope of part.

    This part sets forth policies and procedures in GSA regarding the 
establishment, operation, termination, and control of advisory 
committees for which GSA has responsibility. It implements the Federal 
Advisory Committee Act (Pub. L. 92-463), which authorizes a system 
governing the establishment and operation of advisory committees in the 
executive branch of the Federal Government, and Executive Order 11686 of 
October 7, 1972, which directs the heads of all executive departments 
and agencies to take appropriate action to ensure their ability to 
comply with the provisions of the Act.



                  Subpart 105-54.1--General Provisions



Sec. 105-54.101  Applicability.

    This part 105-54 applies to all advisory committees for which GSA 
has responsibility. This part also applies to any committee that advises 
GSA officials even if the committee were not established for that 
purpose. This applicability, however, is limited to the period of the 
committee's use as an advisory body. This part does not apply to:
    (a) An advisory committee exempted by an Act of Congress;
    (b) A local civic group whose primary function is to render a public 
service in connection with a Federal program;
    (c) A State or local committee, council, board, commission, or 
similar group established to advise or make recommendations to State or 
local officials or agencies;
    (d) A meeting initiated by the President or one or more Federal 
official(s) for the purpose of obtaining advice or recommendations from 
one individual;
    (e) A meeting with a group initiated by the President or one or more 
Federal official(s) for the sole purpose of exchanging facts or 
information;
    (f) A meeting initiated by a group with the President or one or more 
Federal official(s) for the purpose of expressing the group's views, 
provided that the President or Federal official(s) does not use the 
group recurrently as a preferred source of advice or recommendations;
    (g) A committee that is established to perform primarily operational 
as opposed to advisory functions. Operational functions are those 
specifically provided by law, such as making or implementing Government 
decisions or policy. An operational committee would be covered by the 
Act if it becomes primarily advisory in nature;
    (h) A meeting initiated by a Federal official(s) with more than one 
individual for the purpose of obtaining the advice of individual 
attendees and not for the purpose of utilizing the group to obtain 
consensus advice or recommendations. However, such a group would be 
covered by the Act when an agency accepts the group's deliberations as a 
source of consensus advice or recommendations;
    (i) A meeting of two or more advisory committee or subcommittee 
members convened solely to gather information or conduct research for a 
chartered advisory committee, to analyze relevant issues and facts, or 
to draft proposed position papers for deliberation by the advisory 
committee or a subcommittee of the advisory committee; and
    (j) A committee composed wholly of full-time officers or employees 
of the Federal Government.



Sec. 105-54.102  Definitions.

    (a) The term ``advisory committee'' means any committee, board, 
commission, council, conference, panel, task force, or other similar 
group or any subcommittee thereof that is:
    (1) Established by statute,
    (2) Established or utilized by the President, or
    (3) Established or utilized by any agency official to obtain advice 
or recommendations that are within the scope of his/her responsibilies.

The term ``advisory committee'' excludes the Advisory Committee on 
Intergovernmental Relations and any

[[Page 36]]

committees composed wholly of full-time officers or employees of the 
Federal Government.
    (b) ``Presidential advisory committee'' means any committee that 
advises the President. It may be established by the President or by the 
Congress, or may be used by the President to obtain advice or 
recommendations.
    (c) ``Independent Presidential advisory committee'' means any 
Presidential advisory committee not assigned by the President, or the 
President's delegate, or by the Congress in law, to an agency for 
administrative and other support and for which the Administrator of 
General Services may provide administrative and other support on a 
reimbursable basis.
    (d) ``Committee member'' means an individual who serves by 
appointment on a committee and has the full right and obligation to 
participate in the activities of the committee, including voting on 
committee recommendations.
    (e) ``Staff member'' means any individual who serves in a support 
capacity to an advisory committee.
    (f) ``Secretariat'' means the General Services Administration's 
Committee Management Secretariat. Established pursuant to the Federal 
Advisory Committee Act, it is responsible for all matters relating to 
advisory committees, and carries out the Administrator's 
responsibilities under the Act and Executive Order 12024.
    (g) ``Utilized'' (or used), as stated in the definition of 
``advisory committee'' above, refers to a situation in which a GSA 
official adopts a committee or other group composed in whole or in part 
of other than full-time Federal officers or employees with an 
established existence outside GSA as a preferred source from which to 
obtain advice or recommendations on a specific issue or policy within 
the scope of his/her responsibilities in the same manner as that 
official would obtain advice or recommendations from an established 
advisory committee.



Sec. 105-54.103  Policy.

    The basic GSA policy on committee management is as follows:
    (a) Advisory committees will be formed or used by GSA only when 
specifically authorized by law, or by the President, or specifically 
determined as a matter of formal record by the Administrator of General 
Services to be in the public interest in connection with the performance 
of duties imposed on GSA by law;
    (b) Advisory committees will not be used to administer a function 
that is the assigned responsibility of a service or staff office;
    (c) The assigned responsibility of a GSA official may not be 
delegated to any committee;
    (d) No advisory committee may be used for functions that are not 
solely advisory unless specifically authorized by statute or 
Presidential directive. Making policy decisions and determining action 
to be taken with respect to any matter considered by an advisory 
committee is solely the responsibility of GSA; and
    (e) In carrying out its responsibilities, GSA will consult with and 
obtain the advice of interested groups substantially affected by its 
programs. The use of advisory committees for this purpose is considered 
to be in the public interest and necessary for the proper performance by 
GSA of its assigned functions.



Sec. 105-54.104  Responsibilities.

    (a) Responsibility for coordination and control of committee 
management in GSA is vested in the Associate Administrator for 
Administration, who serves as the GSA Committee Management Officer 
(CMO). This Officer carries out the functions prescribed in section 8(b) 
of the Federal Advisory Committee Act. In doing so, the Officer controls 
and supervises the establishment, procedures, and accomplishments of 
GSA-sponsored advisory committees. The Organization and Productivity 
Improvement Division, Office of Management Services, Office of 
Administration, provides staff resources and furnishes the Staff Contact 
Person (SCP) to the CMO.
    (b) The Head of each Service and Staff Office and each Regional 
Administrator selects a Committee Management Officer (CMO) to coordinate 
and control committee management within the service, staff office, or 
regional office and to act as liaison to the GSA

[[Page 37]]

Committee Management Officer. The duties of the CMOs are as follows:
    (1) Assemble and maintain the reports, records, and other papers of 
any GSA-sponsored committee during its existence (Arrangements may be 
made, however, for the Government chairperson or other GSA 
representative to retain custody of reports, records, and other papers 
to facilitate committee operations. After the committee is terminated, 
all committee records are disposed of following existing regulations.); 
and
    (2) Under agency regulations in 41 CFR 105-60, carry out the 
provisions of 5 U.S.C. 552 with respect to the reports, records, and 
other papers of GSA-sponsored advisory committees.



         Subpart 105-54.2--Establishment of Advisory Committees



Sec. 105-54.200  Scope of subpart.

    This subpart prescribes the policy and procedures for establishing 
advisory committees within GSA.



Sec. 105-54.201  Proposals for establishing advisory committees.

    (a) The Administrator approves the establishment of all GSA Federal 
Advisory Committees.
    (b) When it is decided that it is necessary to establish a 
committee, the appropriate Head of the Service or Staff Office (HSSO) 
must consider the functions of similar committees in GSA to ensure that 
no duplication of effort will occur.
    (c) The HSSO proposes the establishment of a Central Office or 
regional advisory committee within the scope of assigned program 
responsibilities. In doing so, the HSSO assures that advisory committees 
are established only if they are essential to the conduct of agency 
business. Advisory committees are established only if there is a 
compelling need for the committees, the committees have a truly balanced 
membership, and the committees conduct their business as openly as 
possible under the law and their mandate. Each proposal is submitted to 
the GSA Committee Management Officer for review and coordination and 
includes:
    (1) A letter addressed to the Committee Management Secretariat 
signed by the HSSO with information copies for the Administrator, Deputy 
Administrator, the Associate Administrator for Congressional and 
Industry Relations, and the Special Counsel for Ethics and Civil Rights, 
describing the nature and purpose of the proposed advisory committee; 
why it is essential to agency business and in the public interest; why 
its functions cannot be performed by an existing committee of GSA, by 
GSA, or other means such as a public hearing; and the plans to ensure 
balanced membership;
    (2) A notice for publication in the Federal Register containing the 
Administrator's certification that creation of the advisory committee is 
in the public interest and describing the nature and purpose of the 
committee; and
    (3) A draft charter for review by the Committee Management 
Secretariat.
    (d) Subcommittees that do not function independently of the full or 
parent advisory committee need not follow the requirements of paragraph 
(c) of this section. However, they are subject to all other requirements 
of the Federal Advisory Committee Act.
    (e) The requirements of paragraphs (a) through (c) of this section 
apply to any subcommittee of a chartered committee, whether its members 
are drawn in whole or in part from the full or parent advisory 
committee, that functions independently of the parent advisory 
committee, such as by making recommendations directly to a GSA official 
rather than for consideration by the chartered advisory committee.



Sec. 105-54.202  Review and approval of proposals.

    (a) The GSA Committee Management Officer reviews each proposal to 
make sure it conforms with GSA policies and procedures. The Officer 
sends the letter of justification, including the draft charter, to the 
Committee Management Secretariat. The Secretariat reviews the proposal 
and provides its views within 15 calendar days of receipt, if possible. 
The Administrator retains final authority for establishing a particular 
advisory committee.

[[Page 38]]

    (b) When the Secretariat notifies the Officer that establishing the 
committee conforms with the Federal Advisory Committee Act, the Officer 
obtains the Administrator's approval of the charter and the Federal 
Register notice. The Officer publishes the notice in the Federal 
Register at least 15 calendar days before the filing of the charter 
under Sec. 105-54.203 with the standing committees of the Senate and the 
House of Representatives having legislative jurisdiction over GSA. The 
date of filing constitutes the date of establishment.



Sec. 105-54.203  Advisory committee charters.

    No advisory committee may operate, meet, or take any action until 
the Administrator approves its charter and the Committee Management 
Officer sends a copy of it to the standing committees of the Senate and 
the House of Representatives having legislative jurisdiction over GSA.



Sec. 105-54.203-1  Preparation of charters.

    Each committee charter contains the following information:
    (a) The committee's official designation;
    (b) The committee's objectives and the scope of its activities;
    (c) The period of time necessary for the committee to carry out its 
purpose (if the committee is intended to function as a standing advisory 
committee, this should be made clear);
    (d) The official to whom the committee reports, including the 
official's name, title, and organization;
    (e) The agency and office responsible for providing the necessary 
support for the committee;
    (f) A description of the duties for which the committee is 
responsible (if the duties are not solely advisory, the statutory or 
Presidential authority for additional duties shall be specified);
    (g) The estimated annual operating costs in dollars and person-years 
for the committee;
    (h) The estimated number and frequency of committee meetings;
    (i) The committee's termination date, if it is less than 2 years 
from the date of its establishment; and
    (j) The date the charter is filed. This date is inserted by the GSA 
Committee Management Officer after the Administrator approves the 
charter.



Sec. 105-54.203-2  Active charters file.

    The GSA Committee Management Officer retains each original signed 
charter in a file of active charters.



Sec. 105-54.203-3  Submission to Library of Congress.

    The GSA Committee Management Officer furnishes a copy of each 
charter to the Library of Congress when or shortly after copies are 
filed with the requisite committees of the Congress. Copies for the 
Library are addressed: Library of Congress, Exchange and Gift Division, 
Federal Documents Section, Federal Advisory Committee Desk, Washington, 
DC 20540.



Sec. 105-54.204  Advisory committee membership.

    (a) Advisory committees that GSA establishes represent the points of 
view of the profession, industry, or other group to which it relates, 
taking into account the size, function, geographical location, 
affiliation, and other considerations affecting the character of a 
committee. To ensure balance, the agency considers for membership a 
cross-section of interested persons and groups with professional or 
personal qualifications or experience to contribute to the functions and 
tasks to be performed. This should be construed neither to limit the 
participation nor to compel the selection of any particular individual 
or group to obtain different points of view relevant to committee 
business. The Administrator designates members, alternates, and 
observers, as appropriate, of advisory committees. He/she designates a 
Federal officer or employee to chair or attend each meeting of each 
advisory committee. The Administrator also designates GSA employees to 
serve on advisory committees sponsored by other Government agencies. The 
HSSO or Regional Administrator submits nominations and letters of 
designation for the Administrator's signature to

[[Page 39]]

the GSA Committee Management Officer and to the Special Counsel for 
Ethics and Civil Rights for review and forwarding to the Administrator.
    (b) Discrimination is prohibited on the basis of race, color, age, 
national origin, religion, sex, or mental and physical handicap in 
selecting advisory committee members.
    (c) Nominees for membership must submit a Statement of Employment 
and Financial Interests (provided to the nominee by the HSSO or Regional 
Administrator) and may not be appointed until cleared by the Designated 
Agency Ethics Official.



             Subpart 105-54.3--Advisory Committee Procedures



Sec. 105-54.300  Scope of subpart.

    This subpart sets forth the procedures that will be followed in the 
operation of advisory committees within GSA.



Sec. 105-54.301  Meetings.

    (a) Each GSA advisory committee meeting is open to the public unless 
the Administrator decides otherwise;
    (b) Each meeting is held at a reasonable time and in a place 
reasonably accessible to the public;
    (c) The meeting room size is sufficient to accommodate committee 
members, committee or GSA staff, and interested members of the public;
    (d) Any private citizen is permitted to file a written statement 
with the advisory committee;
    (e) Any private citizen is permitted to speak at the advisory 
committee meeting, at the chairperson's discretion;
    (f) All persons attending committee meetings at which classified 
information will be considered are required to have an adequate security 
clearance;
    (g) The Designated Federal Officer (who may be either full time or 
permanent part-time) for each advisory committee and its subcommittees 
does the following:
    (1) Approves or calls the meetings of the advisory committee;
    (2) Approves the meeting agenda, which lists the matters to be 
considered at the meeting and indicates whether any part of the meeting 
will be closed to the public under the Government in the Sunshine Act (5 
U.S.C. 552b(c)). Ordinarily, copies of the agenda are distributed to 
committee members before the date of the meeting;
    (3) Attends all meetings (no part of a meeting may proceed in the 
Designated Federal Officer's absence);
    (4) Adjourns the meeting when he or she determines that adjournment 
is in the public interest; and
    (5) Chairs the meeting when asked to do so.
    (h) The Committee Chairperson makes sure that detailed minutes of 
each meeting are kept and certifies to their accuracy. The minutes 
include:
    (1) Time, date, and place;
    (2) A list of the following persons who were present;
    (i) Advisory committee members and staff;
    (ii) Agency employees; and
    (iii) Private citizens who presented oral or written statements;
    (3) The estimated number of private citizens present;
    (4) An accurate description of each matter discussed and the 
resolution of the matter, if any; and
    (5) Copies of each report or other document the committee received, 
issued, or approved.
    (i) The responsible HSSO or the Regional Administrator publishes at 
least 15 calendar days before the meeting a notice in the Federal 
Register that includes:
    (1) The name of the advisory committee as chartered;
    (2) The time, date, place, and purpose of the meeting;
    (3) A summary of the agenda; and
    (4) A statement whether all or part of the meeting is open to the 
public of closed; and if closed, the reasons why, and citing the 
specific exemptions of the Government is the Sunshine Act (5 U.S.C. 
552b) as the basis for closure;
    (j) In exceptional circumstances and when approved by the General 
Counsel or designee, less than 15 calendar days notice may be given, 
provided the reasons for doing so are included in the committee meeting 
notice published in the Federal Register;
    (k) Notices to be published in the Federal Register are submitted to 
the Federal Register Liaison Officer

[[Page 40]]

(CAID). At least five workdays are needed for printing of the notice;
    (l) Meetings may also be announced by press release, direct mail, 
publication in trade and professional journals, or by notice to special 
interest and community groups affected by the Committee's deliberations. 
This procedure cannot be a substitute for Federal Register publication;
    (m) The fact that a meeting may be closed to the public under the 
exemptions of the Government in the Sunshine Act does not relieve GSA of 
the requirement to publish a notice of it in the Federal Register. The 
Administrator may authorize an exception to this requirement for reasons 
of national security if the HSSO requests it at least 30 calendar days 
before the meeting, with the concurrence of the General Counsel of 
designee.
    (n) An advisory committee meeting is not open to the public, nor is 
the attendance, appearance, or filing of statements by interested 
persons permitted, if the Administrator decides that the meeting is 
exempted under the Government in the Sunshine Act (5 U.S.C. 552b (c)) 
and there is sufficient reason to invoke the exemption. If only part of 
the meeting concerns exempted matters, only that part is closed. The 
HSSO or Regional Administrator submits any decisions concerning the 
closing of meetings in writing to the Administrator for approval at 
least 30 calendar days in advance of the meeting. These decisions 
clearly set forth the reasons for doing so, citing the specific 
exemptions used from the Government in the Sunshine Act in the meeting 
notice published in the Federal Register. They are made available to the 
public on request. The Administrator may waive the 30-day requirement 
when a lesser period of time is requested and adequately justified.
    (o) If any meeting or portion of a meeting is closed to public 
attendance, the advisory committee issues a report at lease annually 
setting forth a summary of its activities and such related matters as 
would be informative to the public, consistent with the policy of 5 
U.S.C. 552(b). Notice of the availability of the report and instructions 
on how to gain access to it are published in the Federal Register no 
later than 60 days after its completion. In addition, copies of the 
report are filed with the Library of Congress.
    (p) The General Counsel reviews all requests to close meetings.
    (q) The HSSO or Regional Administrator publishes the meeting notices 
in the Federal Register, including the reasons why all or part of the 
meeting is closed, citing the specified exemptions used from the 
Government in the Sunshine Act.



Sec. 105-54.302  Committee records and reports.

    (a) Subject to the Freedom of Information Act (5 U.S.C. 552), the 
records, reports, transcripts, minutes, appendixes, working papers, 
drafts, studies, agenda, or other documents that were available to or 
prepared for or by a GSA advisory committee are available (until the 
committee ceases to exist) for public inspection and copying in the 
office of the Government Chairperson or Designated Federal Officer. 
Requests to inspect or copy these records are processed under 41 CFR 
105-60.4. Except where prohibited by a contract entered into before 
January 5, 1973, copies of transcripts, if any, of committee meetings 
are made available by the Government chairperson or Designated Federal 
Officer to any person at the cost of duplication. After the committee's 
work ends, disposition of the committee documents and the release of 
information from them are made in accordance with Federal records, 
statutes, and regulations.
    (b) Subject to 5 U.S.C. 552(b) and instructions of the Committee 
Management Secretariat, the Government chairperson or Designated Federal 
Officer files at least eight copies of each report an advisory committee 
makes, including any report on closed meetings with the Library of 
Congress at the time of its issuance. Where appropriate, the chairperson 
also files copies of background papers that consultants to the advisory 
committee prepare with the Library of Congress. The transmittal letter 
identifies the materials being furnished, with a copy of the transmittal 
provided to the GSA Committee Management Officer.

[[Page 41]]



Sec. 105-54.303  Fiscal and administrative provisions.

    (a) Each HSSO and each Regional Administrator ensures that under 
established GSA procedures, records are kept that fully disclose the 
disposition of funds at the disposal of an advisory committee and the 
nature and extent of the committee's activities.
    (b) When GSA is assigned to provide administrative support for a 
Presidential advisory committee, the Agency Liaison Coordinator in the 
Office of the Deputy Regional Administrator, National Capital Region, as 
a part of its support, arranges with the Office of Finance, Office of 
the Comptroller, for maintaining all financial records.
    (c) Unless otherwise provided in a Presidential order, statute, or 
other authority, the GSA service or staff office sponsoring an advisory 
committee provides support services for the committee.
    (d) The guidelines in paragraph (e) through (l) of this section are 
established under section 7(d) of the Federal Advisory Committee Act, 86 
Stat. 773. They apply to the pay of members, staff, and consultants of 
an advisory committee, except that nothing in this paragraph will affect 
a rate of pay or a limitation on a rate of pay that is established by 
statute or a rate of pay established under the General Schedule 
classification and pay system in Chapter 51 and Subchapter III of 
Chapter 53 of Title 5, U.S.C.
    (e) The members of GSA advisory committee established pursuant to 
the Administrator's authority under section 205(g) of the Federal 
Property and Administrative Services Act of 1949, as amended (40 U.S.C. 
486(g)), are not compensated, since, by law, members so appointed shall 
service without compensation. A person who (without regard to his or her 
service with an advisory committee) is a full-time Federal employee will 
normally receive compensation at the rate at which he or she would 
otherwise be compensated.
    (f) When required by law, the pay of the members of GSA advisory 
committees will be fixed to the daily equivalent of a rate of the 
General Schedule in 5 U.S.C. 5332 unless the members are appointed as 
consultants and compensated as provided in paragraph (h) of this 
section. In determining an appropriate rate of pay for the members, GSA 
must give consideration to the significance, scope, and technical 
complexity of the matters with which the advisory committee is concerned 
and the qualifications required of the members of the advisory 
committee. GSA may not fix the pay of the members of an advisory 
committee at a rate higher than the daily equivalent of the maximum rate 
for a GS-15 under the General Schedule, unless a higher rate is mandated 
by statute, or the Administrator has personally determined that a higher 
rate of pay under the General Schedule is justified and necessary. Such 
a determination must be reviewed by the Administrator annually. 
Accordingly, the Administrator may not fix the pay of the members of an 
advisory committee at a rate of pay higher than the daily equivalent of 
a rate for a GSA 18, as provided in 5 U.S.C. 5332.
    (g) The pay of each staff member of an advisory committee is fixed 
at a rate of the General Schedule, General Management Schedule, or 
Senior Executive Service pay rate in which the staff member's position 
would be placed (5 U.S.C. Chapter 51). GSA cannot fix the pay of a staff 
member higher than the daily equivalent of the maximum rate for GS-15 
unless the Administrator decides that under the General Schedule, 
General Management Schedule, or Senior Executive Service classification 
system, the staff member's position should be higher than GS-15. The 
Administrator must review this decision annually.
    (1) In establishing compensation rates, GSA must comply with 
applicable statutes, regulations, Executive Orders, and administrative 
guidelines.
    (2) A staff member who is a Federal employee serves with the 
knowledge of the Designated Federal Officer and the approval of the 
employee's direct supervisor. A staff member who is a non-Federal 
employee is appointed under agency procedures, after consultation with 
the advisory committee.
    (h) The pay of a consultant to an advisory committee will be fixed 
after giving consideration to the qualifications required of the 
consultant and the significance, scope, and technical complexity of the 
work. The rate of

[[Page 42]]

pay will not exceed the maximum rate of pay which the agency may pay 
experts and consultants under 5 U.S.C. 3109 and must be in accordance 
with any applicable statutes, regulations, Executive Orders, and 
administrative guidelines.
    (i) Advisory committee and staff members, while performing their 
duties away from their homes or regular places of business, may be 
allowed travel expenses, including per diem instead of subsistence, as 
authorized by 5 U.S.C. 5703 for persons employed intermittently in the 
Government service.
    (j) Members of an advisory committee and its staff who are blind or 
deaf or who otherwise qualify as handicapped persons (under section 501 
of the Rehabilitation Act of 1973 (29 U.S.C. 794)), and who do not 
otherwise qualify for assistance under 5 U.S.C. 3102, as an employee of 
an agency (under section 3102(a)(1) of Title 5), may be provided the 
services of a personal assistant.
    (k) Under this paragraph, GSA may accept the gratuitous services of 
a member, consultant, or staff member of an advisory committee who 
agrees in advance to serve without compensation.
    (l) A person who immediately before his or her service with an 
advisory committee was a full-time Federal employee may receive 
compensation at the rate at which he or she was compensated as a Federal 
employee.



Sec. 105-54.304  Cost guidelines.

    (a) The reporting and estimating of the costs of advisory committees 
include direct obligations for the following items:
    (1) Pay compensation of committee members; consultants to the 
committee; all permanent, temporary, or part-time (GM, GS, WB, or other) 
positions which are a part of or support the committee; and all overtime 
related to committee functions (Compensation should reflect actual or 
estimated Federal person-years or parts thereof devoted to a committee's 
activities. It includes the compensation of Federal employees assigned 
to committees, on a reimbursable or nonreimbursable basis, from agencies 
or departments other than to which the committee reports.);
    (2) Personnel benefits associated with the above compensation (13 
percent of basic payroll);
    (3) Travel costs (including per diem) of committee members; 
consultants; and all permanent, temporary, or part-time positions which 
are a part of or support the committee;
    (4) Transportation of things, communications, and printing and 
reproduction;
    (5) Rent for additional space acquired for committee use;
    (6) Other services required by the committee, including data 
processing services, management studies and evaluations, contractual 
services, and reimbursable services; and
    (7) Supplies, materials, and equipment acquired for committee use.
    (b) The reporting and estimating of the cost of advisory committees 
does not include indirect or overhead costs; e.g., the costs of the 
committee management system (committee management officers, etc.).



Sec. 105-54.305  Renewal of advisory committees.

    (a) Each advisory committee being continued is renewed for 
successive 2-year periods beginning with the date when it was 
established according to the following, except for statutory advisory 
committees: (For renewal of statutory advisory committees, see paragraph 
(b) of this section.)
    (1) Advisory committees are not renewed unless there is a compelling 
need for them, they have balanced membership, and they conduct their 
business as openly as possible under the law.
    (2) The renewal of a committee requires that the responsible HSSO 
submit to the GSA Committee Management Officer the following:
    (i) An updated charter with an explanation of the need for the 
renewal of the committee. The charter and explanation are furnished 60 
calendar days before the 2-year anniversary date of the committee.);
    (ii) A letter signed by the HSSO to the Director, Committee 
Management Secretariat, with information copies to the Administrator and 
the Deputy Administrator, setting forth:

[[Page 43]]

    (A) An explanation of why the committee is essential to the conduct 
of agency business and is in the public interest;
    (B) GSA's plan to attain balanced membership of the committee; and
    (C) An explanation of why the committee's functions cannot be 
performed by GSA, another existing GSA advisory committee, or other 
means such as a public hearing;
    (iii) A notice for publication in the Federal Register describing 
the nature and purpose of the committee and containing a certification 
by the Administrator that renewing the advisory committee is in the 
public interest.
    (3) On receiving the above documents, the GSA Committee Management 
Officer submits the renewal letter to the Committee Management 
Secretariat not more than 60 calendar days nor less than 30 days before 
the committee expires. Following receipt of the Committee Management 
Secretariat's views on the committee renewal, the Officer obtains the 
Administrator's approval of the charter and the Federal Register notice. 
The Officer publishes notice of the renewal in the Federal Register and 
files copies of the updated charter. The 15-day notice requirement does 
not apply to committee renewals, notices of which may be published 
concurrently with the filing of the charter.
    (b) Each statutory advisory committee is renewed by the filing of a 
renewal charter upon the expiration of each successive 2-year period 
following the date of enactment of the statute establishing the 
committee according to the following:
    (1) The procedures in paragraph (a)(2) of this section apply to the 
renewal of a statutory committee except that neither prior consultation 
with the Committee Management Secretariat nor a Federal Register notice 
is required. Accordingly, the letter that paragraph a(2)(ii) requires is 
sent to the Administrator rather than the Committee Mangement 
Secretariat. Due to the nature of a committee the law established, the 
explanation of the need to continue the committee's existence is less 
extensive than the explanation for the continuation of a non-statutory 
committee; and
    (2) The GSA Committee Management Officer provides the Committee 
Management Secretariat with a copy of the filed charter.
    (c) An advisory commitee required to file a new charter may not take 
any action other than preparing the charter between the date it is to be 
filed and the date it is actually filed.



Sec. 105-54.306  Amendment of advisory committee charters.

    (a) A charter is amended when GSA decides that the existing charter 
no longer accurately reflects the objectives or functions of the 
committee. Changes may be minor, such as revising the name of the 
committee or modifying the estimated number or frequency of meetings, or 
they may be major dealing with the basic objectives or composition of 
the committee. The Administrator retains final authority for amending 
the charter of an advisory committee. Amending an existing advisory 
committee charter does not constitute renewal of the committee.
    (b) To make a minor amendment, the Administrator approves the 
amended charter and has it filed according to Sec. 105-54.203-1.
    (c) To make a major amendment, the Committee Management Officer 
submits an amended charter and a letter to the Committee Management 
Secretariat, signed by the HSSO with the concurrence of the General 
Counsel or designee, requesting the Secretariat's views on the amended 
language, along with an explanation of the purpose of the changes and 
why they are necessary. The Secretariat reviews the proposed changes and 
notifies the Committee Management Officer of its views within 15 
calendar days of receiving it, if possible. The Administrator has the 
charter filed according to Sec. 105-54.203-1.
    (d) Amending an existing charter does not constitute renewal of the 
committee.



Sec. 105-54.307  Termination of advisory committees.

    (a) The sponsoring HSSO terminates an advisory commitee that has 
fulfilled the purpose stated in its charter. The official takes action 
to rescind any existing orders relating to the committee and to notify 
committee members, the

[[Page 44]]

GSA Committee Management Officer, and the Committee Management 
Secretariat of the termination.
    (b) Failing to continue an advisory committee by the 2-year 
anniversary date terminates the committee, unless its duration is 
provided for by law.



Sec. 105-54.308  Responsibilities of the Administrator.

    The Administrator must ensure:
    (a) Compliance with the Federal Advisory Committee Act and this 
chapter;
    (b) Issuance of administrative guidelines and management controls 
that apply to all advisory committees established or used by the agency;
    (c) Designation of a Committee Management Officer to carry out the 
functions specified in section 89(b) of the Federal Advisory Committee 
Act;
    (d) Provision of a written determination stating the reasons for 
closing any advisory committee meeting to the public;
    (e) A review, at least annually, of the need to continue each 
existing advisory committee, consistent with the public interest and the 
purpose and functions of each committee;
    (f) The appointment of a Designated Federal Officer for each 
advisory committee and its subcommittee;
    (g) The opportunity for reasonable public participation in advisory 
committee activities; and
    (h) That the number of committee members is limited to the fewest 
necessary to accomplish committee objectives.



Sec. 105-54.309  Added responsibilities of service and staff office heads and regional administrators.

    (a) No later than the first meeting of an advisory committee, submit 
to committee members, committee staff, consultants, and appropriate 
agency management personnel a written statement of the purpose, 
objectives, and expected accomplishments of the committee;
    (b) Solicit in writing or in a formal meeting at least annually the 
views of committee members on the effectiveness, activities, and 
management of the committee, including recommendations for improvement. 
Review comments to determine whether improvements or corrective action 
is warranted. Retain recommendations until the committee is terminated 
or renewed.
    (c) Involve key management personnel of the agency whose interests 
are affected by the committee in committee meetings, including reviewing 
reports and establishing agendas.
    (d) Periodically, but not less than annually, review the level of 
committee staff suport to make sure that expenditures are justified by 
committee activity and benefit to the Government.
    (e) Monitor the attendance and participation of committee members 
and consider replacing any member who misses a substantial number of 
scheduled meetings.
    (f) Establish meeting dates and distribute agendas and other 
materials well in advance.



Sec. 105-54.310  Advisory committee duties of the GSA Committee Management Officer.

    In addition to implementing the provisions of section 8(b) of the 
Federal Advisory Committee Act, the GSA Committee Management Officer 
carries out all responsibilities delegated by the Administrator. The 
Officer ensures that sections 10(b), 12(a), and 13 of the Act are 
implemented by GSA to provide for appropriate record keeping. Records 
include, but are not limited to:
    (a) A set of approved charters and membership lists for each 
advisory committee;
    (b) Copies of GSA's portion of the Annual Report of Federal Advisory 
Committees.
    (c) Guidelines on committee management operations and procedures as 
maintained and updated; and
    (d) Determinations to close advisory committee meetings.



Sec. 105-54.311  Complaint procedures.

    (a) Any person whose request for access to an advisory committee 
document is denied may seek administrative review under 41 CFR 105-60, 
which implements the Freedom of Information Act. (See GSA Order, GSA 
regulations under the ``Freedom of Information Act'' (ADM 7900.3A).)
    (b) Aggrieved individuals or organizations may file written 
complaints on

[[Page 45]]

matters not involving access to documents with the Deputy Administrator, 
General Services Administration, Washington, DC 20405. Complaints must 
be filed within 90 calendar days from the date the grievance arose. The 
Deputy Administrator promptly acts on each complaint and notifies the 
complainant in writing of the decision.



                        Subpart 105-54.4--Reports



Sec. 105-54.400  Scope of subpart.

    This subpart sets forth the reports required by this part 105-54 and 
prescribes instructions for submission of the reports.



Sec. 105-54.401  Reports on GSA Federal Advisory Committees.

    (a) The Committee Management Secretariat periodically issues 
reporting instructions and procedures. The GSA Committee Management 
Officer files a report each fiscal year providing program, financial, 
and membership information. The Secretariat uses the information in 
preparing recommendations and status reports on advisory committee 
matters and in assisting the President in preparing and submitting a 
fiscal year report to the Congress. Instructions for preparing GSA's 
submission are provided by the GSA Committee Management Officer.
    (b) Reports on closed meetings are required as specified in 
Sec. 105-54.301(o).



PART 105-55--COLLECTION OF CLAIMS OWED THE UNITED STATES--Table of Contents




Sec.
105-55.001  Background.
105-55.002  Purpose.
105-55.003  Applicability.
105-55.004  Demand for payment.
105-55.005  Interest, administrative charges, and penalty charges.
105-55.006  Responsibility for collection.
105-55.007  Collection by offset.
105-55.008  Settlement of claims.
105-55.009  Referral for litigation.
105-55.010  Disclosure to credit reporting agencies and referrals to 
          collection agencies.
105-55.011  Credit report.

    Authority: 31 U.S.C. 3701-3719; Pub. L. 97-365, 96 Stat. 1754.

    Source: 50 FR 37531, Sept. 16, 1985, unless otherwise noted.



Sec. 105-55.001  Background.

    The Department of Justice and the General Accounting Office have 
jointly issued amended Federal Claims Collection Standards (4 CFR parts 
101-105) which reflect changes to the Federal Claims Collection Act of 
1966 (31 U.S.C. 3701-3719) made by the passage of the Debt Collection 
Act of 1982 (Pub. L. 97-365, 96 Stat. 1754). The preamble to the amended 
Federal Claims Collection Standards instructs individual agencies to 
adopt their own regulations as to detailed procedures in furtherance of 
the Federal Claims Collection Standards. Additionally, the Debt 
Collection Act of 1982 directs, as reflected in the Federal Claims 
Collection Standards, that each agency must prescribe regulations on 
collecting by administrative offset and that each agency may prescribe 
regulations identifying circumstances appropriate to waive collection of 
interest and charges in conformity with the Federal Claims Collection 
Standards.



Sec. 105-55.002  Purpose.

    In keeping with the suggestion in the preamble to the amended 
Federal Claims Collection Standards and the directives in the Debt 
Collection Act of 1982 and the Federal Claims Collection Standards as to 
administrative offset and the collection of interest and charges, this 
part provides procedures for the General Services Administration to 
collect, compromise, or terminate collection action on claims owed to 
the United States arising from activities under GSA jurisdiction. It 
implements the Federal Claims Collection Act as amended by the Debt 
Collection Act. It supplements the regulations published jointly by the 
General Accounting Office and the Department of Justice. It sets forth 
procedures by which GSA:
    (a) Will collect claims owed to the United States;
    (b) Will determine and collect interest and other charges on those 
claims;
    (c) Will compromise claims; and
    (d) Will refer unpaid claims for litigation.



Sec. 105-55.003  Applicability.

    (a) This part applies to all claims due the United States under the 
Federal

[[Page 46]]

Claims Collection Act, as amended by the Debt Collection Act, arising 
from activities under the jurisdiction of the General Services 
Administration, except for the collection by administrative offset of 
those claims arising out of contracts subject to the Contracts Disputes 
Act of 1982, 41 U.S.C. 601 et. seq. The word ``claims'' includes but is 
not limited to amounts due the United States from fees, overpayments, 
fines, civil penalties, damages, interest and other sources.
    (b) Claims arising from the audit of transportation accounts 
pursuant to 31 U.S.C. 3726 shall be determined, collected, compromised, 
terminated or settled in accordance with regulation published under the 
authority of 31 U.S.C. 3726 (see 41 CFR part 101-41, administered by the 
Director, Office of Transportation Audits) and are otherwise excepted 
from these regulations.

[50 FR 37531, Sept. 16, 1985, as amended at 52 FR 46468, Dec. 8, 1987]



Sec. 105-55.004  Demand for payment.

    (a) A total of three progressively stronger written demands at 
approximately 30-day intervals will normally be made, unless a response 
or other information indicates that additional written demands would 
either be unnecessary or futile. When necessary to protect the 
Government's interest, written demand may be preceded by other 
appropriate actions under the Federal Claims Collection Standards, 
including immediate referral for litigation and/or offset.
    (b) The initial written demand for payment shall inform the debtor 
of:
    (1) The basis for the claim;
    (2) The amount of the claim;
    (3) The date when payment is due; (30 days from date of mailing or 
hand delivery of the initial demand for payment);
    (4) The provision for interest, penalties, and administrative 
charges in accordance with 31 U.S.C. 3717, if payment is not received by 
the due date (See Sec. 105-55.005 for details regarding interest, 
administrative charges, and penalty charges.)
    (5) The intent of the agency to collect by administrative offset, 
including asking the assistance of other Federal agencies to help in the 
offset whenever possible, if the debtor has not made payment by the 
payment due date, has not requested a review of the claim within the 
agency as set out in paragraph (b)(8) of this section or has not made an 
arrangement for payment by the payment due date;
    (6) The right of the debtor to inspect and copy the records of the 
agency related to the claim. Any costs associated therewith shall be 
borne by the debtor. The debtor shall give reasonable notice in advance 
to the agency of the date upon which it intends to inspect and copy the 
records involved;
    (7) The right of the debtor to a review of the claim within the 
agency. If the claim is disputed in full or part, the debtor shall 
respond to the demand in writing by making a request for a review of the 
claim within the agency by the payment due date stated in the demand. 
The debtor's written response shall state the basis for the dispute. If 
only part of the claim is disputed, the undisputed portion should be 
paid by the date stated in the initial demand. The agency shall 
acknowledge receipt of the request for a review, and upon completion of 
consideration shall notify the debtor whether its determination has been 
sustained, amended, or canceled within 15 days of the receipt of the 
request for a review. If the agency either sustains or amends its 
determination, it shall notify the debtor of its intent to collect by 
administrative offset unless payment is received within 15 days of the 
mailing of the notification of its decision following a review of the 
claim.
    (8) The right of the debtor to offer to make a written agreement to 
repay the amount of the claim. The acceptance of such an agreement is 
discretionary with the agency. If the debtor requests a repayment 
arrangement because a payment of the amount due would create a financial 
hardship, the appropriate GSA Regional Finance Division will analyze the 
debtor's financial condition. Dependent upon the Regional Finance 
Division's evaluation of the financial strength of the debtor, the 
Comptroller or the appropriate designee and the debtor may agree to a 
written installment repayment schedule. The debtor shall execute a 
confess-judgment note which specifies all of

[[Page 47]]

the terms of the arrangement. The size and frequency of installment 
payments should bear a reasonable relation to the size of the debt and 
the debtor's ability to pay. Interest, administrative charges, and 
penalty charges shall be provided for in the note. The debtor shall be 
provided with a written explanation of the consequences of signing a 
confess-judgment note. The debtor shall sign a statement acknowledging 
receipt of the written explanation which shall recite that the statement 
was read and understood before execution of the notice and that the note 
is being signed knowingly and voluntarily. Some form of objective 
evidence of these facts should be maintained in the agency's file on the 
debtor.
    (c) If no response to the demand is received by the date stated in 
the demand, GSA will take further action under this subpart or under the 
Federal Claims Collection Standards. These actions may include reports 
to credit bureaus, referrals to collection agencies, termination of 
contract, debarment, offset of Federal salary, and other administrative 
offset, as authorized in 31 U.S.C. 3701-3719.



Sec. 105-55.005  Interest, administrative charges, and penalty charges.

    (a) GSA shall assess interest on unpaid claims at the rate of the 
current value of funds to the Treasury as prescribed by the Secretary of 
the Treasury on the date interest begins to run. GSA shall assess 
administrative charges to cover the costs of processing and handling 
overdue claims. GSA shall assess penalty charges of six percent a year 
on any part of a debt more than 90 days past due. The imposition of 
interest, administrative charges, and penalty charges are made in 
accordance with 31 U.S.C. 3717.
    (b) Interest will be computed from the date of mailing or hand 
delivery of the initial demand if the amount of the claim is not paid 
within 30 days. The 30-day period may be extended in individual cases if 
there is good cause to do so and it is in the public interest. Interest 
will only be computed on the principal of the claim and the interest 
rate will remain fixed for the duration of the indebtedness, except 
where a debtor has defaulted on a repayment agreement and seeks to enter 
into a new agreement. A new rate which reflects the current value of 
funds to the Treasury at the time the new agreement is executed may be 
set if applicable and interest on interest and related charges may be 
charged where the debtor has defaulted on a previous repayment 
agreement. Charges which accrued but were not collected under the 
defaulted agreement shall be added to the principal to be paid under the 
new repayment schedule.
    (c) GSA may waive interest, administrative charges, or penalty 
charges if it finds that:
    (1) The debtor is unable to pay any significant sum toward the claim 
within a reasonable period of time;
    (2) Collection of interest, administrative charges, or penalty 
charges will jeopardize collection of the principal of the claim; or
    (3) It is otherwise in the best interests of the United States, 
including the situation where an offset or installment payment agreement 
is in effect.



Sec. 105-55.006  Responsibility for collection.

    (a) Heads of Central Office Services and Staff Offices and Regional 
Administrators must initiate actions on claims arising from their 
program operations and immediately notify the appropriate Regional 
Finance Division. A claim will be recorded and controlled by the 
Regional Finance Division upon receipt of documentation from a competent 
authority establishing the amount due.
    (b) The collection of claims under the control of Regional Finance 
Divisions will be aggressively pursued in accordance with the provisions 
of part 102 of the Federal Claims Collection Standards (4 CFR part 102). 
Whenever feasible, debts owed to the United States, together with 
interest, administrative charges and penalty charges, should be 
collected in full in one lump sum. If the debtor requests installment 
payments, the Regional Finance Divisions shall be responsible for 
determining the financial hardship of debtors and when appropriate shall 
arrange installment payment schedules. Claims which cannot be collected 
either directly or by administrative offset shall either be

[[Page 48]]

written off as administratively uncollectible in accordance with 
authority delegated to the Director, Office of Finance and the 
Directors, Regional Finance Divisions, or referred to the appropriate 
Assistant General Counsel or Regional Counsel for further consideration.
    (c) The General Counsel, delegated officials in the Office of 
General Counsel, and each Regional Counsel may compromise or suspend or 
terminate the collection of, referred claims under $20,000, exclusive of 
interest, penalties and administrative charges under the Act and the 
Federal Claims Collection Standards 4 CFR parts 103 and 104.
    (d) The Office of General Counsel officials listed in paragraph (c) 
of this section have the responsibility for referring to the Department 
of Justice all claims over $20,000 exclusive of interest, penalties and 
administrative charges which cannot be compromised, suspended or 
terminated in accordance with the Federal Claims Collection Act and the 
Federal Claims Collections Standards. Referrals to the Department of 
Justice shall be made in accordance with 4 CFR part 105 of the Federal 
Claims Collections Standards.



Sec. 105-55.007  Collection by offset.

    (a) Whenever feasible, after a debtor fails to pay the claim, 
request a review of the claim, or make an arrangement for payment. The 
Comptroller or his appropriate regional designee will collect claims 
under this part by means of administrative offset against obligations of 
the United States to the debtor, pursuant to 31 U.S.C. 3716, except 
offset of Federal salaries and claims arising out of contracts subject 
to the Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq.
    (b) Salary offsets and offsets against military retired pay are 
governed by 5 U.S.C. 5514.
    (c) Collection by administrative offset of amounts payable from 
Civil Service Retirement and Disability Fund will be made pursuant to 5 
U.S.C. 5514 and 5 U.S.C. 5705 and regulations thereunder.
    (d) The offset of claims arising out of contracts subject to the 
Contract Disputes Act of 1978, 41 U.S.C. 601 et. seq. will be made 
pursuant to the Government common law right of offset.
    (e) GSA will promptly make requests for offset to other agencies 
holding funds payable to a debtor and provide instructions for the 
transfer of these funds. Requests for offset received from other 
agencies shall be processed promptly and the funds transferred to the 
requesting agency.
    (f) If administrative offset cannot be effected through GSA or other 
known agency accounts receivable, then GSA will place a complete stop 
order against amounts otherwise payable to the debtor by placing the 
name of that debtor on the Department of the Army ``List of Contractors 
Indebted to the United States.'' If any amounts are discovered under 
this procedure, they will be offset against the debt owed to GSA.
    (g) GSA should not attempt to effect collection by administrative 
offset when:
    (1) The debtor has ceased to do business and there are no known or 
potential obligations payable by any agency of the United States 
Government to the debtor.
    (2) The debt in question is over ten years old.
    (3) The debtor has either gone into receivership and has liquidated 
all of its assets or has filed a petition in bankruptcy as a no asset 
debtor, and there is no likelihood of the debtor resuming operations; 
and there are no known or potential obligations payable by any agency of 
the United States Government to the debtor. In the case of a bankruptcy 
petition, the automatic stay against setoff must be honored pending 
release from the stay.
    (4) The debtor is deceased, and there are no attachable assets in 
the estate.
    (5) Any other circumstances which would indicate that the likelihood 
of collection by administrative offset is less than probable.

[50 FR 37531, Sept. 16, 1985, as amended at 52 FR 46468, Dec. 8, 1987]



Sec. 105-55.008  Settlement of claims.

    (a) In accordance with the provisions of 4 CFR part 103, GSA 
officials listed in Sec. 105-55.006(c) may settle claims not exceeding 
$20,000 exclusive of interest, penalties and administrative charges

[[Page 49]]

by compromise at less than the principal of the claim if:
    (1) The debtor shows an inability to pay the full amount within a 
reasonable time;
    (2) The Government would be unable to enforce complete collection by 
any means within a reasonable time;
    (3) The amount of the claim does not justify the actual foreseable 
collection cost of the claim; or
    (4) A combination of the above reasons.
    (b) GSA may suspend or terminate collection action in accordance 
with the terms and procedures contained in 4 CFR part 104.



Sec. 105-55.009  Referral for litigation.

    Claims which cannot be settled under Sec. 105-55.008 or for which 
collection action cannot be suspended or terminated under 4 CFR parts 
103 and 104, will be referred to the General Accounting Office or the 
Department of Justice, whichever is appropriate, in accordance with the 
procedures in 4 CFR part 105.



Sec. 105-55.010  Disclosure to credit reporting agencies and referrals to collection agencies.

    The Comptroller and his designees may disclose debtor information to 
credit reporting agencies and may refer delinquent debts to debt 
collection agencies under the Federal Claims Collection Act, as amended, 
and other applicable authorities, provided, however, that no claim 
arising from the dishonor of any check or other negotiable instrument 
shall be disclosed to a credit reporting agency or referred to a 
collection agency without the concurrence of the appropriate Regional 
Inspector General for Investigations. Information will be disclosed to 
reporting agencies and referred to debt collection agencies in 
accordance with the terms and conditions of agreements entered into 
between GSA and the reporting and collection agencies. The terms and 
conditions of such agreements shall specify that all of the rights and 
protections afforded to the debtor under 31 U.S.C. 3711(f) have been 
fulfilled.



Sec. 105-55.011  Credit report.

    In order to aid the agency in making appropriate determinations as 
to the collection and compromise of claims; the collection of interest, 
administrative charges, and penalty charges; the use of administrative 
offset; the use of other collection methods; and the likelihood of 
collecting the claim, the Comptroller or his designees may institute a 
credit investigation of the debtor immediately following receipt of 
knowledge of the claim.



PART 105-56--SALARY OFFSET FOR INDEBTEDNESS OF GENERAL SERVICES ADMINISTRATION EMPLOYEES TO THE UNITED STATES--Table of Contents




Sec.
105-56.001  Scope.
105-56.002  Excluded debts or claims.
105-56.003  Definitions.
105-56.004  Pre-offset notice.
105-56.005  Employee response.
105-56.006  Petition for pre-offset hearing.
105-56.007  Pre-offset oral hearing.
105-56.008  Pre-offset ``paper hearing.''
105-56.009  Written decision.
105-56.010  Deductions.
105-56.011  Non-waiver of rights.
105-56.012  Refunds.
105-56.013  Coordinating offset with another Federal agency.

    Authority: 5 U.S.C. 5514; Pub. L. 97-365, 96 Stat. 1754.

    Source: 53 FR 31864, Aug. 22, 1988, unless otherwise noted.



Sec. 105-56.001  Scope.

    (a) This part covers both internal and Government-wide collections 
under 5 U.S.C. 5514. It applies when certain debts to the U.S. are 
recovered by administrative offset from the disposable pay of an 
employee of the U.S. Government, except in situations where the employee 
consents to the recovery.
    (b) The collection of any amount under this section shall be in 
accordance with the standards promulgated pursuant to the Federal Claims 
Collection Act of 1966 (31 U.S.C. 3701 et seq.) or in accordance with 
any other statutory authority for the collection of claims of the U.S. 
or any Federal agency.



Sec. 105-56.002  Excluded debts or claims.

    This part does not apply to:

[[Page 50]]

    (a) Debts or claims arising under the Internal Revenue Code of 1954 
as amended (26 U.S.C. 1 et seq.), the Social Security Act (41 U.S.C. 301 
et seq.), or the tariff laws of the United States.
    (b) To any case where collection of a debt by salary offset is 
explicitly provided for or prohibited by another statute, such as travel 
advances in 5 U.S.C. 5705 and employee training expenses in 5 U.S.C. 
4108. Debt collection procedures under other statutory authorities, 
however, must be consistent with the provisions of FCCS, defined below..
    (c) An employee election of coverage or of a change of coverage 
under a Federal benefits program which requires periodic deductions from 
pay if the amount to be recovered was accumulated over four pay periods 
or less.



Sec. 105-56.003  Definitions.

    The following definitions apply to this part:
    ``Administrator'' means the Administrator of the General Services or 
the Administrator's designee.
    ``Debt'' means an amount owed to the United States from sources 
which include loans insured or guaranteed by the United States and all 
other amounts due the United States from fees, leases, rents, royalties, 
services, sales of real or personal property, overpayments, penalties, 
damages, interest, fines and forfeitures and all other similar sources.
    ``Disposable pay'' means the amount that remains from an employee's 
Federal pay after required deductions for Federal, State and local 
income taxes; Social Security taxes, including Medicare taxes; Federal 
retirement programs; premiums for life and health insurance benefits; 
and such other deductions that are required by law to be withheld.
    ``Employee'' means a current employee of the General Services 
Administration, or other executive agency.
    ``FCCS'' means the Federal Claims Collection Standards jointly 
published by the Justice Department and the General Accounting Office at 
4 CFR 101.1 et seq.
    ``Pay'' means basic pay, special pay, incentive pay, retired pay, 
retainer pay, or in the case of an individual not entitled to basic pay, 
other authorized pay.
    ``Program official'' means a supervisor or management official of 
the employee's service or staff office.
    ``Salary offset'' means an administrative offset to collect a debt 
under 5 U.S.C. 5514 by deduction(s) at one or more officially 
established pay intervals from the current pay account of an employee 
without his or her consent.
    ``Waiver'' means the cancellation, remission, forgiveness, or 
nonrecovery of a debt allegedly owed by an employee to an agency as 
permitted or required by 5 U.S.C. 5584, 10 U.S.C. 2774 or 32 U.S.C. 716, 
5 U.S.C. 8346(b), or any other law.



Sec. 105-56.004  Pre-offset notice.

    The employee is entitled to written notice from an appropriate 
program officer in his or her employing activity at least 30 days in 
advance of initiating a deduction from disposable pay informing him or 
her of:
    (a) The nature, origin and amount of the indebtedness determined by 
the General Services Administration or another agency to be due;
    (b) The intention of the agency to initiate proceedings to collect 
the debt through deductions from the employee's current disposable pay;
    (c) The amount, frequency, proposed beginning date, and duration of 
the intended deductions;
    (d) GSA's policy concerning how interest is charged and penalties 
and administrative cost assessed, including a statement that such 
assessments must be made unless excused under 31 U.S.C. 3717 and the 
FCCS, 4 CFR 101.1 et seq.;
    (e) The employee's right to inspect and copy Government records 
relating to the debt if Government records of the debt are not attached, 
or if the employee or his or her representative cannot personally 
inspect the records, the right to receive a copy of such records. Any 
costs associated therewith shall be borne by the debtor. The debtor 
shall give reasonable notice in advance to GSA of the date on which he 
or she intends to inspect and copy the records involved;

[[Page 51]]

    (f) A demand for repayment providing for an opportunity, under terms 
agreeable to GSA, for the employee to establish a schedule for the 
voluntary repayment of the debt by offset or to enter into written 
repayment agreement of the debt in lieu of offset;
    (g) The employee's right to request a waiver from the General 
Accounting Office if a waiver of repayment is authorized by law;
    (h) The employee's right to pre-offset hearing conducted by a 
hearing official arranged by the appropriate program official of his or 
her employing activity if a petition is filed as prescribed by Sec. 105-
56.005. Such hearing official will be either an administrative law judge 
or a hearing official not under the control of the head of the agency 
and will be designated in accordance with the procedures established in 
5 CFR 550.1107;
    (i) The method and time period for petitioning for a hearing, 
including a statement that the timely filing of a petition for hearing 
will stay the commencement of collection proceedings;
    (j) The issuance of a final decision on the hearing, if requested, 
at the earliest practicable date, but no later than 60 days after the 
petition is filed unless a delay is requested and granted;
    (k) The risk that any knowingly false or frivolous statements, 
representations, or evidence may subject the employee to:
    (1) Disciplinary procedures appropriate under 5 U.S.C. Chapter 75, 5 
CFR part 752, or any other applicable statutes or regulations;
    (2) Penalties under the False Claims Act, 31 U.S.C. 3729-3731, or 
any other applicable statutory authority;
    (3) Criminal penalties under 18 U.S.C. 286, 287, 1001, and 1002, or 
any other applicable statutory authority.
    (l) Any other rights and remedies available to the employee under 
statutes or regulations governing the program for which the collection 
is being made.
    (m) The employee's right to a prompt refund if amounts paid or 
deducted are later waived or found not owed, unless otherwise provided 
by law;
    (n) The specific address to which all correspondence shall be 
directed regarding the debt.



Sec. 105-56.005  Employee response.

    (a) Voluntary repayment agreement. An employee may submit a request 
to the official who signed the demand letter to enter into a written 
repayment agreement of the debt in lieu of offset. The request must be 
made within 7 days of receipt of notice under Sec. 105-56.004. The 
agreement must be in writing, signed by both the employee and the 
program official making the demand and a signed copy must be sent to the 
regional finance division serving the program activity. Acceptance of 
such an agreement is discretionary with the agency. An employee who 
enters into such an agreement may nevertheless seek a waiver under 
paragraph (b) of this section.
    (b) Waiver. Where a waiver of repayment is authorized by law, the 
employee may request a waiver from the General Accounting Office.
    (c) Reconsideration. (1) An employee may seek a reconsideration of 
the Agency's determination regarding the existence or amount of the 
debt. The request must be submitted to the official who signed the 
demand letter within 7 days of receipt of notice under Sec. 105-56.004. 
Within 20 days of receipt of this notice, the employee shall submit a 
detailed statement of reasons for reconsideration which must be 
accompanied by supporting documentation.
    (2) An employee may request a reconsideration of the proposed offset 
schedule. The request must be submitted to the program official who 
signed the demand letter within 7 days of receipt of notice under 
Sec. 105-56.004. Within 20 days of receipt of this notice, the employee 
shall submit an alternative repayment schedule accompanied by a detailed 
statement supported by documentation evidencing financial hardship 
resulting from the agency's proposed schedule. Acceptance of the request 
is discretionary with the agency. The agency must notify the employee in 
writing of its decision concerning the request to reduce the rate of an 
involuntary deduction.



Sec. 105-56.006  Petition for pre-offset hearing.

    (a) The employee may petition for a pre-offset hearing by filing a 
written petition with the program official who

[[Page 52]]

signed the demand letter within 15 days of receipt of the written 
notice. The petition must state why the employee believes the agency's 
determination concerning the existence or amount of the debt is in 
error, and set forth objections to the involuntary repayment schedule. 
The timely filing of a petition will suspend the commencement of 
collection proceedings.
    (b) The employee's petition or statement must be signed by the 
employee.
    (c) Petitions for hearing made after the expiration of the 15 day 
period may be accepted if the employee can show that the delay was 
because of circumstances beyond his or her control or because of failure 
to receive notice of the time limit.
    (d) If the employee timely requests a pre-offset hearing or the 
timeliness is waived, the program official must:
    (1) Notify the employee whether the employee may elect an oral 
hearing or whether he or she may have only a ``paper hearing,'' i.e., a 
review on the written record (see 4 CFR 102.3(c)). In either case, the 
program official will arrange for a hearing official; and
    (2) The program official will provide the hearing official with a 
copy of all records on which the determination of the debt and any 
involuntary repayment schedule are based.
    (e) An employee who elects an oral hearing must notify the hearing 
official and the program official in writing within 5 days of receipt of 
the notice under paragraph (d)(1) of this section and within 20 days of 
receipt of the notice under (d)(1) the employee shall fully identify and 
explain with reasonable specificity all the facts, evidence and 
witnesses which the employee believes support his or her position.
    (f) The hearing official shall notify the program official and the 
employee of the date, time and location of the hearing.
    (g) If the employee later elects to have the hearing based only on 
the written submissions, notification must be given to the hearing 
official and the program official at least 3 calendar days before the 
date of the oral hearing. The hearing official may waive the 3-day 
requirement for good cause.
    (h) Failure of the employee to appear at the oral hearing can result 
in dismissal of the petition and affirmation of the agency's decision.



Sec. 105-56.007  Pre-offset oral hearing.

    (a) Oral hearings are informal in nature. The agency, represented by 
a program official or a representative of the Office of General Counsel, 
and the employee, or his or her representative, shall explain their case 
in the form of an oral presentation with reference to the documentation 
submitted. The employee may testify on his or her own behalf, subject to 
cross examination. Other witnesses may be called to testify where the 
hearing official determines the testimony to be relevant and not 
redundant.
    (b) The hearing official shall--
    (1) Conduct a fair and impartial hearing; and
    (2) Preside over the course of the hearing, maintain decorum, and 
avoid delay in the disposition of the hearing.
    (c) The employee may represent himself or herself or may be 
represented by another person at the hearing. The employee may not be 
represented by a person who creates an actual or apparent conflict of 
interest.
    (d) Oral hearings are open to the public. However, the hearing 
official may close all or any portion of the hearing when doing so is in 
the best interests of the employee or the public.
    (e) Oral hearings may be conducted by conference call at the request 
of the employee or at the discretion of the hearing official.



Sec. 105-56.008  Pre-offset ``paper hearing.''

    If a hearing is to be held only upon written submissions, the 
hearing official shall issue a decision based upon the record and 
responses submitted by both the agency and the employee.



Sec. 105-56.009  Written decision.

    Within 60 days of filing of the employee's petition for a pre-offset 
hearing, the hearing official will issue a written decision setting 
forth: The facts supporting the nature and origin of the debt; the 
hearing official's analysis, findings and conclusions as to the 
employee's or agency's grounds, the amount and validity of the debt and 
the repayment schedule.

[[Page 53]]



Sec. 105-56.010  Deductions.

    (a) When deductions may begin. If the employee filed a petition for 
hearing with the program official before the expiration of the period 
provided for in Sec. 105-56.006, then deductions will begin after the 
hearing official has provided the employee with a hearing, and the final 
written decision is in favor of the agency. It is the responsibility of 
the employee's program official to issue the pre-offset notice to the 
employee and to instruct the National Payroll Center to begin offset in 
accordance with the final written decision.
    (b) Retired or separated employees. If the employee retires, 
resigns, or is terminated before collection of the amount of the 
indebtedness is completed, the remaining indebtedness will be offset 
from any subsequent payments of any nature. If the debt cannot be 
satisfied from subsequent payments, then the debt must be collected 
according to the procedures for administrative offset pursuant to 31 
U.S.C. 3716.
    (c) Types of collection. A debt may be collected in one lump sum or 
in installments. Collection will be by lump-sum unless the employee is 
able to demonstrate to the program official who signed the demand letter 
that he or she is financially unable to pay in one lump-sum. In these 
cases, collection will be by installment deductions.
    (d) Methods of collection. If the debt cannot be collected in one 
lump sum, the debt will be collected by deductions at officially 
established pay intervals from an employee's current pay account, unless 
the employee and the program official agree to an alternative repayment 
schedule. The alternative arrangement must be in writing and signed by 
both the employee and the program official.
    (1) Installment deductions. Installment deductions will be made over 
the shortest period possible. The size and frequency of installment 
deductions will bear a reasonable relation to the size of the debt and 
the employee's ability to pay. However, the amount deducted for any 
period will not exceed 15 percent of the disposable pay from which the 
deduction is made, unless the employee has agreed in writing to the 
deduction of a greater amount. The installment payment will be 
sufficient in size and frequency to pay the debt over the shortest 
period possible and never to exceed three years. Installment payments of 
less than $100 per pay period will be accepted only in the most unusual 
circumstances.
    (2) Sources of deductions. GSA will make deductions only from basic 
pay, special pay, incentive pay, retired pay, retainer pay, or in the 
case of an employee not entitled to basic pay, other authorized pay.
    (e) Interest, penalties and administrative costs on debts under this 
part will be assessed according to the provisions of 4 CFR 102.13.



Sec. 105-56.011  Non-waiver of rights.

    An employee's involuntary payment of all or any portion of a debt 
being collected under 5 U.S.C. 5514 shall not be construed as a waiver 
of any rights which the employee may have under 5 U.S.C. 5514 or any 
other provision of contract or law unless there are statutory or 
contractual provisions to the contrary.



Sec. 105-56.012  Refunds.

    GSA will refund promptly to the appropriate individual amounts 
offset under these regulations when:
    (a) A debt is waived or otherwise found not owing the United States 
(unless expressly prohibited by statute or regulation); or
    (b) GSA is directed by an administrative or judicial order to refund 
amounts deducted from the employee's current pay.



Sec. 105-56.013  Coordinating offset with another Federal agency.

    (a) When GSA is owed the debt. When GSA is owed a debt by an 
employee of another agency, the other agency shall not initiate the 
requested offset until GSA provides the agency with a written 
certification that the debtor owes GSA a debt and that GSA has complied 
with these regulations. This certification shall include the amount and 
basis of the debt and the due date of the payment.
    (b) When another agency is owed the debt. GSA may use salary offset 
against one of its employees who is indebted to another agency if 
requested to do so by that agency. Any such request must be

[[Page 54]]

accompanied by a certification from the requesting agency that the 
person owes the debt, the amount of the debt and that the employee has 
been given the procedural rights required by 5 U.S.C. 5514 and 5 CFR 
part 550, subpart K.



PART 105-57--COLLECTION OF DEBTS BY TAX REFUND OFFSET--Table of Contents




Sec.
105-57.001  Purpose.
105-57.002  Applicability and scope.
105-57.003  Administrative charges.
105-57.004  Reasonable attempt to notify.
105-57.005  Notice requirement before offset.
105-57.006  Consideration of evidence.
105-57.007  Change in conditions after submission to IRS.

    Authority: 31 U.S.C. 3720A.

    Source: 59 FR 1277, Jan. 10, 1994, unless otherwise noted.



Sec. 105-57.001  Purpose.

    This part establishes procedures for the General Services 
Administration (GSA) to refer past due debts to the Internal Revenue 
Service (IRS) for offset against income tax refunds of taxpayers owing 
debts to GSA.



Sec. 105-57.002  Applicability and scope.

    (a) This part implements 31 U.S.C. 3720A which authorizes the IRS to 
reduce a tax refund by the amount of a past due legally enforceable debt 
owed to the United States.
    (b) For purposes of this section, a past due legally enforceable 
debt referable to the IRS is a debt which is owed to the United States 
and:
    (1) Has been delinquent for at least three months but, except in the 
case of a judgment debt, has not been delinquent more than ten years at 
the time the offset is made;
    (2) With respect to which, GSA has given the taxpayer at least 60 
days, from the date of notification, to present evidence that all or 
part of the debt is not past due or legally enforceable, has considered 
such evidence, and has determined that the debt is past due and legally 
enforceable;
    (3) Cannot be currently collected pursuant to the salary offset 
provisions of 5 U.S.C. 5514(a)(1);
    (4) Cannot be currently collected pursuant to the administrative 
offset provisions of 31 U.S.C. 3716;
    (5) Has been disclosed by GSA to a credit reporting agency, 
including a consumer reporting agency as authorized by 31 U.S.C. 
3711(f);
    (6) With respect to which, GSA has notified, or has made a 
reasonable attempt to notify, the taxpayer that the debt is past due 
and, unless repaid within 60 days thereafter, will be referred to the 
IRS for offset against any income tax refunds due the taxpayer;
    (7) Is at least $25.00;
    (8) All other requirements of 31 U.S.C. 3720A and the Department of 
the Treasury regulations relating to eligibility of a debt for tax 
refund offset, at 26 CFR 301.6402-6T, have been satisfied.



Sec. 105-57.003  Administrative charges.

    All administrative charges incurred in connection with the referral 
of debts to the IRS will be added to the debt, thus increasing the 
amount of the offset.



Sec. 105-57.004  Reasonable attempt to notify.

    In order to constitute a reasonable attempt to notify the debtor, 
GSA must have used a mailing address for the debtor obtained from the 
IRS pursuant to the Internal Revenue Code, 26 U.S.C. 6103 (m)(2) or 
(m)(4), within one year preceding the attempt to notify the debtor.



Sec. 105-57.005  Notice requirement before offset.

    The notification provided by GSA to the debtor will inform the 
debtor how to go about presenting evidence to GSA that all or part of 
the debt is either not past due or is not legally enforceable.



Sec. 105-57.006  Consideration of evidence.

    Evidence submitted by the debtor will be considered by officials or 
employees of GSA. Any determination that an amount of such debt is past 
due and legally enforceable will be made by such officials or employees. 
Evidence that the debt is affected by a bankruptcy proceeding involving 
the debtor shall bar referral of the debt.

[[Page 55]]



Sec. 105-57.007  Change in conditions after submission to IRS.

    If the amount of a debt is reduced after submission by GSA and 
offset by IRS, GSA will refund to the debtor any excess amount and will 
promptly notify IRS of the refund. GSA will also promptly notify the IRS 
if, after submission of a debt to the IRS for offset, GSA:
    (a) Determines that an error has been made with respect to the 
information submitted;
    (b) Receives a payment or credits a payment to an account submitted; 
or
    (c) Receives notification that the debtor has filed for bankruptcy 
under title 11 of the United States Code or has been adjudicated 
bankrupt and the debt has been discharged.



PART 105-60  PUBLIC AVAILABILITY OF AGENCY RECORDS AND INFORMATIONAL MATERIALS--Table of Contents




Sec.
105-60.000   Scope of part.

                  Subpart 105-60.1--General Provisions

105-60.101 Purpose.
105-60.102 Application.
105-60.103 Policy.
105-60.103-1 Availability of records.
105-60.103-2 Applying exemptions.
105-60.104 Records of other agencies.
105-60.105 Inconsistent directives of GSA superseded.

Subpart 105-60.2--Publication of General Agency Information and Rules in 
                          the Federal Register

105-60.201 Published information and rules.
105-60.202 Published materials available for sale to the public.

     Subpart 105-60.3--Availability of Opinions, Orders, Policies, 
               Interpretations, Manuals, and Instructions

105-60.301 General.
105-60.302 Available materials.
105-60.303 Rules for public inspection and copying.
105-60.304 Index.
105-60.305 Fees.
105-60.305-1 Definitions.
105-60.305-2 Scope of section.
105-60.305-3 Record material available without charge.
105-60.305-4 Copy of GSA records available at a fee.
105-60.305-5 Waiver of fee.
105-60.305-6 Searches.
105-60.305-7 Reviews.
105-60.305-8 Prepayment of fees over $250.
105-60.305-9 Form of payment.
105-60.305-10 Fee schedule.
105-60.305-11 Fees for authenticated and attested copies.
105-60.305-12 Administrative actions to improve assessment and 
          collection of fees.

                   Subpart 105-60.4--Described Records

105-60.401 General.
105-60.402 Procedures for making records available.
105-60.402-1 Submission of requests.
105-60.402-2 Response to initial requests.
105-60.403 Appeal within GSA.
105-60.404 Extension of time limits.

                      Subpart 105-60.5--Exemptions

105-60.501 Categories of records exempt from disclosure under the FOIA.

     Subpart 105-60.6--Subpoenas or Other Legal Demands for Records

105-60.601 Service of subpoena or other legal demand.

    Authority: Sec. 205(c) of the Federal Property and Administrative 
Services Act of 1949, as amended, 63 Stat. 390, 40 U.S.C. 486(c); and 5 
U.S.C. 552 (Pub. L. 90-23, as amended by Pub. L. 93-502 and Pub. L. 99-
570).

    Source: 53 FR 1479, Jan. 20, 1988, unless otherwise noted.



Sec. 105-60.000  Scope of part.

    This part sets forth policies and procedures concerning the 
availability to the public of records held by the General Services 
Administration (GSA) with respect to:
    (a) Agency organization, functions, decisionmaking channels, and 
rules and regulations of general applicability,
    (b) Agency final opinions and orders, including policy statements 
and staff manuals,
    (c) Operational and other appropriate agency records, and
    (d) Agency proceedings.

This part also covers exemptions from disclosure of these records; 
procedures for the public to inspect and obtain copies of GSA records; 
and the service of a subpoena or other legal demand with respect to 
records.

[[Page 56]]



                  Subpart 105-60.1--General Provisions



Sec. 105-60.101  Purpose.

    Part 105-60 implements the provisions of the Freedom of Information 
Act, 5 U.S.C. 552 (``FOIA'') (Pub. L. 90-23, which codified Pub. L. 89-
487 and amended section 3 of the Administrative Procedure Act, formerly 
5 U.S.C. 1002 (1964 ed.); Pub. L. 93-502, popularly known as the Freedom 
of Information Act Amendments of 1974, as amended by Pub. L. 99-570, the 
Freedom of Information Reform Act of 1986. This part prescribes 
procedures by which the public may inspect and obtain copies of GSA 
records under the FOIA.



Sec. 105-60.102  Application.

    This part applies to all records and informational materials 
generated, maintained, and controlled by GSA which come within the scope 
of 5 U.S.C. 552.



Sec. 105-60.103  Policy.



Sec. 105-60.103-1  Availability of records.

    GSA records are available to the greatest extent possible in keeping 
with the spirit and intent of the FOIA. GSA will furnish them promptly 
to any member of the public upon request addressed to the office 
designated in Sec. 105-60.402-1 at fees specified in Sec. 105-60.305-10. 
The person making the request need not have a particular interest in the 
subject matter, nor must that person provide justification for the 
request. The requirement of the FOIA that records be available to the 
public refers only to records in being at the date of the request and 
imposes no obligation on GSA to compile a record including development 
of a new computer program to respond to a request.



Sec. 105-60.103-2  Applying exemptions.

    GSA may deny a request for a GSA record if it falls within an 
exemption under the FOIA as outlined in subpart 105-60.5. Except when a 
record is classified or when disclosure would violate any Federal 
statute, the authority to withhold a record from disclosure is 
permissive rather than mandatory. GSA will not withhold a record unless 
there is a compelling reason to do so. In the absence of a compelling 
reason, GSA will disclose a record although it otherwise is subject to 
exemption.



Sec. 105-60.104  Records of other agencies.

    If GSA receives a request to make available current records that are 
the primary responsibility of another agency, GSA will refer the request 
to the agency concerned for appropriate action. GSA will inform the 
requester that GSA has forwarded the request to the responsible agency.



Sec. 105-60.105  Inconsistent directives of GSA superseded.

    Any policies and procedures in any GSA directive that are 
inconsistent with the policies and procedures set forth in this part are 
superseded to the extent of that inconsistency.



Subpart 105-60.2--Publication of General Agency Information and Rules in 
                          the Federal Register



Sec. 105-60.201  Published information and rules.

    In accordance with 5 U.S.C. 552(a)(1), GSA publishes in the Federal 
Register, for the guidance of the public, the following general 
information concerning GSA:
    (a) Description of the organization of the Central Office and 
regional offices and the established places at which, the employees from 
whom, and the methods whereby, the public may obtain information, make 
submittals or requests, or obtain decisions;
    (b) Statements of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures available;
    (c) Rules of procedure, descriptions of forms available or the 
places where forms may be obtained, and instructions on the scope and 
contents of all papers, reports, or examinations;
    (d) Substantive rules of general applicability adopted as authorized 
by law, and statements of general policy or interpretations of general 
applicability formulated and adopted by GSA; and

[[Page 57]]

    (e) Each amendment, revision, or repeal of the materials described 
in Sec. 105-60.201.



Sec. 105-60.202  Published materials available for sale to the public.

    Substantive rules of general applicability adopted by GSA as 
authorized by law which this agency publishes in the Federal Register 
and which are available for sale to the public are: The General Services 
Administration Acquisition Regulation (48 CFR Ch. 5) and the Federal 
Acquisition Regulation (48 CFR Ch. 1); the Federal Property Management 
Regulations (41 CFR Ch. 101) and the Federal Information Resources 
Management Regulations (41 CFR Ch. 201). These regulations are available 
for sale by the Superintendent of Documents in
    (a) Daily Federal Register form; and
    (b) Code of Federal Regulations form, at prices established by the 
Government Printing Office.



     Subpart 105-60.3--Availability of Opinions, Orders, Policies, 
               Interpretations, Manuals, and Instructions



Sec. 105-60.301  General.

    GSA makes available for public inspection and copying the materials 
described under 5 U.S.C. 552(a)(2), which are listed in Sec. 105-60.302, 
and an Index of those materials as described in Sec. 105-60.304, at 
convenient locations and times. Central Office materials are located in 
Washington, DC; some are also available at GSA regional offices. Each 
regional office has the materials for its region. All locations provide 
selected areas for the inspection and copying of documents. Reasonable 
copying services are furnished at the fees specified in Sec. 105-60.305.



Sec. 105-60.302  Available materials.

    GSA materials available under subpart 105-60.3 are as follows:
    (a) Final opinions, including concurring and dissenting opinions and 
orders, made in the adjudication of cases.
    (b) Those statements of policy and interpretations which have been 
adopted by GSA and are not published in the Federal Register.
    (c) Administrative staff manuals and instructions to staff affecting 
a member of the public unless these materials are promptly published and 
copies offered for sale.



Sec. 105-60.303  Rules for public inspection and copying.

    (a) Locations. Selected areas containing the materials available for 
public inspection and copying, described in Sec. 105-60.302, are located 
in the following places:

                             Central Office

(GSA Headquarters), Washington, DC. Telephone: 202-535-7788
General Services Administration, 18th and F Streets NW., Library (Room 
1033), Washington, DC 20405

                                Region 1

Boston, Massachusetts (Comprising the States of Connecticut, Maine, 
Massachusetts, New Hampshire, Rhode Island, and Vermont). Telephone: 
617-565-8100
Business Service Center, General Services Administration (2SB-1), Thomas 
P. O'Neill, Jr., Federal Building, 10 Causeway Street, Boston, MA 02222

                                Region 2

New York, New York (Comprising the States of New Jersey, New York, the 
Commonwealth of Puerto Rico, and the Virgin Islands). Telephone 212-264-
1234
Business Service Center, General Services Administration (2SB), 26 
Federal Plaza, New York, NY 10278

                                Region 3

Philadelphia, Pennsylvania (Comprising the States of Delaware, Maryland, 
Pennsylvania, Virginia, and West Virginia). Telephone: 215-597-9613
Business Service Center, General Services Administration (3SB), Ninth 
and Market Streets, Room 5151, Philadelphia, PA 19107

                                Region 4

Atlanta, Georgia (Comprising the States of Alabama, Florida, Georgia, 
Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee). 
Telephone: 404-331-5103
Business Service Center, General Services Administration (4SB), Richard 
B. Russell Federal Building, U.S. Courthouse, 75 Spring Street, SW, Room 
318, Atlanta, GA 30303

[[Page 58]]

                                Region 5

Chicago, Illinois (Comprising the States of Illinois, Indiana, Michigan, 
Ohio, Minnesota, and Wisconsin). Telephone: 312-353-5383
Business Service Center, General Services Administration (5SB), 230 
South Dearborn Street, Chicago, IL 60604

                                Region 6

Kansas City, Missouri (Comprising the States of Iowa, Kansas, Missouri, 
and Nebraska). Telephone: 816-926-7203
Business Service Center, General Services Administration (6SB), 1500 
East Bannister Road, Kansas City, MO 64131

                                Region 7

Fort Worth, Texas (Comprising the States of Arkansas, Louisiana, New 
Mexico, Texas, and Oklahoma). Telephone: 817-334-3284
Business Service Center, General Services Administration (7SB), 819 
Taylor Street, Room 11A05, Fort Worth, TX 76102

                                Region 8

Denver, Colorado (Comprising the States of Colorado, North Dakota, South 
Dakota, Montana, Utah, and Wyoming). Telephone: 303-236-7409
Business Service Center, General Services Administration (7SB-8), 
Building 41, Denver Federal Center, Room 145, Denver, CO 80225

                                Region 9

San Francisco, California (Comprising the States of Hawaii, California, 
Nevada, and Arizona). Telephone: 415-974-0523
Business Service Center, General Services Administration (9SB), 525 
Market Street, San Francisco, CA 94105

                                Region 10

Seattle, Washington (Comprising the States of Alaska, Idaho, Oregon, and 
Washington). Telephone: 206-931-7956
Business Service Center, General Services Administration (9SB-10), GSA 
Center, 15th and C Streets, SW, Room 2413, Auburn, WA 98001

                         National Capital Region

Washington, DC (Comprising the District of Columbia and the metropolitan 
area). Telephone: 202-472-1804
Business Service Center, General Services Administration (WSB), Seventh 
and D Streets, SW, Room 1050, Washington, DC 20407

    (b) Time. The reading rooms or selected areas will be open to the 
public during the business hours of the GSA office where they are 
located.
    (c) Copying. GSA will furnish reasonable copying services at fees 
specified in Sec. 105-60.305.
    (d) Reading room and selected area rules--(1) Age. GSA will not give 
permission to inspect materials to a person under 16 years old unless 
accompanied by an adult who agrees to remain with the minor while the 
minor uses the materials.
    (2) Handling of materials. The removal or mutilation of materials is 
forbidden by law and is punishable by fine or imprisonment or both. When 
requested by a reading room or selected area attendant, a person 
inspecting materials must present for examination any briefcase, 
handbag, notebook, package, envelope, book, or other article that could 
contain GSA informational materials.
    (3) Reproduction services. The GSA Central Office Library or the 
Regional Business Service Centers will furnish ``reasonable 
reproduction'' services for available materials at the fees specified in 
Sec. 105-60.305.



Sec. 105-60.304  Index.

    GSA will maintain and make available for public inspection and 
copying current indexes arranged by subject matter providing identifying 
information for the public regarding any matter issued, adopted, or 
promulgated after July 4, 1967, and described in Sec. 105-60.302.



Sec. 105-60.305  Fees.



Sec. 105-60.305-1  Definitions.

    For the purpose of these regulations:
    (a) A statute specifically providing for setting the level of fees 
for particular types of records (5 U.S.C. 552(a)(4)(A)(vi)) means any 
statute that specifically requires (as opposed to generally discussing) 
a Government agency to set the level of fees for particular types of 
records, in order to:
    (1) Serve both the general public and private sector organizations 
by conveniently making available Government information;
    (2) Ensure that groups and individuals pay the cost of publications 
and other services which are for their special use so that these costs 
are not borne by the general taxpaying public;

[[Page 59]]

    (3) Operate an information dissemination activity on a self-
sustaining bases to the maximum extent possible; or
    (4) Return revenue to the Treasury for defraying, wholly or in part, 
appropriated funds used to pay the cost of disseminating Government 
information.
    (b) The term direct costs means those expenditures which GSA 
actually incurs in searching for and duplicating (and in the case of 
commercial requesters, reviewing) documents to respond to a FOIA 
request. Direct costs include, for example, the salary of the employee 
performing the work (the basic rate of pay for the employee plus 16 
percent of that rate to cover benefits), and the cost of operating 
duplicating machinery. Not included in direct cost are overhead expenses 
such as costs of space, and heating or lighting the facility where the 
records are stored.
    (c) The term search includes all time spent looking for material 
that is responsive to a request, including line-by-line identification 
of material within documents. Searches will be performed in the most 
efficient and least expensive manner so as to minimize costs for both 
the agency and the requester. Line-by-line searches will not be 
undertaken when it would be more efficient to duplicate the entire 
document. Such activity will be distinguished from ``review'' of 
material in determining whether the material is exempt from disclosure 
(see paragraph (e) of this section). Searches may be done manually or by 
computer using existing programming.
    (d) The term duplication refers to the process of making a copy of a 
document in response to a FOIA request. Such copies can take the form of 
paper, microform, audiovisual materials, or machine-readable 
documentation. GSA will provide a copy of the material in a form that is 
usable by the requester unless it is administratively burdensome to do 
so.
    (e) The term review refers to the process of examining documents 
located in response to request that is for commercial use (see paragraph 
(f) of this section) to determine if any portion of that document is 
permitted to be withheld and processing any documents for disclosure. 
See Sec. 105-60.305-7.
    (f) The term commercial-use request refers to a request from or on 
behalf of one who seeks information for a use or purpose that furthers 
the commercial, trade, or profit interests of the requester or person on 
whose behalf the request is made. In determining whether a requester 
properly belongs in this category, GSA will look first at how the 
requester will use the documents.
    (g) The term educational institution refers to a preschool, a public 
or private elementary or secondary school, an institution of graduate 
higher education, an institution of undergraduate higher education, an 
institution of professional education, and an institution of vocational 
education, which operates a program or programs of scholarly research.
    (h) The term noncommercial scientific institution refers to an 
institution that is not operated on a ``commercial'' basis as that term 
is referenced in paragraph (f) of this section and which is operated 
solely for the purpose of conducting scientific research the results of 
which are not intended to promote any particular product or industry.
    (i) The term representative of the news media refers to any person 
actively gathering news for an entity that is organized and operated to 
publish or broadcast news to the public. The term news means information 
that is about current events or that would be of current interest to the 
public. Examples of news media include television or radio stations 
broadcasting to the public at large, and publishers of periodicals (but 
only in those instances when they can qualify as disseminators of 
``news'') who make their products available for purchase or subscription 
by the general public. In the case of ``freelance'' journalists, they 
may be regarded as working for a news organization if they can 
demonstrate a solid basis for expecting publication through that 
organization, even though not actually employed by it.

[[Page 60]]



Sec. 105-60.305-2  Scope of section.

    This section sets forth policies and procedures to be followed in 
the assessment and collection of fees from a requester for the search, 
review, and reproduction of GSA records.



Sec. 105-60.305-3  Record material available without charge.

    GSA records available to the public are displayed in the business 
service center for that region. Certain material related to bids 
(excluding construction plans and specifications) and any material 
displayed are available without charge upon request.



Sec. 105-60.305-4  Copy of GSA records available at a fee.

    GSA will make a record not subject to exemption available at a time 
and place mutually agreed upon by GSA and the requester. GSA will agree 
either to
    (a) Show the originals to the requester,
    (b) Make one copy available at a fee, or
    (c) A combination of these alternatives.

In the case of voluminous materials, GSA will make copies as quickly as 
possible. GSA may make a reasonable number of additional copies for a 
fee when commercial reproduction services are not available to the 
requester.



Sec. 105-60.305-5  Waiver of fee.

    (a) Any request for waiver or reduction of a fee should be included 
in the initial letter requesting access to GSA records under Sec. 105-
60.402-1. The waiver request should explain how disclosure of the 
information would contribute significantly to public understanding of 
the operations or activities of the Government and would not be 
primarily in the commercial interest of the requester. In responding to 
a request GSA will consider the following factors:
    (1) Whether the subject of the requested records concerns ``the 
operations or activities of the Government.'' The subject matter of the 
requested records must specifically concern identifiable operations or 
activities of the Federal Government--with a connection between them 
that is direct and clear, not remote or attenuated.
    (2) Whether the disclosure is ``likely to contribute'' to an 
understanding of Government operations or activities. In this 
connection, GSA should consider whether the requested information is 
already in the public domain, either in a duplicative or a substantially 
identical form. If it is, then disclosure of the information would not 
be likely to contribute to an understanding of Government operations or 
activities, as nothing new would be added to the public record.
    (3) Whether disclosure of the requested information will contribute 
to ``public understanding.'' The focus here must be on the contribution 
to public understanding, rather than personal benefit to be derived by 
the requester. For purposes of this analysis, the identity and 
qualifications of the requester should be considered, to determine 
whether the requester is in a position to contribute to public 
understanding through the requested disclosure.
    (4) Whether the requester has a commercial interest that would be 
furthered by the requested disclosure; and if so
    (5) Whether the magnitude of the identified commercial interest of 
the requester is sufficiently large, in comparison with the public 
interest in disclosure, that disclosure is ``primarily in the commercial 
interest of the requester.''
    (b) If the initial request provides insufficient information for the 
agency to evaluate the request, GSA may ask the requester to furnish 
additional information. GSA will not start processing a request until 
the fee waiver issue has been resolved, unless the requester has 
provided written assurance of payment in full if the fee waiver is 
denied by the agency.



Sec. 105-60.305-6  Searches.

    (a) GSA may charge for the time spent in the following activities in 
determining ``search time'' subject to applicable fees as provided in 
Sec. 105-60.305-10:
    (1) Time spent in trying to locate GSA records which come within the 
scope of the request;

[[Page 61]]

    (2) Time spent in either transporting a necessary agency searcher to 
a place of record storage, or in transporting records to the locations 
of a necessary agency searcher; and
    (3) Direct costs involving the use of computer time to locate and 
extract requested records.
    (b) GSA will not charge for the time spent in monitoring a 
requester's inspection of disclosed agency records.



Sec. 105-60.305-7  Reviews.

    (a) GSA may charge for the time spent in the following activities in 
determining ``review time'' subject to applicable fees as provided in 
Sec. 105-60.305-10:
    (1) Time spent in examining a requested record to determine whether 
the record is permitted to be withheld in whole or in part; and
    (2) Time spent in deleting exempt matter being withheld from records 
otherwise made available.
    (b) GSA will not charge for the time spent in resolving issues of 
law or policy regarding the application of exemptions.
    (c) GSA may not charge for review at the administrative appeal level 
of an exemption already applied. However, records or portions of records 
withheld in full under an exemption which is subsequently determined not 
to apply may be reviewed again to determine the applicability of other 
exemptions not previously considered. The costs for such a subsequent 
review would be properly assessable.
    (d) GSA will charge only commercial-use requesters for review time.



Sec. 105-60.305-8  Prepayment of fees over $250.

    GSA will require prepayment of fees for search, review, and 
reproduction which are likely to exceed $250. When the anticipated total 
fee exceeds $250, the requester will receive notice to prepay and at the 
same time will be given an opportunity to modify his or her request to 
reduce the fee. GSA will also inform the requester that fees for search 
time will be charged even if the search proves unsuccessful. GSA will 
not start processing a request until payment is received.



Sec. 105-60.305-9  Form of payment.

    Requesters should pay fees by check or money order made out to the 
General Services Administration and addressed to the official named by 
GSA in its correspondence.



Sec. 105-60.305-10  Fee schedule.

    (a) When GSA is aware that documents responsive to a request are 
maintained for distribution by an agency operating a statutory fee based 
program, GSA will inform the requester of the procedures for obtaining 
records from those sources.
    (b) In computing applicable fees, GSA will consider only the 
following costs in providing the requester records:
    (1) Review and search fees.

Manual searches by clerical staff....  $9 per hour or fraction of an    
                                        hour.                           
Manual searches and reviews by         $18 per hour or fraction of an   
 professional staff in cases in which   hour.                           
 clerical staff would be unable to                                      
 locate the requested records.                                          
Computer searches....................  Direct cost to GSA.              
Transportation or special handling of  Direct cost to GSA.              
 records.                                                               
                                                                        

    (2) Reproduction fees.

Pages no larger than 8\1/2\ by 14      $0.10 per page.                  
 inches, when reproduced by routine                                     
 electrostatic copying.                                                 
Pages over 8\1/2\ by 14 inches.......  Direct cost of reproduction to   
                                        GSA.                            
Pages requiring reduction,             Direct cost of reproduction to   
 enlargement, or other special          GSA.                            
 services.                                                              
Reproduction by other than routine     Direct cost of reproduction to   
 electrostatic copying.                 GSA.                            
                                                                        

    (c) Any fees not provided for under paragraph (b) of this section, 
shall be calculated in accordance with Sec. 105-60.305-1(b).
    (d) Categories of requesters. There are four categories of 
requesters: Commercial-use; educational and noncommercial scientific 
institutions; news media; and all other. The fees listed above apply 
with the following exceptions:

[[Page 62]]

    (1) GSA will not charge the requester if the fee is $10 or less as 
the cost of collection would be greater than the fee.
    (2) Educational and noncommercial scientific institutions and the 
news media will be charged for the cost of reproduction alone. These 
requesters are entitled to the first 100 pages (paper copies) of 
duplication at no cost. The following are examples of how these fees are 
calculated.
    (i) A request that results in 150 pages of material. No fee would be 
assessed for duplication of 150 pages. The reason is that these 
requesters are entitled to the first 100 pages at no charge. The charge 
for the remaining 50 pages would be $5. This amount would not be billed 
under the preceding section.
    (ii) A request that results in 250 pages of material. The requester 
in this case would be charged $15.
    (3) Noncommercial requesters who are not included under paragraph 
(d)(2) of this section will be entitled to the first 100 pages (paper 
copies) of duplication at no cost and 2 hours of search without charge. 
The term ``search time'' in this context has as its basis, manual 
search. To apply this term to searches made by computer, GSA will 
determine the hourly cost of operating the central processing unit and 
the operator's hourly salary plus 16 percent. When the cost of search 
(including the operator time and the cost of operating the computer to 
process a request) equals the equivalent dollar amount of two hours of 
the salary of the person performing the search, i.e., the operator, GSA 
will begin assessing charges for computer search.
    (4) GSA will charge commercial-use requesters fees which recover the 
full direct costs of searching for, reviewing for release, and 
duplicating the records sought. Commercial-use requesters are not 
entitled to 2 hours of free search time.
    (e) Determining category of requester. GSA may ask the requester to 
provide additional information at any time to determine what fee 
category he or she falls under. This applies to all requesters.



Sec. 105-60.305-11  Fees for authenticated and attested copies.

    The fees set forth in Sec. 105-60.305-10 apply to requests for 
authenticated and attested copies of GSA records.



Sec. 105-60.305-12  Administrative actions to improve assessment and collection of fees.

    (a) Charging interest. GSA may charge requesters who fail to pay 
fees interest on the amount billed starting on the 31st day following 
the day on which the billing was sent. Interest will be at the rate 
prescribed in 31 U.S.C. 3717.
    (b)  Effect of the Debt Collection Act of 1982. GSA will take any 
action authorized by the Debt Collection Act of 1982 (Pub. L. 97-365), 
including disclosure to consumer reporting agencies, use of collection 
agencies, and assessment of penalties and administrative costs, where 
appropriate, to encourage payment.
    (c) Charges for unsuccessful search. The agency may assess charges 
for time spent searching for the records even if the agency fails to 
locate the records or if the records located are exempt from disclosure.
    (d) Notifying requester of charges over $25. If charges are likely 
to exceed $25, GSA will notify the requester and obtain, in writing, 
assurance of the requester's willingness to pay the estimated fee. The 
requester shall also be offered an opportunity to modify his or her 
request to reduce the fee. GSA will not start processing the request 
until assurance of payment is received.
    (e) Aggregating requests. When the agency reasonably believes that a 
requester, or group of requesters acting in concert, is attempting to 
break a request down into a series of requests related to the same 
subject for the purpose of evading the assessment of fees, GSA will 
combine any such requests and charge accordingly, including fees for 
previous requests where charges were not assessed. GSA will presume that 
multiple requests of this type made within a 30-day period are made to 
avoid fees.
    (f) Advance payments. (1) See Sec. 105-60.305-8 regarding prepayment 
of fees for FOIA requests.
    (2) Where a requester has previously failed to pay a fee charged in 
a timely

[[Page 63]]

fashion (i.e., within 30 days of the date of the billing), GSA will 
require the requester to pay the full amount owed plus any applicable 
interest penalties and administrative costs as provided above, or 
demonstrate that he or she has, in fact, paid the fee, and to make an 
advance payment of the full amount of the estimated fee before the 
agency begins to process a new request or a pending request from that 
requester.
    (3) If GSA acts under paragraphs (f) (1) and (2) of this section, 
the administrative time limits in subsection (a)(6) of the FOIA (i.e., 
10 working days from receipt of initial requests and 20 working days 
from receipt of appeals form initial denial plus permissible time 
extensions) will begin only after it has received the fee payments 
described above.



                   Subpart 105-60.4--Described Records



Sec. 105-60.401  General.

    (a) Except for records made available in accordance with subparts 
105-60.2 and 105-60.3, GSA will make records available to a requester 
promptly when the request reasonably describes the records unless GSA 
invokes an exemption in accordance with subpart 105-60.5. Although the 
burden of reasonable description of the records rests with the 
requester, GSA will assist in identification.
    (b) Upon receipt of a request that does not reasonably describe the 
records requested, GSA may contact the requester to seek a more specific 
description. The 10-workday time limit set forth in Sec. 105-60.402-2 
will not start until the official identified in Sec. 105-60.402-1 
receives a request reasonably describing the records.



Sec. 105-60.402  Procedures for making records available.

    This section sets forth initial procedures for making records 
available when they are requested.



Sec. 105-60.402-1  Submission of requests.

    For records located in the GSA Central Office, the requester should 
submit a request in writing to the GSA FOIA Officer, General Services 
Administration (CAIR), Washington, DC 20405. For records located in the 
GSA regional offices, the requester should submit a request to the FOIA 
Officer for the relevant region, at the address listed in Sec. 105-
60.303(a), with the exception of Region 9. Requests for Region 9 should 
be sent to the following address: General Services Administration (9AA), 
525 Market St., 28th Floor, San Francisco, CA 94105. Requests should 
include the words ``Freedom of Information Act Request'' prominently 
marked on both the face of the request letter and the envelope. The 10-
workday time limit for agency decisions set forth in Sec. 105-60.402-2 
begins with receipt of a request in the office of the appropriate 
official identified in this section, unless the provisions under 
Sec. 105-60.305-12(d) and (f) apply. Failure to include the words 
``Freedom of Information Act Request'' or to sumbit a request to the 
official identified in this section will result in processing delays. A 
requester who has questions concerning an FOIA request may consult the 
GSA FOIA Officer, General Services Administration (CAIR), 18th and F 
Streets, NW., Washington, DC 20405, (202) 535-7983.



Sec. 105-60.402-2  Response to initial requests.

    GSA will respond to an initial FOIA request within 10 workdays (that 
is, excluding Saturdays, Sundays, and legal public holidays) after 
receipt of a request by the office of the appropriate official specified 
in Sec. 105-60.402-1. This letter should state the agency's decision 
with respect to disclosure or nondisclosure of the requested records. If 
the records to be disclosed are not provided with the initial letter, 
the records will be sent as soon as possible thereafter. In unusual 
circumstances, GSA will inform the requester of the agency's need to 
take an extension of time.



Sec. 105-60.403  Appeal within GSA.

    (a) A requester who receives a denial of a request, in whole or in 
part, may appeal that decision within GSA. The requester must direct the 
appeal to the GSA FOIA Officer, General Services Administration (CAIR), 
Washington,

[[Page 64]]

DC 20405, regardless of whether the denial being appealed was made in 
the Central Office or in a regional office.
    (b) The GSA FOIA Officer must receive an appeal no later than 30 
calendar days after receipt by the requester of the initial denial of 
access.
    (c) The requester must appeal in writing and include a brief 
statement of the reasons he or she thinks GSA should release the records 
and enclose copies of the initial request and denial. The appeal letter 
should include the words ``Freedom of Information Act Appeal'' on both 
the face of the appeal letter and on the envelope. Failure to follow 
these procedures will delay processing of the appeal. GSA has 20 
workdays after receipt of an appeal to make a determination with respect 
to the appeal. The 20-workday time limit shall not begin until the GSA 
FOIA Officer receives the appeal.
    (d) A requester who has received a denial of an appeal may seek 
judicial review of GSA's decision in the United States District Court in 
the district in which the requester resides or has a principal place of 
business, or where the records are situated, or in the United States 
District Court for the District of Columbia.



Sec. 105-60.404  Extension of time limits.

    (a) In unusual circumstances, the GSA FOIA Officer or the regional 
FOIA Officer may extend the time limits prescribed in Secs. 105-60.402 
and 105-60.403. For purposes of this section, the term ``unusual 
circumstances'' means:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded in 
a single request;
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more components of the 
agency having substantial subject-matter interest therein; or
    (4) The need to consult with the submitter of the requested 
information.
    (b) If necessary, more than one extension of time may be taken. 
However, the total extension of time shall not exceed 10 workdays with 
respect to a particular request. The extension may be divided between 
the initial and appeal stages or within a single stage. GSA will provide 
a written notice to the requester of any extension of time limits.



                      Subpart 105-60.5--Exemptions



Sec. 105-60.501   Categories of records exempt from disclosure under the FOIA.

    (a) 5 U.S.C. 552(b) provides that the requirements of the FOIA do 
not apply to matters that are:
    (1) Specifically authorized under criteria established by an 
Executive order to be kept secret in the interest of national defense or 
foreign policy and that are, in fact, properly classified under the 
Executive order;
    (2) Related solely to the internal personnel rules and practices of 
an agency;
    (3) Specifically exempted from disclosure by statute, other than the 
Government in the Sunshine Act, provided that the statute (i) requires 
that the matters be withheld from the public in such a manner as to 
leave no discretion on the issue of (ii) establishes particular criteria 
for withholding or refers to particular types of matters to be withheld;
    (4) Trade secrets and commercial or financial information obtained 
from a person that are privileged or confidential;
    (5) Interagency or intra-agency memorandums or letters which would 
not be available by law to a party other than an agency in litigation 
with the agency;
    (6) Personnel and medical files and similar files the disclosure of 
which would constitute a clearly unwarranted invasion of personal 
privacy;
    (7) Records or information compiled for law enforcement purposes, 
but only to the extent that the production of such law enforcement 
records or information:

[[Page 65]]

    (i) Could reasonably be expected to interfere with enforcement 
proceedings;
    (ii) Would deprive a person of a right to a fair trial or an 
impartial adjudication;
    (iii) Could reasonably be expected to constitute an unwarranted 
invasion of personal privacy;
    (iv) Could reasonably be expected to disclose the identity of a 
confidential source, including a State, local, or foreign agency or 
authority or any private institution which furnished information on a 
confidential basis, and, in the case of a record or information compiled 
by a criminal law enforcement authority in the course of a criminal 
investigation, or by an agency conducting a lawful national security 
intelligence investigation, information furnished by a confidential 
source;
    (v) Would disclose techniques and procedures for law enforcement 
investigations or prosecutions, or would disclose guidelines for law 
enforcement investigations or prosecutions if such disclosure could 
reasonably be expected to risk circumvention of the law; or
    (vi) Could reasonably be expected to endanger the life or physical 
safety of any individual.
    (8) Contained in or related to examination, operating, or condition 
reports prepared by, on behalf of, or for the use of an agency 
responsible for the regulation or supervision of financial institutions; 
and
    (9) Geological and geophysical information and data, including maps, 
concerning wells.
    (b) GSA will provide any reasonably segregable portion of a record 
to a requester after deletion of the portions that are exempt under this 
section.
    (c) GSA will invoke no exemption under this section to deny access 
to records that would be available pursuant to a request made under the 
Privacy Act of 1974 and implementing regulations, part 105-64, or if 
disclosure would cause no demonstrable harm to any public or private 
interest.
    (d) Whenever a request is made which involves access to records 
described in Sec. 105-60.501(a)(7)(i) and
    (1) The investigation or proceeding involves a possible violation of 
criminal law, and
    (2) There is reason to believe that (i) the subject of the 
investigation or proceeding is not aware of its pendency, and (ii) 
disclosure of the existence of the records could reasonably be expected 
to interfere with enforcement proceedings, the agency may, during only 
such time as that circumstance continues, treat the records as not 
subject to the requirements of this section.
    (e) Whenever informant records maintained by a criminal law 
enforcement agency under an informant's name or personal identifier are 
requested by a third party according to the informant's name or personal 
identifier, the agency may treat the records as not subject to the 
requirements of this section unless the informant's status as an 
informant has been officially confirmed.
    (f) Whenever a request is made which involves access to records 
maintained by the Federal Bureau of Investigation pertaining to foreign 
intelligence or counterintelligence, or international terrorism, and the 
existence of the records is classified information as provided in 
paragraph (a)(1) of this section, the Bureau may, as long as the 
existence of the records remains classified information, treat the 
records as not subject to the requirements of this section.



     Subpart 105-60.6--Subpoenas or Other Legal Demands for Records



Sec. 105-60.601  Service of subpoena or other legal demand.

    (a) A subpoena duces tecum or other legal demand for the production 
of records held by GSA should be addressed to the General Counsel, 
General Services Administration (L), Washington, DC 20405, with respect 
to GSA Central office records; to the appropriate Regional Counsel, for 
records in GSA regional offices; or to the Administrator of General 
Services.
    (b) The Administrator, the General Counsel, Deputy General Counsels, 
Associate General Counsels, the Chairman of the Board of Contract 
Appeals, Inspector General, and, with respect to

[[Page 66]]

records in a GSA regional office, the Regional Administrator and 
Regional Counsel are the only GSA employees authorized to accept service 
of a subpoena duces tecum or other legal demand on behalf of GSA.



PART 105-62--DOCUMENT SECURITY AND DECLASSIFICATION--Table of Contents




Sec.
105-62.000  Scope of part.

                 Subpart 105.62.1--Classified Materials

105-62.101  Security classification categories.
105-62.102  Authority to originally classify.
105-62.103  Access to GSA-originated materials.

           Subpart 105-62.2--Declassification and Downgrading

105-62.201  Declassification and downgrading.
105-62.202  Review of classified materials for declassification 
          purposes.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); and E.O. 
12065 dated June 28, 1978.

    Source: 44 FR 64805, Nov. 8, 1979, unless otherwise noted.



Sec. 105-62.000  Scope of part.

    This part prescribes procedures for safeguarding national security 
information and material within GSA. They explain how to identify, 
classify, downgrade, declassify, disseminate, and protect such 
information in the interests of national security. They also supplement 
and conform with Executive Order 12065 dated June 28, 1978, subject: 
National Security Information, and the Implementing Directive dated 
September 29, 1978, issued through the Information Security Oversight 
Office.



                 Subpart 105-62.1--Classified Materials



Sec. 105-62.101  Security classification categories.

    As set forth in Executive Order 12065, official information or 
material which requires protection against unauthorized disclosure in 
the interests of the national defense or foreign relations of the United 
States (hereinafter collectively termed ``national security'') shall be 
classified in one of three categories: Namely, Top Secret, Secret, or 
Confidential, depending on its degree of significance to the national 
security. No other categories shall be used to identify official 
information or material as requiring protection in the interests of 
national security except as otherwise expressly provided by statute. The 
three classification categories are defined as follows:
    (a) Top Secret. Top Secret refers to that national security 
information which requires the highest degree of protection, and shall 
be applied only to such information as the unauthorized disclosure of 
which could reasonably be expected to cause exceptionally grave damage 
to the national security. Examples of exceptionally grave damage include 
armed hostilities against the United States or its allies, disruption of 
foreign relations vitally affecting the national security, intelligence 
sources and methods, and the compromise of vital national defense plans 
or complex cryptologic and communications systems. This classification 
shall be used with the utmost restraint.
    (b) Secret. Secret refers to that national security information or 
material which requires a substantial degree of protection, and shall be 
applied only to such information as the unauthorized disclosure of which 
could reasonably be expected to cause serious damage to the national 
security. Examples of serious damage include disruption of foreign 
relations significantly affecting the national security, significant 
impairment of a program or policy directly related to the national 
security, and revelation of significant military plans or intelligence 
operations. This classification shall be used sparingly.
    (c) Confidential. Confidential refers to other national security 
information which requires protection, and shall be applied only to such 
information as the unauthorized disclosure of which could reasonably be 
expected to cause identifiable damage to the national security.



Sec. 105-62.102  Authority to originally classify.

    (a) Top secret, secret, and confidential. The authority to 
originally classify information as Top Secret, Secret, or Confidential 
may be exercised only by

[[Page 67]]

the Administrator and is delegable only to the Director, Information 
Security Oversight Office.
    (b) Limitations on delegation of classification authority. 
Delegations of original classification authority are limited to the 
minimum number absolutely required for efficient administration. 
Delegated original classification authority may not be redelegated.

[47 FR 5416, Feb. 5, 1982]



Sec. 105-62.103  Access to GSA-originated materials.

    Classified information shall not be disseminated outside the 
executive branch of the Government without the express permission of the 
GSA Security Officer except as otherwise provided in this Sec. 105-
62.103.
    (a) Access by historical researchers. Persons outside the executive 
branch who are engaged in historical research projects, may be 
authorized access to classified information or material, provided that:
    (1) A written determination is made by the Administrator of General 
Services that such access is clearly consistent with the interests of 
national security.
    (2) Access is limited to that information over which GSA has 
classification jurisdiction.
    (3) The material requested is reasonably accessible and can be 
located with a reasonable amount of effort.
    (4) The person agrees to safeguard the information and to authorize 
a review of his or her notes and manuscript for determination that no 
classified information is contained therein by signing a statement 
entitled ``Conditions Governing Access to Official Records for 
Historical Research Purposes.''
    (5) An authorization for access shall be valid for a period of 2 
years from the date of issuance and may be renewed under the provisions 
of this Sec. 105-62.103(a).
    (b) Access by former Presidential appointees. Persons who previously 
occupied policymaking positions to which they were appointed by the 
President may not remove classified information or material upon 
departure from office as all such material must remain under the 
security control of the U.S. Government. Such persons may be authorized 
access to classified information or material which they originated, 
received, reviewed, signed, or which was addressed to them while in 
public office, provided that the GSA element having classification 
jurisdiction for such information or material makes a written 
determination that access is consistent with the interests of national 
security, approval is granted by the GSA Security Officer, and the 
individual seeking access agrees:
    (1) To safeguard the information,
    (2) To authorize a review of his or her notes for determination that 
no classified information is contained therein, and
    (3) To ensure that no classified information will be further 
disseminated or published.
    (c) Access during judicial proceedings. Classified information will 
not normally be released in the course of any civilian judicial 
proceeding. In special circumstances however, and upon the receipt of an 
order or subpoena issued by a Federal court, the Administrator may 
authorize the limited release of classified information if he or she 
determines that the interests of justice cannot otherwise be served. 
Appropriate safeguards will be established to protect such classified 
material released for use in judicial proceedings.
    (d) Access to material in NARS custody. The Archivist of the United 
States prepares procedures governing access to materials transferred to 
NARS custody. These procedures are issued by the Administrator of 
General Services in 41 CFR part 105-61.
    (e) Access by the General Accounting Office and congressional 
committees. Classified information may be released to the General 
Accounting Office (GAO) and congressional committees when specifically 
authorized by the GSA Security Officer except as otherwise provided by 
law.



           Subpart 105-62.2--Declassification and Downgrading



Sec. 105-62.201  Declassification and downgrading.

    (a) Authority to downgrade and declassify. The authority to 
downgrade and

[[Page 68]]

declassify national security information or material shall be exercised 
as follows:
    (1) Information or material may be downgraded or declassified by the 
GSA official authorizing the original classification, by a successor in 
capacity, by a supervisory official of either, or by the Information 
Security Oversight Committee on appeal.
    (2) Downgrading and declassification authority may also be exercised 
by an official specifically authorized by the Administrator.
    (3) In the case of classified information or material officially 
transferred to GSA by or under statute or Executive order in conjunction 
with a transfer of functions and not merely for storage purposes, GSA 
shall be deemed the originating agency for all purposes under these 
procedures including downgrading and declassification.
    (4) In the case of classified information or material held in GSA 
not officially transferred under paragraph (a)(3) of this section but 
originated in an agency which has since ceased to exist, GSA is deemed 
the originating agency. Such information or material may be downgraded 
and declassified 30 calendar days after consulting with any other 
agencies having an interest in the subject matter.
    (5) Classified information or material under the final 
declassification jurisdiction of GSA which has been transferred to NARS 
for accession into the Archives of the United States may be downgraded 
and declassified by the Archivist of the United States in accordance 
with Executive Order 12065, directives of the Information Security 
Oversight Office, and the systematic review guidelines issued by the 
Administrator of General Services.
    (6) It is presumed that information which continues to meet 
classification requirements requires continued protection. In some 
cases, however, the need to protect such information may be outweighed 
by the public interest in disclosure of the information, and in these 
cases the information should be declassified. When such questions arise 
they shall be referred to the Administrator, the Director of the 
Information Security Oversight Office, or in accordance with the 
procedures for mandatory review described in Sec. 105-62.202(b).
    (b) Declassification. Declassification of information shall be given 
emphasis comparable to that acccorded classification. Information 
classified under Executive Order 12065 and prior orders shall be 
declassified as early as national security considerations permit. 
Decisions concerning declassification shall be based on the loss of 
sensitivity of the information with the passage of time or on the 
occurrence of an event which permits declassification. When information 
is reviewed for declassification it shall be declassified unless the 
declassification authority established in Sec. 105-62.202 determines 
that the information continues to meet the classification requirements 
prescribed despite the passage of time.
    (c) Downgrading. Classified information that is marked for automatic 
downgrading is downgraded accordingly without notification to holders. 
Classified information that is not marked for automatic downgrading may 
be assigned a lower classification designation by the originator or by 
an official authorized to declassify the same information. Notice of 
downgrading shall be provided to known holders of the information.



Sec. 105-62.202  Review of classified materials for declassification purposes.

    (a) Systematic review for declassification. Except for foreign 
government information, classified information constituting permanently 
valuable records of GSA as defined by 44 U.S.C. 2103, and information in 
the possession and under control of NARA, under 44 U.S.C. 2107 or 2107 
note, shall be reviewed for declassification as it becomes 20 years old. 
Transition to systematic review at 20 years shall be implemented as 
rapidly as practicable and shall be completed by December 1, 1988. 
Foreign government information shall be reviewed for declassification as 
it becomes 30 years old.
    (b) Mandatory review for declassification. All classified 
information upon request by a member of the public or a Government 
employee or agency to declassify and release such information under the 
provisions of Executive

[[Page 69]]

Order 12065 shall be reviewed by the responsible GSA element for 
possible declassification in accordance with the procedures set forth in 
paragraphs (c) through (g) of this section.
    (c) Submission of requests for review. Requests for mandatory review 
of classified information shall be submitted in accordance with the 
following:
    (1) Requests originating within GSA shall in all cases be submitted 
directly to the service or staff office that originated the information.
    (2) For expeditious action, requests from other governmental 
agencies or from members of the public should be submitted directly to 
the service or staff office that originated the material, or, if the 
originating element is not known, or no longer exists, the requester 
shall submit the request to the GSA Security Officer who shall cause 
such request to be reviewed.
    (d) Requirements for processing. Requests for declassification 
review and release of information shall be processed in accordance with 
the provisions set forth in paragraphs (e) through (h) of this section 
subject to the following conditions:
    (1) The request is in writing and reasonably describes the 
information sought with sufficient particularity to enable the element 
to identify it.
    (2) The requester shall be asked to correct a request that does not 
comply with paragraph (d)(1) of this section, to provide additional 
information.
    (3) If within 30 days the requester does not correct the request, 
describe the information sought with sufficient particularity or narrow 
the scope of the request, the element that received the request shall 
notify the requester and state the reason why no action will be taken on 
the request.
    (e) Processing of requests. Requests that meet the foregoing 
requirements for processing will be acted upon as follows:
    (1) GSA action upon the initial request shall be completed within 60 
days.
    (2) Receipt of the request shall be acknowledged within 7 days.
    (3) The designated service or staff office shall determine if the 
requested information may be declassified and shall make such 
information available to the requester, unless withholding it is 
otherwise warranted under applicable law. If the information may not be 
released in whole or in part, the requester shall be given a brief 
statement as to the reasons for denial, a notice of the right to appeal 
the determination to the Deputy Administrator (the notice shall include 
the Deputy Administrator's name, title, and address), and a notice that 
such an appeal must be filed with the Deputy Administrator within 60 
days in order to be considered.
    (f) Foreign government information. Except as provided hereinafter, 
requests for mandatory review for the declassification of classified 
documents that contain foreign government information shall be processed 
and acted upon in accordance with the provisions of paragraphs (c) 
through (e) of this section. If the request involves information that 
was initially received or classified by GSA, then the corresponding 
service or staff office shall be designated by the GSA Security Officer 
to determine whether the foreign government information in the document 
may be declassified and released in accordance with GSA policy or 
guidelines, after consulting with other agencies that have subject 
matter interest as necessary. If GSA is not the agency that received or 
classified the foreign government information, it shall refer the 
request to the appropriate agency. In those cases where agency policy or 
guidelines do not apply, consultation with the foreign originator, 
through the GSA Security Officer, may be made prior to final action on 
the request.
    (g) Information classified outside the service or staff office. When 
a service or staff office receives a request for declassification of 
information in a document which is in the custody of the service or 
staff office but was classified by another service or staff office or by 
another Government agency, the service or staff office shall refer the 
request to the classifying service or staff office or Government agency, 
together with a copy of the document containing the information 
requested when

[[Page 70]]

practicable, and shall notify the requester of the referral, unless the 
agency that classified the information objects on the grounds that its 
association with the information requires protection. When a GSA service 
or staff office receives such a referral, it shall process the request 
in accordance with the requirements of this paragraph and, if so 
requested, shall notify the referring service, staff office, or agency 
of the determination made on the request.
    (h) Action on appeal. The following procedures shall be followed 
when denials of requests for declassification are appealed:
    (1) The Deputy Administrator shall, within 15 days of the date of 
the appeal, convene a meeting of the GSA Information Security Oversight 
Committee (ISOC) that shall include the GSA Security Officer, or his or 
her representative, and the GSA official who denied the original request 
(and, at the option of that official, any subordinates or personnel from 
other agencies that participated in the decision for denial).
    (2) The ISOC shall learn from the official the reasons for denying 
the request, concentrating in particular upon which requirement 
continued classification is based and the identifiable damage that would 
result if the information were declassified. The ISOC shall also learn 
from the official the part or parts of the information that is 
classified and if by deleting minor segments of the information it might 
not then be declassified.
    (3) The ISOC's decision to uphold or deny the appeal, in whole or in 
part, shall be based upon the unanimous opinion of its membership. In 
the event that unanimity cannot be attained, the matter shall be 
referred to the Administrator, whose decision shall be final.
    (4) Based upon the outcome of the appeal, a reply shall be made to 
the person making the appeal that either encloses the requested 
information or part of the information, or explains why the continued 
classification of the information is required. A copy of the reply shall 
be sent to the GSA official who originally denied the request for 
declassification, to the GSA Security Officer, and to any other agency 
expressing an interest in the decision.
    (5) Final action on appeals shall be completed within 30 days of the 
date of the appeal.
    (i) Prohibition. No service of staff office in possession of a 
classified document may refuse to confirm the existence of the document 
in response to a request for the document under the provisions for 
mandatory review, unless the fact of its existence would itself be 
classifiable.
    (j) Presidential papers.  Information less than 10 years old which 
was originated by the President, by the White House staff, or by 
committees or commissions appointed by the President, or by others 
acting on behalf of the President, is exempted from mandatory review for 
declassification. Such information 10 years old or older is subject to 
mandatory review for declassification in accordance with procedures 
developed by the Archivist of the United States which provide for 
consultation with GSA on matters of primary subject interest to this 
agency.



PART 105-64--REGULATIONS IMPLEMENTING THE PRIVACY ACT OF 1974--Table of Contents




Sec.
105-64.000  Scope of part.
105-64.001  Purpose.
105-64.002  Definitions.

                    Subpart 105-64.1--General Policy

105-64.101  Maintenance of records.
105-64.101-1  Collection and use.
105-64.101-2  Standards of accuracy.
105-64.101-3  Rules of conduct.
105-64.101-4  Safeguarding systems of records.
105-64.101-5  Inconsistent directives of GSA superseded.
105-64.102  Records of other agencies.
105-64.103  Subpoenas and other legal demands.

                 Subpart 105-64.2--Disclosure of Records

105-64.201  Conditions of disclosure.
105-64.202  Procedures for disclosure.
105-64.203  Accounting of disclosure.

             Subpart 105-64.3--Individual Access to Records

105-64.301  Access procedures.
105-64.301-1  Form of requests.

[[Page 71]]

105-64.301-2  Special requirements for medical records.
105-64.301-3  Granting access.
105-64.301-4  Denials of access.
105-64.301-5  Appeal of denial of access within GSA.
105-64.301-6  Geographic composition, addresses and telephone numbers of 
          regional Administrative Services Division directors.
105-64.302  Fees.
105-64.302-1  Records available at a fee.
105-64.302-2  Additional copies.
105-64.302-3  Waiver of fee.
105-64.302-4  Prepayment of fees over $25.
105-64.302-5  Form of payment.
105-64.302-6  Reproduction fee schedule.

               Subpart 105-64.4--Requests to Amend Records

105-64.401  Submission of requests to amend records.
105-64.402  Review of requests to amend records.
105-64.403  Approval of requests to amend.
105-64.404  Denial of requests to amend.
105-64.405  Agreement to alternative amendments.
105-64.406  Appeal of denial of request to amend a record.
105-64.407  Statements of disagreement.
105-64.408  Judicial review.

  Subpart 105-64.5--Reporting New Systems and Altering Existing Systems

105-64.501  Reporting requirement.
105-64.502  Federal Register notice of establishment of new system or 
          alteration of existing system.
105-64.503  Effective date of new systems of records or alteration of an 
          existing system of records.

                      Subpart 105-64.6--Exemptions

105-64.601  General exemptions.
105-64.602  Specific exemptions.

               Subpart 105-64.7--Assistance and Referrals

105-64.701  Requests for assistance and referral.

    Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c)); 88 Stat. 
1897 (5 U.S.C. 552a).

    Source: 50 FR 43139, Oct. 24, 1985, unless otherwise noted.



Sec. 105-64.000  Scope of part.

    The policies and procedures for collecting, using, and disseminating 
records maintained by GSA are subject to 5 U.S.C. 552a, and defined in 
Sec. 105-64.002. Policies and procedures governing availability of 
records in general are in parts 105-60 and 61 of this chapter. This part 
also covers exemptions from disclosing personal information; procedures 
guiding persons who wish to obtain information, or to inspect or correct 
the content of records; accounting for disclosure of information; 
requirements for medical records; and fees.



Sec. 105-64.001  Purpose.

    This part implements 5 U.S.C. 552a (Pub. L. 93-579), known as the 
Privacy Act of 1974 (referred to as the Act). This part states 
procedures for notifying an individual of a GSA system of records 
containing a record pertaining to him or her, procedures for gaining 
access to or contesting the content of records, and other procedures for 
carrying out the Act.



Sec. 105-64.002  Definitions.

    For the purpose of this part 105-64, the terms listed below are 
defined as follows:
    (a) Agency means agency as defined in 5 U.S.C. 552(e);
    (b) Individual means a citizen of the United States or a legal alien 
admitted for permanent residence;
    (c) Maintain means keep, collect, use, and disseminate;
    (d) A record means any item, collection, or grouping of information 
an agency maintains about a person, including, but not limited to, his 
or her educational background, financial transactions, medical history, 
and employment or criminal history, and that contains his or her name or 
other identifying number of symbols such as a fingerprint, voiceprint, 
or photograph;
    (e) A system of records means any group of records under the control 
of the agency from which information is retrieved by a person's name or 
by an identifying number, symbols, or other identifiers assigned to that 
individual;
    (f) A statistical record means an item of information maintained for 
statistical research or reporting purposes that is not used in making 
any determination about an identifiable person, except as provided by 
Section 8 of Title 13 U.S.C.;

[[Page 72]]

    (g) Routine use means using a record for the purpose for which it 
was intended;
    (h) System manager means the GSA employee who maintains a system of 
records and who collects, uses, and disseminates the information in it;
    (i) The subject individual means the person named or discussed in a 
record or the person to whom a record refers;
    (j) Disclosure means transferring a record, a copy of a record, or 
the information contained in a record to someone other than the subject 
individual, or the reviewing of a record by someone other than the 
subject individual;
    (k) Access means a transfer of a record, a copy of a record, or the 
information in a record to the subject individual, or the review of a 
record by the subject individual; and
    (l) Solicitation means a request by an officer or employee of GSA 
for a person to provide information about himself or herself.



                    Subpart 105-64.1--General Policy

Sec. 105-64.101  Maintenance of records.



Sec. 105-64.101-1  Collection and use.

    (a) General. The system manager (also called the manager) should 
collect information used for determining an individual's rights, 
benefits, or privileges under GSA programs directly from the subject 
individual if practical. The system manager should ensure that 
information collected is used only as intended by the Act and these 
regulations.
    (b) Soliciting information. Manager must ensure that when 
information is solicited, the person is informed of the authority for 
collecting it; whether providing it is mandatory or voluntary; the 
purpose for which it will be used; routine uses of the information; and 
the effect on the individual, if any, of not providing the information. 
Heads of Services and Staff Offices and Regional Administrators must 
ensure that forms used to solicit information comply with the Act and 
these regulations.
    (c) Soliciting a social security number. Before requesting a person 
to disclose his or her social security number, ensure either:
    (1) The disclosure is required by Federal statute, or;
    (2) Disclosure is required under a statute or regulation adopted 
before January 1, 1975, to verify the person's identity, and that it was 
part of a system of records in existence before January 1, 1975.

If soliciting a social security number is authorized under paragraph (c) 
(1) or (2) of this section, inform the person beforehand whether the 
disclosure is mandatory or voluntary, by what legal or other authority 
the number is requested, and the use that is to be made of it.
    (d) Soliciting information from third parties. Officers or employees 
must inform third parties requested to provide information about another 
person of the reason for collecting the information.



Sec. 105-64.101-2  Standards of accuracy.

    Managers should ensure that the records used by the Agency to make 
determinations about an individual are maintained with the accuracy, 
relevance, timeliness, and completeness needed to ensure fairness to the 
individual.



Sec. 105-64.101-3  Rules of conduct.

    Those who design, develop, operate, or maintain a system of records, 
or any record, must review 5 U.S.C. 552a and the regulations in this 
part and follow 41 CFR part 105-735, Standards of Conduct, for 
protecting personal information.



Sec. 105-64.101-4  Safeguarding systems of records.

    Managers must ensure that administrative, technical, and physical 
safeguards are established to ensure the security and confidentiality of 
records and to protect against possible threats or hazards which could 
be harmful, embarrassing, inconvenient, or unfair to any individual. 
They must protect personnel information contained in manual and 
automated systems of records by using the following safeguards:
    (a) Storing official personnel folders and work folders in a 
lockable filing cabinet when not in use. The system

[[Page 73]]

manager may use an alternative storage system if it provides the same 
security as a locked cabinet.
    (b) Designating other sensitive records that need safeguards similar 
to those described in paragraph (a) of this section.
    (c) Permitting access to and use of automated or manual personnel 
records only to persons whose official duties require it, or to a 
subject individual or to his or her representative.



Sec. 105-64.101-5  Inconsistent directives of GSA superseded.

    This part 105-64 applies or takes precedence when any GSA directive 
disagrees with it.



Sec. 105-64.102  Records of other agencies.

    If a GSA employee receives a request to review records that are the 
primary responsibility of another agency, but are maintained by or in 
the temporary possession of GSA, the employee should consult with the 
other agency before releasing the records. Records in the custody of GSA 
that are the responsibility of the Office of Personnel Management (OPM) 
are governed by rules issued by OPM under the Privacy Act.



Sec. 105-64.103  Subpoenas and other legal demands.

    Access to systems of records by subpoena or other legal process must 
meet the provisions of ubpart 105-60.6 of this chapter.



                 Subpart 105-64.2--Disclosure of Records



Sec. 105-64.201  Conditions of disclosure.

    GSA employees may not disclose any record to a person or another 
agency without the express written consent of the subject individual 
unless the disclosure is:
    (a) To GSA officials or employees who need the information to 
perform their official duties;
    (b) Required by the Freedom of Information Act;
    (c) For a routine use identified in the Federal Register;
    (d) For Bureau of the Census use under Title 13 of the United States 
Code;
    (e) To someone who has assured GSA in writing that the record is to 
be used solely for statistical research or reporting, and if it does not 
identify an individual;
    (f) To the National Archives of the United States as a record that 
has historical or other value warranting permanent retention;
    (g) To another agency or instrumentality under the jurisdiction or 
control of the United States for a civil or criminal law enforcement 
activity, if the head of the agency or instrumentality or the designated 
representative has made a written request to GSA specifying the part 
needed and the law enforcement agency seeking it;
    (h) To a person showing compelling circumstances affecting someone's 
health and safety not necessarily the subject individual (Upon 
disclosure, a notification must be sent to the subject individual's last 
known address);
    (i) To either House of Congress or to a committee or subcommittee 
(joint or of either House), to the extent that the matter falls within 
its jurisdiction;
    (j) To the Comptroller General or an authorized representative while 
performing the duties of the General Accounting Office;
    (k) Under an order of a court of competent jurisdiction; or
    (l) To a consumer reporting agency under section 3(d) of the Federal 
Claims Collection Act of 1966 (31 U.S.C. 3711(f)(1)).



Sec. 105-64.202  Procedures for disclosure.

    (a) On receiving a request to disclose a record, the manager should 
verify the requester's right to obtain the information under Sec. 105-
64.201. Upon verification, the manager may make the records available.
    (b) If the manager decides the record can't be disclosed, he or she 
must inform the requester in writing and state that the denial can be 
appealed to the GSA Privacy Act Officer, General Services Administration 
(ATRAI), for a final decision.



Sec. 105-64.203  Accounting of disclosure.

    (a) Except for disclosures made under Sec. 105-64.201 (a) and (b), 
an accurate account of each disclosure is kept and retained for 5 years 
or for the life of the

[[Page 74]]

record, whichever is longer. The date, reason, and type of information 
disclosed, as well as the name and address of the person or agency to 
whom you disclosed it are noted.
    (b) The manager also keeps with the account of information 
disclosed:
    (1) A statement justifying the disclosure;
    (2) Any documentation related to disclosing a record for statistical 
or law enforcement use; and
    (3) The written consent of the person concerned.
    (c) Except when records are disclosed to agencies or 
instrumentalities for law enforcement under Sec. 105-64.201(g) or from 
exempt systems (see subpart 105-64.6), accounts of information disclosed 
must be opened to the person concerned, upon request. Procedures to 
request such access are given in the following subpart.



             Subpart 105-64.3--Individual Access to Records

Sec. 105-64.301  Access procedures.



Sec. 105-64.301-1  Form of requests.

    (a) A person who wants to see a record or any information concerning 
him or her that is contained in a system or records maintained in the 
GSA Central Office should send a written request to the GSA Privacy Act 
Officer, General Services Administration (ATRAI), Washington, DC 20405. 
For records maintained in GSA regional offices, send the request to the 
Director, Administrative Services Division at the address shown in 
Sec. 105-64.301-6.
    (b) Requests must be made in writing and must be labeled Privacy Act 
Request both on the letter and on the envelope. The letter should 
contain the full name and identifying number of the system as published 
in the Federal Register; the full name and address of the subject 
individual; a brief description of the nature, time, place, and 
circumstances of the person's association with GSA; and any other 
information that would indicate whether the information is in the system 
of records. The 10-workday time limit for the agency to reply under 
Sec. 105-64.301-3, begins when a request is received in the office of 
the official identified in this section.
    (c) Managers may accept oral requests for access, if the requester 
is properly identified.



Sec. 105-64.301-2  Special requirements for medical records.

    (a) A manager who receives a request for access to official medical 
records belonging to the Office of Personnel Management and described in 
Chapter 339, Federal Personnel Manual (records about entrance 
qualification, fitness for duty, or records filed in the official 
personnel folder), should refer the matter to a Federal medical officer 
for a decision under this section. If no medical officer is available, 
the manager should send the request and the medical reports to the 
Office of Personnel Management for a decision.
    (b) If the Federal medical officer believes the medical records 
requested by the subject individual discuss a condition that a physician 
would hesitate to reveal to the person, the manager may release the 
information only to a physician designated in writing by the subject 
individual, his or her guardian, or conservator. If the records contain 
information the physician would likely disclose to the person, the 
information may be released to anyone the person authorizes in writing 
to receive it.



Sec. 105-64.301-3  Granting access.

    (a) Upon receiving a request for access to nonexempt records, the 
manager must make them available to the subject individual or 
acknowledge the request within 10 workdays after it is received, stating 
when the records will be available.
    (b) If the manager expects a delay of more than the 10 days allowed, 
he or she should state the reason why in the acknowledgement.
    (c) If a request for access does not contain enough information to 
find the records, the manager should request additional information from 
the individual and is allowed 10 more workdays after receiving it to 
make the records available or acknowledge receiving the request.
    (d) Records are available during normal business hours at the 
offices where the records are maintained. Requesters

[[Page 75]]

should be prepared to identify themselves by signature and to show other 
identification verifying their signature.
    (e) Managers may permit an individual to examine the original of a 
nonexempt record and, if asked, provide the person with a copy of the 
record. Fees are charged only for copies given to the person, not for 
copies made for the agency's convenience.
    (f) A requester may pick up a record in person or receive it by 
mail, directed to an address provided in the request. The manager should 
not give a record to a third party to deliver to the subject individual, 
except medical records as outlined in Sec. 105-64.301-2 or as described 
in paragraph (g) of this section.
    (g) If a person wants to have someone else accompany him or her 
while reviewing a record or when obtaining a copy of it, he or she must 
first sign a statement authorizing the disclosure of the record. The 
system manager shall maintain this statement with the record.
    (h) The procedure to review the account of disclosures is the same 
as the procedures for reviewing a record.



Sec. 105-64.301-4  Denials of access.

    (a) A manager may deny access to a record only if the information is 
being compiled in reasonable acticipation of a civil action or 
proceeding as provided under 5 U.S.C. 552(d)(5) or if rules published in 
the Federal Register state that it is in a system of records that may 
not be disclosed. These systems are described in Subpart 105-64.6.
    (b) If a manager receives a request for access to a record in an 
exempt system of record, he or she should forward it to the Head of the 
Service or Staff Office or Regional Administrator, attaching an 
explanation and recommending the request be denied or granted.
    (c) If the manager is the Head of a Service or Staff Office or a 
Regional Administrator, he or she retains the responsibility for 
granting or denying the request.
    (d) The head of the Service or Staff Office or Regional 
Administrator, in consultation with legal counsel and other officials 
concerned, should decide whether the requested record is exempt from 
disclosure and,
    (1) If the record is not exempt, notify the system manager to grant 
the request under Sec. 105-64.301-3; or
    (2) If the record is part of an exempt system he or she should:
    (i) Notify the requester that the request is denied, explain why it 
is denied, and inform the requester of his or her right to have GSA 
review the decision; or
    (ii) Notify the manager to make the record available under Sec. 105-
64.301-3, even though it is in an exempted system.
    (e) A copy of any denial of a request should be sent to the GSA 
Privacy Act Officer (ATRAI).



Sec. 105-64.301-5  Appeal of denial of access within GSA.

    (a) A requester who is denied access, in whole or in part, to 
records pertaining to him or her may file an administrative appeal. 
Appeals should be addressed to the GSA Privacy Act Officer, General 
Services Administration (ATRAI), Washington, DC 20405, regardless 
whether the denial was made by a Central Office or a regional official.
    (b) Each appeal to the Privacy Act Officer must be in writing. The 
appeal should be marked Privacy Act-Access Appeal, on the face of the 
letter and on the envelope.
    (c) On receiving an appeal, the Privacy Act Officer consults with 
the manager, the official who made the denial, legal counsel, and other 
officials concerned. If the Privacy Act Officer, after consultation, 
decides to grant the request, he or she notifies the manager in writing 
to grant access to the record under Sec. 105-64.301-3, or grants access 
himself or herself and notifies the requester of that action.
    (d) If the Privacy Act Officer decides the appeal should be 
rejected, he or she sends the request file and any appeal, with a 
recommendation, to the Deputy Administrator for a final administrative 
decision.
    (e) If the Deputy Administrator decides to grant a request, he or 
she promptly instructs the system manager in writing to grant access to 
the record under Sec. 105-64.301-3. The Deputy

[[Page 76]]

Administrator sends a copy of the instructions to the Privacy Act 
Officer, who notifies the requester.
    (f) If the Deputy Administrator rejects an appeal, he or she should 
promptly notify the requester in writing. This action constitutes the 
final administrative decision on the request and should state:
    (1) The reason for rejecting the appeal; and
    (2) That the requester has the right to have a court review the 
final decision under Sec. 105-64.408.
    (g) The final decision must be made within 30 workdays from the date 
the appeal is received by the Privacy Act Officer. The Deputy 
Administrator may extend the time limit by notifying the requester in 
writing before the 30 days are up. The Deputy Administrator's letter 
should explain why the time was extended.



Sec. 105-64.301-6  Geographic composition, addresses and telephone numbers of regional Administrative Services Division directors.

                                Region 1

Boston (includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode 
Island, and Vermont) Telephone: 617-223-5212
Director, Administrative Services Division, General Services 
Administration (1BR), John W. McCormack Post Office and Courthouse, 
Boston, MA 02109

                                Region 2

New York (includes New Jersey, New York, the Commonwealth of Puerto 
Rico, and the Virgin Islands) Telephone: 212-264-8262
Director, Administrative Services Division, General Services 
Administration (2BR), 26 Federal Plaza, New York, NY 10278

                                Region 3

Philadelphia (includes Delaware, Maryland, Pennsylvania, Virginia, and 
West Virginia with the exception of the National Capital Region) 
Telephone: 215-597-7926
Director, Administrative Services Division, General Services 
Administration (3BR), Ninth and Market Streets, Philadelphia, PA 19107

                                Region 4

Atlanta (includes Alabama, Florida, Georgia, Kentucky, Mississippi, 
North Carolina, South Carolina, and Tennessee) Telephone: 404-221-3240
Director, Administrative Services Division, General Services 
Administration (4BR), 75 Spring Street, SW, Atlanta, GA 30303

                                Region 5

Chicago (includes Illinois, Indiana, Michigan, Ohio, Minnesota, and 
Wisconsin) Telephone: 312-353-8421
Director, Administrative Services Division, General Services 
Administration (5BR), 230 South Dearborn Street, Chicago, IL 60604

                                Region 6

Kansas City (includes Iowa, Kansas, Missouri, and Nebraska) Telephone: 
816-374-7581
Director, Administrative Services Division, General Services 
Administration (6BR), 1500 East Bannister Road, Kansas City, MO 64131

                                Region 7

Fort Worth (includes Arkansas, Louisiana, New Mexico, Texas, and 
Oklahoma) Telephone: 817-334-2350
Director, Administrative Services Division, General Services 
Administration (7BR), 819 Taylor Street, Fort Worth, TX 76102

                                Region 8

Denver (includes Colorado, North Dakota, South Dakota, Montana, Utah, 
and Wyoming) Telephone: 303-776-2231
Director, Administrative Services Division, General Services 
Administration (8BR), Building 41, Denver Federal Center, Denver, CO 
80225

                                Region 9

San Francisco (includes Hawaii, California, Nevada, and Arizona) 
Telephone: 415-556-9130
Director, Administrative Services Division, General Services 
Administration (9BR), 525 Market Street, San Francisco, CA 95105

                                Region 10

Auburn (includes Alaska, Idaho, Oregon, and Washington) Telephone: 206-
931-7128
Director, Administrative Services Division, General Services 
Administration (10BR), GSA Center, Auburn, WA 98002

                         National Capital Region

Washington, DC (includes the District of Columbia, the counties of 
Montgomery and Prince Georges in Maryland; the city of Alexandria and 
the counties of Arlington, Fairfax, Loudoun, and Prince William in 
Virginia) Telephone: 202-472-1650
Director, Adminstrative Services Division, General Services 
Administration (WBR), Seventh and D Streets, SW, Washington, DC 20407

[[Page 77]]

Sec. 105-64.302  Fees.



Sec. 105-64.302-1  Records available at a fee.

    The manager shall provide one copy of a record to a requester for 
the fee stated in Sec. 105-64.302-6.



Sec. 105-64.302-2  Additional copies.

    A reasonable number of additional copies shall be provided for a fee 
if a requester cannot get copies made commercially.



Sec. 105-64.302-3  Waiver of fee.

    The manager should make a copy of a record of up to 50 pages at no 
charge to a requester who is a GSA employee. The manager may waive the 
fee if the cost of collecting it is nearly as large as or greater than 
the fee, or if furnishing the record without charge is customary or in 
the public interest.



Sec. 105-64.302-4  Prepayment of fees over $25.

    If a fee is likely to exceed $25, the manager notifies the person to 
pay the fee before GSA can make the records available. GSA will remit 
any overpayment or will send the requester a bill for any change over 
the amount paid.



Sec. 105-64.302-5  Form of payment.

    Copies must be paid for by check or money order made out to the 
General Services Administration and addressed to the system manager.



Sec. 105-64.302-6  Reproduction fee schedule.

    (a) The fee for copying a GSA record (by electrostatic copier) of 8 
by 14 inches or less is 10 cents a page.
    (b) The fee for copying a GSA record more than 8 by 14 inches or one 
that does not permit copying by routine procedures is the same as that 
charged commercially.



               Subpart 105-64.4--Requests To Amend Records



Sec. 105-64.401  Submission of requests to amend records.

    A person who wants to amend a record containing personal information 
should send a written request to the GSA Privacy Act Officer. A GSA 
employee who want to amend personnel records should send a written 
request to the General Services Administration, Director of Personnel 
(EP), Washington, DC 20405. It should show evidence of and justify the 
need to amend the record. Both the letter and the envelope should be 
marked ``Privacy Act-Request to Amend Record''.



Sec. 105-64.402  Review of requests to amend records.

    (a) Managers must acknowledge a request to amend a record within 10 
workdays after receiving it. If possible, the acknowledgment should 
state whether the request will be granted or denied, under Sec. 105-
64.404.
    (b) In reviewing a record in response to a request to amend, the 
manager should weigh the accuracy, relevance, timeliness, and 
completeness of the existing record compared to the proposed amendment 
to decide whether the amendment is justified. On a request to delete 
information, the manager should also review the request and the existing 
record to decide whether the information is needed by the agency under a 
statute or an Executive order.



Sec. 105-64.403  Approval of requests to amend.

    If a manager decides that a record should be amended, he or she must 
promptly correct it and send the person a corrected copy. If an 
accounting of disclosure was created to document disclosure of a record, 
anyone who previously received the record must be informed of the 
substance of the correction and sent a copy of the corrected record. The 
manager should advise the Privacy Act Officer that the request to amend 
was approved.



Sec. 105-64.404  Denial of requests to amend.

    (a) If a manager decides that amending a record is improper or that 
it should be amended in a different way, he or she refers the request 
and recommendation to the Head of the Service or Staff Office or 
Regional Administrator through channels.
    (b) If the Head of the Service or Staff Office or Regional 
Administrator decides to amend the record as requested, he or she should 
promptly return the

[[Page 78]]

request to the manager with instructions to make the amendment under 
Sec. 105-64.403.
    (c) If the Head of the Service or Staff Officer or Regional 
Administrator decides not to amend the record as requested, he or she 
should promptly advise the requester in writing of the decision. The 
letter shall (1) state the reason for denying the request; (2) include 
proposed alternate amendments, if appropriate; (3) state the requester's 
right to appeal the denial; and (4) tell how to proceed with an appeal.
    (d) The Privacy Act Officer must be sent a copy of the original 
denial of a request to amend a record.



Sec. 105-64.405  Agreement to alternative amendments.

    If the letter denying a request to amend a record proposes alternate 
amendments and the requester agrees to them, he or she must notify the 
official who signed the letter. The official should promptly instruct 
the manager to amend the record under Sec. 105-64.403.



Sec. 105-64.406  Appeal of denial of request to amend a record.

    (a) A requester who is denied a request to amend a record may appeal 
the denial. The appeal should be sent to the General Services 
Administration, Privacy Act Officer (ATRAI), Washington, DC 20405. If 
the request involves a record in a GSA employee's official personnel 
folder, as described in Chapter 293 of the Federal Personnel Manual, the 
appeal should be addressed to the Director, Bureau of Manpower 
Information Systems, Office of Personnel Management, Washington, DC 
20415.
    (b) The appeal to the Privacy Act Officer must be in writing and be 
received within 30 calendar days after the requester receives the letter 
stating the request was denied. It should be marked ``Privacy Act--
Appeal,'' both on the front of the letter and the envelope.
    (c) On receiving an appeal, the Privacy Act Officer should consult 
with the manager, the official who made the denial, legal counsel, and 
other officials involved. If the Privacy Act Officer, after consulting 
with these officials, decides that the record should be amended as 
requested, he or she must promptly inform the manager to amend it under 
Sec. 105-64.403 and shall notify the requester.
    (d) If the Privacy Act Officer, after consulting with the officials 
listed in the above paragraph, decides to reject an appeal, he or she 
should send the file, with a recommendation, to the Deputy Administrator 
for a final administrative decision.
    (e) If the Deputy Administrator decides to change the record, he or 
she should promptly instruct the manager in writing to amend it under 
Sec. 105-64.403 and send a copy of the instruction to the Privacy Act 
Officer, who shall notify the requester.
    (f) If the Deputy Administrator rejects an appeal, he or she should 
promptly notify the requester in writing. This is the final 
administrative decision on the request and should include:
    (1) Why the appeal is rejected;
    (2) Alternate amendments that the requester may accept under 
Sec. 105-64.405;
    (3) Notice of the requester's right to file a Statement of 
Disagreement that must be distributed under Sec. 105-64.407; and
    (4) Notice of requester's right to seek court review of the final 
administrative decision under Sec. 105-64.408.
    (g) The final agency decision must be made within 30 workdays from 
the date the Privacy Act Officer receives the appeal. In unusual 
circumstances, the Deputy Administrator may extend this time limit by 
notifying the requester in writing before the 30 days are up. The notice 
should explain why the limit was extended.



Sec. 105-64.407  Statements of disagreement.

    On receiving a final decision not to amend a record, the requester 
may file a Statement of Disagreement with the manager. The statement 
should explain why the requester believes the record to be inaccurate, 
irrelevant, untimely, or incomplete. The manager must file the statement 
with the records and include a copy of it in any disclosure of the 
record. The manager must also provide a copy of the Statement of 
Disagreement to any person or agency to whom the record has been 
disclosed if

[[Page 79]]

the disclosure was made under the accounting requirement of Sec. 105-
64.202.



Sec. 105-64.408  Judicial review.

    For up to 2 years after the final administrative decision under 
Sec. 105-64.301-4 or Sec. 105-64.406, a requester may seek to have the 
court overturn the decision. A civil action must be filed in the Federal 
District Court where the requester lives or has his or her principal 
place of business, where the agency records are maintained, or in the 
District of Columbia.



  Subpart 105-64.5--Reporting New Systems and Altering Existing Systems



Sec. 105-64.501  Reporting requirement.

    (a) At least 90 calendar days before establishing a new system of 
records, the manager must notify the Associate Administrator for Policy 
and Management Systems. The notification must describe and justify each 
system of records. If the Associate Administrator decides to establish 
the system, he or she should submit a proposal, at least 60 days before 
establishing the system, to the President of the Senate, the Speaker of 
the House of Representatives and the Director of the Office of 
Management and Budget for evaluating the effect on the privacy and other 
rights of individuals.
    (b) At least 90 calendar days before altering a system of records, 
the responsible manager must notify the Associate Administrator for 
Policy and Management Systems. The notification must describe and 
justify altering the system of records. If the Associate Administrator 
decides to alter the system, he or she should submit a proposal, at 
least 60 calendar days before altering the system, to the President of 
the Senate, the Speaker of the House of Representatives, and the 
Director of the Office of Management and Budget for evaluating the 
effect on the privacy and other rights of individuals.
    (c) Reports required by this regulation are exempt from reports 
control.



Sec. 105-64.502  Federal Register notice of establishment of new system or alteration of existing system.

    The Associate Administrator for Policy and Management Systems must 
publish in the Federal Register a notice of intent to establish or alter 
a system of records:
    (a) If he or she receives notice that the Senate, the House of 
Representatives, and the Office of Management and Budget (OMB) do not 
object to establishing or altering a system of records, or
    (b) If 30 calendar days after submitting the proposal neither OMB 
nor the Congress objects.



Sec. 105-64.503  Effective date of new systems of records or alteration of an existing system of records.

    When there is no objection to establishing or changing a system of 
records, it becomes effective 30 calendar days after the notice is 
published in the Federal Register.



                      Subpart 105-64.6--Exemptions



Sec. 105-64.601  General exemptions.

    The following systems of records are exempt from the Privacy Act of 
1974, except subsections (b); (c) (1) and (2); (e)(4) (A) through (F); 
(e) (6), (7), (9), (10), and (11); and (i) of the Act:
    (a) Incident Reporting System, GSA/PBS-3.
    (b) Investigation Case Files, ADM-24.

The systems of records GSA/PBS-3 and GSA/ADM-24 are exempt to the extent 
that information in them relates to enforcing the law, including police 
efforts to prevent, control, or reduce crime or to apprehend criminals; 
to the activities of prosecutors, courts, and correctional, probation, 
pardon, or parole authorities; and to (1) information compiled to 
identify criminal offenders and alleged offenders, consisting of records 
of arrests, disposition of criminal charges, sentencing, confinement, 
release, parole, and probation; (2) information compiled for a criminal 
investigation, including reports of informants and investigators that 
identify a person; or (3) reports that identify a

[[Page 80]]

person and were prepared while enforcing criminal laws, from arrest or 
indictment through release from parole. The law exempts these systems to 
maintain the effectiveness and integrity of the Federal Protective 
Service and the Office of Inspector General.



Sec. 105-64.602  Specific exemptions.

    The following systems of records are exempt from subsections (c)(3); 
(d); (e)(1); (e)(4) (G), (H), and (I); and (f) of the Privacy Act of 
1974;
    (a) Incident Reporting System, GSA/PBS-3.
    (b) Investigation Case Files, GSA/ADM-24.
    (c) Security Files, HSA/HRO-37.

The systems are exempt (1) if they contain investigatory material 
compiled for law enforcement. However, if anyone is denied a right, 
privilege, or benefit for which they would otherwise be eligible because 
of the material, it should be provided to the person, except if it 
discloses the identify of a Government source of information which there 
is an express promise of confidentiality or before the effective date of 
this section, under an implied promise of confidentiality and (2) 
investigatory material compiled solely to decide suitability, 
eligibility, or qualification for Federal employment, military service, 
Federal contracts, or access to classified information, when disclosing 
the material would reveal the identity of a confidential Government 
informant, or prior to the effective date of this section, under an 
implied promise that their identity is to be held in confidence. The 
systems are exempted to maintain the effectiveness and integrity of 
investigations conducted as part of the Federal Protective Service, 
Office of Inspector General, and Office of Internal Security law 
enforcement duties or their responsibilities in the areas of Federal 
employment, Government contracts, and access to security classified 
information.



               Subpart 105-64.7--Assistance and Referrals



Sec. 105-64.701  Requests for assistance and referral.

    Requests for assistance and referral to a system manager or other 
GSA employee charged with implementing these regulations are made to the 
GSA Privacy Officer (ATRAI), General Services Administration, 
Washington, DC 20405.



PART 105-67--SALE OF PERSONAL PROPERTY--Table of Contents




Sec.
105-67.100  Scope of subpart.
105-67.101  Debarred, suspended and ineligible contractors.

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



Sec. 105-67.100  Scope of subpart.

    This subpart prescribes policies and procedures governing the 
debarment or suspension of contractors from purchases of Federal 
personal property (see FPMR part 101-45).

[51 FR 13500, Apr. 21, 1986]



Sec. 105-67.101  Debarred, suspended and ineligible contractors.

    The policies, procedures and requirements of subpart 509.4 of the 
General Services Administration Acquisition Regulation (GSAR) are 
incorporated by reference and made applicable to contracts for, and to 
contractors who engage in, the purchase of Federal personal property.

[51 FR 13500, Apr. 21, 1986]



PART 105-68--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                        Subpart 105-68.1--General

Sec.
105-68.100  Purpose.

[[Page 81]]

105-68.105  Definitions.
105-68.110  Coverage.
105-68.115  Policy.

                   Subpart 105-68.2--Effect of Action

105-68.200  Debarment or suspension.
105-68.205  Ineligible persons.
105-68.210  Voluntary exclusion.
105-68.215  Exception provision.
105-68.220  Continuation of covered transactions.
105-68.225  Failure to adhere to restrictions.

                       Subpart 105-68.3--Debarment

105-68.300  General.
105-68.305  Causes for debarment.
105-68.310  Procedures.
105-68.311  Investigation and referral.
105-68.312  Notice of proposed debarment.
105-68.313  Opportunity to contest proposed debarment.
105-68.314  Debarring official's decision.
105-68.315  Settlement and voluntary exclusion.
105-68.320  Period of debarment.
105-68.325  Scope of debarment.

                      Subpart 105-68.4--Suspension

105-68.400  General.
105-68.405  Causes for suspension.
105-68.410  Procedures.
105-68.411  Notice of suspension.
105-68.412  Opportunity to contest suspension.
105-68.413  Suspending official's decision.
105-68.415  Period of suspension.
105-68.420  Scope of suspension.

   Subpart 105-68.5--Responsibilities of GSA, Agency and Participants

105-68.500  GSA responsibilities (information dissemination).
105-68.505  GSA responsibilities.
105-68.510  Participants' responsibilities.

       Subpart 105-68.6--Drug-Free Workplace Requirements (Grants)

105-68.600  Purpose.
105-68.605  Definitions.
105-68.610  Coverage.
105-68.615  Grounds for suspension of payments, suspension or 
          termination of grants, or suspension or debarment.
105-68.620  Effect of violation.
105-68.625  Exception provision.
105-68.630  Certification requirements and procedures.
105-68.635  Reporting of and employee sanctions for convictions of 
          criminal drug offenses.

Appendix A to Part 105-68--Certification Regarding Debarment, 
          Suspension, and Other Responsibility Matters--Primary Covered 
          Transactions
Appendix B to Part 105-68--Certification Regarding Debarment, 
          Suspension, Ineligibility and Voluntary Exclusion--Lower Tier 
          Covered Transactions
Appendix C to Part 105-68--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: E.O. 12549; sec. 5151-5160 of the Drug-Free Workplace Act 
of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 701 et seq); 40 
U.S.C. 486(c).

    Source: 53 FR 19198, 19204, May 26, 1988, unless otherwise noted. 
Redesignated at 54 FR 4962, Jan. 31, 1989.

    Cross Reference: See also Office of Management and Budget notices 
published at 55 FR 21679, May 25, 1990, and 60 FR 33036, June 26, 1995.

    Editorial Notes (1): For additional information, see related 
documents published at 53 FR 19160, May 26, 1988, and 53 FR 34474, Sept. 
6, 1988.

    (2): For nomenclature changes affecting this part, see 53 FR 19198 
and 19204, May 26, 1988.



                        Subpart 105-68.1--General



Sec. 105-68.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants,

[[Page 82]]

participants declared ineligible (see definition of ``ineligible'' in 
Sec. 105-68.105), and participants who have voluntarily excluded 
themselves from participation in covered transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.

[60 FR 33040 and 33059, June 26, 1995]



Sec. 105-68.105  Definitions.

    The following definitions apply to this part:
    Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
    Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
    Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
    Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
    Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    GSA. General Services Administration.
    Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
    Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of ineligibility under statutory, 
executive order, or regulatory authority, other than Executive Order 
12549 and its agency implementing regulations; for exemple, excluded 
pursuant to the Davis-Bacon Act and its implementing regulations, the 
equal employment opportunity acts and executive orders, or the 
environmental protection acts and executive orders. A person is 
ineligible where the determination of ineligibility affects such 
person's eligibility to participate in more than one covered 
transaction.

[[Page 83]]

    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
    Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
    Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
    Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
    Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
    Principal. Officer, director, owner, partner, key employee, or other 
person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (1) Principal investigators.
    Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
    Respondent. A person against whom a debarment or suspension action 
has been initiated.
    State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
    Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (1) The agency head, or
    (2) An official designated by the agency head.
    Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
    Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or

[[Page 84]]

limited participation in covered transactions assumed by a person 
pursuant to the terms of a settlement.

[53 FR 19198 and 19204, May 26, 1988, as amended at 53 FR 19198, May 26, 
1988; 60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will apply. Subpart 105-68.2, ``Effect of Action,'' Sec. 105-68.200, 
``Debarment or suspension,'' sets forth the consequences of a debarment 
or suspension. Those consequences would obtain only with respect to 
participants and principals in the covered transactions and activities 
described in Sec. 105-68.110(a). Sections 105-68.325, ``Scope of 
debarment,'' and 105-68.420, ``Scope of suspension,'' govern the extent 
to which a specific participant or organizational elements of a 
participant would be automatically included within a debarment or 
suspension action, and the conditions under

[[Page 85]]

which affiliates or persons associated with a participant may also be 
brought within the scope of the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995, shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995, shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4962, Jan. 31, 
1989; 60 FR 33041, 33059, June 26, 1995]



Sec. 105-68.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                   Subpart 105-68.2--Effect of Action



Sec. 105-68.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 105-68.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 105-68.110(a)(1)(ii)) for the period of 
their exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.

[60 FR 33041 and 33059, June 26, 1995]

[[Page 86]]



Sec. 105-68.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 105-68.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.



Sec. 105-68.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 105-68.315 are 
excluded in accordance with the terms of their settlements. GSA shall, 
and participants may, contact the original action agency to ascertain 
the extent of the exclusion.



Sec. 105-68.215  Exception provision.

    GSA may grant an exception permitting a debarred, suspended, or 
voluntarily excluded person, or a person proposed for debarment under 48 
CFR part 9, subpart 9.4, to participate in a particular covered 
transaction upon a written determination by the agency head or an 
authorized designee stating the reason(s) for deviating from the 
Presidential policy established by Executive Order 12549 and Sec. 105-
68.200. However, in accordance with the President's stated intention in 
the Executive Order, exceptions shall be granted only infrequently. 
Exceptions shall be reported in accordance with Sec. 105-68.505(a).

[60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in Sec. 105-
68.215.

[60 FR 33041 and 33059, June 26, 1995]



Sec. 105-68.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 105-68.215 or Sec. 105-68.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly do business with a person that 
filed an erroneous certification.

[60 FR 33041 and 33059, June 26, 1995]



                       Subpart 105-68.3--Debarment



Sec. 105-68.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 105-68.305, using procedures established in Secs. 105-68.310 
through 105-68.314. The existence of a cause for debarment, however, 
does not necessarily require that the person be debarred; the 
seriousness of the person's acts or omissions and any mitigating factors 
shall be considered in making any debarment decision.



Sec. 105-68.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 105-68.300 through 105-68.314 for:

[[Page 87]]

    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 105-68.215 or Sec. 105-68.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 105-68.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart 105-68.6 of this part, 
relating to providing a drug-free workplace, as set forth in Sec. 105-
68.615 of this part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4950 and 4962, 
Jan. 31, 1989; 56 FR 29438, June 27, 1991]



Sec. 105-68.310  Procedures.

    GSA shall process debarment actions as informally as practicable, 
consistent with the principles of fundamental fairness, using the 
procedures in Secs. 105-68.311 through 105-68.314 and 48 CFR subpart 
509.4.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



Sec. 105-68.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 105-68.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 105-68.305 for proposing 
debarment;
    (d) Of the provisions of Sec. 105-68.311 through Sec. 105-68.314, 
and any other GSA procedures, if applicable, governing debarment 
decisionmaking; and
    (e) Of the potential effect of a debarment.

[[Page 88]]



Sec. 105-68.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 105-68.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c)(1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;
    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 105-68.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.



Sec. 105-68.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, GSA may, at any 
time, settle a debarment or suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart 105-68.5).

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4962, Jan. 31, 
1989]



Sec. 105-68.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a

[[Page 89]]

debarment, the suspension period shall be considered in determining the 
debarment period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart 105-68.6 of this part generally should not 
exceed three years. Where circumstances warrant, a longer period of 
debarment may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart 105-68.6 of this part (see 105-68.305(c)(5)), the period of 
debarment shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 105-68.311 through 105-68.314 shall be followed to extend the 
debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.

[53 FR 19198, 19204, May 26, 1988, as amended at 54 FR 4950 and 4962, 
Jan. 31, 1989; 56 FR 29438, June 27, 1991]



Sec. 105-68.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 105-68.311 through 
105-68.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the 
participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement or with the 
knowledge, approval, or acquiescence of these participants. Acceptance 
of the benefits derived from the conduct shall be evidence of such 
knowledge, approval, or acquiescence.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]

[[Page 90]]



                      Subpart 105-68.4--Suspension



Sec. 105-68.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 105-68.405 using procedures established in Secs. 105-
68.410 through 105-68.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 105-68.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.



Sec. 105-68.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 105-68.400 through 105-68.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in Sec. 105-
68.305(a); or
    (2) That a cause for debarment under Sec. 105-68.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.



Sec. 105-68.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. GSA shall process suspension actions as 
informally as practicable, consistent with principles of fundamental 
fairness, using the procedures in Sec. 105-68.411 through Sec. 105-
68.413 and 48 CFR subpart 509.4.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



Sec. 105-68.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further Federal Government 
dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 105-68.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Sec. 105-68.411 through Sec. 105-68.413 and 
any other GSA procedures, if applicable, governing suspension 
decisionmaking; and
    (g) Of the effect of the suspension.



Sec. 105-68.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the

[[Page 91]]

Federal Government in pending or contemplated legal proceedings based on 
the same facts as the suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 105-68.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 105-68.320(c) for reasons for reducing the period or 
scope of debarment) or may leave it in force. However, a decision to 
modify or terminate the suspension shall be without prejudice to the 
subsequent imposition of suspension by any other agency or debarment by 
any agency. The decision shall be rendered in accordance with the 
following provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.



Sec. 105-68.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 105-68.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 105-68.325), except that the procedures of Secs. 105-68.410 
through 105-68.413 shall be used in imposing a suspension.



   Subpart 105-68.5--Responsibilities of GSA, Agency and Participants



Sec. 105-68.500  GSA responsibilities (information dissemination).

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:

[[Page 92]]

    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.

[53 FR 19198 and 19204, May 26, 1988, as amended at 53 FR 19198, May 26, 
1988]



Sec. 105-68.505  GSA responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which GSA has granted exceptions under Sec. 105-68.215 permitting 
participation by debarred, suspended, or voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 105-68.500(b) and 
of the exceptions granted under Sec. 105-68.215 within five working days 
after taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Agency officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (202) 501-0688.
    (e) Agency officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29439, June 27, 
1991]



Sec. 105-68.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in appendix A to this 
part for it and its principals at the time the participant submits its 
proposal in connection with a primary covered transaction, except that 
States need only complete such certification as to their principals. 
Participants may decide the method and frequency by which they determine 
the eligibility of their principals. In addition, each participant may, 
but is not required to, check the Nonprocurement List for its principals 
(202) 501-0688. Adverse information on the certification will not 
necessarily result in denial of participation. However, the 
certification, and any additional information pertaining to the 
certification submitted by the participant, shall be considered in the 
administration of covered transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(202) 501-0688.
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to GSA if at any time the 
participant learns that its certification was erroneous when submitted 
or has become erroneous by reason of changed circumstances. Participants 
in lower tier covered transactions shall provide the same updated

[[Page 93]]

notice to the participant to which it submitted its proposals.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29439, June 27, 
1991]



       Subpart 105-68.6--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21701, May 25, 1990; 55 FR 26442, June 28, 
1990, unless otherwise noted.



Sec. 105-68.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 105-68.605  Definitions.

    (a) Except as amended in this section, the definitions of Sec. 105-
68.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;
    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly

[[Page 94]]

from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers the instrumentality to be an agency of the 
State government.



Sec. 105-68.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (c) The provisions of subparts 105-68.1, 105-68.2, 105-68.3, 105-
68.4 and 105-68.5 of this part apply to matters covered by this subpart, 
except where specifically modified by this subpart. In the event of any 
conflict between provisions of this subpart and other provisions of this 
part, the provisions of this subpart are deemed to control with respect 
to the implementation of drug-free workplace requirements concerning 
grants.

[53 FR 19198, 19204, May 26, 1988, as amended at 56 FR 29438, June 27, 
1991]



Sec. 105-68.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 105-
68.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a) through (g) and/or (B) of the 
certification (Alternate I to Appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to Appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.



Sec. 105-68.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 105-68.615, and in accordance with applicable law, the grantee 
shall be subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 105-68.320(a)(2) of this 
part).



Sec. 105-68.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.

[[Page 95]]



Sec. 105-68.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. Except as provided in paragraph (d) of this 
section, this certification shall cover all grants to all State agencies 
from any Federal agency. The State shall retain the original of this 
statewide certification in its Governor's office and, prior to grant 
award, shall ensure that a copy is submitted individually with respect 
to each grant, unless the Federal agency has designated a central 
location for submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 105-68.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.

[[Page 96]]

    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall report the conviction, in writing, within 10 calendar 
days, to his or her Federal agency grant officer, or other designee, 
unless the Federal agency has designated a central point for the receipt 
of such notices. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)

     Appendix A to Part 105-68--Certification Regarding Debarment, 
     Suspension, and Other Responsibility Matters--Primary Covered 
                              Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.

[[Page 97]]

    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of embezzlement, theft, 
forgery, bribery, falsification or destruction of records, making false 
statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042 and 33059, June 26, 1995]

     Appendix B to Part 105-68--Certification Regarding Debarment, 
 Suspension, Ineligibility and Voluntary Exclusion--Lower Tier Covered 
                              Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a

[[Page 98]]

participant is not required to exceed that which is normally possessed 
by a prudent person in the ordinary course of business dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.

[60 FR 33042 and 33059, June 26, 1995]

 Appendix C to Part 105-68--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:

[[Page 99]]

    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, state, zip code)
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.

[55 FR 21690, 21701, May 25, 1990]



PART 105-69--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
105-69.100  Conditions on use of funds.
105-69.105  Definitions.
105-69.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

105-69.200  Agency and legislative liaison.
105-69.205  Professional and technical services.
105-69.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

105-69.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

105-69.400  Penalties.
105-69.405  Penalty procedures.
105-69.410  Enforcement.

                          Subpart E--Exemptions

105-69.500  Secretary of Defense.

[[Page 100]]

                        Subpart F--Agency Reports

105-69.600  Semi-annual compilation.
105-69.605  Inspector General report.

Appendix A to Part 105-69--Certification Regarding Lobbying
Appendix B to Part 105-69--Disclosure Form to Report Lobbying

    Authority: Sec. 319, Pub. L. 101-121 (31 U.S.C. 1352); 40 U.S.C. 
486(c).

    Source: 55 FR 6737 and 6753, Feb. 26, 1990, unless otherwise noted.
    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 105-69.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with any of the following 
covered Federal actions: the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 105-69.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any

[[Page 101]]

other acquisition contract for real or personal property or services not 
subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan,

[[Page 102]]

cooperative agreement, loan insurance commitment, or loan guarantee 
commitment. An officer or employee who is employed by such person for 
less than 130 working days within one year immediately preceding the 
date of the submission that initiates agency consideration of such 
person shall be considered to be regularly employed as soon as he or she 
is employed by such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 105-69.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraph (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraph (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,

shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraph 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or

[[Page 103]]

commitment, covering activities occurring between December 23, 1989, and 
the date of award or commitment. However, for awards and commitments in 
process prior to the December 23, 1989 effective date of these 
provisions, but not made before December 23, 1989, disclosure forms 
shall not be required at time of award or commitment but shall be filed 
within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 105-69.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement if 
the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 105-69.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of a payment of reasonable 
compensation made to an officer or employee of a person requesting or 
receiving a Federal contract, grant, loan, or cooperative agreement or 
an extension, continuation, renewal, amendment, or modification of a 
Federal contract, grant, loan, or cooperative agreement if payment is 
for professional or technical services rendered directly in the 
preparation, submission, or negotiation of any bid, proposal, or 
application for that Federal contract, grant, loan, or cooperative 
agreement or for meeting requirements imposed by or pursuant to law as a 
condition for receiving that Federal contract, grant, loan, or 
cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or

[[Page 104]]

technical expertise and unless the advice or analysis is rendered 
directly and solely in the preparation, submission or negotiation of a 
covered Federal action. Thus, for example, communications with the 
intent to influence made by a lawyer that do not provide legal advice or 
analysis directly and solely related to the legal aspects of his or her 
client's proposal, but generally advocate one proposal over another are 
not allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 105-69.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 105-69.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 105-
69.100 (a), does not apply in the case of any reasonable payment to a 
person, other than an officer or employee of a person requesting or 
receiving a covered Federal action, if the payment is for professional 
or technical services rendered directly in the preparation, submission, 
or negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 105-69.110 (a) and (b) 
regarding filing a disclosure form by each person, if required, shall 
not apply with respect to professional or technical services rendered 
directly in the preparation, submission, or negotiation of any 
commitment providing for the United States to insure or guarantee a 
loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.

[[Page 105]]

    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                  Subpart D--Penalties and Enforcement



Sec. 105-69.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 105-69.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.



Sec. 105-69.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 105-69.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F--Agency Reports



Sec. 105-69.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the

[[Page 106]]

information contained in the disclosure reports received during the six-
month period ending on March 31 or September 30, respectively, of that 
year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 105-69.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

       Appendix A to Part 105-69--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the

[[Page 107]]

extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 108]]

      Appendix B to Part 105-69--Disclosure Form to Report Lobbying
[GRAPHIC] [TIFF OMITTED] TC21OC91.008


[[Page 109]]

[GRAPHIC] [TIFF OMITTED] TC21OC91.009



[[Page 110]]

[GRAPHIC] [TIFF OMITTED] TC21OC91.010



[[Page 111]]



PART 105-70--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986--Table of Contents




Sec.
105-70.000  Scope.
105-70.001  Basis.
105-70.002  Definitions.
105-70.003  Basis for civil penalties and assessments.
105-70.004  Investigation.
105-70.005  Review by the reviewing official.
105-70.006  Prerequisites for issuing a complaint.
105-70.007  Complaint.
105-70.008  Service of complaint.
105-70.009  Answer.
105-70.010  Default upon failure to file an answer.
105-70.011  Referral of complaint and answer to the ALJ.
105-70.012  Notice of hearing.
105-70.013  Parties to the hearing.
105-70.014  Separation of functions.
105-70.015  Ex parte contacts.
105-70.016  Disqualification of reviewing official or ALJ.
105-70.017  Rights of parties.
105-70.018  Authority of the ALJ.
105-70.019  Prehearing conferences.
105-70.020  Disclosure of documents.
105-70.021  Discovery.
105-70.022  Exchange of witness lists, statements, and exhibits.
105-70.023  Subpoena for attendance at hearing.
105-70.024  Protective order.
105-70.025  Fees.
105-70.026  Form, filing and service of papers.
105-70.027  Computation of time.
105-70.028  Motions.
105-70.029  Sanctions.
105-70.030  The hearing and burden of proof.
105-70.031  Determining the amount of penalties and assessments.
105-70.032  Location of hearing.
105-70.033  Witnesses.
105-70.034  Evidence.
105-70.035  The record.
105-70.036  Post-hearing briefs.
105-70.037  Initial decision.
105-70.038  Reconsideration of initial decision.
105-70.039  Appeal to Authority Head.
105-70.040  Stays ordered by the Department of Justice.
105-70.041  Stay pending appeal.
105-70.042  Judicial review.
105-70.043  Collection of civil penalties and assessments.
105-70.044  Right to administrative offset.
105-70.045  Deposit in Treasury of United States.
105-70.046  Compromise or settlement.
105-70.047  Limitations.

    Authority: 40 U.S.C. 486(c); 31 U.S.C. 3809.

    Source: 52 FR 45188, Nov. 25, 1987, unless otherwise noted.



Sec. 105-70.000  Scope.

    This part (a) establishes administrative procedures for imposing 
civil penalties and assessments against persons who make, submit, or 
present, or cause to be made, submitted, or presented, false, 
fictitious, or fraudulent claims or written statements to authorities or 
to their agents, and (b) specifies the hearing and appeal rights of 
persons subject to allegations of liability for such penalties and 
assessments.



Sec. 105-70.001  Basis.

    This part implements the Program Fraud Civil Remedies Act of 1986, 
Pub. L. No. 99-509, 6101-6104, 100 Stat. 1874 (October 21, 1986), to be 
codified at 31 U.S.C. 3801-3812. 31 U.S.C. 3809 of the statute requires 
each authority head to promulgate regulations necessary to implement the 
provisions of the statute.



Sec. 105-70.002  Definitions.

    The following shall have the meanings ascribed to them below unless 
the context clearly indicates otherwise:
    (a) ALJ means an Administrative Law Judge in the Authority appointed 
pursuant to 5 U.S.C. 3105 or detailed to the Authority pursuant to 5 
U.S.C. 3344.
    (b) Authority means the General Services Administration.
    (c) Authority Head means the Administrator or Deputy Administrator 
of General Services.
    (d) Benefit means, in the context of statements, anything of value, 
including but not limited to any advantage, preference, privilege, 
license, permit, favorable decision, ruling, status, or loan guarantee.
    (e) Claim means any request, demand or submission--
    (1) Made to the Authority for property, services, or money 
(including money representing grants, loans, insurance, or benefits);
    (2) Made to a recipient of property, services, or money from the 
Authority or to a party to a contract with the Authority--
    (i) For property or services if the United States--

[[Page 112]]

    (A) Provided such property or services;
    (B) Provided any portion of the funds for the purchase of such 
property or services; or
    (C) Will reimburse such recipient or party for the purchase of such 
property or services; or
    (ii) For the payment of money (including money representing grants, 
loans, insurance, or benefits) if the United States--
    (A) Provided any portion of the money requested or demanded, or
    (B) Will reimburse such recipient or party for any portion of the 
money paid on such request of demand; or
    (3) Made to the Authority which has the effect of decreasing an 
obligation to pay or account for property, services, or money.
    (f) Complaint means the administrative complaint served by the 
reviewing official on the defendant under Sec. 105-70.007.
    (g) Defendant means any person alleged in a complaint under 
Sec. 105-70.007 to be liable for a civil penalty or assessment under 
Sec. 105-70.003.
    (h) Individual means a natural person.
    (i) Initial Decision means the written decision of the ALJ required 
by Sec. 105-70.010 or Sec. 105-70.037, and includes a revised initial 
decision issued following a remand or a motion for reconsideration.
    (j) Investigating Official means the Inspector General of the 
General Services Administration or an officer or employee of the Office 
of the Inspector General designated by the Inspector General and serving 
in a position for which the rate of basic pay is not less than the 
minimum rate of basic pay for grade GS-16 under the General Schedule.
    (k) Knows or has reason to know means that a person, with respect to 
a claim or statement--
    (1) Has actual knowledge that the claim or statement is false, 
fictitious, or fraudulent;
    (2) Acts in deliberate ignorance of the truth or falsity of the 
claim or statement; or
    (3) Acts in reckless disregard of the truth or falsity of the claim 
or statement.
    (l) Makes, wherever it appears, shall include the terms presents, 
submits, and causes to be made, presented, or submitted. As the context 
requires, ``making'' or ``made'', shall likewise include the 
corresponding forms of such terms.
    (m) Person means any individual, partnership, corporation, 
association, or private organization.
    (n) Representative means an attorney who is a member in good 
standing of the bar of any State, Territory, or possession of the United 
States or of the District of Columbia or the Commonwealth of Puerto 
Rico. (An individual may appear pro se; a corporate officer or an owner 
may represent a business entity.)
    (o) Reviewing Official means the General Counsel of the General 
Services Administration or his designee who is--
    (1) Not subject to supervision by, or required to report to, the 
investigating official; and
    (2) Not employed in the organizational unit of the authority in 
which the investigating official is employed; and
    (3) Serving in a position for which the rate of basic pay is not 
less than the minimum rate of basic pay for grade GS-16 under the 
General Schedule.
    (p) Statement means any representation, certification, affirmation, 
document, record, or accounting or bookkeeping entry made--
    (1) With respect to a claim or to obtain the approval or payment of 
a claim (including relating to eligibility to make a claim); or
    (2) With respect to (including relating to eligibility for)--
    (i) A contract with, or a bid or proposal for a contract with; or
    (ii) A grant, loan, or benefit from, the Authority, or any State, 
political subdivision of a State, or other party, if the United States 
Government provides any portion of the money or property under such 
contract or for such grant, loan, or benefit, or if the Government will 
reimburse such State, political subdivision, or party for any portion of 
the money or property under such contract or for such grant, loan, or 
benefit.

[[Page 113]]



Sec. 105-70.003  Basis for civil penalties and assessments.

    (a) Claims. (1) Any person who makes a claim that the person knows 
or has reason to know--
    (i) Is false, fictitious, or fraudulent;
    (ii) Includes or is supported by any written statement which asserts 
a material fact which is false, fictitious, or fraudulent;
    (iii) Includes or is supported by any written statement that--
    (A) Omits a material fact;
    (B) Is false, fictitious, or fraudulent as a result of such 
omission; and
    (C) Is a statement in which the person making such statement has a 
duty to include such material fact; or
    (iv) Is for payment for the provision of property or services which 
the person has not provided as claimed,

shall be subject, in addition to any other remedy that may be prescribed 
by law, to a civil penalty of not more than $5,500 for each such claim.
    (2) Each voucher, invoice, claim form, or other individual request 
or demand for property, services, or money constitutes a separate claim.
    (3) A claim shall be considered made to the Authority, recipient, or 
party when such claim is actually made to an agent, fiscal intermediary, 
or other entity, including any State or political subdivision thereof, 
acting for or on behalf of the Authority, recipient, or party.
    (4) Each claim for property, services, or money is subject to a 
civil penalty regardless of whether such property, services, or money is 
actually delivered or paid.
    (5) If the Government has made any payment (including transferred 
property or provided services) on a claim, a person subject to a civil 
penalty under paragraph (a)(1) of this section shall also be subject to 
an assessment of not more than twice the amount of such claim or that 
portion thereof that is determined to be in violation of paragraph 
(a)(1) of this section. Such assessment shall be in lieu of damages 
sustained by the Government because of such claim.
    (b) Statements. (1) Any person who makes a written statement that--
    (i) The person knows or has reason to know--
    (A) Asserts a material fact which is false, fictitious, or 
fraudulent; or
    (B) Is false, fictitious, or fraudulent because it omits a material 
fact that the person making the statement has a duty to include in such 
statement; and
    (ii) Contains or is accompanied by an express certification or 
affirmation of the truthfulness and accuracy of the contents of the 
statement, shall be subject, in addition to any other remedy that may be 
prescribed by law, to a civil penalty of not more than $5,500 for each 
such statement.
    (2) Each written representation, certification, or affirmation 
constitutes a separate statement.
    (3) A statement shall be considered made to the Authority when such 
statement is actually made to an agent, fiscal intermediary, or other 
entity, including any State or political subdivision thereof, acting for 
or on behalf of the Authority.
    (c) No proof of specific intent to defraud is required to establish 
liability under this section.
    (d) In any case in which it is determined that more than one person 
is liable for making a claim or statement under this section, each such 
person may be held liable for a civil penalty under this section.
    (e) In any case in which it is determined that more than one person 
is liable for making a claim under this section on which the Government 
has made payment (including transferred property or provided services), 
an assessment may be imposed against any such person or jointly and 
severally against any combination of such persons.

[52 FR 45188, Nov. 25, 1987, as amended at 61 FR 67235, Dec. 20, 1996]



Sec. 105-70.004  Investigation.

    (a) If an investigating official concludes that a subpoena pursuant 
to the authority conferred by 31 U.S.C. 3804(a) is warranted--
    (1) The subpoena so issued shall notify the person to whom it is 
addressed of the authority under which the subpoena is issued and shall 
identify the records or documents sought;
    (2) The investigating official may designate a person to act on his 
or her

[[Page 114]]

behalf to receive the documents sought; and
    (3) The person receiving such subpoena shall be required to tender 
to the investigating official or the person designated to receive the 
documents a certification that the documents sought have been produced, 
or that such documents are not available and the reasons therefor, or 
that such documents, suitably identified, have been withheld based upon 
the assertion of an identified privilege, or any combination of the 
foregoing.
    (b) If the investigating official concludes that an action under the 
Program Fraud Civil Remedies Act may be warranted, the investigating 
official shall submit a report containing the findings and conclusions 
of such investigation to the reviewing official.
    (c) Nothing in this section shall preclude or limit an investigating 
official's discretion to refer allegations directly to the Department of 
Justice for suit under the False Claims Act or other civil relief, or to 
defer or postpone a report or referral to the reviewing official to 
avoid interference with a criminal investigation or prosecution.
    (d) Nothing in this section modifies any responsibility of an 
investigating official to report violations of criminal law to the 
Attorney General.



Sec. 105-70.005   Review by the reviewing official.

    (a) If, based on the report of the investigating official under 
Sec. 105-70.004(b), the reviewing official determines that there is 
adequate evidence to believe that a person is liable under Sec. 105-
70.003 of this part, the reviewing official shall transmit to the 
Attorney General a written notice of the reviewing official's intention 
to issue a complaint under Sec. 105-70.007.
    (b) Such notice shall include--
    (1) A statement of the reviewing official's reasons for issuing a 
complaint;
    (2) A statement specifying the evidence that supports the 
allegations of liability;
    (3) A description of the claims or statements upon which the 
allegations of liability are based;
    (4) An estimate of the amount of money or the value of property, 
services, or other benefits requested or demanded in violation of 
Sec. 105-70.003 of this part;
    (5) A statement of any exculpatory or mitigating circumstances that 
may relate to the claims or statements known by the reviewing official 
or the investigating official; and
    (6) A statement that there is a reasonable prospect of collecting an 
appropriate amount of penalties and assessments.



Sec. 105-70.006   Prerequisites for issuing a complaint.

    (a) The reviewing official may issue a complaint under Sec. 105-
70.007 only if--
    (1) The Department of Justice approves the issuance of a complaint 
in a written statement described in 31 U.S.C. 3803(b)(1), and
    (2) In the case of allegations of liability under Sec. 105-70.003(a) 
with respect to a claim, the reviewing official determines that, with 
respect to such claim or a group of related claims submitted at the same 
time such claim is submitted (as defined in paragraph (b) of this 
section), the amount of money or the value of property or services 
demanded or requested in violation of Sec. 105-70.003(a) does not exceed 
$150,000.
    (b) For the purposes of this section, a related group of claims 
submitted at the same time shall include only those claims arising from 
the same transaction (e.g., grant, loan, application, or contract) that 
are submitted simultaneously as part of a single request, demand, or 
submission.
    (c) Nothing in this section shall be construed to limit the 
reviewing official's authority to join in a single complaint against a 
person claims that are unrelated or were not submitted simultaneously, 
regardless of the amount of money or the value of property or services 
demanded or requested.



Sec. 105-70.007   Complaint.

    (a) On or after the date the Department of Justice approves the 
issuance of a complaint in accordance with 31 U.S.C. 3803(b)(1), the 
reviewing official may serve a complaint on the defendant, as provided 
in Sec. 105-70.008.
    (b) The complaint shall state--
    (1) The allegations of liability against the defendant, including 
the

[[Page 115]]

statutory basis for liability, an identification of the claims or 
statements that are the basis for the alleged liability, and the reasons 
why liability allegedly arises from such claims or statements;
    (2) The maximum amount of penalties and assessments for which the 
defendant may be held liable;
    (3) Instructions for filing an answer including a specific statement 
of the defendant's right to request a hearing by filing an answer and to 
be represented by a representative; and
    (4) That failure to file an answer within 30 days of service of the 
complaint will result in the imposition of the maximum amount of 
penalties and assessments without right to appeal, as provided in 
Sec. 105-70.010.
    (c) At the same time the reviewing official serves the complaint, he 
or she shall serve the defendant with a copy of these regulations.



Sec. 105-70.008   Service of complaint.

    (a) Service of a complaint must be made by certified or registered 
mail or by delivery in any manner authorized by Rule 4(d) of the Federal 
Rules of Civil Procedure. Service is complete upon receipt.
    (b) Proof of service, stating the name and address of the person on 
whom the complaint was served, and the manner and date of service, may 
be made by--
    (1) Affidavit of the individual serving the complaint by delivery;
    (2) A United States Postal Service return receipt card acknowledging 
receipt; or
    (3) Written acknowledgment of receipt by the defendant or his 
representative.



Sec. 105-70.009   Answer.

    (a) The defendant may request a hearing by filing an answer with the 
reviewing official within 30 days of service of the complaint. An answer 
shall be deemed to be a request for hearing.
    (b) In the answer, the defendant--
    (1) Shall admit or deny each of the allegations of liability made in 
the complaint;
    (2) Shall state any defense on which the defendant intends to rely;
    (3) May state any reasons why the defendant contends that the 
penalties and assessments should be less than the statutory maximum; and
    (4) Shall state the name, address, and telephone number of the 
person authorized by the defendant to act as defendant's representative, 
if any.
    (c) If the defendant is unable to file an answer meeting the 
requirements of paragraph (b) of this section within the time provided, 
the defendant may, before the expiration of 30 days from service of the 
complaint, file with the reviewing official a general answer denying 
liability and requesting a hearing, and a request for an extension of 
time within which to file an answer meeting the requirements of 
paragraph (b) of this section. The reviewing official shall file 
promptly with the ALJ the complaint, the general answer denying 
liability, and the request for an extension of time as provided in 
Sec. 105-70.011. For good cause shown, the ALJ may grant the defendant 
up to 30 additional days within which to file an answer meeting the 
requirements of paragraph (b) of this section.



Sec. 105-70.010  Default upon failure to file an answer.

    (a) If the defendant does not file an answer within the time 
prescribed in Sec. 105-70.009(a), the reviewing official may refer the 
complaint to the ALJ.
    (b) Upon the referral of the complaint, the ALJ shall promptly serve 
on the defendant in the manner prescribed in Sec. 105-70.008, a notice 
that an initial decision will be issued under this section.
    (c) The ALJ shall assume the facts alleged in the complaint to be 
true, and, if such facts establish liability under Sec. 105-70.003, the 
ALJ shall issue an initial decision imposing the maximum amount of 
penalties and assessments allowed under the statute.
    (d) Except as otherwise provided in this section, by failing to file 
a timely answer, the defendant waives any right to further review of the 
penalties and assessments imposed under paragraph (c) of this section, 
and the initial decision shall become final and binding upon the parties 
30 days after it is issued.

[[Page 116]]

    (e) If, before such an initial decision becomes final, the defendant 
files a motion with the ALJ seeking to reopen on the grounds that 
extraordinary circumstances prevented the defendant from filing an 
answer, the initial decision shall be stayed pending the ALJ's decision 
on the motion.
    (f) If, on such motion, the defendant can demonstrate extraordinary 
circumstances excusing the failure to file a timely answer, the ALJ 
shall withdraw the initial decision in paragraph (c) of this section, if 
such a decision has been issued, and shall grant the defendant an 
opportunity to answer the complaint.
    (g) A decision of the ALJ denying a defendant's motion under 
paragraph (e) of this section is not subject to reconsideration under 
Sec. 105-70.038.
    (h) The defendant may appeal to the Authority Head the decision 
denying a motion to reopen by filing a notice of appeal with the 
Authority Head within 15 days after the ALJ denies the motion. The 
timely filing of a notice of appeal shall stay the initial decision 
until the Authority Head decides the issue.
    (i) If the defendant files a timely notice of appeal with the 
Authority Head, the ALJ shall forward the record of the proceeding to 
the Authority Head.
    (j) The Authority Head shall decide expeditiously whether 
extraordinary circumstances excuse the defendant's failure to file a 
timely answer based solely on the record before the ALJ.
    (k) If the Authority Head decides that extraordinary circumstances 
excused the defendant's failure to file a timely answer, the Authority 
Head shall remand the case to the ALJ with instructions to grant the 
defendant an opportunity to answer.
    (l) If the Authority Head decides that the defendant's failure to 
file a timely answer is not excused, the Authority Head shall reinstate 
the initial decision of the ALJ, which shall become final and binding 
upon the parties 30 days after the Authority Head issues such decision.



Sec. 105-70.011  Referral of complaint and answer to the ALJ.

    Upon receipt of an answer, the reviewing official shall file the 
complaint and answer with the ALJ.



Sec. 105-70.012  Notice of hearing.

    (a) When the ALJ receives the complaint and answer, the ALJ shall 
promptly serve a notice of hearing upon the defendant in the manner 
prescribed by Sec. 105-70.008. At the same time, the ALJ shall send a 
copy of such notice to the representative for the Government.
    (b) Such notice shall include--
    (1) The tentative time and place, and the nature of the hearing;
    (2) The legal authority and jurisdiction under which the hearing is 
to be held;
    (3) The matters of fact and law to be asserted;
    (4) A description of the procedures for the conduct of the hearing;
    (5) The name, address, and telephone number of the representative of 
the Government and of the defendant, if any; and
    (6) Such other matters as the ALJ deems appropriate.



Sec. 105-70.013  Parties to the hearing.

    (a) The parties to the hearing shall be the defendant and the 
Authority.
    (b) Pursuant to 31 U.S.C. 3730(c)(5), a private plaintiff under the 
False Claims Act may participate in these proceedings to the extent 
authorized by the provisions of that Act.



Sec. 105-70.014  Separation of functions.

    (a) The investigating official, the reviewing official, and any 
employee or agent of the Authority who takes part in investigating, 
preparing, or presenting a particular case may not, in such case or a 
factually related case--
    (1) Participate in the hearing as the ALJ;
    (2) Participate or advise in the initial decision or the review of 
the initial decision by the Authority Head, except as a witness or a 
representative in public proceedings; or

[[Page 117]]

    (3) Make the collection of penalties and assessments under 31 U.S.C. 
3806.
    (b) The ALJ shall not be responsible to, or subject to the 
supervision or direction of the investigating official or the reviewing 
official.
    (c) Except as provided in paragraph (a) of this section, the 
representative for the Government may be employed anywhere in the 
Authority, including in the offices of either the investigating official 
or the reviewing official.



Sec. 105-70.015  Ex parte contacts.

    No party or person (except employees of the ALJ's office) shall 
communicate in any way with the ALJ on any matter at issue in a case, 
unless on notice and opportunity for all parties to participate. This 
provision does not prohibit a person or party from inquiring about the 
status of a case or asking routine questions concerning administrative 
functions or procedures.



Sec. 105-70.016  Disqualification of reviewing official or ALJ.

    (a) A reviewing official or ALJ in a particular case may disqualify 
himself or herself at any time.
    (b) A party may file with the ALJ a motion for disqualification of a 
reviewing official or an ALJ. Such motion shall be accompanied by an 
affidavit alleging personal bias or other reason for disqualification.
    (c) Such motion and affidavit shall be filed promptly upon the 
party's discovery of reasons requiring disqualification, or such 
objections shall be deemed waived.
    (d) Such affidavit shall state specific facts that support the 
party's belief that personal bias or other reason for disqualification 
exists and the time and circumstances of the party's discovery of such 
facts. It shall be accompanied by a certificate of the representative of 
record that it is made in good faith.
    (e) Upon the filing of such a motion and affidavit, the ALJ shall 
proceed not further in the case until he or she resolves the matter of 
disqualification in accordance with paragraph (f) of this section.
    (f)(1) If the ALJ determines that a reviewing official is 
disqualified, the ALJ shall dismiss the complaint without prejudice.
    (2) If the ALJ disqualifies himself or herself, the case shall be 
reassigned promptly to another ALJ.
    (3) If the ALJ denies a motion to disqualify, the authority head may 
determine the matter only as part of his or her review of the initial 
decision upon appeal, if any.



Sec. 105-70.017  Rights of parties.

    Except as otherwise limited by this part, all parties may--
    (a) Be accompanied, represented, and advised by a representative;
    (b) Participate in any conference held by the ALJ;
    (c) Conduct discovery;
    (d) Agree to stipulations of fact or law, which shall be made part 
of the record;
    (e) Present evidence relevant to the issues at the hearing;
    (f) Present and cross-examine witnesses;
    (g) Present oral argument at the hearing as permitted by the ALJ; 
and
    (h) Submit written briefs and proposed findings of fact and 
conclusions of law after the hearing.



Sec. 105-70.018  Authority of the ALJ.

    (a) The ALJ shall conduct a fair and impartial hearing, avoid delay, 
maintain order, and assure that a record of the proceeding is made.
    (b) The ALJ has the authority to--
    (1) Set and change the date, time, and place of the hearing upon 
reasonable notice to the parties;
    (2) Continue or recess the hearing in whole or in part for a 
reasonable period of time;
    (3) Hold conferences to identify or simplify the issues, or to 
consider other matters that may aid in the expeditious disposition of 
the proceeding;
    (4) Administer oaths and affirmations;
    (5) Issue subpoenas requiring the attendance of witnesses and the 
production of documents at depositions or at hearings;
    (6) Rule on motions and other procedural matters;
    (7) Regulate the scope and timing of discovery;

[[Page 118]]

    (8) Regulate the course of the hearing and the conduct of 
representatives and parties;
    (9) Examine witnesses;
    (10) Receive, rule on, exclude, or limit evidence;
    (11) Upon motion of a party, take official notice of facts;
    (12) Upon motion of a party, decide cases, in whole or in part, by 
summary judgment where there is no disputed issue of material fact;
    (13) Conduct any conference, argument, or hearing on motions in 
person or by telephone; and
    (14) Exercise such other authority as is necessary to carry out the 
responsibility of the ALJ under this part.
    (c) The ALJ does not have the authority to find Federal statutes or 
regulations invalid.



Sec. 105-70.019  Prehearing conferences.

    (a) The ALJ may schedule prehearing conferences as appropriate.
    (b) Upon the motion of any party, the ALJ shall schedule at least 
one prehearing conference at a reasonable time in advance of the 
hearing.
    (c) The ALJ may use prehearing conferences to discuss the following:
    (1) Simplification of the issues;
    (2) The necessity or desirability of amendments to the pleadings, 
including the need for a more definite statement;
    (3) Stipulations and admissions of fact or as to the contents and 
authenticity of documents;
    (4) Whether the parties can agree to submission of the case on a 
stipulated record;
    (5) Whether a party chooses to waive appearance at an oral hearing 
and to submit only documentary evidence (subject to the objection of 
other parties) and written argument;
    (6) Limitation of the number of witnesses;
    (7) Scheduling dates for the exchange of witness lists and of 
proposed exhibits;
    (8) Discovery;
    (9) The time and place for the hearing; and
    (10) Such other matters as may tend to expedite the fair and just 
disposition of the proceedings.
    (d) The ALJ may issue an order containing all matters agreed upon by 
the parties or ordered by the ALJ at a prehearing conference.



Sec. 105-70.020  Disclosure of documents.

    (a) Upon written request to the reviewing official, the defendant 
may review any relevant and material documents, transcripts, records, 
and other materials that relate to the allegations set out in the 
complaint and upon which the findings and conclusions of the 
investigating official under Sec. 105-70.004(b) are based, unless such 
documents are subject to a privilege under Federal law. Upon payment of 
fees for duplication, the defendant may obtain copies of such documents.
    (b) Upon written request to the reviewing official, the defendant 
also may obtain a copy of all exculpatory information in the possession 
of the reviewing official or investigating official relating to the 
allegations in the complaint, even if it is contained in a document that 
would otherwise be privileged. If the document would otherwise be 
privileged, only that portion containing exculpatory information must be 
disclosed.
    (c) The notice sent to the Attorney General from the reviewing 
official as described in Sec. 105-70.005 is not discoverable under any 
circumstances.
    (d) The defendant may file a motion to compel disclosure of the 
documents subject to the provisions of this section. Such a motion may 
only be filed with the ALJ following the filing of an answer pursuant to 
Sec. 105-70.009.



Sec. 105-70.021  Discovery.

    (a) The following types of discovery are authorized:
    (1) Requests for production of documents for inspection and copying;
    (2) Requests for admissions of the authenticity of any relevant 
document or of the truth of any relevant fact;
    (3) Written interrogatories; and
    (4) Depositions.
    (b) For the purpose of this section and Secs. 105-70.022 and 105-
70.023, the term ``documents'' includes information, documents, reports, 
answers, records, accounts, papers, and other data and

[[Page 119]]

documentary evidence. Nothing contained herein shall be interpreted to 
require the creation of a document.
    (c) Unless mutually agreed to by the parties, discovery is available 
only as ordered by the ALJ. The ALJ shall regulate the timing of 
discovery.
    (d) Motions for discovery. (1) A party seeking discovery may file a 
motion with the ALJ. Such a motion shall be accompanied by a copy of the 
requested discovery, or in the case of depositions, a summary of the 
scope of the proposed deposition.
    (2) Within ten days of service, a party may file an opposition to 
the motion and/or a motion for protective order as provided in Sec. 105-
70.024.
    (3) The ALJ may grant a motion for discovery only if he finds that 
the discovery sought--
    (i) Is necessary for the expeditious, fair, and reasonable 
consideration of the issues;
    (ii) Is not unduly costly or burdensome;
    (iii) Will not unduly delay the proceeding; and
    (iv) Does not seek privileged information.
    (4) The burden of showing that discovery should be allowed is on the 
party seeking discovery;
    (5) The ALJ may grant discovery subject to a protective order under 
Sec. 105-70.024.
    (e) Depositions. (1) If a motion for deposition is granted, the ALJ 
shall issue a subpoena for the deponent, which may require the deponent 
to produce documents. The subpoena shall specify the time and place at 
which the deposition will be held.
    (2) The party seeking to depose shall serve the subpoena in the 
manner prescribed in Sec. 105-70.008.
    (3) The deponent may file with the ALJ a motion to quash the 
subpoena or a motion for a protective order within ten days of service.
    (4) The party seeking to depose shall provide for the taking of a 
verbatim transcript of the deposition, which it shall make available to 
all other parties for inspection and copying.
    (f) Each party shall bear its own costs of discovery.



Sec. 105-70.022   Exchange of witness lists, statements, and exhibits.

    (a) At least 15 days before the hearing or at such other time as may 
be ordered by the ALJ, the parties shall exchange witness lists, copies 
of prior statements of proposed witnesses, and copies of proposed 
hearing exhibits, including copies of any written statements that the 
party intends to offer in lieu of live testimony in accordance with 
Sec. 105-70.033(b). At the time the above documents are exchanged, any 
party that intends to rely on the transcript of deposition testimony in 
lieu of live testimony at the hearing, if permitted by the ALJ, shall 
provide each party with a copy of the specific pages of the transcript 
it intends to introduce into evidence.
    (b) If a party objects, the ALJ shall not admit into evidence the 
testimony of any witness whose name does not appear on the witness list 
or any exhibit not provided to the opposing party as provided above 
unless the ALJ finds good cause for the failure or that there is no 
prejudice to the objecting party.
    (c) Unless another party objects within the time set by the ALJ, 
documents exchanged in accordance with paragraph (a) of this section 
shall be deemed to be authentic for the purpose of admissibility at the 
hearing.



Sec. 105-70.023   Subpoena for attendance at hearing.

    (a) A party wishing to procure the appearance and testimony of any 
individual at the hearing may request that the ALJ issue a subpoena.
    (b) A subpoena requiring the attendance and testimony of an 
individual may also require the individual to produce documents at the 
hearing.
    (c) A party seeking a subpoena shall file a written request therefor 
not less than 15 days before the date fixed for the hearing unless 
otherwise allowed by the ALJ for good cause shown. Such request shall 
specify any documents to be produced and shall designate the witnesses 
and describe the address and location thereof with sufficient 
particularity to permit such witnesses to be found.
    (d) The subpoena shall specify the time and place at which the 
witness is

[[Page 120]]

to appear and any documents the witness is to produce.
    (e) The party seeking the subpoena shall serve it in the manner 
prescribed in Sec. 105-70.008. A subpoena on a party or upon an 
individual under the control of a party may be served by first class 
mail.
    (f) A party or the individual to whom the subpoena is directed may 
file with the ALJ a motion to quash the subpoena within ten days after 
service or on or before the time specified in the subpoena for 
compliance if it is less than ten days after service.



Sec. 105-70.024  Protective order.

    (a) A party or a prospective witness or deponent may file a motion 
for a protective order with respect to discovery sought by an opposing 
party or with respect to the hearing, seeking to limit the availability 
or disclosure of evidence.
    (b) In issuing a protective order, the ALJ may make any order which 
justice requires to protect a party or person from annoyance, 
embarrassment, oppression, or undue burden or expense, including one or 
more of the following:
    (1) That the discovery not be had;
    (2) That the discovery may be had only on specified terms and 
conditions, including a designation of the time or place;
    (3) That the discovery may be had only through a method of discovery 
other than that requested;
    (4) That certain matters not be inquired into, or that the scope of 
discovery be limited to certain matters;
    (5) That discovery be conducted with no one present except persons 
designated by the ALJ;
    (6) That the contents of discovery or evidence be sealed;
    (7) That a deposition after being sealed be opened only by order of 
the ALJ;
    (8) That a trade secret or other confidential research, development, 
commercial information, or facts pertaining to any criminal 
investigation, proceeding, or other administrative investigation not be 
disclosed or be disclosed only in a designated way; or
    (9) That the parties simultaneously file specified documents or 
information enclosed in sealed envelopes to be opened as directed by the 
ALJ.



Sec. 105-70.025  Fees.

    The party requesting a subpoena shall pay the cost of the fees and 
mileage of any witness subpoenaed in the amounts that would be payable 
to a witness in a proceeding in United States District Court. A check 
for witness fees and mileage shall accompany the subpoena when served, 
except that when a subpoena is issued on behalf of the Authority, a 
check for witness fees and mileage need not accompany the subpoena.



Sec. 105-70.026  Form, filing and service of papers.

    (a) Form. (1) Documents filed with the ALJ shall include an original 
and two copies.
    (2) Every pleading and paper filed in the proceeding shall contain a 
caption setting forth the title of the action, the case number assigned 
by the ALJ, and a designation of the paper (e.g., motion to quash 
subpoena).
    (3) Every pleading and paper shall be signed by, and shall contain 
the address and telephone number of the party or the person on whose 
behalf the paper was filed, or his or her representative.
    (4) Papers are considered filed when they are mailed. Date of 
mailing may be established by a certificate from the party or its 
representative or by proof that the document was sent by certified or 
registered mail.
    (b) Service. A party filing a document with the ALJ shall, at the 
time of filing, serve a copy of such document on every other party. 
Service upon any party of any document other than those required to be 
served as prescribed in Sec. 105-70.008 shall be made by delivering a 
copy or by placing a copy of the document in the United States mail, 
postage prepaid and addressed to the party's last known address. When a 
party is represented by a representative, service shall be made upon 
such representative in lieu of the actual party.
    (c) Proof of service. A certificate of the individual serving the 
document by personal delivery or by mail, setting

[[Page 121]]

forth the manner of service, shall be proof of service.



Sec. 105-70.027  Computation of time.

    (a) In computing any period of time under this part or in an order 
issued thereunder, the time begins with the day following the act, 
event, or default, and includes the last day of the period, unless it is 
a Saturday, Sunday, or legal holiday observed by the Federal government, 
in which event it includes the next business day.
    (b) When the period of time allowed is less than seven days, 
intermediate Saturdays, Sundays, and legal holidays observed by the 
Federal government shall be excluded from the computation.
    (c) Where a document has been served or issued by placing it in the 
mail, an additional five days will be added to the time permitted for 
any response.



Sec. 105-70.028  Motions.

    (a) Any application to the ALJ for an order or ruling shall be by 
motion. Motions shall state the relief sought, the authority relied 
upon, and the facts alleged, and shall be filed with the ALJ and served 
on all other parties.
    (b) Except for motions made during a prehearing conference or at the 
hearing, all motions shall be in writing. The ALJ may require that oral 
motions be reduced to writing.
    (c) Within 15 days after a written motion is served, or such other 
time as may be fixed by the ALJ, any party may file a response to such 
motion.
    (d) The ALJ may not grant a written motion before the time for 
filing responses thereto has expired, except upon consent of the parties 
or following a hearing on the motion, but may overrule or deny such 
motion without awaiting a response.
    (e) The ALJ shall make a reasonable effort to dispose of all 
outstanding motions prior to the beginning of the hearing.



Sec. 105-70.029  Sanctions.

    (a) The ALJ may sanction a person, including any party or 
representative for--
    (1) Failing to comply with an order, rule, or procedure governing 
the proceeding;
    (2) Failing to prosecute or defend an action; or
    (3) Engaging in other misconduct that interferes with the speedy, 
orderly, or fair conduct of the hearing.
    (b) Any such sanction, including but not limited to those listed in 
paragraphs (c), (d), and (e) of this section, shall reasonably relate to 
the severity and nature of the failure or misconduct.
    (c) When a party fails to comply with an order, including an order 
for taking a deposition, the production of evidence within the party's 
control, or a request for admission, the ALJ may--
    (1) Draw an inference in favor of the requesting party with regard 
to the information sought;
    (2) In the case of requests for admission, deem each matter of which 
an admission is requested to be admitted;
    (3) Prohibit the party failing to comply with such order from 
introducing evidence concerning, or otherwise relying upon, testimony 
relating to the information sought; and
    (4) Strike any part of the pleadings or other submissions of the 
party failing to comply with such request.
    (d) If a party fails to prosecute or defend an action under this 
part commenced by service of a notice of hearing, the ALJ may dismiss 
the action or may issue an initial decision imposing penalties and 
assessments.
    (e) The ALJ may refuse to consider any motion, request, response, 
brief or other document which is not filed in a timely fashion.



Sec. 105-70.030  The hearing and burden of proof.

    (a) The ALJ shall conduct a hearing on the record in order to 
determine whether the defendant is liable for a civil penalty or 
assessment under Sec. 105-70.003 and, if so, the appropriate amount of 
any such civil penalty or assessment considering any aggravating or 
mitigating factors.
    (b) The authority shall prove defendant's liability and any 
aggravating factors by a preponderance of the evidence.
    (c) The defendant shall prove any affirmative defenses and any 
mitigating factors by a preponderance of the evidence.

[[Page 122]]

    (d) The hearing shall be open to the public unless otherwise ordered 
by the ALJ for good cause shown.



Sec. 105-70.031  Determining the amount of penalties and assessments.

    In determining an appropriate amount of civil penalties and 
assessments, the ALJ and the Authority Head, upon appeal, should 
evaluate any circumstances presented that mitigate or aggravate the 
violation and should articulate in their opinions the reasons that 
support the penalties and assessments they impose.



Sec. 105-70.032  Location of hearing.

    (a) The hearing may be held--
    (1) In any judicial district of the United States in which the 
defendant resides or transacts business;
    (2) In any judicial district of the United States in which the claim 
or statement in issue was made; or
    (3) In such other place as may be agreed upon by the defendant and 
the ALJ.
    (b) Each party shall have the opportunity to present arguments with 
respect to the location of the hearing.
    (c) The hearing shall be held at the place and at the time ordered 
by the ALJ.



Sec. 105-70.033  Witnesses.

    (a) Except as provided in paragraph (b) of this section, testimony 
at the hearing shall be given orally by witnesses under oath or 
affirmation.
    (b) At the discretion of the ALJ, testimony may be admitted in the 
form of a written statement or deposition. Any such written statement 
must be provided to all other parties along with the last known address 
of such witness, in a manner which allows sufficient time for other 
parties to subpoena such witness for cross-examination at the hearing. 
Prior written statements of witnesses proposed to testify at the hearing 
and deposition transcripts shall be exchanged as provided in Sec. 105-
70.022(a).
    (c) The ALJ shall exercise reasonable control over the mode and 
order of interrogating witnesses and presenting evidence so as to--
    (1) Make the interrogation and presentation effective for the 
ascertainment of the truth,
    (2) Avoid needless consumption of time, and
    (3) Protect witnesses from harrassment or undue embarrassment.
    (d) The ALJ shall permit the parties to conduct such cross-
examination as may be required for a full and true disclosure of the 
facts.
    (e) To the extent permitted by the ALJ, cross-examination on matters 
outside the scope of direct examination shall be conducted in the manner 
of direct examination and may proceed by leading questions only if the 
witness is a hostile witness, an adverse party, or a witness identified 
with an adverse party.
    (f) Upon motion of any party, the ALJ shall order witnesses excluded 
so that they cannot hear the testimony of other witnesses. This rule 
does not authorize exclusion of--
    (1) A party who is an individual;
    (2) In the case of a party that is not an individual, an officer or 
employee of the party appearing for the entity pro se or designated by 
the party's representative; or
    (3) An individual whose presence is shown by a party to be essential 
to the presentation of its case, including an individual employed by the 
Government engaged in assisting the representative for the Government.



Sec. 105-70.034  Evidence.

    (a) The ALJ shall determine the admissibility of evidence.
    (b) Except as provided in this part, the ALJ shall not be bound by 
the Federal Rules of Evidence. However, the ALJ may apply the Federal 
Rules of Evidence where appropriate, e.g., to exclude unreliable 
evidence.
    (c) The ALJ shall exclude irrelevant and immaterial evidence.
    (d) Although relevant, evidence may be excluded if its probative 
value is substantially outweighed by the danger of unfair prejudice, 
confusion of the issues, or by considerations of undue delay or needless 
presentation of cumulative evidence.
    (e) Although relevant, evidence may be excluded if it is privileged 
under Federal law.

[[Page 123]]

    (f) Evidence concerning offers of compromise or settlement shall be 
inadmissible to the extent provided in Rule 408 of the Federal Rules of 
Evidence.
    (g) The ALJ shall permit the parties to introduce rebuttal witnesses 
and evidence.
    (h) All documents and other evidence offered or taken for the record 
shall be open to examination by all parties, unless otherwise ordered by 
the ALJ pursuant to Sec. 105-70.024.



Sec. 105-70.035  The record.

    (a) The hearing will be recorded and transcribed. Transcripts may be 
obtained following the hearing from the ALJ at a cost not to exceed the 
actual cost of duplication.
    (b) The transcript of testimony, exhibits and other evidence 
admitted at the hearing, and all papers and requests filed in the 
proceeding constitute the record for the decision by the ALJ and the 
Authority Head.
    (c) The record may be inspected and copied (upon payment of a 
reasonable fee) by anyone, unless otherwise ordered by the ALJ pursuant 
to Sec. 105-70.024.



Sec. 105-70.036  Post-hearing briefs.

    The ALJ may require the parties to file post-hearing briefs. In any 
event, any party may file a post-hearing brief. The ALJ shall fix the 
time for filing such briefs, not to exceed 60 days from the date the 
parties receive the transcript of the hearing or, if applicable, the 
stipulated record. Such briefs may be accompanied by proposed findings 
of fact and conclusions of law. The ALJ may permit the parties to file 
reply briefs.



Sec. 105-70.037  Initial decision.

    (a) The ALJ shall issue an initial decision based only on the 
record, which shall contain findings of fact, conclusions of law, and 
the amount of any penalties and assessments imposed.
    (b) The findings of fact shall include a finding on each of the 
following issues:
    (1) Whether the claims or statements identified in the complaint, or 
any portions thereof, violate Sec. 105-70.003.
    (2) If the person is liable for penalties or assessments, the 
appropriate amount of any such penalties or assessments considering any 
mitigating or aggravating factors that he or she finds in the case.
    (c) The ALJ shall promptly serve the initial decision on all parties 
within 90 days after the time for submission of post-hearing briefs and 
reply briefs (if permitted) has expired. The ALJ shall at the same time 
serve all parties with a statement describing the right of any defendant 
determined to be liable for a civil penalty or assessment to file a 
motion for reconsideration with the ALJ or a notice of appeal with the 
Authority Head. If the ALJ fails to meet the deadline contained in this 
paragraph, he or she shall notify the parties of the reason for the 
delay and shall set a new deadline.
    (d) Unless the initial decision of the ALJ is timely appealed to the 
Authority Head, or a motion for reconsideration of the initial decision 
is timely filed, the initial decision shall constitute the final 
decision of the Authority Head and shall be final and binding on the 
parties 30 days after it is issued by the ALJ.



Sec. 105-70.038  Reconsideration of initial decision.

    (a) Except as provided in paragraph (d) of this section, any party 
may file a motion for reconsideration of the initial decision within 20 
days of receipt of the initial decision. If service was made by mail, 
receipt will be presumed to be five days from the date of mailing in the 
absence of contrary proof.
    (b) Every such motion must set forth the matters claimed to have 
been erroneously decided and the nature of the alleged errors. Such 
motion shall be accompanied by a supporting brief.
    (c) Responses to such motions shall be allowed only upon request of 
the ALJ.
    (d) No party may file a motion for reconsideration of an initial 
decision that has been revised in response to a previous motion for 
reconsideration.
    (e) The ALJ may dispose of a motion for reconsideration by denying 
it or by issuing a revised initial decision.
    (f) If the ALJ denies a motion for reconsideration, the initial 
decision shall constitute the final decision of the Authority Head and 
shall be final and

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binding on the parties 30 days after the ALJ denies the motion, unless 
the initial decision is timely appealed to the Authority Head in 
accordance with Sec. 105-70.039.
    (g) If the ALJ issues a revised initial decision, that decision 
shall constitute the final decision of the Authority Head and shall be 
final and binding on the parties 30 days after it is issued, unless it 
is timely appealed to the Authority Head in accordance with Sec. 105-
70.039.



Sec. 105-70.039  Appeal to Authority Head.

    (a) Any defendant who has filed a timely answer and who is 
determined in an initial decision to be liable for a civil penalty or 
assessment may appeal such decision to the Authority Head by filing a 
notice of appeal with the Authority Head in accordance with this 
section.
    (b)(1) A notice of appeal may be filed at any time within 30 days 
after the ALJ issues an initial decision. However, if another party 
files a motion for reconsideration under Sec. 105-70.038, consideration 
of the appeal shall be stayed automatically pending resolution of the 
motion for reconsideration.
    (2) If a motion for reconsideration is timely filed, a notice of 
appeal may be filed within 30 days after the ALJ denies the motion or 
issues a revised initial decision, whichever applies.
    (3) The Authority Head may extend the initial 30 day period for an 
additional 30 days if the defendant files with the Authority Head a 
request for an extension within the initial 30 day period and shows good 
cause.
    (c) If the defendant files a timely notice of appeal with the 
Authority Head and the time for filing motions for reconsideration under 
Sec. 105-70.038 has expired, the ALJ shall forward the record of the 
proceeding to the Authority Head.
    (d) A notice of appeal shall be accompanied by a written brief 
specifying exceptions to the initial decision and reasons supporting the 
exceptions.
    (e) The representative for the Authority may file a brief in 
opposition to exceptions within 30 days of receiving the notice of 
appeal and accompanying brief.
    (f) There is no right to appear personally before the Authority 
Head.
    (g) There is no right to appeal any interlocutory ruling by the ALJ.
    (h) In reviewing the initial decision, the Authority Head shall not 
consider any objection that was not raised before the ALJ unless a 
demonstration is made of extraordinary circumstances causing the failure 
to raise the objection.
    (i) If any party demonstrates to the satisfaction of the Authority 
Head that additional evidence not presented at such hearing is material 
and that there were reasonable grounds for the failure to present such 
evidence at such hearing, the Authority Head shall remand the matter to 
the ALJ for consideration of such additional evidence.
    (j) The Authority Head may affirm, reduce, reverse, compromise, 
remand, or settle any penalty or assessment, determined by the ALJ in 
any initial decision.
    (k) The Authority Head shall promptly serve each party to the appeal 
with a copy of the decision of the Authority Head and a statement 
describing the right of any person determined to be liable for a penalty 
or assessment to seek judicial review.
    (l) Unless a petition for review is filed as provided in 31 U.S.C. 
3805 after a defendant has exhausted all administrative remedies under 
this part and within 60 days after the date on which the Authority Head 
serves the defendant with a copy of the Authority Head's decision, a 
determination that a defendant is liable under Sec. 105-70.003 is final 
and is not subject to judicial review.



Sec. 105-70.040  Stays ordered by the Department of Justice.

    If at any time the Attorney General or an Assistant Attorney General 
designated by the Attorney General transmits to the Authority Head a 
written finding that continuation of the administrative process 
described in this part with respect to a claim or statement may 
adversely affect any pending or potential criminal or civil action 
related to such claim or statement, the Authority Head shall stay the 
process immediately. The Authority Head may order the process resumed 
only upon

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receipt of the written authorization of the Attorney General.



Sec. 105-70.041  Stay pending appeal.

    (a) An initial decision is stayed automatically pending disposition 
of a motion for reconsideration or of an appeal to the Authority Head.
    (b) No administrative stay is available following a final decision 
of the Authority Head.



Sec. 105-70.042  Judicial review.

    Section 3805 of title 31, United States Code, authorizes judicial 
review by an appropriate United States District Court of a final 
decision of the Authority Head imposing penalties or assessments under 
this part and specifies the procedures for such review.



Sec. 105-70.043  Collection of civil penalties and assessments.

    Sections 3806 and 3808(b) of title 31, United States Code, authorize 
action for collection of civil penalties and assessments imposed under 
this part and specify the procedures for such actions.



Sec. 105-70.044  Right to administrative offset.

    The amount of any penalty or assessment which has become final, or 
for which a judgment has been entered under Sec. 105-70.042 or Sec. 105-
70.043, or any amount agreed upon in a compromise or settlement under 
Sec. 105-70.046, may be collected by administrative offset under 30 
U.S.C. 3716, except that an administrative offset may not be made under 
this subsection against a refund of an overpayment of Federal taxes, 
then or later owing by the United States to the defendant.



Sec. 105-70.045  Deposit in Treasury of United States.

    All amounts collected pursuant to this part shall be deposited as 
miscellaneous receipts in the Treasury of the United States, except as 
provided in 31 U.S.C. 3806(g).



Sec. 105-70.046  Compromise or settlement.

    (a) Parties may make offers of compromise or settlement at any time.
    (b) The reviewing official has the exclusive authority to compromise 
or settle a case under this part at any time after the date on which the 
reviewing official is permitted to issue a complaint and before the date 
on which the ALJ issues an initial decision.
    (c) The Authority Head has exclusive authority to compromise or 
settle a case under this part at any time after the date on which the 
ALJ issues an initial decision, except during the pendency of any review 
under Sec. 105-70.042 or during the pendency of any action to collect 
penalties and assessments under Sec. 105-70.043.
    (d) The Attorney General has exclusive authority to compromise or 
settle a case under this part during the pendency of any review under 
Sec. 105-70.042 or of any action to recover penalties and assessments 
under 31 U.S.C. 3806.
    (e) The investigating official may recommend settlement terms to the 
reviewing official, the Authority Head, or the Attorney General, as 
appropriate. The reviewing official may recommend settlement terms to 
the Authority Head, or the Attorney General, as appropriate.
    (f) Any compromise or settlement must be in writing.



Sec. 105-70.047  Limitations.

    (a) The Program Fraud Civil Remedies Act of 1986 provides that a 
hearing shall be commenced within 6 years after the date on which a 
claim or statement is made. 31 U.S.C. 3808(a). The statute also provides 
that the hearing is commenced by the mailing or delivery of the 
presiding officer's (ALJ's) notice. 31 U.S.C. 3803(d)(2)(B). 
Accordingly, the notice of hearing provided for in Sec. 105-70.012 
herein shall be served within 6 years after the date on which a claim or 
statement is made.
    (b) If the defendant fails to file a timely answer, service of a 
notice under Sec. 105-70.010(b) shall be deemed a

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notice of hearing for purposes of this section.



PART 105-71--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS WITH STATE AND LOCAL GOVERNMENTS--Table of Contents




                        Subpart 105-71.1--General

Sec.
105-71.100  Purpose and scope of this part.
105-71.101  Scope of Secs. 105-71.100 through 105-71.105.
105-71.102  Definitions.
105-71.103  Applicability.
105-71.104  Effect on other issuances.
105-71.105  Additions and exceptions.

                Subpart 105-71.11--Pre-Award Requirements

105-71.110  Forms for applying for grants.
105-71.111  State plans.
105-71.112  Special grant or subgrant conditions for ``high-risk'' 
          grantees.

   Subpart 105-71.12--Post-Award Requirements/Financial Administration

105-71.120  Standards for financial management systems.
105-71.121  Payment.
105-71.122  Allowable costs.
105-71.123  Period of availability of funds.
105-71.124  Matching or cost sharing.
105-71.125  Program income.
105-71.126  Non-Federal audit.

   Subpart 105-71.13--Post-Award Requirements/Changes, Property, and 
                                Subawards

105-71.130  Changes.
105-71.131  Real property.
105-71.132  Equipment.
105-71.133  Supplies.
105-71.134  Copyrights.
105-71.135  Subawards to debarred and suspended parties.
105-71.136  Procurement.
105-71.137  Subgrants.

Subpart 105-71.14--Post-Award Requirements/Reports, Records, Retention, 
                             and Enforcement

105-71.140  Monitoring and reporting program performance.
105-71.141  Financial reporting.
105-71.142  Retention and access requirements for records.
105-71.143  Enforcement.
105-71.144  Termination for convenience.

             Subpart 105-71.15--After-the-Grant Requirements

105-71.150  Closeout.
105-71.151  Later disallowances and adjustments.
105-71.152  Collection of amounts due.

               Subpart 105-71.16--Entitlements [Reserved]

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

    Source: 58 FR 43270, Aug. 16, 1993, unless otherwise noted.



                        Subpart 105-71.1--General



Sec. 105-71.100  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 105-71.101  Scope of Secs. 105-71.100 through 105-71.105.

    This section contains general rules pertaining to this part and 
procedures for control of exceptions from this subpart.



Sec. 105-71.102  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for: (1) Goods and other 
tangible property received; (2) services performed by employees, 
contractors, subgrantees, subcontractors, and other payees; and (3) 
other amounts becoming owed under programs for which no current services 
or performance is required, such as annuities, insurance claims, and 
other benefit payments.
    Accrued income means the sum of: (1) Earnings during a given period 
from services performed by the grantee and goods and other tangible 
property delivered to purchasers, and (2) amounts becoming owed to the 
grantee for which no current services or performance is required by the 
grantee.

[[Page 127]]

    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from programmatic 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means (1) with respect to a grant, the Federal 
agency, and (2) with respect to a subgrant, the party that awarded the 
subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or subgrantee by other public 
agencies and institutions, and private organizations and individuals. 
When authorized by Federal legislation, Federal funds received from 
other assistance agreements may be considered as grantee or subgrantee 
cash constributions.
    Contract means (except as used in the definitions for grant and 
subgrant in this section and except where qualified by Federal) a 
procurement contract under a grant or subgrant, and means a procurement 
subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means: (1) For non-construction grants, the SF-
269 ``Financial Status Report'' (or other equivalent report); (2) for 
construction grants, the SF-271 ``Outlay Report and Request for 
Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of the Interior as eligible for 
the special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district,

[[Page 128]]

intrastate district, council of governments (whether or not incorporated 
as a nonprofit corporation under State law), any other regional or 
interstate government entity, or any agency or instrumentality of a 
local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of in-kind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods and other property received, 
for services performed by employees, contractors, subgrantees, 
subcontractors, and other payees, and other amounts becoming owed under 
programs for which no current services or performance are required, such 
as annuities, insurance claims, and other benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of the third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing under United States Housing Act of 1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of grant in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than equipment 
as defined in this part.
    Suspension means depending on the context, either (1) temporary 
withdrawal of the authority to obligate grant funds pending corrective 
action by the grantee or subgrantee or a decision to terminate the 
grant, or (2) an action taken by a suspending official in accordance 
with agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee.
    Termination does not include: (1) Withdrawal of funds awarded on the 
basis of the grantee's underestimate of

[[Page 129]]

the unobligated balance in a prior period; (2) Withdrawal of the 
unobligated balance as of the expiration of a grant; (3) Refusal to 
extend a grant or award additional funds, to make a competing or 
noncompeting continuation, renewal, extension, or supplemental award; or 
(4) voiding of a grant upon determination that the award was obtained 
fraudulently, or was otherwise illegal or invalid from inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee for which an 
outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 105-71.103  Applicability.

    (a) General. Sections 105-71.100 through 105-71.152 of this subpart 
apply to all grants and subgrants to governments, except where 
inconsistent with Federal statutes or with regulations authorized in 
accordance with the exception provision of Sec. 105-71.105 or:
    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under Title V, subtitle D, chapter 2, 
section 583--the Secretary's discretionary grant program) and Titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and part C of Title V. Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (Title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (Title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (Title IV-E of the Act);
    (iv) Aid to the Aged, Blind, Disabled (Titles I, X, XIV, and XVI-
AABD of the Act); and
    (v) Medical Assistance (Medicaid) (Title XIX of the Act) not 
including the State Medical Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act);
    (ii) Commodity Assistance (section 6 of the Act);
    (iii) Special Meal Assistance (section 11 of the Act);
    (iv) Summer Food Service for Children (section 13 of the Act); and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).

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    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).
    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 105-71.103(a)(3) through (8) are subject to Subpart--Entitlement.



Sec. 105-71.104  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 105-71.105.



Sec. 105-71.105  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                Subpart 105-71.11--Pre-Award Requirements



Sec. 105-71.110  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted.

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Previously submitted pages with information that is still current need 
not be resubmitted.



Sec. 105-71.111  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For this assurance and other assurances required in the 
plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect:
    (1) New or revised Federal statutes or regulations or
    (2) A material change in any State law, organization, policy, or 
State agency operation.

The State will obtain approval for the amendment and its effective date 
but need submit for approval only the amended portions of the plan.



Sec. 105-71.112  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible, and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grantee or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



   Subpart 105-71.12--Post-Award Requirements/Financial Administration



Sec. 105-71.120  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--

[[Page 132]]

    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial result of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.
    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 105-71.121   Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this

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section are not met. Grantees and subgrantees may also be paid by 
reimbursement for any construction grant. Except as otherwise specified 
in regulation, Federal agencies shall not use the percentage of 
completion method to pay construction grants. The grantee or subgrantee 
may use that method to pay its construction contractor, and if it does, 
awarding agency's payments to the grantee or subgrantee will be based on 
the grantee's or subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital the awarding agency may 
provide cash or a working capital, advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The working 
capital advance method of payment shall not be used by grantees or 
subgrantees if the reason for using such method is the unwillingness or 
inability of the grantee to provide timely advances to the subgrantee to 
meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award conditions, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 105-71.143(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.



Sec. 105-71.122  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and

[[Page 134]]

    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles:

                                                                        
------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21           
For-profit organization other than a        48 CFR part 31, Contract    
 hospital and an organization named in OMB   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------




Sec. 105-71.123  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover or unobligated balances are permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 105-71.124  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or cost-type 
contractor under the assistance agreement. This includes allowable costs 
borne by non-Federal grants or by other cash donations from non-Federal 
third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements apply.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 105-71.125, shall not count towards 
satisfying a cost sharing or matching requirement unless they are 
expressly permitted in the terms of the assistance agreement. (This use 
of general program income is described in Sec. 105-71.125(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing

[[Page 135]]

or matching requirement unless other provisions of the grant agreement 
expressly permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay for them, the payments would be allowable 
costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect cost. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of 
contributions.
    (iii) A third party in-kind contribution to a fixed price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and the title 
passes to a grantee or subgrantee, the treatment of the donated property 
will depend upon the purpose of the grant or subgrant as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching.
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2)(i) and (ii) of 
this section apply.
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair

[[Page 136]]

rental rate of the donated land may be counted as cost sharing or 
matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-Federal share of the property may be 
counted as cost sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind contributions. Instead, they are treated 
as costs incurred by the grantee or subgrantee. They are computed and 
allocated (usually as indirect costs) in accordance with the cost 
principles specified in Sec. 105-71.122, in the same way as depreciation 
or use allowances for purchased equipment and buildings. The amount of 
depreciation or use allowances for donated equipment and buildings is 
based on the property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-Federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in the building. In these cases, the Federal agency may require 
the market value or fair rental value be set by an independent 
appraiser, and that the value or rate be certified by the grantee. This 
requirement will also be imposed by the grantee on subgrantees.



Sec. 105-71.125  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Government revenues. Taxes, special assessments, levies, fines, 
and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 105-71.134.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Sec. 105-71.131 
and Sec. 105-71.132.
    (g) Use of program income. Program income shall be deducted from 
outlays

[[Page 137]]

which may be both Federal and non-Federal as described below, unless the 
Federal agency regulations or the grant agreement specify another 
alternative (or a combination of the alternatives). In specifying 
alternatives, the Federal agency may distinguish between income earned 
by the grantee and income earned by subgrantees and between the sources, 
kinds, or amounts of income. When Federal agencies authorize the 
alternatives in paragraphs (g) (2) and (3) of this section, program 
income in excess of any limits stipulated shall also be deducted from 
outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be used for current costs unless the Federal agency 
authorizes otherwise. Program income which the grantee did not 
anticipate at the time of the award shall be used to reduce the Federal 
agency and grantee contributions rather than to increase the funds 
committed to the project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.



Sec. 105-71.126  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act of 1984 (31 
U.S.C. 7501-7) and Federal agency implementing regulations. The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial and compliance 
audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act, that receive Federal 
financial assistance and provide $25,000 or more of it in a fiscal year 
to a subgrantee shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Requirements for Grants and Other Agreements with 
Institutions of Higher Education, Hospitals and Other Nonprofit 
Organizations'' have met the audit requirement. Commercial contractors 
(private for profit and private and governmental organizations) 
providing goods and services to State and local governments are not 
required to have a single audit performed. State and local governments 
should use their own procedures to ensure that the contractor has 
complied with laws and regulations affecting the expenditure of Federal 
funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure the appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 105-
71.136 shall be followed.

[[Page 138]]



   Subpart 105-71.13--Post-Award Requirements/Changes, Property, and 
                                Subawards



Sec. 105-71.130  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.
    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 105-71.122) contain requirements for prior approval of certain 
types of costs. Except where waived, those requirements apply to all 
grants and subgrants even if paragraphs (c) through (f) of this section 
do not.
    (c) Budget changes-- (1) Non-construction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a non-construction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and non-construction projects. When a 
grant or subgrant provides funding for both construction and non-
construction activities, the grantee or subgrantee must obtain prior 
written approval from the awarding agency before making any fund or 
budget transfer from non-construction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under non-construction projects, contracting out, subgranting 
(if authorized by law) or otherwise obtaining the services of a third 
party to perform activities which are central to the purposes of the 
award. This approval requirement is in addition to the approval 
requirements of Sec. 105-71.136 but does not apply to the procurement of 
equipment, supplies, and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget format the grantee used 
in its application and shall be accomplished by a narrative 
justification for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 105-71.122) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved

[[Page 139]]

project which requires Federal prior approval, the grantee will obtain 
the Federal agency's approval before approving the subgrantee's request.



Sec. 105-71.131  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.
    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purpose, and the grantee or subgrantee shall not dispose 
of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives.
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from the sale may be offset against 
the original cost of the property. When a grantee or subgrantee is 
directed to sell property, sales procedures shall be followed that 
provide for competition to the extent practicable and result in the 
highest possible return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 105-71.132  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 105-71.125(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee

[[Page 140]]

may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place will, as a minimum, meet 
the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds the title, the acquisition date, and cost 
of the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the data of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage or theft of the property. Any loss, damage or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third party 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 105-71.132(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.



Sec. 105-71.133  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are

[[Page 141]]

not needed for any other federally sponsored programs or projects, the 
grantee or subgrantee shall compensate the awarding agency for its 
share.



Sec. 105-71.134  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 105-71.135  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension''.



Sec. 105-71.136  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will allow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agent will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantees and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards of conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's officers, employees, or agents, or by 
contractors or their agents. The awarding agency may in regulation 
provide additional prohibitions relative to real, apparent, or potential 
conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements

[[Page 142]]

for procurement or use of common goods and services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative analysis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: Rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protests to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of grantee's or subgrantee's protest procedures for 
failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 105-71.136. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except

[[Page 143]]

in those cases where applicable Federal statutes expressly mandate or 
encourage geographic preference. Nothing in this section preempts State 
licensing laws. When contracting for architectural and engineering (A/E) 
services, geographic location may be a selection criteria provided its 
application leaves an appropriate number of qualified firms, given the 
nature and size of the project, to compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 105-71.136(d)(2)(i) 
apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such

[[Page 144]]

discounts are usually taken advantage of; and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with more than one source 
submitting an offer, and either a fixed-price or cost-reimbursement type 
contract is awarded. It is generally used when conditions are not 
appropriate for the use of sealed bids. If this method is used, the 
following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.

[[Page 145]]

    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular 
procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price reasonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 105-71.122). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system

[[Page 146]]

to be certified. Generally, these reviews shall occur where there is a 
continuous high-dollar funding, and third-party contracts are awarded on 
a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the system. Under a self-certification procedure, 
awarding agencies may wish to rely on written assurances from the 
grantee or subgrantee that it is complying with these standards. A 
grantee or subgrantee will cite specific procedures, regulations, 
standards, etc., as being in compliance with these requirements and have 
its system available for review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining

[[Page 147]]

to patent rights with respect to any discovery or invention which arises 
or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency, the Comptroller General of the United States, or any of their 
duly authorized representatives to any books, documents, papers, and 
records of the contractor which are directly pertinent to that specific 
contract for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).

[58 FR 43270, Aug. 16, 1993, as amended at 60 FR 19639, 19644, Apr. 19, 
1995]



Sec. 105-71.137  Subgrants.

    (a) States. States shall follow State law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 105-71.142 is 
placed in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 105-71.110;
    (2) Section 105-71.111;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 105-71.121; and
    (4) Section 105-71.150.



Subpart 105-71.14--Post-Award Requirements/Reports, Records, Retention, 
                             and Enforcement



Sec. 105-71.140  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Non-construction performance reports. The Federal agency may, if 
it decides that performance information

[[Page 148]]

available from subsequent applications contains sufficient information 
to meet its programmatic needs, require the grantee to submit a 
performance report only upon expiration or termination of grant support. 
Unless waived by the Federal agency this report will be due on the same 
date as the final Financial Status Report.
    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semiannual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports shall be due 90 days after the grant year, quarterly or 
semiannual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may exend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 105-71.141  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB

[[Page 149]]

to the extent required under the Paperwork Reduction Act of 1980 for use 
in connection with forms specified in paragraphs (b) through (e) of this 
section. Federal agencies may issue substantive supplementary 
instructions only with the approval of OMB. Federal agencies may shade 
out or instruct the grantee to disregard any line item that the Federal 
agency finds unnecessary for its decision making purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date on any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all non-construction grants and for construction grants when 
required in accordance with paragraph (e)(2)(iii) of this section.
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accrual basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through an analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter of credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272A, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriated when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form

[[Page 150]]

270, Request for Advance or Reimbursement. (This form will not be used 
for drawdowns under a letter of credit, electronic funds transfer or 
when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under non-
construction grants will also be submitted on Standard Form 270. (For 
reimbursement requests under construction grants, see paragraph (e)(1) 
of this section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 105-71.141(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs. (1) Grants that support construction activities paid by 
reimbursement method.
    (i) Requests for reimbursement under construction grants will be 
submitted on Standard Form 271, Outlay Report and Request for 
Reimbursement for Construction Programs. Federal agencies may, however, 
prescribe the Request for Advance or Reimbursement form, specified in 
Sec. 105-71.141(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 105-71.141(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance.
    (i) When a construction grant is paid by letter of credit, 
electronic funds transfer or Treasury check advances, the grantee will 
report its outlays to the Federal agency using Standard Form 271, Outlay 
Report and Request for Reimbursement for Construction Programs. The 
Federal agency will provide any necessary special instruction. However, 
frequency and due date shall be governed by Sec. 105-71.141(b) (3) and 
(4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 105-71.141(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 105-71.141(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 105-71.141(b)(2).



Sec. 105-71.142  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees of subgrantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 105-71.136(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on

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the day the grantee or subgrantee submits to the awarding agency its 
single or last expenditure report for that period. However, if grant 
support is continued or renewed quarterly, the retention period for each 
year's records starts on the day the grantee submits its expenditure 
report for the last quarter of the Federal fiscal year. In all other 
cases, the retention period starts on the day the grantee submits its 
final expenditure report. If an expenditure report has been waived, the 
retention period starts on the day the report would have been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rates 
at which a particular group of costs is chargeable (such as computer 
usage chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computations are not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records. Unless 
required by Federal, State, or local law, grantees and subgrantees are 
not required to permit public access to their records.



Sec. 105-71.143  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporary withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Without further awards for the program, or
    (5) Take other remedies that may be legally available,
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency

[[Page 152]]

will provide the grantee or subgrantee an opportunity for such hearing, 
appeal, or other administrative proceeding to which the grantee or 
subgrantee is entitled under any statute or regulation applicable to the 
action involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in case of a 
termination, are noncancellable, and,
    (2) The cost would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 105-71.135).



Sec. 105-71.144  Termination for convenience.

    Except as provided in Sec. 105-71.143 awards may be terminated in 
whole or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 105-
71.143 or paragraph (a) of this section.



             Subpart 105-71.15--After-the-Grant Requirements



Sec. 105-71.150  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report: In accordance with Sec. 105-
71.132(f), a grantee must submit an inventory of all federally owned 
property (as distinct from property acquired with grant funds) for which 
it is accountable and request disposition instructions from the Federal 
agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash

[[Page 153]]

advanced that is not authorized to be retained for use on other grants.



Sec. 105-71.151  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 105-71.142;
    (d) Property management requirements in Sec. 105-71.131 and 
Sec. 105-71.132; and
    (e) Audit requirements in Sec. 105-71.126.



Sec. 105-71.152  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an administrative offset against other requests for 
reimbursement,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Ch.II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.



               Subpart 105-71.16--Entitlements [Reserved]



PART 105-72--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table of Contents




                        Subpart 105-72.1--General

Sec.
105-72.100  Purpose.
105-72.101  Definitions.
105-72.102  Effect on other issuances.
105-72.103  Deviations.
105-72.104  Subawards.

                Subpart 105-72.2--Pre-Award Requirements

105-72.200  Purpose.
105-72.201  Pre-award policies.
105-72.202  Forms for applying for Federal assistance.
105-72.203  Debarment and suspension.
105-72.204  Special award conditions.
105-72.205  Metric system of measurement.
105-72.206  Resource Conservation and Recovery Act.
105-72.207  Certifications and representations.

    Subpart 105-72.30--Post-Award Requirements/Financial and Program 
                               Management

105-72.300  Purpose of financial and program management.
105-72.301  Standards for financial management systems.
105-72.302  Payment.
105-72.303  Cost sharing or matching.
105-72.304  Program income.
105-72.305  Revision of budget and program plans.
105-72.306  Non-Federal audits.
105-72.307  Allowable costs.
105-72.308  Period of availability of funds.

      Subpart 105-72.40--Post-Award Requirements/Property Standards

105-72.400  Purpose of property standards.
105-72.401  Insurance coverage.
105-72.402  Real property.
105-72.403  Federally-owned and exempt property.
105-72.404  Equipment.
105-72.405  Supplies and other expendable property.
105-72.406  Intangible property.
105-72.407  Property trust relationship.

    Subpart 105-72.50--Post-Award Requirements/Procurement Standards

105-72.500  Purpose of procurement standards.
105-72.501  Recipient responsibilities.
105-72.502  Codes of conduct.
105-72.503  Competition.
105-72.504  Procurement procedures.
105-72.505  Cost and price analysis.
105-72.506  Procurement records.
105-72.507  Contract administration.
105-72.508  Contract provisions.

[[Page 154]]

     Subpart 105-72.60--Post-Award Requirements/Reports and Records

105-72.600  Purpose of reports and records.
105-72.601  Monitoring and reporting program performance.
105-72.602  Financial reporting.
105-72.603  Retention and access requirements for records.

 Subpart 105-72.70--Post-Award Requirements/Termination and Enforcement

105-72.700  Purpose of termination and enforcement.
105-72.701  Termination.
105-72.702  Enforcement.

             Subpart 105-72.80--After-the-Award Requirements

105-72.800  Purpose.
105-72.801  Closeout procedures.
105-72.802  Subsequent adjustments and continuing responsibilities.
105-72.803  Collection of amounts due.

Appendix A to Part 105-72--Contract Provisions

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

    Source: 59 FR 47268, Sept. 15, 1994, unless otherwise noted.



                        Subpart 105-72.1--General



Sec. 105-72.100  Purpose.

    This part establishes uniform administrative requirements for 
Federal grants and agreements awarded to institutions of higher 
education, hospitals, and other non-profit organizations. Federal 
awarding agencies shall not impose additional or inconsistent 
requirements, except as provided in Sec. 105-72.103, and Sec. 105-72.204 
or unless specifically required by Federal statute or executive order. 
Non-profit organizations that implement Federal programs for the States 
are also subject to State requirements.



Sec. 105-72.101  Definitions.

    (a) Accrued expenditures means the charges incurred by the recipient 
during a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subrecipients, and 
other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    (b) Accrued income means the sum of:
    (1) Earnings during a given period from
    (i) Services performed by the recipient, and
    (ii) Goods and other tangible property delivered to purchasers, and
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    (c) Acquisition cost of equipment means the net invoice price of the 
equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the property 
usable for the purpose for which it was acquired. Other charges, such as 
the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included or excluded from the unit 
acquisition cost in accordance with the recipient's regular accounting 
practices.
    (d) Advance means a payment made by Treasury check or other 
appropriate payment mechanism to a recipient upon its request either 
before outlays are made by the recipient or through the use of 
predetermined payment schedules.
    (e) Award means financial assistance that provides support or 
stimulation to accomplish a public purpose. Awards include grants and 
other agreements in the form of money or property in lieu of money, by 
the Federal Government to an eligible recipient. The term does not 
include: technical assistance, which provides services instead of money; 
other assistance in the form of loans, loan guarantees, interest 
subsidies, or insurance; direct payments of any kind to individuals; 
and, contracts which are required to be entered into and administered 
under procurement laws and regulations.
    (f) Cash contributions means the recipient's cash outlay, including 
the outlay of money contributed to the recipient by third parties.
    (g) Closeout means the process by which a Federal awarding agency 
determines that all applicable administrative actions and all required 
work of

[[Page 155]]

the award have been completed by the recipient and Federal awarding 
agency.
    (h) Contract means a procurement contract under an award or 
subaward, and a procurement subcontract under a recipient's or 
subrecipient's contract.
    (i) Cost sharing or matching means that portion of project or 
program costs not borne by the Federal Government.
    (j) Date of completion means the date on which all work under an 
award is completed or the date on the award document, or any supplement 
or amendment thereto, on which Federal sponsorship ends.
    (k) Disallowed costs means those charges to an award that the 
Federal awarding agency determines to be unallowable, in accordance with 
the applicable Federal cost principles or other terms and conditions 
contained in the award.
    (l) Equipment means tangible nonexpendable personal property 
including exempt property charged directly to the award having a useful 
life of more than one year and an acquisition cost of $5000 or more per 
unit. However, consistent with recipient policy, lower limits may be 
established.
    (m) Excess property means property under the control of any Federal 
awarding agency that, as determined by the head thereof, is no longer 
required for its needs or the discharge of its responsibilities.
    (n) Exempt property means tangible personal property acquired in 
whole or in part with Federal funds, where the Federal awarding agency 
has statutory authority to vest title in the recipient without further 
obligation to the Federal Government. An example of exempt property 
authority is contained in the Federal Grant and Cooperative Agreement 
Act (31 U.S.C. 6306), for property acquired under an award to conduct 
basic or applied research by a non-profit institution of higher 
education or non-profit organization whose principal purpose is 
conducting scientific research.
    (o) Federal awarding agency means the Federal agency that provides 
an award to the recipient.
    (p) Federal funds authorized means the total amount of Federal funds 
obligated by the Federal Government for use by the recipient. This 
amount may include any authorized carryover of unobligated funds from 
prior funding periods when permitted by agency regulations or agency 
implementing instructions.
    (q) Federal share of real property, equipment, or supplies means 
that percentage of the property's acquisition costs and any improvement 
expenditures paid with Federal funds.
    (r) Funding period means the period of time when Federal funding is 
available for obligation by the recipient.
    (s) Intangible property and debt instruments means, but is not 
limited to, trademarks, copyrights, patents and patent applications and 
such property as loans, notes and other debt instruments, lease 
agreements, stock and other instruments of property ownership, whether 
considered tangible or intangible.
    (t) Obligations means the amounts of orders placed, contracts and 
grants awarded, services received and similar transactions during a 
given period that require payment by the recipient during the same or a 
future period.
    (u) Outlays or expenditures means charges made to the project or 
program. They may be reported on a cash or accrual basis. For reports 
prepared on a cash basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
charged, the value of third party in-kind contributions applied and the 
amount of cash advances and payments made to subrecipients. For reports 
prepared on an accrual basis, outlays are the sum of cash disbursements 
for direct charges for goods and services, the amount of indirect 
expense incurred, the value of in-kind contributions applied, and the 
net increase (or decrease) in the amounts owed by the recipient for 
goods and other property received, for services performed by employees, 
contractors, subrecipients and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.
    (v) Personal property means property of any kind except real 
property. It may be tangible, having physical existence, or intangible, 
having no physical

[[Page 156]]

existence, such as copyrights, patents, or securities.
    (w) Prior approval means written approval by an authorized official 
evidencing prior consent.
    (x) Program income means gross income earned by the recipient that 
is directly generated by a supported activity or earned as a result of 
the award (see exclusions in Sec. 105-72.304 (e) and (h)). Program 
income includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired under 
federally-funded projects, the sale of commodities or items fabricated 
under an award, license fees and royalties on patents and copyrights, 
and interest on loans made with award funds. Interest earned on advances 
of Federal funds is not program income. Except as otherwise provided in 
Federal awarding agency regulations or the terms and conditions of the 
award, program income does not include the receipt of principal on 
loans, rebates, credits, discounts, etc., or interest earned on any of 
them.
    (y) Project costs means all allowable costs, as set forth in the 
applicable Federal cost principles, incurred by a recipient and the 
value of the contributions made by third parties in accomplishing the 
objectives of the award during the project period.
    (z) Project period means the period established in the award 
document during which Federal sponsorship begins and ends.
    (aa) Property means, unless otherwise stated, real property, 
equipment, intangible property and debt instruments.
    (bb) Real property means land, including land improvements, 
structures and appurtenances thereto, but excludes movable machinery and 
equipment.
    (cc) Recipient means an organization receiving financial assistance 
directly from Federal awarding agencies to carry out a project or 
program. The term includes public and private institutions of higher 
education, public and private hospitals, and other quasi-public and 
private non-profit organizations such as, but not limited to, community 
action agencies, research institutes, educational associations, and 
health centers. The term may include commercial organizations, foreign 
or international organizations (such as agencies of the United Nations) 
which are recipients, subrecipients, or contractors or subcontractors of 
recipients or subrecipients at the discretion of the Federal awarding 
agency. The term does not include government-owned contractor-operated 
facilities or research centers providing continued support for mission-
oriented, large-scale programs that are government-owned or controlled, 
or are designated as federally-funded research and development centers.
    (dd) Research and development means all research activities, both 
basic and applied, and all development activities that are supported at 
universities, colleges, and other non-profit institutions. ``Research'' 
is defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. ``Development'' is 
the systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, or 
methods, including design and development of prototypes and processes. 
The term research also includes activities involving the training of 
individuals in research techniques where such activities utilize the 
same facilities as other research and development activities and where 
such activities are not included in the instruction function.
    (ee) Small awards means a grant or cooperative agreement not 
exceeding the small purchase threshold fixed at 41 U.S.C. 403(11) 
(currently $25,000).
    (ff) Subaward means an award of financial assistance in the form of 
money, or property in lieu of money, made under an award by a recipient 
to an eligible subrecipient or by a subrecipient to a lower tier 
subrecipient. The term includes financial assistance when provided by 
any legal agreement, even if the agreement is called a contract, but 
does not include procurement of goods and services nor does it include 
any form of assistance which is excluded from the definition of 
``award'' in paragraph 105-72.101(e).
    (gg) Subrecipient means the legal entity to which a subaward is made 
and which is accountable to the recipient for the use of the funds 
provided. The

[[Page 157]]

term may include foreign or international organizations (such as 
agencies of the United Nations) at the discretion of the Federal 
awarding agency.
    (hh) Supplies means all personal property excluding equipment, 
intangible property, and debt instruments as defined in this section, 
and inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement (``subject 
inventions''), as defined in 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts, and Cooperative Agreements.''
    (ii) Suspension means an action by a Federal awarding agency that 
temporarily withdraws Federal sponsorship under an award, pending 
corrective action by the recipient or pending a decision to terminate 
the award by the Federal awarding agency. Suspension of an award is a 
separate action from suspension under Federal agency regulations 
implementing E.O.s 12549 and 12689, ``Debarment and Suspension.''
    (jj) Termination means the cancellation of Federal sponsorship, in 
whole or in part, under an agreement at any time prior to the date of 
completion.
    (kk) Third party in-kind contributions means the value of noncash 
contributions provided by non-Federal third parties. Third party in-kind 
contributions may be in the form of real property, equipment, supplies 
and other expendable property, and the value of goods and services 
directly benefiting and specifically identifiable to the project or 
program.
    (ll) Unliquidated obligations, for financial reports prepared on a 
cash basis, means the amount of obligations incurred by the recipient 
that have not been paid. For reports prepared on an accrued expenditure 
basis, they represent the amount of obligations incurred by the 
recipient for which an outlay has not been recorded.
    (mm) Unobligated balance means the portion of the funds authorized 
by the Federal awarding agency that has not been obligated by the 
recipient and is determined by deducting the cumulative obligations from 
the cumulative funds authorized.
    (nn) Unrecovered indirect cost means the difference between the 
amount awarded and the amount which could have been awarded under the 
recipient's approved negotiated indirect cost rate.
    (oo) Working capital advance means a procedure where by funds are 
advanced to the recipient to cover its estimated disbursement needs for 
a given initial period.



Sec. 105-72.102  Effect on other issuances.

    For awards subject to this regulation, all administrative 
requirements of codified program regulations, program manuals, handbooks 
and other nonregulatory materials which are inconsistent with the 
requirements of this regulation shall be superseded, except to the 
extent they are required by statute, or authorized in accordance with 
the deviations provision in Sec. 105-72.103.



Sec. 105-72.103  Deviations.

    The Office of Management and Budget (OMB) may grant exceptions for 
classes of grants or recipients subject to the requirements of this 
regulation when exceptions are not prohibited by statute. However, in 
the interest of maximum uniformity, exceptions from the requirements of 
this regulation shall be permitted only in unusual circumstances. 
Federal awarding agencies may apply more restrictive requirements to a 
class of recipients when approved by OMB. Federal awarding agencies may 
apply less restrictive requirements when awarding small awards, except 
for those requirements which are statutory. Exceptions on a case-by-case 
basis may also be made by Federal awarding agencies.



Sec. 105-72.104  Subawards.

    Unless sections of this regulation specifically exclude 
subrecipients from coverage, the provisions of this regulation shall be 
applied to subrecipients performing work under awards if such 
subrecipients are institutions of higher education, hospitals or other 
non-profit organizations. State and local government subrecipients are 
subject to the provisions of regulations implementing the grants 
management common rule,

[[Page 158]]

``Uniform Administrative Requirements for Grants and Cooperative 
Agreements to State and Local Governments,'' 41 CFR 105-71.



                Subpart 105-72.2--Pre-Award Requirements



Sec. 105-72.200  Purpose.

    Sections 105-72.201 through 105-72.207 prescribes forms and 
instructions and other pre-award matters to be used in applying for 
Federal awards.



Sec. 105-72.201  Pre-award policies.

    (a) Use of grants and cooperative agreements, and contracts. In each 
instance, the Federal awarding agency shall decide on the appropriate 
award instrument (i.e., grant, cooperative agreement, or contract). The 
Federal Grant and Cooperative Agreement Act (31 U.S.C. 6301-08) governs 
the use of grants, cooperative agreements and contracts. A grant or 
cooperative agreement shall be used only when the principal purpose of a 
transaction is to accomplish a public purpose of support or stimulation 
authorized by Federal statute. The statutory criterion for choosing 
between grants and cooperative agreements is that for the latter, 
``substantial involvement is expected between the executive agency and 
the State, local government, or other recipient when carrying out the 
activity contemplated in the agreement.'' Contracts shall be used when 
the principal purpose is acquisition of property or services for the 
direct benefit or use of the Federal Government.
    (b) Public notice and priority setting. Federal awarding agencies 
shall notify the public of its intended funding priorities for 
discretionary grant programs, unless funding priorities are established 
by Federal statute.



Sec. 105-72.202  Forms for applying for Federal assistance.

    (a) Federal awarding agencies shall comply with the applicable 
report clearance requirements of 5 CFR part 1320, ``Controlling 
Paperwork Burdens on the Public,'' with regard to all forms used by the 
Federal awarding agency in place of or as a supplement to the Standard 
Form 424 (SF-424) series.
    (b) Applicants shall use the SF-424 series or those forms and 
instructions prescribed by the Federal awarding agency.
    (c) For Federal programs covered by E.O. 12372, ``Intergovernmental 
Review of Federal Programs,'' the applicant shall complete the 
appropriate sections of the SF-424 (Application for Federal Assistance) 
indicating whether the application was subject to review by the State 
Single Point of Contact (SPOC). The name and address of the SPOC for a 
particular State can be obtained from the Federal awarding agency or the 
Catalog of Federal Domestic Assistance. The SPOC shall advise the 
applicant whether the program for which application is made has been 
selected by that State for review.
    (d) Federal awarding agencies that do not use the SF-424 form should 
indicate whether the application is subject to review by the State under 
E.O. 12372.



Sec. 105-72.203  Debarment and suspension.

    Federal awarding agencies and recipients shall comply with the 
nonprocurement debarment and suspension common rule implementing E.O.s 
12549 and 12689, ``Debarment and Suspension.'' This common rule 
restricts subawards and contracts with certain parties that are 
debarred, suspended or otherwise excluded from or ineligible for 
participation in Federal assistance programs or activities.



Sec. 105-72.204  Special award conditions.

    If an applicant or recipient:
    (a) Has a history of poor performance,
    (b) Is not financially stable,
    (c) Has a management system that does not meet the standards 
prescribed in this regulation,
    (d) Has not conformed to the terms and conditions of a previous 
award, or
    (e) Is not otherwise responsible;

Federal awarding agencies may impose additional requirements as needed, 
provided that such applicant or recipient is notified in writing as to: 
the nature of the additional requirements, the reason why the additional 
requirements are being imposed, the nature of the

[[Page 159]]

corrective action needed, the time allowed for completing the corrective 
actions, and the method for requesting reconsideration of the additional 
requirements imposed. Any special conditions shall be promptly removed 
once the conditions that prompted them have been corrected.



Sec. 105-72.205  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce. The Act 
requires each Federal agency to establish a date or dates in 
consultation with the Secretary of Commerce, when the metric system of 
measurement will be used in the agency's procurements, grants, and other 
business-related activities. Metric implementation may take longer where 
the use of the system is initially impractical or likely to cause 
significant inefficiencies in the accomplishment of federally-funded 
activities. Federal awarding agencies shall follow the provisions of 
E.O. 12770, ``Metric Usage in Federal Government Programs.''



Sec. 105-72.206  Resource Conservation and Recovery Act.

    Under the Resource Conservation and Recovery Act (RCRA) (Pub. L. 94-
580 codified at 42 U.S.C. 6962), any State agency or agency of a 
political subdivision of a State which is using appropriated Federal 
funds must comply with section 6002. Section 6002 requires that 
preference be given in procurement programs to the purchase of specific 
products containing recycled materials identified in guidelines 
developed by the Environmental Protection Agency (EPA) (40 CFR parts 247 
through 254). Accordingly, State and local institutions of higher 
education, hospitals, and non-profit organizations that receive direct 
Federal awards or other Federal funds shall give preference in their 
procurement programs funded with Federal funds to the purchase of 
recycled products pursuant to the EPA guidelines.



Sec. 105-72.207  Certifications and representations.

    Unless prohibited by statute or codified regulation, each Federal 
awarding agency is authorized and encouraged to allow recipients to 
submit certifications and representations required by statute, executive 
order, or regulation on an annual basis, if the recipients have ongoing 
and continuing relationships with the agency. Annual certifications and 
representations shall be signed by responsible officials with the 
authority to ensure recipients' compliance with the pertinent 
requirements.



    Subpart 105-72.30--Post-Award Requirements/Financial and Program 
                               Management



Sec. 105-72.300  Purpose of financial and program management.

    Sections 105-72.301 through 105-72.308 prescribe standards for 
financial management systems, methods for making payments and rules for: 
satisfying cost sharing and matching requirements, accounting for 
program income, budget revision approvals, making audits, determining 
allowability of cost, and establishing fund availability.



Sec. 105-72.301  Standards for financial management systems.

    (a) Federal awarding agencies shall require recipients to relate 
financial data to performance data and develop unit cost information 
whenever practical.
    (b) Recipients' financial management systems shall provide for the 
following.
    (1) Accurate, current and complete disclosure of the financial 
results of each federally-sponsored project or program in accordance 
with the reporting requirements set forth in Sec. 105-72.602. If a 
Federal awarding agency requires reporting on an accrual basis from a 
recipient that maintains its records on other than an accrual basis, the 
recipient shall not be required to establish an accrual accounting 
system. These recipients may develop such accrual data for its reports 
on the basis of an analysis of the documentation on hand.
    (2) Records that identify adequately the source and application of 
funds for

[[Page 160]]

federally-sponsored activities. These records shall contain information 
pertaining to Federal awards, authorizations, obligations, unobligated 
balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the provisions 
of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, 
payment methods of State agencies, instrumentalities, and fiscal agents 
shall be consistent with CMIA Treasury-State Agreements or the CMIA 
default procedures codified at 31 CFR part 205, ``Withdrawal of Cash 
from the Treasury for Advances under Federal Grant and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs in accordance with the provisions 
of the applicable Federal cost principles and the terms and conditions 
of the award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the repayment 
of money borrowed by the recipient, the Federal awarding agency, at its 
discretion, may require adequate bonding and insurance if the bonding 
and insurance requirements of the recipient are not deemed adequate to 
protect the interest of the Federal Government.
    (d) The Federal awarding agency may require adequate fidelity bond 
coverage where the recipient lacks sufficient coverage to protect the 
Federal Government's interest.
    (e) Where bonds are required in the situations described above, the 
bonds shall be obtained from companies holding certificates of authority 
as acceptable sureties, as prescribed in 31 CFR part 223, ``Surety 
Companies Doing Business with the United States.''



Sec. 105-72.302  Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities shall 
be consistent with Treasury-State CMIA agreements or default procedures 
codified at 31 CFR part 205.
    (b)(1) Recipients are to be paid in advance, provided they maintain 
or demonstrate the willingness to maintain:
    (i) Written procedures that minimize the time elapsing between the 
transfer of funds and disbursement by the recipient, and
    (ii) Financial management systems that meet the standards for fund 
control and accountability as established in Sec. 105-72.301.
    (2) Cash advances to a recipient organization shall be limited to 
the minimum amounts needed and be timed to be in accordance with the 
actual, immediate cash requirements of the recipient organization in 
carrying out the purpose of the approved program or project. The timing 
and amount of cash advances shall be as close as is administratively 
feasible to the actual disbursements by the recipient organization for 
direct program or project costs and the proportionate share of any 
allowable indirect costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by the Federal awarding 
agency to the recipient.
    (1) Advance payment mechanisms include, but are not limited to, 
Treasury check and electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR part 205.
    (3) Recipients shall be authorized to submit requests for advances 
and reimbursements at least monthly when electronic fund transfers are 
not used.
    (d) Requests for Treasury check advance payment shall be submitted 
on

[[Page 161]]

SF-270, ``Request for Advance or Reimbursement,'' or other forms as may 
be authorized by OMB. This form is not to be used when Treasury check 
advance payments are made to the recipient automatically through the use 
of a predetermined payment schedule or if precluded by special Federal 
awarding agency instructions for electronic funds transfer.
    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) cannot be met. Federal awarding agencies may also use this 
method on any construction agreement, or if the major portion of the 
construction project is accomplished through private market financing or 
Federal loans, and the Federal assistance constitutes a minor portion of 
the project.
    (1) When the reimbursement method is used, the Federal awarding 
agency shall make payment within 30 days after receipt of the billing, 
unless the billing is improper.
    (2) Recipients shall be authorized to submit request for 
reimbursement at least monthly when electronic funds transfers are not 
used.
    (f) If a recipient cannot meet the criteria for advance payments and 
the Federal awarding agency has determined that reimbursement is not 
feasible because the recipient lacks sufficient working capital, the 
Federal awarding agency may provide cash on a working capital advance 
basis. Under this procedure, the Federal awarding agency shall advance 
cash to the recipient to cover its estimated disbursement needs for an 
initial period generally geared to the awardee's disbursing cycle. 
Thereafter, the Federal awarding agency shall reimburse the recipient 
for its actual cash disbursements. The working capital advance method of 
payment shall not be used for recipients unwilling or unable to provide 
timely advances to their subrecipient to meet the subrecipient's actual 
cash disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to and interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit recoveries 
and interest earned on such funds before requesting additional cash 
payments.
    (h) Unless otherwise required by statute, Federal awarding agencies 
shall not withhold payments for proper charges made by recipients at any 
time during the project period unless paragraphs (h)(1) or (2) of this 
section apply.
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or Federal reporting 
requirements.
    (2) The recipient or subrecipient is delinquent in a debt to the 
United States as defined in OMB Circular A-129, ``Managing Federal 
Credit Programs.'' Under such conditions, the Federal awarding agency 
may, upon reasonable notice, inform the recipient that payments shall 
not be made for obligations incurred after a specified date until the 
conditions are corrected or the indebtedness to the Federal Government 
is liquidated.
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows:
    (1) Except for situations described in paragraph (i)(2), Federal 
awarding agencies shall not require separate depository accounts for 
funds provided to a recipient or establish any eligibility requirements 
for depositories for funds provided to a recipient. However, recipients 
must be able to account for the receipt, obligation and expenditure of 
funds.
    (2) Advances of Federal funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the opportunities 
for women-owned and minority-owned business enterprises, recipients 
shall be encouraged to use womenowned and minority-owned banks (a bank 
which is owned at least 50 percent by women or minority group members).
    (k) Recipients shall maintain advances of Federal funds in interest 
bearing accounts, unless paragraph (k)(1), (2) or (3) of this section 
apply.
    (1) The recipient receives less than $120,000 in Federal awards per 
year.

[[Page 162]]

    (2) The best reasonably available interest bearing account would not 
be expected to earn interest in excess of $250 per year on Federal cash 
balances.
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l) For those entities where CMIA and its implementing regulations 
do not apply, interest earned on Federal advances deposited in interest 
bearing accounts shall be remitted annually to Department of Health and 
Human Services, Payment Management System, P.O. Box 6021, Rockville, MD 
20852. Interest amounts up to $250 per year may be retained by the 
recipient for administrative expense. State universities and hospitals 
shall comply with CMIA, as it pertains to interest. If an entity subject 
to CMIA uses its own funds to pay pre-award costs for discretionary 
awards without prior written approval from the Federal awarding agency, 
it waives its right to recover the interest under CMIA.
    (m) Except as noted elsewhere in this regulation, only the following 
forms shall be authorized for the recipients in requesting advances and 
reimbursements. Federal agencies shall not require more than an original 
and two copies of these forms.
    (1) SF-270, Request for Advance or Reimbursement. Each Federal 
awarding agency shall adopt the SF-270 as a standard form for all 
nonconstruction programs when electronic funds transfer or predetermined 
advance methods are not used. Federal awarding agencies, however, have 
the option of using this form for construction programs in lieu of the 
SF-271, ``Outlay Report and Request for Reimbursement for Construction 
Programs.''
    (2) SF-271, Outlay Report and Request for Reimbursement for 
Construction Programs. Each Federal awarding agency shall adopt the SF-
271 as the standard form to be used for requesting reimbursement for 
construction programs. However, a Federal awarding agency may substitute 
the SF-270 when the Federal awarding agency determines that it provides 
adequate information to meet Federal needs.



Sec. 105-72.303  Cost sharing or matching.

    (a) All contributions, including cash and third party in-kind, shall 
be accepted as part of the recipient's cost sharing or matching when 
such contributions meet all of the following criteria.
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except where authorized by Federal statute to be used for cost sharing 
or matching.
    (6) Are provided for in the approved budget when required by the 
Federal awarding agency.
    (7) Conform to other provisions of this regulation, as applicable.
    (b) Unrecovered indirect costs may be included as part of cost 
sharing or matching only with the prior approval of the Federal awarding 
agency.
    (c) Values for recipient contributions of services and property 
shall be established in accordance with the applicable cost principles. 
If a Federal awarding agency authorizes recipients to donate buildings 
or land for construction/facilities acquisition projects or long-term 
use, the value of the donated property for cost sharing or matching 
shall be the lesser of paragraph (c)(1) or (2) of this section.
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation.
    (2) The current fair market value. However, when there is sufficient 
justification, the Federal awarding agency may approve the use of the 
current fair market value of the donated property, even if it exceeds 
the certified value at the time of donation to the project.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an

[[Page 163]]

integral and necessary part of an approved project or program. Rates for 
volunteer services shall be consistent with those paid for similar work 
in the recipient's organization. In those instances in which the 
required skills are not found in the recipient organization, rates shall 
be consistent with those paid for similar work in the labor market in 
which the recipient competes for the kind of services involved. In 
either case, paid fringe benefits that are reasonable, allowable, and 
allocable may be included in the valuation.
    (e) When an employer other than the recipient furnishes the services 
of an employee, these services shall be valued at the employee's regular 
rate of pay (plus an amount of fringe benefits that are reasonable, 
allowable, and allocable, but exclusive of overhead costs), provided 
these services are in the same skill for which the employee is normally 
paid.
    (f) Donated supplies may include such items as expendable equipment, 
office supplies, laboratory supplies or workshop and classroom supplies. 
Value assessed to donated supplies included in the cost sharing or 
matching share shall be reasonable and shall not exceed the fair market 
value of the property at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if paragraph 
(g)(1) or (2) of this section apply.
    (1) If the purpose of the award is to assist the recipient in the 
acquisition of equipment, buildings or land, the total value of the 
donated property may be claimed as cost sharing or matching.
    (2) If the purpose of the award is to support activities that 
require the use of equipment, buildings or land, normally only 
depreciation or use charges for equipment and buildings may be made. 
However, the full value of equipment or other capital assets and fair 
rental charges for land may be allowed, provided that the Federal 
awarding agency has approved the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications.
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.
    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (5) The following requirements pertain to the recipient's supporting 
records for in-kind contributions from third parties.
    (i) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (ii) The basis for determining the valuation for personal service, 
material, equipment, buildings and land shall be documented.



Sec. 105-72.304  Program income.

    (a) Federal awarding agencies shall apply the standards set forth in 
this section in requiring recipient organizations to account for program 
income related to projects financed in whole or in part with Federal 
funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with Federal awarding agency regulations or 
the terms and conditions of the award, shall be used in one or more of 
the ways listed in the following.
    (1) Added to funds committed to the project by the Federal awarding 
agency and recipient and used to further eligible project or program 
objectives.
    (2) Used to finance the non-Federal share of the project or program.

[[Page 164]]

    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When an agency authorizes the disposition of program income as 
described in paragraphs (b)(1) or (b)(2), program income in excess of 
any limits stipulated shall be used in accordance with paragraph (b)(3).
    (d) In the event that the Federal awarding agency does not specify 
in its regulations or the terms and conditions of the award how program 
income is to be used, paragraph (b)(3) shall apply automatically to all 
projects or programs except research. For awards that support research, 
paragraph (b)(1) shall apply automatically unless the awarding agency 
indicates in the terms and conditions another alternative on the award 
or the recipient is subject to special award conditions, as indicated in 
Sec. 105-72.204.
    (e) Unless Federal awarding agency regulations or the terms and 
conditions of the award provide otherwise, recipients shall have no 
obligation to the Federal Government regarding program income earned 
after the end of the project period.
    (f) If authorized by Federal awarding agency regulations or the 
terms and conditions of the award, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income, provided these costs have not been charged to the award.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (See 
Sec. 105-72.400 through Sec. 105-72.407).
    (h) Unless Federal awarding agency regulations or the terms and 
condition of the award provide otherwise, recipients shall have no 
obligation to the Federal Government with respect to program income 
earned from license fees and royalties for copyrighted material, 
patents, patent applications, trademarks, and inventions produced under 
an award. However, Patent and Trademark Amendments (35 U.S.C. 18) apply 
to inventions made under an experimental, developmental, or research 
award.



Sec. 105-72.305  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
Federal and non-Federal share, or only the Federal share, depending upon 
Federal awarding agency requirements. It shall be related to performance 
for program evaluation purposes whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) For nonconstruction awards, recipients shall request prior 
approvals from Federal awarding agencies for one or more of the 
following program or budget related reasons.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).
    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional Federal funding.
    (5) The transfer of amounts budgeted for indirect costs to absorb 
increases in direct costs, or vice versa, if approval is required by the 
Federal awarding agency.
    (6) The inclusion, unless waived by the Federal awarding agency, of 
costs that require prior approval in accordance with OMB Circular A-21, 
``Cost Principles for Institutions of Higher Education,'' OMB Circular 
A-122, ``Cost Principles for Non-Profit Organizations,'' or 45 CFR part 
74 appendix E, ``Principles for Determining Costs Applicable to Research 
and Development under Grants and Contracts with Hospitals,'' or 48 CFR 
part 31, ``Contract Cost Principles and Procedures,'' as applicable.
    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved

[[Page 165]]

awards, the subaward, transfer or contracting out of any work under an 
award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (d) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved by OMB.
    (e) Except for requirements listed in paragraphs (c)(1) and (c)(4) 
of this section, Federal awarding agencies are authorized, at their 
option, to waive cost-related and administrative prior written approvals 
required by this regulation and OMB Circulars A-21 and A-122. Such 
waivers may include authorizing recipients to do any one or more of the 
following.
    (1) Incur pre-award costs 90 calendar days prior to award or more 
than 90 calendar days with the prior approval of the Federal awarding 
agency. All pre-award costs are incurred at the recipient's risk (i.e., 
the Federal awarding agency is under no obligation to reimburse such 
costs if for any reason the recipient does not receive an award or if 
the award is less than anticipated and inadequate to cover such costs).
    (2) Initiate a one-time extension of the expiration date of the 
award of up to 12 months unless one or more of the following conditions 
apply. For one-time extensions, the recipient must notify the Federal 
awarding agency in writing with the supporting reasons and revised 
expiration date at least 10 days before the expiration date specified in 
the award. This one-time extension may not be exercised merely for the 
purpose of using unobligated balances.
    (i) The terms and conditions of award prohibit the extension.
    (ii) The extension requires additional Federal funds.
    (iii) The extension involves any change in the approved objectives 
or scope of the project.
    (3) Carry forward unobligated balances to subsequent funding 
periods.
    (4) For awards that support research, unless the Federal awarding 
agency provides otherwise in the award or in the agency's regulations, 
the prior approval requirements described in paragraph (e) are 
automatically waived (i.e., recipients need not obtain such prior 
approvals) unless one of the conditions included in paragraph (e)(2) 
applies.
    (f) The Federal awarding agency may, at its option, restrict the 
transfer of funds among direct cost categories or programs, functions 
and activities for awards in which the Federal share of the project 
exceeds $100,000 and the cumulative amount of such transfers exceeds or 
is expected to exceed 10 percent of the total budget as last approved by 
the Federal awarding agency. No Federal awarding agency shall permit a 
transfer that would cause any Federal appropriation or part thereof to 
be used for purposes other than those consistent with the original 
intent of the appropriation.
    (g) All other changes to nonconstruction budgets, except for the 
changes described in paragraph (j), do not require prior approval.
    (h) For construction awards, recipients shall request prior written 
approval promptly from Federal awarding agencies for budget revisions 
whenever paragraphs (h)(1), (2) or (3) of this section apply.
    (1) The revision results from changes in the scope or the objective 
of the project or program.
    (2) The need arises for additional Federal funds to complete the 
project.
    (3) A revision is desired which involves specific costs for which 
prior written approval requirements may be imposed consistent with 
applicable OMB cost principles listed in Sec. 105-72.307.
    (i) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved by OMB.
    (j) When a Federal awarding agency makes an award that provides 
support for both construction and nonconstruction work, the Federal 
awarding agency may require the recipient to request prior approval from 
the Federal awarding agency before making any fund or budget transfers 
between the two types of work supported.
    (k) For both construction and nonconstruction awards, Federal 
awarding agencies shall require recipients to notify the Federal 
awarding agency in writing promptly whenever the amount of Federal 
authorized funds is expected

[[Page 166]]

to exceed the needs of the recipient for the project period by more than 
$5000 or five percent of the Federal award, whichever is greater. This 
notification shall not be required if an application for additional 
funding is submitted for a continuation award.
    (l) When requesting approval for budget revisions, recipients shall 
use the budget forms that were used in the application unless the 
Federal awarding agency indicates a letter of request suffices.
    (m) Within 30 calendar days from the date of receipt of the request 
for budget revisions, Federal awarding agencies shall review the request 
and notify the recipient whether the budget revisions have been 
approved. If the revision is still under consideration at the end of 30 
calendar days, the Federal awarding agency shall inform the recipient in 
writing of the date when the recipient may expect the decision.



Sec. 105-72.306  Non-Federal audits.

    (a) Recipients and subrecipients that are institutions of higher 
education or other non-profit organizations shall be subject to the 
audit requirements contained in OMB Circular A-133, ``Audits of 
Institutions of Higher Education and Other Non-Profit Institutions.''
    (b) State and local governments shall be subject to the audit 
requirements contained in the Single Audit Act (31 U.S.C. 7501-7) and 
Federal awarding agency regulations implementing OMB Circular A-128, 
``Audits of State and Local Governments.''
    (c) Hospitals not covered by the audit provisions of OMB Circular A-
133 shall be subject to the audit requirements of the Federal awarding 
agencies.
    (d) Commercial organizations shall be subject to the audit 
requirements of the Federal awarding agency or the prime recipient as 
incorporated into the award document.



Sec. 105-72.307  Allowable costs.

    For each kind of recipient, there is a set of Federal principles for 
determining allowable costs. Allowability of costs shall be determined 
in accordance with the cost principles applicable to the entity 
incurring the costs. Thus, allowability of costs incurred by State, 
local or federally-recognized Indian tribal governments is determined in 
accordance with the provisions of OMB Circular A-87, ``Cost Principles 
for State and Local Governments.'' The allowability of costs incurred by 
non-profit organizations is determined in accordance with the provisions 
of OMB Circular A-122, ``Cost Principles for Non-Profit Organizations.'' 
The allowability of costs incurred by institutions of higher education 
is determined in accordance with the provisions of OMB Circular A-21, 
``Cost Principles for Educational Institutions.'' The allowability of 
costs incurred by hospitals is determined in accordance with the 
provisions of appendix E of 45 CFR part 74, ``Principles for Determining 
Costs Applicable to Research and Development Under Grants and Contracts 
with Hospitals.'' The allowability of costs incurred by commercial 
organizations and those non-profit organizations listed in Attachment C 
to Circular A-122 is determined in accordance with the provisions of the 
Federal Acquisition Regulation (FAR) at 48 CFR part 31.



Sec. 105-72.308  Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
grant only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs authorized by the Federal 
awarding agency.



      Subpart 105-72.40--Post-Award Requirements/Property Standards



Sec. 105-72.400  Purpose of property standards.

    Sections 105-72.401 through 105-72.407 set forth uniform standards 
governing management and disposition of property furnished by the 
Federal Government whose cost was charged to a project supported by a 
Federal award. Federal awarding agencies shall require recipients to 
observe these standards under awards and shall not impose additional 
requirements, unless specifically required by Federal statute. The 
recipient may use its own property management standards and procedures 
provided it observes the provisions of Sec. 105-72.401 through Sec. 105-
72.407.

[[Page 167]]



Sec. 105-72.401  Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with Federal funds as 
provided to property owned by the recipient. Federally-owned property 
need not be insured unless required by the terms and conditions of the 
award.



Sec. 105-72.402  Real property.

    Each Federal awarding agency shall prescribe requirements for 
recipients concerning the use and disposition of real property acquired 
in whole or in part under awards. Unless otherwise provided by statute, 
such requirements, at a minimum, shall contain the following.
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of the Federal awarding agency.
    (b) The recipient shall obtain written approval by the Federal 
awarding agency for the use of real property in other federally-
sponsored projects when the recipient determines that the property is no 
longer needed for the purpose of the original project. Use in other 
projects shall be limited to those under federally-sponsored projects 
(i.e., awards) or programs that have purposes consistent with those 
authorized for support by the Federal awarding agency.
    (c) When the real property is no longer needed as provided in 
paragraphs (a) and (b), the recipient shall request disposition 
instructions from the Federal awarding agency or its successor Federal 
awarding agency. The Federal awarding agency shall observe one or more 
of the following disposition instructions.
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by the Federal awarding agency and pay the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
from the sales proceeds). When the recipient is authorized or required 
to sell the property, proper sales procedures shall be established that 
provide for competition to the extent practicable and result in the 
highest possible return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.



Sec. 105-72.403  Federally-owned and exempt property.

    (a) Federally-owned property. (1) Title to federally-owned property 
remains vested in the Federal Government. Recipients shall submit 
annually an inventory listing of federally-owned property in their 
custody to the Federal awarding agency. Upon completion of the award or 
when the property is no longer needed, the recipient shall report the 
property to the Federal awarding agency for further Federal agency 
utilization.
    (2) If the Federal awarding agency has no further need for the 
property, it shall be declared excess and reported to the General 
Services Administration, unless the Federal awarding agency has 
statutory authority to dispose of the property by alternative methods 
(e.g., the authority provided by the Federal Technology Transfer Act (15 
U.S.C. 3710 (I)) to donate research equipment to educational and non-
profit organizations in accordance with E.O. 12821, ``Improving 
Mathematics and Science Education in Support of the National Education 
Goals.'') Appropriate instructions shall be issued to the recipient by 
the Federal awarding agency.
    (b) Exempt property. When statutory authority exists, the Federal 
awarding agency has the option to vest title to property acquired with 
Federal funds

[[Page 168]]

in the recipient without further obligation to the Federal Government 
and under conditions the Federal awarding agency considers appropriate. 
Such property is ``exempt property.'' Should a Federal awarding agency 
not establish conditions, title to exempt property upon acquisition 
shall vest in the recipient without further obligation to the Federal 
Government.



Sec. 105-72.404  Equipment.

    (a) Title to equipment acquired by a recipient with Federal funds 
shall vest in the recipient, subject to conditions of this section.
    (b) The recipient shall not use equipment acquired with Federal 
funds to provide services to non-Federal outside organizations for a fee 
that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute, for as long as the 
Federal Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds and shall not 
encumber the property without approval of the Federal awarding agency. 
When no longer needed for the original project or program, the recipient 
shall use the equipment in connection with its other federally-sponsored 
activities, in the following order of priority:
    (1) Activities sponsored by the Federal awarding agency which funded 
the original project, then
    (2) Activities sponsored by other Federal awarding agencies.
    (d) During the time that equipment is used on the project or program 
for which it was acquired, the recipient shall make it available for use 
on other projects or programs if such other use will not interfere with 
the work on the project or program for which the equipment was 
originally acquired. First preference for such other use shall be given 
to other projects or programs sponsored by the Federal awarding agency 
that financed the equipment; second preference shall be given to 
projects or programs sponsored by other Federal awarding agencies. If 
the equipment is owned by the Federal Government, use on other 
activities not sponsored by the Federal Government shall be permissible 
if authorized by the Federal awarding agency. User charges shall be 
treated as program income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to the 
approval of the Federal awarding agency.
    (f) The recipient's property management standards for equipment 
acquired with Federal funds and federally-owned equipment shall include 
all of the following.
    (1) Equipment records shall be maintained accurately and shall 
include the following information.
    (i) A description of the equipment.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment, including the award number.
    (iv) Whether title vests in the recipient or the Federal Government.
    (v) Acquisition date (or date received, if the equipment was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
equipment furnished by the Federal Government).
    (vii) Location and condition of the equipment and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and sales 
price or the method used to determine current fair market value where a 
recipient compensates the Federal awarding agency for its share.
    (2) Equipment owned by the Federal Government shall be identified to 
indicate Federal ownership.
    (3) A physical inventory of equipment shall be taken and the results 
reconciled with the equipment records at least once every two years. Any 
differences between quantities determined by the physical inspection and 
those shown in the accounting records shall be investigated to determine 
the

[[Page 169]]

causes of the difference. The recipient shall, in connection with the 
inventory, verify the existence, current utilization, and continued need 
for the equipment.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment. Any loss, 
damage, or theft of equipment shall be investigated and fully 
documented; if the equipment was owned by the Federal Government, the 
recipient shall promptly notify the Federal awarding agency.
    (5) Adequate maintenance procedures shall be implemented to keep the 
equipment in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established which provide 
for competition to the extent practicable and result in the highest 
possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards. For equipment with a current per unit fair market value of 
$5000 or more, the recipient may retain the equipment for other uses 
provided that compensation is made to the original Federal awarding 
agency or its successor. The amount of compensation shall be computed by 
applying the percentage of Federal participation in the cost of the 
original project or program to the current fair market value of the 
equipment. If the recipient has no need for the equipment, the recipient 
shall request disposition instructions from the Federal awarding agency. 
The Federal awarding agency shall determine whether the equipment can be 
used to meet the agency's requirements. If no requirement exists within 
that agency, the availability of the equipment shall be reported to the 
General Services Administration by the Federal awarding agency to 
determine whether a requirement for the equipment exists in other 
Federal agencies. The Federal awarding agency shall issue instructions 
to the recipient no later than 120 calendar days after the recipient's 
request and the following procedures shall govern.
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse the Federal awarding agency an 
amount computed by applying to the sales proceeds the percentage of 
Federal participation in the cost of the original project or program. 
However, the recipient shall be permitted to deduct and retain from the 
Federal share $500 or ten percent of the proceeds, whichever is less, 
for the recipient's selling and handling expenses.
    (2) If the recipient is instructed to ship the equipment elsewhere, 
the recipient shall be reimbursed by the Federal Government by an amount 
which is computed by applying the percentage of the recipient's 
participation in the cost of the original project or program to the 
current fair market value of the equipment, plus any reasonable shipping 
or interim storage costs incurred.
    (3) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by the Federal awarding 
agency for such costs incurred in its disposition.
    (4) The Federal awarding agency may reserve the right to transfer 
the title to the Federal Government or to a third party named by the 
Federal Government when such third party is otherwise eligible under 
existing statutes. Such transfer shall be subject to the following 
standards.
    (i) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing.
    (ii) The Federal awarding agency shall issue disposition 
instructions within 120 calendar days after receipt of a final 
inventory. The final inventory shall list all equipment acquired with 
grant funds and federally-owned equipment. If the Federal awarding 
agency fails to issue disposition instructions within the 120 calendar 
day period, the recipient shall apply the standards of this section, as 
appropriate.
    (iii) When the Federal awarding agency exercises its right to take 
title, the equipment shall be subject to the provisions for federally-
owned equipment.

[[Page 170]]



Sec. 105-72.405  Supplies and other expendable property.

    (a) Title to supplies and other expendable property shall vest in 
the recipient upon acquisition. If there is a residual inventory of 
unused supplies exceeding $5000 in total aggregate value upon 
termination or completion of the project or program and the supplies are 
not needed for any other federally-sponsored project or program, the 
recipient shall retain the supplies for use on non-Federal sponsored 
activities or sell them, but shall, in either case, compensate the 
Federal Government for its share. The amount of compensation shall be 
computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with Federal funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute as long as the Federal 
Government retains an interest in the supplies.



Sec. 105-72.406  Intangible property.

    (a) The recipient may copyright any work that is subject to 
copyright and was developed, or for which ownership was purchased, under 
an award. The Federal awarding agency(ies) reserve a royalty-free, 
nonexclusive and irrevocable right to reproduce, publish, or otherwise 
use the work for Federal purposes, and to authorize others to do so.
    (b) Recipients are subject to applicable regulations governing 
patents and inventions, including governmentwide regulations issued by 
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements.''
    (c) Unless waived by the Federal awarding agency, the Federal 
Government has the right to paragraph (c)(1) and (2) of this section.
    (1) Obtain, reproduce, publish or otherwise use the data first 
produced under an award.
    (2) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (d) Title to intangible property and debt instruments acquired under 
an award or subaward vests upon acquisition in the recipient. The 
recipient shall use that property for the originally-authorized purpose, 
and the recipient shall not encumber the property without approval of 
the Federal awarding agency. When no longer needed for the originally 
authorized purpose, disposition of the intangible property shall occur 
in accordance with the provisions of Sec. 105-72.404(g).



Sec. 105-72.407  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with Federal funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. Agencies may 
require recipients to record liens or other appropriate notices of 
record to indicate that personal or real property has been acquired or 
improved with Federal funds and that use and disposition conditions 
apply to the property.



    Subpart 105-72.50--Post-Award Requirements/Procurement Standards



Sec. 105-72.500  Purpose of procurement standards.

    Sections 105-72.501 through 105-72.508 set forth standards for use 
by recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner and 
in compliance with the provisions of applicable Federal statutes and 
executive orders. No additional procurement standards or requirements 
shall be imposed by the Federal awarding agencies upon recipients, 
unless specifically required by Federal statute or executive order or 
approved by OMB.



Sec. 105-72.501  Recipient responsibilities.

    The standards contained in this section do not relieve the recipient 
of the

[[Page 171]]

contractual responsibilities arising under its contract(s). The 
recipient is the responsible authority, without recourse to the Federal 
awarding agency, regarding the settlement and satisfaction of all 
contractual and administrative issues arising out of procurements 
entered into in support of an award or other agreement. This includes 
disputes, claims, protests of award, source evaluation or other matters 
of a contractual nature. Matters concerning violation of statute are to 
be referred to such Federal, State or local authority as may have proper 
jurisdiction.



Sec. 105-72.502  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and administration 
of contracts. No employee, officer, or agent shall participate in the 
selection, award, or administration of a contract supported by Federal 
funds if a real or apparent conflict of interest would be involved. Such 
a conflict would arise when the employee, officer, or agent, any member 
of his or her immediate family, his or her partner, or an organization 
which employs or is about to employ any of the parties indicated herein, 
has a financial or other interest in the firm selected for an award. The 
officers, employees, and agents of the recipient shall neither solicit 
nor accept gratuities, favors, or anything of monetary value from 
contractors, or parties to subagreements. However, recipients may set 
standards for situations in which the financial interest is not 
substantial or the gift is an unsolicited item of nominal value. The 
standards of conduct shall provide for disciplinary actions to be 
applied for violations of such standards by officers, employees, or 
agents of the recipient.



Sec. 105-72.503  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. The 
recipient shall be alert to organizational conflicts of interest as well 
as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the bid or offer to be evaluated by the 
recipient. Any and all bids or offers may be rejected when it is in the 
recipient's interest to do so.



Sec. 105-72.504  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide for, at a minimum, that paragraphs 
(a)(1), (2) and (3) of this section apply.
    (1) Recipients avoid purchasing unnecessary items.
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement for the Federal Government.
    (3) Solicitations for goods and services provide for all of the 
following.
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements, such a description shall not contain features which unduly 
restrict competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, including 
the range of acceptable characteristics or minimum acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible,

[[Page 172]]

of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of Federal awards shall take all of the 
following steps to further this goal.
    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange timeframes for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 
minority-owned firms and women's business enterprises when a contract is 
too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department of 
Commerce's Minority Business Development Agency in the solicitation and 
utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be appropriate 
for the particular procurement and for promoting the best interest of 
the program or project involved. The ``cost-plus-a-percentage-of-cost'' 
or ``percentage of construction cost'' methods of contracting shall not 
be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be given 
to such matters as contractor integrity, record of past performance, 
financial and technical resources or accessibility to other necessary 
resources. In certain circumstances, contracts with certain parties are 
restricted by agencies' implementation of E.O.s 12549 and 12689, 
``Debarment and Suspension.''
    (e) Recipients shall, on request, make available for the Federal 
awarding agency, pre-award review and procurement documents, such as 
request for proposals or invitations for bids, independent cost 
estimates, etc., when any of the following conditions apply.
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in the Federal awarding agency's 
implementation of this regulation.
    (2) The procurement is expected to exceed the small purchase 
threshold fixed at 41 U.S.C. 403 (11) (currently $25,000) and is to be 
awarded without competition or only one bid or offer is received in 
response to a solicitation.
    (3) The procurement, which is expected to exceed the small purchase 
threshold, specifies a ``brand name'' product.
    (4) The proposed award over the small purchase threshold is to be 
awarded to other than the apparent low bidder under a sealed bid 
procurement.
    (5) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the amount of the small 
purchase threshold.



Sec. 105-72.505  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. Price 
analysis may be accomplished in various ways, including the comparison 
of price quotations submitted, market prices and similar indicia, 
together with discounts. Cost analysis is the review and evaluation of 
each element of cost to determine reasonableness, allocability and 
allowability.

[[Page 173]]



Sec. 105-72.506  Procurement records.

    Procurement records and files for purchases in excess of the small 
purchase threshold shall include the following at a minimum:
    (a) Basis for contractor selection,
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained, and
    (c) Basis for award cost or price.



Sec. 105-72.507  Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.



Sec. 105-72.508  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all contracts. 
The following provisions shall also be applied to subcontracts.
    (a) Contracts in excess of the small purchase threshold shall 
contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for such 
remedial actions as may be appropriate.
    (b) All contracts in excess of the small purchase threshold shall 
contain suitable provisions for termination by the recipient, including 
the manner by which termination shall be effected and the basis for 
settlement. In addition, such contracts shall describe conditions under 
which the contract may be terminated for default as well as conditions 
where the contract may be terminated because of circumstances beyond the 
control of the contractor.
    (c) Except as otherwise required by statute, an award that requires 
the contracting (or subcontracting) for construction or facility 
improvements shall provide for the recipient to follow its own 
requirements relating to bid guarantees, performance bonds, and payment 
bonds unless the construction contract or subcontract exceeds $100,000. 
For those contracts or subcontracts exceeding $100,000, the Federal 
awarding agency may accept the bonding policy and requirements of the 
recipient, provided the Federal awarding agency has made a determination 
that the Federal Government's interest is adequately protected. If such 
a determination has not been made, the minimum requirements shall be as 
follows.
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder shall, upon acceptance 
of his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (4) Where bonds are required in the situations described herein, the 
bonds shall be obtained from companies holding certificates of authority 
as acceptable sureties pursuant to 31 CFR part 223, ``Surety Companies 
Doing Business with the United States.''
    (d) All negotiated contracts (except those for less than the small 
purchase threshold) awarded by recipients shall include a provision to 
the effect that the recipient, the Federal awarding agency, the 
Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, documents, 
papers and records of the contractor which are directly pertinent to a 
specific program for the purpose of making audits, examinations, 
excerpts and transcriptions.

[[Page 174]]

    (e) All contracts, including small purchases, awarded by recipients 
and their contractors shall contain the procurement provisions of 
appendix A to this part, as applicable.



     Subpart 105-72.60--Post-Award Requirements/Reports and Records



Sec. 105-72.600  Purpose of reports and records.

    Sections 105-72.601 through 105-72.603 set forth the procedures for 
monitoring and reporting on the recipient's financial and program 
performance and the necessary standard reporting forms. They also set 
forth record retention requirements.



Sec. 105-72.601  Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subaward, function or activity supported by the award. 
Recipients shall monitor subawards to ensure subrecipients have met the 
audit requirements as delineated in Sec. 105-72.306.
    (b) The Federal awarding agency shall prescribe the frequency with 
which the performance reports shall be submitted. Except as provided in 
paragraph (f) of this section, performance reports shall not be required 
more frequently than quarterly or, less frequently than annually. Annual 
reports shall be due 90 calendar days after the grant year; quarterly or 
semiannual reports shall be due 30 days after the reporting period. The 
Federal awarding agency may require annual reports before the 
anniversary dates of multiple year awards in lieu of these requirements. 
The final performance reports are due 90 calendar days after the 
expiration or termination of the award.
    (c) If inappropriate, a final technical or performance report shall 
not be required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following.
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the investigator, 
or both. Whenever appropriate and the output of programs or projects can 
be readily quantified, such quantitative data should be related to cost 
data for computation of unit costs.
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify the Federal awarding agency 
of developments that have a significant impact on the award-supported 
activities. Also, notification shall be given in the case of problems, 
delays, or adverse conditions which materially impair the ability to 
meet the objectives of the award. This notification shall include a 
statement of the action taken or contemplated, and any assistance needed 
to resolve the situation.
    (g) Federal awarding agencies may make site visits, as needed.
    (h) Federal awarding agencies shall comply with clearance 
requirements of 5 CFR part 1320 when requesting performance data from 
recipients.



Sec. 105-72.602  Financial reporting.

    (a) The following forms or such other forms as may be approved by 
OMB are authorized for obtaining financial information from recipients.
    (1) SF-269 or SF-269A, Financial Status Report. (i) Each Federal 
awarding agency shall require recipients to use the SF-269 or SF-269A to 
report the status of funds for all nonconstruction projects or programs. 
A Federal awarding agency may, however, have the option of not requiring 
the SF-269 or SF-269A when the SF-270, Request for Advance or 
Reimbursement, or SF-272, Report of Federal Cash Transactions, is 
determined to provide adequate information to meet its needs, except 
that a final SF-269 or SF-269A shall be required at the completion of 
the project when the SF-270 is used only for advances.
    (ii) The Federal awarding agency shall prescribe whether the report 
shall be on a cash or accrual basis. If the Federal awarding agency 
requires accrual information and the recipient's

[[Page 175]]

accounting records are not normally kept on the accrual basis, the 
recipient shall not be required to convert its accounting system, but 
shall develop such accrual information through best estimates based on 
an analysis of the documentation on hand.
    (iii) The Federal awarding agency shall determine the frequency of 
the Financial Status Report for each project or program, considering the 
size and complexity of the particular project or program. However, the 
report shall not be required more frequently than quarterly or less 
frequently than annually. A final report shall be required at the 
completion of the agreement.
    (iv) The Federal awarding agency shall require recipients to submit 
the SF-269 or SF-269A (an original and no more than two copies) no later 
than 30 days after the end of each specified reporting period for 
quarterly and semiannual reports, and 90 calendar days for annual and 
final reports. Extensions of reporting due dates may be approved by the 
Federal awarding agency upon request of the recipient.
    (2) SF-272, Report of Federal Cash Transactions. (i) When funds are 
advanced to recipients the Federal awarding agency shall require each 
recipient to submit the SF-272 and, when necessary, its continuation 
sheet, SF-272a. The Federal awarding agency shall use this report to 
monitor cash advanced to recipients and to obtain disbursement 
information for each agreement with the recipients.
    (ii) Federal awarding agencies may require forecasts of Federal cash 
requirements in the ``Remarks'' section of the report.
    (iii) When practical and deemed necessary, Federal awarding agencies 
may require recipients to report in the ``Remarks'' section the amount 
of cash advances received in excess of three days. Recipients shall 
provide short narrative explanations of actions taken to reduce the 
excess balances.
    (iv) Recipients shall be required to submit not more than the 
original and two copies of the SF-272, 15 calendar days following the 
end of each quarter. The Federal awarding agencies may require a monthly 
report from those recipients receiving advances totaling $1 million or 
more per year.
    (v) Federal awarding agencies may waive the requirement for 
submission of the SF-272 for any one of the following reasons:
    (A) When monthly advances do not exceed $25,000 per recipient, 
provided that such advances are monitored through other forms contained 
in this section;
    (B) If, in the Federal awarding agency's opinion, the recipient's 
accounting controls are adequate to minimize excessive Federal advances; 
or,
    (C) When the electronic payment mechanisms provide adequate data.
    (b) When the Federal awarding agency needs additional information or 
more frequent reports, the following shall be observed.
    (1) When additional information is needed to comply with legislative 
requirements, Federal awarding agencies shall issue instructions to 
require recipients to submit such information under the ``Remarks'' 
section of the reports.
    (2) When a Federal awarding agency determines that a recipient's 
accounting system does not meet the standards in Sec. 105-72.301, 
additional pertinent information to further monitor awards may be 
obtained upon written notice to the recipient until such time as the 
system is brought up to standard. The Federal awarding agency, in 
obtaining this information, shall comply with report clearance 
requirements of 5 CFR part 1320.
    (3) Federal awarding agencies are encouraged to shade out any line 
item on any report if not necessary.
    (4) Federal awarding agencies may accept the identical information 
from the recipients in machine readable format or computer printouts or 
electronic outputs in lieu of prescribed formats.
    (5) Federal awarding agencies may provide computer or electronic 
outputs to recipients when such expedites or contributes to the accuracy 
of reporting.



Sec. 105-72.603  Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access

[[Page 176]]

to records for awards to recipients. Federal awarding agencies shall not 
impose any other record retention or access requirements upon 
recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report or, for awards that are renewed quarterly or 
annually, from the date of the submission of the quarterly or annual 
financial report, as authorized by the Federal awarding agency. The only 
exceptions are the following.
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by the Federal 
awarding agency, the 3-year retention requirement is not applicable to 
the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, etc., as 
specified in paragraph (g) of this section.
    (c) Copies of original records may be substituted for the original 
records if authorized by the Federal awarding agency.
    (d) The Federal awarding agency shall request transfer of certain 
records to its custody from recipients when it determines that the 
records possess long term retention value. However, in order to avoid 
duplicate recordkeeping, a Federal awarding agency may make arrangements 
for recipients to retain any records that are continuously needed for 
joint use.
    (e) The Federal awarding agency, the Inspector General, Comptroller 
General of the United States, or any of their duly authorized 
representatives, have the right of timely and unrestricted access to any 
books, documents, papers, or other records of recipients that are 
pertinent to the awards, in order to make audits, examinations, 
excerpts, transcripts and copies of such documents. This right also 
includes timely and reasonable access to a recipient's personnel for the 
purpose of interview and discussion related to such documents. The 
rights of access in this paragraph are not limited to the required 
retention period, but shall last as long as records are retained.
    (f) Unless required by statute, no Federal awarding agency shall 
place restrictions on recipients that limit public access to the records 
of recipients that are pertinent to an award, except when the Federal 
awarding agency can demonstrate that such records shall be kept 
confidential and would have been exempted from disclosure pursuant to 
the Freedom of Information Act (5 U.S.C. 552) if the records had 
belonged to the Federal awarding agency.
    (g) Indirect cost rate proposals, cost allocations plans, etc. 
Paragraphs (g)(1) and (g)(2) apply to the following types of documents, 
and their supporting records: indirect cost rate computations or 
proposals, cost allocation plans, and any similar accounting 
computations of the rate at which a particular group of costs is 
chargeable (such as computer usage chargeback rates or composite fringe 
benefit rates).
    (1) If submitted for negotiation. If the recipient submits to the 
Federal awarding agency or the subrecipient submits to the recipient the 
proposal, plan, or other computation to form the basis for negotiation 
of the rate, then the 3-year retention period for its supporting records 
starts on the date of such submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to the Federal awarding agency or the subrecipient is 
not required to submit to the recipient the proposal, plan, or other 
computation for negotiation purposes, then the 3-year retention period 
for the proposal, plan, or other computation and its supporting records 
starts at the end of the fiscal year (or other accounting period) 
covered by the proposal, plan, or other computation.

[[Page 177]]



 Subpart 105-72.70--Post-Award Requirements/Termination and Enforcement



Sec. 105-72.700  Purpose of termination and enforcement.

    Section 105-72.701 and Sec. 105-72.702 set forth uniform suspension, 
termination and enforcement procedures.



Sec. 105-72.701  Termination.

    (a) Awards may be terminated in whole or in part only if paragraph 
(a)(1), (2) or (3) of this section apply.
    (1) By the Federal awarding agency, if a recipient materially fails 
to comply with the terms and conditions of an award.
    (2) By the Federal awarding agency with the consent of the 
recipient, in which case the two parties shall agree upon the 
termination conditions, including the effective date and, in the case of 
partial termination, the portion to be terminated.
    (3) By the recipient upon sending to the Federal awarding agency 
written notification setting forth the reasons for such termination, the 
effective date, and, in the case of partial termination, the portion to 
be terminated. However, if the Federal awarding agency determines in the 
case of partial termination that the reduced or modified portion of the 
grant will not accomplish the purposes for which the grant was made, it 
may terminate the grant in its entirety under either paragraphs (a) (1) 
or (2).
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in Sec. 105-72.801(a), including those for 
property management as applicable, shall be considered in the 
termination of the award, and provision shall be made for continuing 
responsibilities of the recipient after termination, as appropriate.



Sec. 105-72.702  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of award, 
the Federal awarding agency may, in addition to imposing any of the 
special conditions outlined in Sec. 105-72.204, take one or more of the 
following actions, as appropriate in the circumstances.
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by the 
Federal awarding agency.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards for the project or program.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, the 
awarding agency shall provide the recipient an opportunity for hearing, 
appeal, or other administrative proceeding to which the recipient is 
entitled under any statute or regulation applicable to the action 
involved.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a suspension 
or after termination of an award are not allowable unless the awarding 
agency expressly authorizes them in the notice of suspension or 
termination or subsequently. Other recipient costs during suspension or 
after termination which are necessary and not reasonably avoidable are 
allowable if paragraph (c) (1) and (2) of this section apply.
    (1) The costs result from obligations which were properly incurred 
by the recipient before the effective date of suspension or termination, 
are not in anticipation of it, and in the case of a termination, are 
noncancellable.
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to debarment 
and suspension under E.O.s 12549 and 12689 and the Federal awarding 
agency implementing regulations (see Sec. 105-72.203).

[[Page 178]]



             Subpart 105-72.80--After-the-Award Requirements



Sec. 105-72.800  Purpose.

    Sections 105-72.801 through 105-72.803 contain closeout procedures 
and other procedures for subsequent disallowances and adjustments.



Sec. 105-72.801  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports as required by the terms and conditions of the award. The 
Federal awarding agency may approve extensions when requested by the 
recipient.
    (b) Unless the Federal awarding agency authorizes an extension, a 
recipient shall liquidate all obligations incurred under the award not 
later than 90 calendar days after the funding period or the date of 
completion as specified in the terms and conditions of the award or in 
agency implementing instructions.
    (c) The Federal awarding agency shall make prompt payments to a 
recipient for allowable reimbursable costs under the award being closed 
out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that the Federal awarding agency has advanced or paid and that is 
not authorized to be retained by the recipient for use in other 
projects. OMB Circular A-129 governs unreturned amounts that become 
delinquent debts.
    (e) When authorized by the terms and conditions of the award, the 
Federal awarding agency shall make a settlement for any upward or 
downward adjustments to the Federal share of costs after closeout 
reports are received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Sec. 105-72.401 through Sec. 105-72.407.
    (g) In the event a final audit has not been performed prior to the 
closeout of an award, the Federal awarding agency shall retain the right 
to recover an appropriate amount after fully considering the 
recommendations on disallowed costs resulting from the final audit.



Sec. 105-72.802  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following.
    (1) The right of the Federal awarding agency to disallow costs and 
recover funds on the basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 105-72.306.
    (4) Property management requirements in Sec. 105-72.401 through 
Sec. 105-72.407.
    (5) Records retention as required in Sec. 105-72.603.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the Federal awarding agency and the recipient, provided the 
responsibilities of the recipient referred to in Sec. 105-72.803(a), 
including those for property management as applicable, are considered 
and provisions made for continuing responsibilities of the recipient, as 
appropriate.



Sec. 105-72.803  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. If 
not paid within a reasonable period after the demand for payment, the 
Federal awarding agency may reduce the debt by paragraph (a) (1), (2) or 
(3) of this section.
    (1) Making an administrative offset against other requests for 
reimbursements.
    (2) Withholding advance payments otherwise due to the recipient.
    (3) Taking other action permitted by statute.
    (b) Except as otherwise provided by law, the Federal awarding agency 
shall charge interest on an overdue debt in accordance with 4 CFR 
Chapter II, Federal Claims Collection Standards.

[[Page 179]]

             Appendix A to Part 105-72--Contract Provisions

    All contracts, awarded by a recipient including small purchases, 
shall contain the following provisions as applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246, ``Equal Employment 
Opportunity,'' as amended by E.O. 11375, ``Amending Executive Order 
11246 Relating to Equal Employment Opportunity,'' and as supplemented by 
regulations at 41 CFR part 60, ``Office of Federal Contract Compliance 
Programs, Equal Employment Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts and subgrants in excess of $2000 for construction 
or repair awarded by recipients and subrecipients shall include a 
provision for compliance with the Copeland ``Anti-Kickback'' Act (18 
U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR 
part 3, ``Contractors and Subcontractors on Public Building or Public 
Work Financed in Whole or in Part by Loans or Grants from the United 
States''). The Act provides that each contractor or subrecipient shall 
be prohibited from inducing, by any means, any person employed in the 
construction, completion, or repair of public work, to give up any part 
of the compensation to which he is otherwise entitled. The recipient 
shall report all suspected or reported violations to the Federal 
awarding agency.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When 
required by Federal program legislation, all construction contracts 
awarded by the recipients and subrecipients of more than $2000 shall 
include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 
276a to a-7) and as supplemented by Department of Labor regulations (29 
CFR part 5, ``Labor Standards Provisions Applicable to Contracts 
Governing Federally Financed and Assisted Construction''). Under this 
Act, contractors shall be required to pay wages to laborers and 
mechanics at a rate not less than the minimum wages specified in a wage 
determination made by the Secretary of Labor. In addition, contractors 
shall be required to pay wages not less than once a week. The recipient 
shall place a copy of the current prevailing wage determination issued 
by the Department of Labor in each solicitation and the award of a 
contract shall be conditioned upon the acceptance of the wage 
determination. The recipient shall report all suspected or reported 
violations to the Federal awarding agency.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in excess of 
$2000 for construction contracts and in excess of $2500 for other 
contracts that involve the employment of mechanics or laborers shall 
include a provision for compliance with Sections 102 and 107 of the 
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as 
supplemented by Department of Labor regulations (29 CFR part 5). Under 
Section 102 of the Act, each contractor shall be required to compute the 
wages of every mechanic and laborer on the basis of a standard work week 
of 40 hours. Work in excess of the standard work week is permissible 
provided that the worker is compensated at a rate of not less than 1\1/
2\ times the basic rate of pay for all hours worked in excess of 40 
hours in the work week. Section 107 of the Act is applicable to 
construction work and provides that no laborer or mechanic shall be 
required to work in surroundings or under working conditions which are 
unsanitary, hazardous or dangerous. These requirements do not apply to 
the purchases of supplies or materials or articles ordinarily available 
on the open market, or contracts for transportation or transmission of 
intelligence.
    5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of experimental, 
developmental, or research work shall provide for the rights of the 
Federal Government and the recipient in any resulting invention in 
accordance with 37 CFR part 401, ``Rights to Inventions Made by 
Nonprofit Organizations and Small Business Firms Under Government 
Grants, Contracts and Cooperative Agreements,'' and any implementing 
regulations issued by the awarding agency.
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--Contracts 
and subgrants of amounts in excess of $100,000 shall contain a provision 
that requires the recipient to agree to comply with all applicable 
standards, orders or regulations issued pursuant to the Clean Air Act 
(42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as 
amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the 
Federal awarding agency and the Regional Office of the Environmental 
Protection Agency (EPA).
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the recipient.

[[Page 180]]

    8. Debarment and Suspension (E.O.s 12549 and 12689)--No contract 
shall be made to parties listed on the General Services Administration's 
List of Parties Excluded from Federal Procurement or Nonprocurement 
Programs in accordance with E.O.s 12549 and 12689, ``Debarment and 
Suspension.'' This list contains the names of parties debarred, 
suspended, or otherwise excluded by agencies, and contractors declared 
ineligible under statutory or regulatory authority other than E.O. 
12549. Contractors with awards that exceed the small purchase threshold 
shall provide the required certification regarding its exclusion status 
and that of its principal employees.



PART 105-735--STANDARDS OF CONDUCT--Table of Contents




    Authority: 5 U.S.C. 7301.

    Source: 61 FR 56403, Nov. 1, 1996, unless otherwise noted.



Sec. 105-735.1  Cross-references to employee ethical conduct standards, financial disclosure regulations, and other regulations.

    Employees of the General Services Administration are subject to the 
executive branch-wide standards of ethical conduct at 5 CFR part 2635, 
GSA's regulations at 5 CFR part 6701 which supplement the executive 
branch-wide standards, the regulations on employee responsibilities and 
conduct at 5 CFR part 735, and the executive branch financial disclosure 
regulations contained in 5 CFR part 2634, and GSA Order ADM 7900.9A, 
which can be obtained from the GSA Office of General Counsel.

[[Page 181]]



    CHAPTER 109--DEPARTMENT OF ENERGY PROPERTY MANAGEMENT REGULATIONS




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

                          SUBCHAPTER A--GENERAL
Part                                                                Page
109-1           Introduction................................         183
                         SUBCHAPTER B [RESERVED]
                     SUBCHAPTER C--DEFENSE MATERIALS
109-14          National Defense Stockpile..................         194
                         SUBCHAPTER D [RESERVED]
                  SUBCHAPTER E--SUPPLY AND PROCUREMENT
109-25          General.....................................         195
109-26          Procurement sources and programs............         198
109-27          Inventory management........................         199
109-28          Storage and distribution....................         208
109-29          Federal specifications and standards........         209
109-30          Federal Catalog System......................         209
                SUBCHAPTER F--ADP AND TELECOMMUNICATIONS
109-35          Telecommunications..........................         211
109-36          ADP management..............................         212
             SUBCHAPTER G--TRANSPORTATION AND MOTOR VEHICLES
109-38          Motor equipment management..................         215
109-39          Interagency motor vehicle pools.............         231
109-40          Transportation and traffic management.......         232
                 SUBCHAPTER H--UTILIZATION AND DISPOSAL
109-42          Property rehabilitation services and 
                    facilities..............................         238
109-43          Utilization of personal property............         238
109-44          Donation of personal property...............         244
109-45          Sale, abandonment, or destruction of 
                    personal property.......................         245

[[Page 182]]

109-46          Utilization and disposal of personal 
                    property pursuant to exchange/sale 
                    authority...............................         252
109-48          Utilization, donation, or disposal of 
                    abandoned and forfeited personal 
                    property................................         252
109-50          Programmatic disposal of DOE property.......         253
                SUBCHAPTER I--INDUSTRIAL PLANT EQUIPMENT
109-51          Loans of industrial plant equipment from the 
                    defense industrial plant equipment 
                    center..................................         259
                         SUBCHAPTER J [RESERVED]
    SUBCHAPTER K--GOVERNMENT PROPERTY IN THE POSSESSION OF OFF-SITE 
                               CONTRACTORS
109-60          Management of government property in the 
                    possession of off-site contractors......         260

[[Page 183]]



                          SUBCHAPTER A--GENERAL





PART 109-1--INTRODUCTION--Table of Contents




Sec.
109-1.000-50  Scope of part.

                   Subpart 109-1.1--Regulation System

109-1.100-50  Scope of subpart.
109-1.100-51  Definitions.
109-1.102-50  Department of Energy Property Management Regulations.
109-1.103-50  DOE-PMR Bulletins.
109-1.104-50  Publication and distribution of DOE-PMR.
109-1.104-1-50  Publication.
109-1.104-2-50  Distribution.
109-1.106-50  Applicability of Federal and Departmental regulatory 
          issuances.
109-1.107-50  Consultation regarding DOE-PMR.
109-1.108  Agency implementation and supplementation of FPMR.
109-1.109-50  Numbering of DOE-PMR.
109-1.110-50  Deviation procedures.

         Subpart 109-1.50--Personal Property Management Program

109-1.5000  Scope of subpart.
109-1.5001  Policy.
109-1.5002  Property management program objectives.
109-1.5003  Definitions.
109-1.5004  Delegation of authority.
109-1.5005  Responsibilities.
109-1.5005-1  The Director of Procurement and Assistance Management.
109-1.5005-2  The Departmental Property Management Officer.
109-1.5005-3  The Director of Administration.
109-1.5005-4  Director, Office of Procurement Operations, Procurement 
          and Assistance Management.
109-1.5005-5  Heads of field offices.
109-1.5005-6  Organizational Property Management Officer.
109-1.5005-7  Contracting officers.

 Subpart 109-1.51--Personal Property Management Standards and Practices

109-1.5100  Scope of subpart.
109-1.5101  Definition.
109-1.5102  Official use of property.
109-1.5103  Maximum use of property.
109-1.5104  Loan of property.
109-1.5105  Borrowing of property.
109-1.5106  Control of property.
109-1.5106-1  Identification marking of property.
109-1.5106-2  Segregation of property.
109-1.5106-3  Physical protection of property.
109-1.5106-4  Control of sensitive items.
109-1.5106-5  Physical inventories.
109-1.5107  Retirement of property.
109-1.5108  Property belonging to others.
109-1.5109  Employee participation.
109-1.5110  Use of non-government-owned property.
109-1.5148  Personal property management reports.

   Subpart 109-1.52--Contractors' Personal Property Management Program

109-1.5200  Scope of subpart.
109-1.5201  Policy.
109-1.5202  Designation of property administrator.
109-1.5203  Review and approval of contractor's property management 
          system.
109-1.5204  Property management appraisals.
109-1.5205  Reporting.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25565, June 21, 1984, unless otherwise noted.



Sec. 109-1.000-50  Scope of part.

    This part establishes a system by which the Department of Energy 
(DOE) implements and supplements the Federal Property Management 
Regulations (FPMR) (41 CFR chapter 101) issued by the General Services 
Administration (GSA).



                   Subpart 109-1.1--Regulation System



Sec. 109-1.100-50  Scope of subpart.

    This subpart establishes the Department of Energy Property 
Management Regulations (DOE-PMR), Chapter 109 of the Federal Property 
Management Regulations System (FPMR) (41 CFR chapter 109).



Sec. 109-1.100-51  Definitions.

    As used in this chapter the following definitions apply:
    (a) Heads of field offices are the heads of any Departmental office 
located outside the Washington, D.C. metropolitan area. In addition, the 
Federal Energy Regulatory Commission, Headquarters, shall be considered 
a field office for purposes of these regulations. See Sec. 109-1.5005-4 
concerning the responsibilities of the Director, Office of Procurement

[[Page 184]]

Operations, Procurement and Assistance Management Directorate, 
Headquarters.
    (b) Direct operations means operations conducted by DOE personnel.
    (c) Contractor means a management and operating contractor, as that 
term is defined in the Federal Acquisition Regulation (FAR) 48 CFR 
17.601 as supplemented by the Department of Energy Acquisition 
Regulations (DEAR) 48 CFR 917.604-70, and such other contractors as may 
be designated by the Procurement Executive or head of the contracting 
activity as subject to the provisions of this chapter.



Sec. 109-1.102-50  Department of Energy Property Management Regulations.

    The DOE-PMR, established in this part, implement and supplement the 
FPMR provisions governing the acquisition, utilization, management, and 
disposal of personal property. The DOE-PMR are issued to establish 
uniform property management policies and, as necessary, procedures for 
the Department of Energy. (See 109-1.106-50(d) and (e) with respect to 
management of property in the possession of other DOE contractors and 
financial assistance recipients).



Sec. 109-1.103-50  DOE-PMR Bulletins.

    A DOE-PMR Bulletin will be used to disseminate information not 
affecting policy or to clarify instructions in actions required by the 
FPMR or the DOE-PMR.



Sec. 109-1.104-50  Publication and distribution of DOE-PMR.



Sec. 109-1.104-1-50  Publication.

    The DOE-PMR will be published in the Federal Register and will 
appear in the Code of Federal Regulations as chapter 109 of title 41, 
Public Contracts and Property Management. Looseleaf publications will be 
distributed to DOE offices.



Sec. 109-1.104-2-50  Distribution.

    The responsibilities and authorities for distribution of 
publications in the FPMR series are as follows:
    (a) The Director of Procurement and Assistance Management--
    (1) Designates an official to serve as liaison with GSA;
    (2) Establishes and maintains distribution patterns; and
    (3) Processes DOE-PMR Handbooks for final approval and publication.
    (b) The Director of Administration--
    (1) Distributes publications in accordance with established 
patterns;
    (2) Maintains a stock of FPMR and DOE-PMR publications for 
furnishing additional copies; and
    (3) Provides additional support services as required.
    (c) Heads of field offices--
    (1) Provide the Director of Procurement and Assistance Management 
with field organization requirements;
    (2) Forward one-time requests for additional copies of centrally 
distributed publications to the Office of Administrative Services, 
Headquarters (MA-234.2); and
    (3) Distribute publications to their offices and contractors in 
accordance with established distribution patterns.



Sec. 109-1.106-50  Applicability of Federal and Departmental regulatory issuances.

    (a) The FPMR and this DOE-PMR apply to all direct operations.
    (b) Unless otherwise provided in the appropriate part or subpart, 
contracting officers shall assure that the FPMR and DOE-PMR are applied 
to contractors.
    (c) The FPMR and DOE-PMR, as appropriate, shall be used by 
contracting officers in the administration of contracts, and in the 
review, approval, or appraisal of such contractor operations.
    (d) Regulations for the management of Government property in the 
possession of other DOE contractors are contained in the Federal 
Acquisition Regulations, part 45 (48 CFR chapter 1) and in the DOE 
Acquisition Regulations, part 945 (48 CFR chapter 9).
    (e) Regulations for the management of property held by financial 
assistance recipients are contained in the DOE Financial Assistance 
Rules (10 CFR part 600) and the Financial Assistance Procedures Manual, 
DOE Order 4600.1.

[[Page 185]]



Sec. 109-1.107-50  Consultation regarding DOE-PMR.

    The DOE-PMR shall be fully coordinated with all Departmental 
elements substantively concerned with the subject matter.



Sec. 109-1.108  Agency implementation and supplementation of FPMR.

    (a) The DOE-PMR shall include regulations deemed necessary to 
understand basic and significant Departmental property management 
policies and procedures which implement, supplement, or deviate from the 
FPMR. In the absence of any DOE-PMR issuance, the basic FPMR material 
shall govern.
    (b) The DOE-PMR shall be consistent with the policies and procedures 
contained in the FPMR and shall not duplicate or paraphrase the FPMR 
material.
    (c) Implementing procedures, instructions, and guides which are 
necessary to clarify or to implement the DOE-PMR may be issued by 
Headquarters or field organizations provided that the implementing 
procedures, instructions and guides--
    (1) Are consistent with the policies and procedures contained in 
this regulation as implemented and supplemented from time to time;
    (2) To the extent practicable, follow the format, arrangement, and 
numbering system of this regulation; and
    (3) Contain no material which duplicates, paraphrases, or is 
inconsistent with the contents of this regulation.



Sec. 109-1.109-50  Numbering of DOE-PMR.

    (a) Where the DOE-PMR implement the FPMR, the implementing part, 
subpart, section or subsection of the DOE-PMR will be numbered and 
captioned, to the extent possible, to correspond to the applicable part, 
subpart, section, or subsection of the FPMR.
    (b) Where the DOE-PMR supplement the FPMR, the numbers 50 and up 
will be assigned to the parts, subparts, sections or subsections 
involved.



Sec. 109-1.110-50  Deviation procedures.

    (a) Requests for deviations from the FPMR and the DOE-PMR shall be 
forwarded to the Headquarters organization having functional 
responsibility, as follows:
    (1) Part 109-35--Director, Division of Telecommunications.
    (2) Part 109-40--Assistant Secretary for Defense Programs.
    (3) All other parts--Director of Procurement and Assistance 
Management.
    (b) In individual cases, deviations from the FPMR and DOE-PMR may be 
authorized by the Headquarters organization having functional 
responsibility. A supporting statement for each individual deviation, 
which indicates briefly the nature of the deviation, the reasons for 
such special action, and the Headquarters approval, shall be maintained 
by the Headquarters organization concerned.
    (c) In classes of cases, requests for deviations from the FPMR and 
the DOE-PMR shall be accompanied by a supporting statement. Requests 
shall be considered on an expedited basis and coordination with 
Headquarters organizations will be obtained as appropriate. Requests 
involving the FPMR will be considered jointly by DOE and GSA, unless, in 
the judgment of the Headquarters organization having functional 
responsibility, circumstances preclude such joint effort. In such cases, 
the organization having functional responsibility will approve such 
class deviations as determined to be necessary and notify GSA.



         Subpart 109-1.50--Personal Property Management Program



Sec. 109-1.5000  Scope of subpart.

    This subpart supplements the FPMR, states DOE personal property 
management policy and program objectives, and prescribes authorities and 
responsibilities for the conduct of an effective property management 
program in DOE.



Sec. 109-1.5001  Policy.

    It is DOE policy that a program for the management of Government 
personal property (sometimes referred to as personal property or as 
property) shall be established and maintained to meet program needs 
economically and efficiently and in accordance with applicable Federal 
statutes and Federal agency regulations.

[[Page 186]]



Sec. 109-1.5002  Property management program objectives.

    The objectives of the DOE property management program are to 
provide--
    (a) A system for effectively managing Government personal property 
in the custody or possession of DOE organizations and DOE contractors; 
and
    (b) Uniform principles, policies, standards, and procedures for 
economical and efficient management of Government personal property that 
are sufficiently broad in scope and flexible in nature to facilitate 
adaptation to local needs and various kinds of operations.



Sec. 109-1.5003  Definitions.

    As used in these regulations, the following definitions apply:
    (a) ``Government personal property'' means property of any kind or 
type which is Government-owned or -rented or -leased from commercial 
sources in the custody of DOE or its contractors except real property; 
records; special source materials, which includes source materials and 
special nuclear material, and those other materials to which the 
provisions of DOE Order 5630.2 ``Control and Accountability of Nuclear 
Materials, Basic Principles'' apply, such as deuterium, enriched 
lithium, neptunium 237 and tritium, and atomic weapons and byproduct 
materials as defined in Section II of the Atomic Energy Act of 1954, as 
amended; enriched uranium in stockpile storage; and petroleum in the 
Strategic Petroleum Reserve and the Naval Petroleum Reserves.
    (b) ``Personal property management'' means the development, 
implementation, and administration of policies, programs and procedures 
for effective and economical acquisition, receipt, storage, issue, use, 
control, physical protection, care and maintenance, determination of 
requirements and maintenance of related operating records, and disposal, 
as appropriate, for Government personal property exclusive of the 
accounting records.



Sec. 109-1.5004  Delegation of authority.

    (a) The Secretary of Energy has delegated to the Assistant 
Secretary, Management and Administration, on a non-exclusive basis, the 
authority to acquire, manage, and dispose of personal property held by 
the Department for official use by its employees or contractors.
    (b) The Assistant Secretary, Management and Administration has 
delegated to the Director, Procurement and Assistance Management, the 
authority to acquire, manage, and dispose of personal property held by 
the Department for official use by its employees or contractors.
    (c) The Director of Administration and Heads of field offices are 
delegated appropriate procurement authority by memorandum from the 
Director, Procurement and Assistance Management, to acquire, manage, and 
dispose of personal property held by the Department for official use by 
its employees or contractors, consistent with policies, standards, and 
procedures as contained in this regulation.



Sec. 109-1.5005  Responsibilities.



Sec. 109-1.5005-1  The Director of Procurement and Assistance Management.

    The Director of Procurement and Assistance Management provides 
direction and general supervision in the development and administration 
of an effective and efficient personal property management system for 
the Department, to include:
    (a) The establishment of Department-wide policies, standards, 
systems, regulations, and procedures in accordance with applicable laws 
and regulations and sound management practice; and
    (b) The review, evaluation, and improvement of personal property 
management programs, functions, operations, and procedures in the 
Department.



Sec. 109-1.5005-2  The Departmental Property Management Officer.

    The Departmental Property Management Officer shall be the Director, 
Property and Equipment Management Division, Headquarters. This 
individual is responsible for developing, promoting, monitoring, 
administering, coordinating, and evaluating the Department-wide personal 
property management program, and shall--

[[Page 187]]

    (a) Develop and maintain Departmental personal property policies, 
standards and procedures;
    (b) Develop and publish Departmental regulations relating to 
personal property management;
    (c) Represent the Department with GSA and other agencies on matters 
relating to personal property management;
    (d) Submit Departmental personal property management reports to GSA, 
the Congress and other Federal agencies, as required;
    (e) Provide staff assistance to Departmental organizations 
performing personal property management functions;
    (f) Conduct reviews and appraisals of Departmental personal property 
management functions; and
    (g) Prepare the Departmental aircraft and motor vehicle budget.



Sec. 109-1.5005-3  The Director of Administration.

    The Director of Administration--
    (a) Manages personal property for DOE direct operations located in 
the Washington, D.C. metropolitan area with the exception of the Federal 
Energy Regulatory Commission.
    (b) Exercises responsibilities cited in Sec. 109-1.5005-5 as they 
relate to functions under his/her management control; and
    (c) Appoints an Organizational Property Management Officer to be 
responsible for his/her organization's personal property management 
program.



Sec. 109-1.5005-4  Director, Office of Procurement Operations, Procurement and Assistance Management.

    The Director, Office of Procurement Operations, Procurement and 
Assistance Management Directorate, Headquarters, shall exercise the 
responsibilities of the head of a field office as set forth in these 
regulations with respect to the management of property held under 
contracts for which his/her office is responsible.



Sec. 109-1.5005-5  Heads of field offices.

    Heads of field offices shall--
    (a) Appoint an Organizational Property Management Officer who shall 
be responsible for the organization's personal property management 
program; and
    (b) Establish and administer a personal property management program 
within the organization which will provide for--
    (1) Effective management of Government personal property in the 
custody of DOE and its contractors, consistent with applicable laws and 
regulations;
    (2) Application of personal property management regulations, 
instructions, standards, procedures, and practices as prescribed in the 
FPMR and DOE-PMR;
    (3) Planning and scheduling of property requirements to assure that 
supplies and equipment are readily available to satisfy program needs 
while minimizing operating costs and inventory levels;
    (4) Development and maintenance of complete and accurate inventory 
control and accountability record systems;
    (5) Maximum utilization of available property for official purposes;
    (6) Proper care and securing of property to include storage, 
handling, preservation, and preventative maintenance;
    (7) Identification of property excess to the needs of the 
organization, and proper reutilization of this property within the 
Department and reporting to GSA for transfer, donation, or disposal;
    (8) The development and submission of required property management 
reports;
    (9) Assuring that DOE employees and contractors are aware that acts 
of theft, illegal possession, and unlawful destruction or use of 
Government personal property are violations punishable under Federal 
law, notwithstanding disciplinary measures taken under administrative 
policy;
    (10) Assuring that DOE employees and contractors are aware that 
every user of Government personal property is responsible for its 
physical protection and for reporting the loss, theft, destruction or 
damage of property;
    (11) The conducting of periodic management reviews within the 
activity to assure compliance with prescribed policies, regulations, 
standards, and procedures; and

[[Page 188]]

    (12) The establishment of equipment and supply subsidiary records 
and accounts to support general ledger control accounts for personal 
property.



Sec. 109-1.5005-6  Organizational Property Management Officer.

    The Organizational Property Management Officer (OPMO)--
    (a) Provides advice and guidance for the organization's personal 
property mangement program;
    (b) Coordinates and conducts the activities of the organization's 
personal property management program;
    (c) Serves as principal contact point for the organization in 
matters concerning personal property management; and
    (d) Represents the organization, or designates a representative, to 
attend Department meetings concerning personal property management 
issues, and acts as liaison with other DOE offices or other Federal 
agencies in property management matters affecting their organization.



Sec. 109-1.5005-7  Contracting officers.

    Contracting officers shall--
    (a) Assure that all contracts that involve property contain the 
applicable DEAR property clause; and
    (b) Assure that contractors' personal property management systems 
are reviewed, appraised, and approved as provided for in Sec. 109-1.52.



 Subpart 109-1.51--Personal Property Management Standards and Practices



Sec. 109-1.5100  Scope of subpart.

    This subpart provides guidance on DOE standards and practices to be 
applied in the management of Government personal property.



Sec. 109-1.5101  Definition.

    Sensitive items are those items of property, regardless of value, 
which are considered to be susceptible to being appropriated for 
personal use or which can be readily converted to cash, for example: 
firearms, portable photographic equipment, binoculars, portable tape 
recorders, portable calculators, and portable power tools.



Sec. 109-1.5102  Official use of property.

    Property shall be used only in the performance of official work of 
the United States Government, except (a) in emergencies threatening loss 
of life or property, or (b) as otherwise authorized by law and approved 
by the Director of Administration and heads of field offices for their 
respective organizations, or by the contracting officer for contractor-
held property.



Sec. 109-1.5103  Maximum use of property.

    Property management practices shall assure that the best possible 
use is made of property. Supplies and equipment shall be generally 
limited to those items essential for carrying out the programs of DOE 
effectively. Adequate staff review shall be made of operating programs 
to coordinate and plan future supply activities and to assure against 
overstocking, waste, and improper use of property.



Sec. 109-1.5104  Loan of property.

    (a) Property which would otherwise be out of service for temporary 
periods (and not excess) may be loaned to other DOE offices and 
contractors, other Federal agencies, and to others for official 
purposes. Such loans shall be covered by written agreements or 
memorandum receipts which shall include all terms of the loan (such as 
loan period, delivery time, method of payment of transportation, point 
of delivery and return, conditions of use, responsibilities of the 
borrower for condition of property on return, inspection requirements, 
etc.) that may be required to ensure proper control and protect DOE's 
interest. The loan period should not exceed one year, but may be 
renewed.
    (b) Requests for loan by foreign Governments and other foreign 
organizations shall be submitted through the Property and Equipment 
Management Division (MA-422) to the Assistant Secretary for 
International Affairs for approval, with a copy to the cognizant 
Headquarters program office.



Sec. 109-1.5105  Borrowing of property.

    (a) DOE organizations and contractors are encouraged to borrow 
property within DOE to further DOE programs.

[[Page 189]]

Property classified as ``Equipment Held For Future Projects (EHFFP)'' or 
as ``In Standby'' should be reviewed by those receiving availability 
inquiries for short-term loans (one year or less). Borrowing of 
Government property from other Federal agencies is also encouraged when 
required for short periods of time. Such transactions shall be covered 
by written agreements which include all the terms of the transaction.
    (b) In determining whether it is practical and economical to borrow 
property, consideration shall be given to suitability, condition, value, 
extent and nature of use, extent of availability, portability, cost of 
transportation, and other similar factors.



Sec. 109-1.5106  Control of property.



Sec. 109-1.5106-1  Identification marking of property.

    (a) Government property will be identified as U.S. Government 
property subject to the criteria below. Marking may be accomplished by 
any means which will produce a permanent marking and which is most 
adaptable to the particular item of property.
    (1) Capitalized and sensitive property shall be marked as U.S. 
Government property and by numbering for control purposes.
    (2) Other property susceptible to unauthorized personal use, such as 
hand tools, should be considered for marking as U.S. Government 
property, and by numbering for control purposes.
    (b) Property which by its nature cannot be marked, such as stores 
items, metal stock, etc., is exempted from this requirement. Such 
Government property in the custody of contractors should not be 
commingled with contractor-owned property unless it is determined by the 
contracting officer to be advantageous to the Government.
    (c) To the extent practicable and economical, markings shall be 
removed prior to disposal outside of DOE, or additional markings may be 
added to indicate such disposal.



Sec. 109-1.5106-2  Segregation of property.

    Ordinarily, provisions shall be made for the contractor to keep 
Government property segregated from contrator-owned property. 
Commingling of Government-owned and contractor-owned property may be 
allowed only when--
    (a) The segregation of the property would materially hinder the 
progress of the work, i.e., segregation is not feasible for reasons such 
as small quantities, lack of space, or increased costs; and
    (b) Control procedures are adequate, i.e., the Government property 
is specifically marked or otherwise identified as being Government 
property.



Sec. 109-1.5106-3  Physical protection of property.

    Controls such as property pass systems, memorandum records, regular 
or intermittent gate checks, marking of tools, and perimeter fencing 
shall be established as required to prevent loss, theft, or unauthorized 
movement of property from the premises on which such property is 
located.



Sec. 109-1.5106-4  Control of sensitive items.

    (a) Controls shall be established over the acquisition, storage, 
issue, use, and return of sensitive items of property.
    (b) Items on capital equipment which are also designated as 
sensitive items will be controlled as sensitive items and as capital 
equipment.
    (c) A list of sensitive items shall be maintained for property 
considered to require special controls before and after issue. 
Determination of specific sensitive items shall be a matter for 
management judgment at individual locations, taking into consideration 
the dollar value of the items to be controlled and costs of 
administration.
    (d) Written procedures shall be established for control of sensitive 
items, to include:
    (1) Approval of purchase requisitions or issue documents at an 
appropriate supervisory level prior to acquisition or issue;
    (2) Establishment of administrative controls in the central 
receiving and warehousing department. Such controls should include 
extraordinary physical protection, guidance for receiving and 
warehousing personnel as to procedures for protection, and a current 
listing of sensitive items;

[[Page 190]]

    (3) Establishment and maintenance of appropriate property management 
records;
    (4) Requirements for tagging and identification;
    (5) Use of memorandum receipts or custody documents at time of 
assignment or change in custody;
    (6) Establishment of custodial responsibilities describing--
    (i) Need for extraordinary physical protection;
    (ii) Requirement for prompt reporting of apparent loss, damage or 
destruction;
    (iii) Requirement to return items in condition beyond economical 
repair to an appropriate organizational element;
    (iv) Requirement for promptly reporting changes in custody or 
extended loans;
    (v) Reminder of prohibition of use for other than official purposes, 
and penalties for misuse;
    (vi) Requirement for effective physical and administrative control 
of sensitive items assigned for general use within an organizational 
unit as appropriate to the type of property and the circumstances; and
    (vii) A clear definition of the extent of responsibility or 
financial accountability, depending on contractor policy.
    (7) Requirement for annual physical inventory;
    (8) Requirement for prompt and thorough investigation of losses;
    (9) Requirement for an employee transfer or termination checkout 
procedure and examination and adjustment of records; and
    (10) Other property management procedures which, through experience 
and independent audit, have demonstrated effective physical and 
administrative control over sensitive items.



Sec. 109-1.5106-5  Physical inventories.

    (a) Physical inventories of property shall be conducted at all DOE 
and contractor locations, consistent with approved procedures and 
generally accepted accounting procedures.
    (b) The preferred method of performing physical inventories is by 
the use of personnel other than the property staff or custodian of the 
property. Where staffing restraints or other considerations require, the 
inventory may be performed by the property staff or the custodian.
    (c) Detailed procedures for the taking of physical inventories shall 
be developed for each DOE organization and contractor. The Director of 
Administration and heads of field offices shall approve the procedures 
for their respective DOE operation. The appropriate field organization 
staff shall review and approve contractor's procedures.
    (d) The taking of a physical inventory will be observed, or follow-
on audits made, by independent representatives, e.g., finance, audit, or 
property staffs, to the extent deemed necessary to assure that the 
procedures are being followed and the results are accurate. These 
observations or audits should be documented and the documentation should 
be retained in the inventory record file.
    (e) Procedures that are limited to a check-off of a listing of 
recorded property without actual verification of the location and 
existence of such property do not meet the requirements of a physical 
inventory.
    (f) The frequency of physical inventories shall be as follows:
    (1) Moveable capital equipment--not less frequently than every two 
years.
    (2) Sensitive items--not less frequently than every twelve months.
    (3) Stores inventories--not less frequently than every twelve 
months.
    (4) Precious metals--not less frequently than every six months.
    (g) A physical inventory shall be performed at intervals more 
frequently than required in Sec. 109-1.5106-5(f) whenever experience at 
any given location or with any given item or items indicates that this 
action is necessary for effective property accounting, utilization, or 
control.
    (h) Special inventories may be required on certain types of property 
or on certain items or kinds of items when circumstances arise requiring 
such action, such as audits or special reviews.
    (i) The results of physical inventories shall be reconciled with the 
property records and, except for non-capital sensitive items, with the 
financial control accounts in accordance with Chapter

[[Page 191]]

VI of the DOE Accounting Practices and Procedures Handbook.
    (j) Physical inventories of capital equipment and stores inventories 
may be conducted by the ``statistical sampling'' method in lieu of the 
normal ``wall-to-wall'' method. In addition, the ``inventory by 
exception'' method may be used for capital equipment physical 
inventories. However, the system and procedures for taking physical 
inventories by these methods must be fully documented and approved by 
the Director of Administration and by heads of field offices for their 
respective organizations.



Sec. 109-1.5107  Retirement of property.

    When Government property is worn out, lost, stolen, destroyed, 
abandoned, or damaged beyond economical repair, it shall be listed on a 
retirement work order. A full explanation shall be supported by an 
investigation, if necessary, as to the date and circumstances 
surrounding loss, theft, destruction, abandonment, or damage. The 
retirement work order shall be reviewed by the property management staff 
and signed by the responsible official initiating the report and 
reviewed and approved by an official at least one supervisory echelon 
above the official initiating the report.



Sec. 109-1.5108  Property belonging to others.

    Procedures shall be established which will provide for adequate 
attention to the management of property belonging to other Federal 
agencies in the possession or custody of DOE organizations or its 
contractors.



Sec. 109-1.5109  Employee participation.

    Full advantage shall be taken of suitable methods for stimulating 
employee participation and cooperation in carrying out an effective and 
economical program of property management. Some examples of effective 
methods are (a) indoctrination of new employees and others who have 
access to or use property, (b) the use of incentive award plans to 
promote interest, and (c) the use of visual aids such as posters, plant 
publications, outdoor signboards, and displays to keep employees 
informed as to progress and to remind them of their responsibilities.



Sec. 109-1.5110  Use of non-government-owned property.

    Non-government-owned personal property shall not be installed in, 
affixed to, or otherwise made a part thereof, of any Government-owned 
personal or real property. This restriction does not apply to the use 
and installation of privately owned decorative items or memorabilia to 
the workplace, provided that the structure or safety of the facility is 
not thereby degraded.



Sec. 109-1.5148  Personal property management reports.

    Property management reports to be submitted to the Property and 
Equipment Management Division (MA-422) are listed below.

----------------------------------------------------------------------------------------------------------------
                                           Due at DOE                                                           
            Report title                  headquarters                References                 Form No.       
----------------------------------------------------------------------------------------------------------------
                                      (a) Reports required of all offices.                                      
                                                                                                                
(1) Utilization and Disposal of      Nov. 30...............  FPMR 101-46.407, DOE-PMR     Letter.               
 Personal Property Pursuant to                                109-46.407.                                       
 Exchange/Sale Authority.                                                                                       
(2) Excess Personal Property         Nov. 15...............  FPMR 101-43.4701(c), DOE-    Letter.               
 Furnished to Non-Federal                                     PMR 109-43.4701(c).                               
 Recipients.                                                                                                    
(3) Contractor Property Holdings...  Oct. 31...............  DOE-PMR 109-1.5205.........  Letter.               
(4) Precious Metals................  Oct. 31...............  FPMR 101-42.301-1, DOE-PMR   Letter.               
                                                              109-42.301-1.                                     
(5) Agency Report of Motor Vehicle   Oct. 31...............  FPMR 101-38.1, DOE-PMR 109-  SF 82.                
 Data.                                                        38.1.                                             
(6) Unused Passenger Vehicle         June 15...............  DOE-PMR 109-38.5101-5(b)...  Letter.               
 Replacement Authorizations.                                                                                    
(7) Report of Exempted Motor         On request............  FPMR 101-38.607, DOE-PMR     Letter.               
 Vehicles.                                                    109-38.607.                                       
(8) Annual Forecast for Acquisition  Dec. 1................  Executive Order 12375, DOE-  Letter.               
 of Fuel Efficient Passenger                                  PMR 109-38.1306.                                  
 Automobiles.                                                                                                   
(9) Aircraft Cost and Operations...  Dec. 31...............  DOE-PMR 109-38.5212(a).....  DOE F 4450.1.         
                                                                                                                

[[Page 192]]

                                                                                                                
       (b) Reports required from field offices not reporting through the DOE Financial Information System.      
                                                                                                                
(1) Utilization and Disposal of      Nov. 15...............  DOE Order 2200, Chapter XI.  CR 85-2.              
 Excess and Surplus Personal                                                                                    
 Property.                                                                                                      
(2) Summary of Excess Property       ......................  DOE Order 2200, Chapter XI.  CR 85-4.              
 Received from Other Agencies.                                                                                  
(3) Supply Activity Report.........  Nov. 15...............  DOE-PMR 109-25.48..........  GSA F 1473.           
(4) Direct Labor Costs of Stores     Nov. 15...............  DOE Order 2200, Chapter XI.  CR 85-7.              
 Warehousing Activities.                                                                                        
(5) Completed Plant and Equipment..  Oct. 31...............  DOE Order 2200, Chapter XI.  CR 84-32.             
(6) Equipment Held for Future        Oct. 31...............  DOE Order 2200, Chapter XI.  CR 57.                
 Projects.                                                                                                      
----------------------------------------------------------------------------------------------------------------



   Subpart 109-1.52--Contractors' Personal Property Management Program



Sec. 109-1.5200  Scope of subpart.

    This subpart prescribes policy and responsibilities for the 
establishment, maintenance, review and appraisal of a contractor's 
program and system for the management of Government personal property.



Sec. 109-1.5201  Policy.

    (a) Contractors shall establish, maintain, and administer a program 
for the effective management of Government personal property consistent 
with the terms of the contract and directives for the contracting 
officer.
    (b) Contractors shall maintain their personal property management 
systems in writing on a current basis.
    (c) Contractors shall require those subcontractors provided 
Government property under the prime contract to establish and maintain a 
system for the management of such property. Procedures for assuring 
effective property management shall be included in the contractor's 
property control system. As a minimum, a subcontractor's system for 
control of Government property shall provide for the following:
    (1) Adequate records.
    (2) Controls over acquisitions.
    (3) Identification as Government property.
    (4) Physical inventories.
    (5) Proper care, maintenance, and protection.
    (6) Reporting, redistribution, and disposal of excess and surplus 
property.
    (7) A retirement work order procedure to account for property that 
is worn out, lost, stolen, destroyed, abandoned, or damaged beyond 
economical repair.
    (8) Periodic reporting, including physical inventory results and, at 
least annually, the total acquisition cost of Government property in the 
possession of the subcontractor.
    (9) An internal surveillance system, including periodic reviews, to 
ensure that property is being managed in accordance with established 
procedures.



Sec. 109-1.5202  Designation of property administrator.

    The contracting officer shall designate a property administrator to 
be responsible for property administration. This property administrator 
will be delegated the authority to assist the contracting officer on all 
matters involving the Government-owned personal property held by the 
contractor. If a property administrator has not been designated, the 
contracting officer is the property administrator.



Sec. 109-1.5203  Review and approval of contractor's property management system.

    (a) A contractor's property management system should be reviewed by 
the property administrator within one year after the execution date of 
the contract, and the property administrator shall approve or disapprove 
the system in writing. If the system is disapproved, the property 
administrator shall advise the contractor, in writing, of deficiencies 
that need to be corrected, and a time schedule established for 
completion of the corrective actions.
    (b) The purpose of the review is to determine whether the system 
will adequately protect, maintain, utilize, and

[[Page 193]]

dispose of Government personal property in accordance with the FPMR, the 
DOE-PMR, and applicable DOE directives.
    (c) Appropriate follow-up will be made by the property administrator 
to ensure that corrective actions are taken.
    (d) Any change to the approved property management system made after 
the original review and approval should be reviewed by the property 
administrator at the earliest possible time. Such changes should then be 
approved/disapproved by the property administrator as appropriate.



Sec. 109-1.5204  Property management appraisals.

    (a) At least every two years (with a maximum period of three years) 
after the execution date of the contract, the property administrator 
shall make an appraisal of the property management operation of the 
contractor. The appraisal may be based on a formal in-depth appraisal 
on-site or a series of formal appraisals of the functional segments of 
the contractor's property management system to determine if the 
contractor is managing the Government personal property in its custody 
in accordance with its previously approved policies and procedures, the 
FPMR, the DOE-PMR, and applicable DOE directives. The property 
administrator shall bring deficiencies in the contractor's property 
management operation to the attention of the contractor's management for 
correction.
    (b) Appropriate follow-up will be made by the property administrator 
to ensure that corrective actions are taken.



Sec. 109-1.5205  Reporting.

    Within 30 days after the end of each fiscal year, heads of field 
offices shall report the following information to the Director, Property 
and Equipment Management Division (MA-422):
    (a) Name and address of each contractor.
    (b) Contract number.
    (c) Date contractor's property management system was approved.
    (d) Date of most current appraisal of contractor's property 
management system, and status of the system (satisfactory or 
unsatisfactory).

[[Page 194]]



                         SUBCHAPTER B [RESERVED]



                     SUBCHAPTER C--DEFENSE MATERIALS



PART 109-14--NATIONAL DEFENSE STOCKPILE--Table of Contents




Sec.
109-14.000  Scope of part.

Subpart 109-14.1--Transfer of Strategic and Critical Materials Excess to 
             Agency Needs to the National Defense Stockpile

109-14.103-1-50  Exceptions to reporting.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).



Sec. 109-14.000  Scope of part.

    This part implements and supplements FPMR Part 101-14, National 
Defense Stockpile.

[49 FR 25570, June 21, 1984]



Subpart 109-14.1--Transfer of Strategic and Critical Materials Excess to 
             Agency Needs to the National Defense Stockpile



Sec. 109-14.103-1-50  Exceptions to reporting.

    The following materials excess to the needs of a DOE organization or 
contractor shall be reported to the DOE pool instead of to GSA:
    (a) Precious metals, which include gold, silver, and the platinum 
family (See Sec. 109-43.313-54).
    (b) Lead (See Sec. 109-43.313-57).

[49 FR 25570, June 21, 1984]

[[Page 195]]



                         SUBCHAPTER D [RESERVED]



                  SUBCHAPTER E--SUPPLY AND PROCUREMENT



PART 109-25--GENERAL--Table of Contents




Sec.
109-25.000-50  Scope of subchapter.
109-25.001-50  Scope of part.

                   Subpart 109-25.1--General Policies

109-25.100  Use of Government personal property and nonpersonal 
          services.
109-25.101-1-50  Definitions.
109-25.104  Acquisition of office furniture and office machines.
109-25.109  Laboratory and research equipment.
109-25.109-1  Identification of idle equipment.
109-25.109-2  Equipment pools.
109-25.110-4  Recordkeeping responsibilities.
109-25.113  Leasing of motor vehicles.

                     Subpart 109-25.3--Use Standards

109-25.302  Office furniture, furnishings, and equipment.
109-25.302-1  Executive type office furniture and furnishings.
109-25.302-2-50  Filing cabinets and equipment.
109-25.302-3  Electric typewriters.
109-25.302-4  Figuring machines.
109-25.302-6  Electronic office machines.
109-25.304  Additional systems and equipment for passenger motor 
          vehicles.
109-25.304-50  Communications equipment exemption.
109-25.350  Use of furnishings and household goods in Government 
          personnel quarters.
109-25.351  Furnishing of Government clothing and individual equipment 
          to employees.

                 Subpart 109-25.4--Replacement Standards

109-25.401-50  Replacement approvals.

                       Subpart 109-25.48--Reports

109-25.4800  Scope of subpart.
109-25.4800-50  Applicability.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25571, June 21, 1984, unless otherwise noted.



Sec. 109-25.000-50  Scope of subchapter.

    This subchapter implements and supplements FPMR Subchapter E, Supply 
and Procurement.



Sec. 109-25.001-50  Scope of part.

    This part implements and supplements FPMR Part 101-25, General, and 
provides cross-references to the DOE Acquisition Regulations (DEAR) 
where appropriate.



                   Subpart 109-25.1--General Policies



Sec. 109-25.100  Use of Government personal property and nonpersonal services.

    The Director of Administration and heads of field offices for their 
respective organizations shall ensure that the provisions of FPMR 101-
25.100 are enforced to restrict the use of Government property/services 
to officially designated activities.



Sec. 109-25.101-1-50  Definitions.

    As used in this subpart, the following definitions apply:
    (a) Equipment consists of those items of nonexpendable personal 
property having an anticipated service life of one year or more 
regardless of use or source of funding.
    (b) Equipment pool is a formally designated collection of equipment, 
generally functionally associated, which is available for loan or 
temporary use. The pool may be a physical collection of equipment or may 
be a record system which provides identification, location and 
availability information on equipment available for loan or temporary 
use.
    (c) Equipment in storage is all equipment not in use, whether stored 
in formal storage areas, stored in or adjacent to work areas, held for 
future projects, or retained in standby or abandoned facilities.



Sec. 109-25.104  Acquisition of office furniture and office machines.

    In making a determination as to whether requirements can be met 
through the utilization of already owned furniture and office machines 
as

[[Page 196]]

contemplated in FPMR Sec. 101-25.104, reasonable efforts shall be made 
to determine whether such items are available from other DOE 
organizations and contractors within a reasonable transport distance. 
Such efforts shall include direct inquiries and shall not be limited to 
a review of available property circularized in accordance with Sec. 109-
43.311-1-50.



Sec. 109-25.109  Laboratory and research equipment.

    (a) The provisions of FPMR 101-25.109 and this section shall apply 
to all types of personal property, including office furniture and office 
machines, in addition to laboratory and research equipment.
    (b) The provisions of FPMR 101-25.109 and this section apply to all 
DOE field organizations and contractors, and are not limited to Federal 
laboratories.



Sec. 109-25.109-1  Identification of idle equipment.

    (a) See Sec. 109-25.109(b).
    (b) As a minimum, management walk-through inspections shall be 
scheduled to provide for coverage of all operating and storage areas at 
least once every two years to identify idle and unneeded personal 
property. The frequency of management walk-through inspections may vary 
with the operation or area involved. A report of walk-throughs 
conducted, including participants, areas covered, findings, 
recommendations, and results achieved shall be submitted to the head of 
the laboratory or other facility involved. Equipment identified as idle 
and unneeded shall be redeployed, reassigned, placed in equipment pools 
or declared excess, as appropriate.
    (c) In accordance with FPMR Sec. 101-25.109-1(c), members of 
management walk-through inspection teams should be appointed by the head 
of the DOE or contractor facility.
    (d) Heads of field offices and contracting officers shall 
periodically review walk-through procedures and practices of 
organizations under their jurisdiction to evaluate their effectiveness. 
This review should include actual walk-through inspections of 
representative DOE or contractor facilities.



Sec. 109-25.109-2  Equipment pools.

    (a) [Reserved]
    (b) In accordance with FPMR Sec. 101-25.109-2(b), equipment pools 
shall be established where practicable to obtain optimum utilization of 
equipment. The number and types of pools to be established will depend 
upon local circumstances. In addition to those provided in FPMR 
Sec. 101-25.109-2, factors to be considered are types of equipment, 
number and location of potential users and distances involved.
    (c) In accordance with FPMR Sec. 101-25.109-2(c), surveys of 
equipment holdings should be conducted periodically to determine those 
items which are suitable for pooling. Criteria for placing an item in a 
pool should include (but not be limited to) the following: The item is 
suitable for use by more than one individual or group; its use is 
intermittent rather than full time; it has a degree of portability; and 
it has sufficient cost or value to merit controlling. It is anticipated 
that items pooled would vary from one activity to another due to local 
conditions, and each activity should develop its own criteria for items 
to be pooled. Items to be considered for pooling include (but are not 
limited to) certain types of measuring and recording equipment, pumps, 
electric motors, photographic equipment, portable tools, microscopes, 
portable radios, power supplies, amplifiers, business machines, 
radiation detection instruments, and construction and automotive 
equipment. Where feasible, equipment pools should be combined with 
existing calibration and maintenance services to foster use and control 
of pooled equipment.
    (d) Records of usage shall be maintained to permit the evaluation of 
need for quantities and types of equipment in pools. Reviews of usage 
should be conducted periodically (at least annually) to eliminate items 
which are no longer required. Heads of field offices shall require DOE 
and contractor facilities to submit to them annually the report on the 
use and effectiveness of equipment pooling required by FPMR Sec. 101-
25.109-2(d).
    (e) Heads of field offices and contracting officers shall require 
periodic independent reviews of equipment pool

[[Page 197]]

operations as required by FPMR Sec. 101-25.109-2(e).



Sec. 109-25.110-4  Recordkeeping responsibilities.

    In accordance with FPMR 101-25.110-4, heads of field offices shall 
establish procedures for promptly identifying and locating all tires 
whether in storage or in use on vehicles so that tire recall notices may 
be acted upon expeditiously.



Sec. 109-25.113  Leasing of motor vehicles.

    See DEAR 908.11 and FPMR Secs. 101-26.501-9 and 101-39.601 for 
additional guidance concerning the leasing of motor vehicles.



                     Subpart 109-25.3--Use Standards



Sec. 109-25.302  Office furniture, furnishings, and equipment.

    (a) The criteria contemplated in FPMR Sec. 101-25.302 shall be 
established by the Director of Administration and heads of field offices 
for their respective DOE operations, consistent with FPMR Sec. 101-
25.302-1 and this subpart. Office furniture, furnishings, and equipment 
shall be limited to that required for immediate needs, considering such 
factors as ordering lead time, potential emergency needs and economical 
ordering quantities. Requirements shall be met to the fullest extent 
practicable and economical from available excess or by rehabilitation or 
repair.
    (b)-(c) [Reserved]
    (d) Contractors should be encouraged to limit executive-type 
furniture and furnishings to contractor personnel who organizationally 
are in positions that are similar or comparable to DOE positions 
authorized to use executive type office furniture as provided in FPMR 
Sec. 101-25.302-1, when such action will effect economy without 
decreasing efficiency.



Sec. 109-25.302-1  Executive type office furniture and furnishings.

    The Director of Administration and heads of field offices for their 
respective organizations are authorized to make the determination 
contemplated by FPMR Sec. 101-25.302-1.



Sec. 109-25.302-2  Filing cabinets and equipment.

    In addition to the use standards prescribed in FPMR Sec. 101-25.302-
2, Departmental policies, standards, procedures, and guidelines for the 
files management program is contained in DOE Order 1324.3.



Sec. 109-25.302-3  Electric typewriters.

    The Director of Administration and heads of field offices for their 
respective organizations shall establish policies, procedures, and 
standards for the use of electric typewriters as contemplated in FPMR 
Sec. 101-25.302-3, and are authorized to approve exceptions to the 
criteria contained in that section.



Sec. 109-25.302-4  Figuring machines.

    The Director of Administration and heads of field offices for their 
respective organizations shall establish standards for the use of 
figuring machines as contemplated in FPMR Sec. 101-25.302-4.



Sec. 109-25.302-6  Electronic office machines.

    The Director of Administration and heads of field offices for their 
respective organizations shall establish standards for the use of 
electronic office machines as contemplated in FPMR Sec. 101-25.302-6.



Sec. 109-25.304  Additional systems and equipment for passenger motor vehicles.

    (a) If an item is determined to be essential and the guidelines in 
FPMR Sec. 101-25.304 cannot be met, or the required item is not shown in 
Federal Standard 122, requisitions, accompanied by supporting 
justifications, shall be submitted to the Property and Equipment 
Management Division (MA-422), for further coordination with the 
Commissioner, Federal Supply Service, General Services Administration, 
prior to acquisition.
    (b) See FPMR Sec. 101-26.501, ``Purchase of new motor vehicles,'' 
and DEAR 908.7101-2, ``Consolidated purchase of new vehicles by General 
Services Administration.''

[[Page 198]]



Sec. 109-25.304-50  Communications equipment exemption.

    Communications equipment considered to be essential for the 
accomplishment of security and safety responsibilities is exempt from 
the requirements of Sec. 109-25.304. Communications equipment may be 
acquired and installed in motor vehicles operated by DOE and its 
contractors after approval by the Director of Administration and heads 
of field offices for their respective organizations.



Sec. 109-25.350  Use of furnishings and household goods in Government personnel quarters.

    The Director of Administration and heads of field offices for their 
respective organizations have the authority to authorize the use of 
furnishings and household goods in Government personnel quarters.



Sec. 109-25.351  Furnishing of Government clothing and individual equipment to employees.

    (a) Government-owned clothing and individual equipment may be 
furnished employees under the circumstances indicated below. Care should 
be exercised to avoid the acquisition and furnishing of clothing and 
individual equipment to be fitted to an employee who may soon be 
separated from service or permanently assigned to other duties. This 
section does not apply to provision of uniforms or uniform allowances 
under the Federal Employees Uniform Allowances Act of 1954, as amended.
    (b) Special clothing and individual equipment for the protection of 
personnel from physical injury or occupational disease may be furnished 
employees.
    (c) Articles of clothing and individual equipment may be furnished 
employees when the items are such that the employee could not reasonably 
be required to furnish them as a part of their personal clothing and 
equipment necessary to enable them to perform the regular duties of the 
position to which they are assigned or for which services were engaged.



                 Subpart 109-25.4--Replacement Standards



Sec. 109-25.401-50  Replacement approvals.

    The Director of Administration and heads of field offices for their 
respective organizations are authorized to approve replacement of office 
machines, furniture, and materials handling equipment under the 
conditions cited in FPMR Subpart 101-25.4.



                       Subpart 109-25.48--Reports



Sec. 109-25.4800  Scope of subpart.

    This subpart supplements information concerning the reporting of 
supply management data to GSA as contained in FPMR Secs. 101-25.48 and 
101-25.49.



Sec. 109-25.4800-50  Applicability.

    The provisions of FPMR Subparts 101-25.48 and 101-25.49 and this 
subpart apply only to those DOE direct operations and contractors 
controlling Government-owned stores inventories. However, based on an 
agreement with GSA, the DOE Supply Activity Report is prepared at 
Headquarters from supply management data available in DOE's financial 
reports and is sent to GSA by the Property and Equipment Management 
Division (MA-422). Therefore, no additional reports are required from 
those field organizations or contractors reporting under the DOE 
financial reporting system. Those activities with stores operations 
which do not report under the DOE financial reporting system shall 
submit Supply Activity Reports to the Property and Equipment Management 
Division (MA-422) by November 15 for inclusion in the Departmental 
report.



PART 109-26--PROCUREMENT SOURCES AND PROGRAMS--Table of Contents




Sec.
109-26.000  Scope of part.
109-26.050  Applicability.

             Subpart 109-26.2--Federal Requisitioning System

109-26.203  Activity address codes.

[[Page 199]]

    Subpart 109-26.4--Purchase of Items From Federal Supply Schedule 
                                Contracts

109-26.406-1  General.

               Subpart 109-26.5--GSA Procurement Programs

109-26.501  Purchase of new motor vehicles.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25573, June 21, 1984, unless otherwise noted.



Sec. 109-26.000  Scope of part.

    This part implements and supplements FPMR Part 101-26, Procurement 
Sources and Programs.



Sec. 109-26.050  Applicability.

    FPMR Part 101-26 and this part are applicable to contractors to the 
extent that Government supply sources are made available. For DOE policy 
on the use of Government supply sources by contractors, see DEAR Subpart 
970.51.



             Subpart 109-26.2--Federal Requisitioning System



Sec. 109-26.203  Activity address codes.

    In accordance with FPMR Sec. 101-26.203, the Property and Equipment 
Management Division (MA-422) has been designated the DOE point of 
contact with GSA for matters concerning activity address codes. DOE 
organizations shall designate a point of contact who shall coordinate 
all matters concerning activity address codes with the DOE point of 
contact.



    Subpart 109-26.4--Purchase of Items from Federal Supply Schedule 
                                Contracts



Sec. 109-26.406-1  General.

    The Director of Administration and heads of field offices for their 
respective organizations may authorize the use of U.S. Government 
National Credit Cards in accordance with FPMR Sec. 101-26.406-1. See 
FPMR Secs. 101-38.12 and 109-38.12 for information on the assignment of 
billing address code numbers and the control of U.S. Government National 
Credit Cards.



               Subpart 109-26.5--GSA Procurement Programs



Sec. 109-26.501  Purchase of new motor vehicles.

    In addition to the provisions of FPMR Sec. 101-26.501, DEAR 908.7101 
contains DOE requirements concerning the purchase of new motor vehicles, 
and DEAR 908.11 contains the DOE requirements concerning the leasing of 
motor vehicles.



PART 109-27--INVENTORY MANAGEMENT--Table of Contents




Sec.
109-27.000  Scope of part.
109-27.001-50  Definitions.

                  Subpart 109-27.1--Stock Replenishment

109-27.102-2  Guidelines.

          Subpart 109-27.2--Management of Shelf-Life Materials

109-27.202  Applicability.

             Subpart 109-27.3--Maximizing Use of Inventories

109-27.302  Applicability.

          Subpart 109-27.4--Elimination of Items From Inventory

109-27.402  Applicability.

   Subpart 109-27.50--Inventory Management Policies, Procedures, and 
                               Guidelines

109-27.5001  Scope of subpart.
109-27.5002  Objectives.
109-27.5003  Stores inventory turnover ratio.
109-27.5004  Stock control.
109-27.5004-1  General.
109-27.5004-2  Construction inventories.
109-27.5005  Guide levels for construction inventories.
109-27.5006  Sub-stores.
109-27.5007  Shop, bench, cupboard or site stock.
109-27.5008  Stores catalogs.
109-27.5009  Physical inventories.
109-27.5009-1  Procedures.
109-27.5009-2  Inventory adjustments.
109-27.5010  Control of drug substances and potable alcohol.
109-27.5011  Containers returnable to vendors.
109-27.5012  Identification marking of metals and metal products.
109-27.5012-1  General.

[[Page 200]]

109-27.5012-2  Exception.
109-27.5012-3  Federal standards applicable to marking.

   Subpart 109-27.51--Management of Equipment Held for Future Projects

109-27.5100  Scope of subpart.
109-27.5101  Definition.
109-27.5102  Objective.
109-27.5103  Records.
109-27.5104  Storage.
109-27.5105  Justification and review procedures.
109-27.5106  Field organization review.
109-27.5107  Utilization.

            Subpart 109-27.52--Management of Spare Equipment

109-27.5200  Scope of subpart.
109-27.5201  Definition.
109-27.5202  Exclusions.
109-27.5203  Management policy.

            Subpart 109-27.53--Management of Precious Metals

109-27.5300  Scope of subpart.
109-27.5301  Definition.
109-27.5302  Policy.
109-27.5303  Precious metals control officer.
109-27.5304  Practices and procedures.
109-27.5304-1  Acquisitions.
109-27.5304-2  Designation of custodians.
109-27.5304-3  Physical protection and storage.
109-27.5304-4  Perpetual inventory records.
109-27.5304-5  Physical inventories.
109-27.5304-6  Stock issue.
109-27.5304-7  Control by using organization.
109-27.5305  Management reviews and audits.
109-27.5306  Precious metals pool.
109-27.5306-1  Purpose and operation.
109-27.5306-2  Withdrawals.
109-27.5306-3  Returns.
109-27.5306-4  Withdrawals/returns forecasts.
109-27.5306-5  Assistance.
109-27.5307  Recovery of silver from used hypo solution and scrap film.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25573, June 21, 1984, unless otherwise noted.



Sec. 109-27.000  Scope of part.

    This part implements and supplements FPMR Part 101-27, Inventory 
Management, but excludes atomic weapons or byproducts and source or 
special nuclear materials as defined in the Atomic Energy Act of 1954, 
as amended, enriched uranium in stockpile storage, and petroleum in the 
Strategic Petroleum Reserve and the Naval Petroleum Reserves.



Sec. 109-27.001-50  Definitions.

    As used in this part the following definitions apply:
    (a) Construction inventories are supplies, materials and parts held 
for exclusive use on construction projects.
    (b) Economic order quality (EOQ) means the size of the order which 
produces a level at which the combined costs of procuring and carrying 
inventory are at a minimum.
    (c) Expensed inventories are items for which the cost is charged to 
operations and are not under financial control.
    (d) Inventories are stocks of stores, construction, special reactor 
and other special materials, supplies and parts used in support of DOE 
programs.
    (e) Inventory level, usually expressed in the number of months 
supply on hand based on anticipated usage, is the amount of supplies 
authorized to be on hand and due-in less any amount due-out.
    (f) Inventory management means the effective use of methods, 
procedures and techniques for recording, analyzing, and adjusting 
inventories in accordance with established policy. The following related 
functions are included:
    (1) Providing adequate protection against misuse, theft, and 
misappropriation.
    (2) Providing accurate analyses of quantities to determine 
requirements so that only minimal obsolescence losses will be 
encountered, while ensuring adequate inventory levels to meet program 
schedules.
    (3) Providing adequate and accessible storage facilities and 
services based upon analyses of program requirements so that a minimum 
and economical amount of time is required to service the program.
    (g) Other special materials include precious metals and other rare 
materials having a very high monetary value in relation to volume or 
weight, special barrier materials, and any others that have been 
specifically approved by the DOE Controller.
    (h) Physical inventory means the process of counting the quantities 
of items on hand and reconciling quantities

[[Page 201]]

counted with the quantities shown on control records.
    (i) Quantity control means the management of inventories through 
control of levels, determination of requirements, and replenishment of 
stock.
    (j) Safety stock is that portion of inventories under stock control 
carried for protection against stock depletion due to an increase in 
demand or when lead time is greater than anticipated.
    (k) Shop, bench, cupboard or site stock is a collection or store of 
materials located at or near the point of use.
    (l) Special reactor materials include special materials approved for 
research and for use in reactors but not generally available through the 
usual channels in sufficient quantity because of limited commercial 
production applications.
    (m) Standardization is the reduction of stores inventories to the 
least practicable variety of sizes, shapes and materials compatible with 
program needs.
    (n) Stock record is a device for collecting, storing, and providing 
historical data on recurring transactions for each line item of 
inventory. The stock record of a line item may be a visible register of 
transactions recorded by hand or by machine for that item, or it may be 
the input, output, stored data, or the corresponding print-out of such 
data representing transactions on the item in an electronic data 
processing system.
    (o) Stores catalog means a listing of stock items for use in 
requisitioning supplies and materials.
    (p) Sub-store is a geographically removed part of the main store's 
operation conducted as a subordinate element of it and subject to the 
same management policies and inventory controls.



                  Subpart 109-27.1--Stock Replenishment



Sec. 109-27.102-2  Guidelines.

    Procedures and practices shall provide for replenishment of stock 
items having recurring demands to minimize costs involved. When 
considered more suitable, contractors may use other generally accepted 
approaches to EOQ.



          Subpart 109-27.2--Management of Shelf-Life Materials



Sec. 109-27.202  Applicability.

    Procedures and practices shall provide for managing shelf-life 
materials to minimize loss and ensure maximum use prior to 
deterioration. When considered more suitable, contractors may use other 
generally accepted approaches to the management of shelf-life items.



             Subpart 109-27.3--Maximizing Use of Inventories



Sec. 109-27.302  Applicability.

    Procedures and practices shall provide for maximizing use of 
inventories. When considered more suitable, contractors may use other 
generally accepted approaches to maximizing use of inventories.



          Subpart 109-27.4--Elimination of Items From Inventory



Sec. 109-27.402  Applicability.

    Procedures and practices shall provide for eliminating from 
inventory items that can be obtained more economically from readily 
available sources on a timely basis. When considered more suitable, 
contractors may use other generally accepted approaches to determine 
which items should be retained in inventory.



   Subpart 109-27.50--Inventory Management Policies, Procedures, and 
                               Guidelines



Sec. 109-27.5001  Scope of subpart.

    This subpart supplements FPMR Part 101-27 by providing additional 
policies, principles and guidelines for the economical and efficient 
management of inventories in support of DOE programs.



Sec. 109-27.5002  Objectives.

    Necessary inventories shall be established and maintained at 
reasonable levels, consistent with program requirements. They shall be 
managed and controlled in the most practicable and economical manner 
consistent with

[[Page 202]]

program needs, applicable laws and regulations and the following 
objectives:
    (a) Provide materials and supplies as needed to meet DOE 
requirements.
    (b) Maintain reasonable inventory levels.
    (c) Provide adequate safeguards for protection.
    (d) Maintain adequate quantity controls for effective management 
over all inventories, including those not under financial controls.
    (e) Assure maximum efficient utilization and avoid waste.
    (f) Maintain an economical operation.
    (g) Standardize inventories to the greatest extent practicable.



Sec. 109-27.5003  Stores inventory turnover ratio.

    Comparison of investment in stores inventories to annual issues 
shall be made to assure that minimum inventories are maintained for the 
support of programs. This comparison may be expressed either as a 
turnover ratio (issues divided by dollar value of inventory) or in the 
average number of month's supply on hand. Turnover or number of month's 
supply is calculated only on ``current-use'' inventory. Performance 
goals, i.e., a six months investment or a turnover ratio of 2.0, shall 
be established for each stores using activity. However, it is recognized 
that extenuating operating circumstances may preclude the achievement of 
such objectives.



Sec. 109-27.5004  Stock control.



Sec. 109-27.5004-1  General.

    Stock control shall be maintained on the basis of stock record 
accounts of inventories on hand, on order, received, issued, and 
disposed of, and supported by proper documents in evidence of these 
transactions. Stock record accounts shall be available for review and 
inspection.



Sec. 109-27.5004-2  Construction inventories.

    Stock control from construction inventories shall be maintained by 
the regular checking of individual items to assure that the quantities 
ordered plus amounts on hand do not exceed current job requirements. To 
test the effectiveness of such checks, they should be supplemented with 
DOE reviews of inventory items on a selective basis at approximately the 
25 percent, 50 percent, and 75 percent construction completion stages. 
Undelivered portions of purchase orders, which these checks and reviews 
indicate are not needed to complete the project, should be canceled.



Sec. 109-27.5005  Guide levels for construction inventories.

    To ensure that inventories maintained for construction programs and 
activities are reasonable, the following standards are established as 
guides (variations may be used where it is established by field 
organizations that they will more effectively or economically assure 
that inventory levels are held to the amount required to complete the 
construction project):
    (a) Ordinary construction materials and supplies readily available 
from commercial sources, and not available as Government excess, permit 
phasing of deliveries and cancellation of undelivered quantities that 
may prove excess to project requirements. The onhand inventory of such 
materials generally should not exceed a three or four months supply at 
the anticipated usage rates.
    (b) Ordinary construction materials and supplies readily obtainable 
from Government excess should be acquired only in the amounts estimated 
to complete the construction project.
    (c) Items obtainable only by special manufacture or fabrication 
should be limited to the estimates of requirements to complete the 
project as determined from project plans and specifications, except as 
outlined in (d) below.
    (d) Inventory levels in excess of estimates to complete the project 
should be confined to items so unusual in character or unique to the DOE 
project that they are obtainable only by special manufacture and will be 
required for maintenance purposes or for operation of the completed 
plant.



Sec. 109-27.5006  Sub-stores.

    (a) Sub-stores shall be established when necessary to expedite 
delivery of

[[Page 203]]

materials and supplies to the users, serve emergencies, provide economy 
in transportation, reduce shop and site stocks, and enable stores 
personnel to provide assistance in obtaining materials and supplies as 
needed.
    (b) Items stored for issue in the sub-stores shall be treated as 
inventory items for control and reporting purposes. Stock records shall 
be integrated with central stock records so that the total amount on 
hand of any item at all locations is known.



Sec. 109-27.5007  Shop, bench, cupboard or site stock.

    (a) Shop, bench, cupboard or site stocks are an accumulation of 
small inventories of fast-moving materials at the point of use. 
Normally, these inventories are expensed. However, when stocks of such 
inventories are not consumed or do not turn over in a reasonable period 
of time, which normally should not exceed 90 days, these items should be 
subject to the required physical controls and recorded in the proper 
inventory account.
    (b) Care shall be exercised to prevent excessive accumulation of 
inventories at such points. As a control measure, requisitions should be 
screened against issue data as reflected in stock records at the supply 
point. Also, work orders, retirement notices, minor construction 
projects, maintenance programs, and research and experimental projects, 
involving removal and dismantling should be reviewed and screened to 
prevent excessive inventories at point of use. However, the most 
effective control at point of use may be effected by administrative 
action through visual examination of quantities on hand, and close 
supervisory control and training of persons who requisition materials 
and supplies.



Sec. 109-27.5008  Stores catalogs.

    A suitable stores catalog for customer use in requisitioning stores 
items shall be established for each stores operation. Exceptions to this 
requirement are authorized where establishment of a catalog is 
impracticable or uneconomical because of small total value or number of 
items involved, or temporary need for the facility. Revisions to the 
catalog should be made at reasonable intervals.



Sec. 109-27.5009  Physical inventories.



Sec. 109-27.5009-1  Procedures.

    The following procedures shall be established for taking physical 
inventory of stocks subjected to quantity controls as well as those 
under financial control:
    (a) Completion of a physical inventory not less frequently than 
every twelve months.
    (b) Reconciliation of inventory quantities with the stock records.
    (c) Preparation of a report of the physical inventory results.



Sec. 109-27.5009-2  Inventory adjustments.

    (a) Discrepancies between physical inventories and stock records 
shall be adjusted and the supporting adjustment records shall be 
reviewed and approved by a responsible official at least one supervisory 
echelon above the supervisor in charge of the warehouse or storage 
facility. Items on an adjustment report which are not within reasonable 
tolerances for particular items shall be thoroughly investigated before 
approval.
    (b) Such inventory adjustment reports, when properly approved, 
support adjustments to the stock records and debits and credits to the 
financial inventory accounts. Adjustment reports shall be retained on 
file for inspection and review.



Sec. 109-27.5010  Control of drug substances and potable alcohol.

    (a) The term ``controlled substance'' means any drug or substance 
which has been assigned a ``Bureau of Controlled Substance Code Number'' 
pursuant to 21 CFR part 1308-Schedule of Controlled Substances.
    (b) Effective procedures and practices shall provide for the 
management and physical security of controlled substances and potable 
alcohol from receipt to the point of use. Such procedures shall, as a 
minimum, provide for safeguarding, proper use, adequate records, and 
compliance with applicable laws and regulations. Controls and records of 
potable alcohol shall be

[[Page 204]]

maintained on quantities of one quart and above.
    (c) Effective procedures and practices shall provide for the 
management and physical security of hypodermic needles to prevent 
illegal use. Controls shall include supervisory approval for issue, 
storage in locked repositories, and the rendering of the needles useless 
upon disposal.



Sec. 109-27.5011  Containers returnable to vendors.

    Containers furnished by vendors shall be administratively and 
physically controlled before and after issuance. Prompt action shall be 
taken to return such containers to vendors for credit after they have 
served their intended use.



Sec. 109-27.5012  Identification marking of metals and metal products.



Sec. 109-27.5012-1  General.

    Metals and metal products shall be identification marked in 
accordance with applicable Federal standards. This requirement applies 
to direct charges as well as to items procured for store, shop or floor 
stock, or for use on construction projects. Additional markings not 
covered by the Federal standards should be used to show special 
properties, corrosion data or test data as required. The preferred 
process is for the marking to be done in the manufacturing process, but 
it may be applied by jobbers or other vendors when circumstances 
warrant.



Sec. 109-27.5012-2  Exception.

    Exception to the marking requirement may be made when--
    (a) It is necessary to procure small quantities from suppliers not 
equipped to do the marking;
    (b) It would delay delivery of emergency orders; or
    (c) Procurement is from DOE or other Federal agency excess.



Sec. 109-27.5012-3  Federal standards applicable to marking.

    The Federal standards listed below can be obtained from the General 
Services Administration, Federal Supply Service (3 FRI), Washington, 
D.C. 20407.
    (a) Federal Standard 182A(2) ``Identification Marking of Nickel and 
Nickel Base Alloys.''
    (b) Federal Standard 183B ``Continuous Identification Marking of 
Iron and Steel Products.''
    (c) Federal Standard 184A ``Identification Marking of Aluminum, 
Magnesium and Titanium.''
    (d) Federal Standard 185 ``Continuous Marking of Copper and Copper 
Base Alloy Mill Products.''



   Subpart 109-27.51--Management of Equipment Held for Future Projects



Sec. 109-27.5100  Scope of subpart.

    This subpart provides policies, principles and guidelines to be used 
in the management of equipment held for future projects.



Sec. 109-27.5101  Definition.

    Equipment held for future projects (EHFFP) is equipment that is 
being retained, based on approved justifications, for a known future 
use, or for a potential use in planned projects. This classification 
excludes spare equipment retained as backup for equipment in service or 
equipment placed in equipment pools (classified as ``In Service''), 
spare and other equipment constituting a part of the facilities in 
standby (classified as ``Standby''), excess equipment, and equipment 
classified as ``Plant and Equipment Changes in Progress''.



Sec. 109-27.5102  Objective.

    The objective of the ``equipment held for future projects'' program 
is to enable DOE offices and contractors to retain equipment not in use 
in current programs but which has a known or potential use in future DOE 
programs, while providing visibility on the types and amounts of 
equipment so retained through review and reporting procedures. It is 
intended that equipment be retained which is economically justifiable 
for retention, considering costs of replacement, storage, obsolescence, 
deterioration, or future availability, that it be made available for use 
by others, and that equipment no longer needed be promptly excessed.

[[Page 205]]



Sec. 109-27.5103  Records.

    Records of all EHFFP shall be maintained by the holding 
organization. Included shall be a listing of items with original date of 
classification as EHFFP, initial justifications for retaining EHFFP, 
rejustifications for retention, and documentation of reviews made by 
higher levels of management.



Sec. 109-27.5104  Storage.

    EHFFP should be stored in warehouse space designated for that 
purpose. When such space cannot be made available, such equipment may be 
stored in storage yards or other areas with due consideration to the 
type of property and protection required.



Sec. 109-27.5105  Justification and review procedures.

    Procedures shall provide for the following:
    (a) The original decision to classify and retain equipment as EHFFP 
shall be justified in writing, providing sufficient detail to support 
the need for retention of the equipment. This justification will cite 
the project for which retained, the potential use to be made of the 
equipment, or other reasons for retention.
    (b) The validity of initial classification of equipment held for 
future projects shall be reviewed at a level of management one echelon 
above that of the individual making the initial determination.
    (c) Retention of EHFFP must be rejustified annually to ensure that 
original justifications remain valid. These rejustifications will be 
supported with sufficient detail to support retention.
    (d) Annual rejustifications for retention of EHFFP for longer than 
one year shall be reviewed at a level of management at least two levels 
above that of the individual making the determination to retain the 
equipment as held for future projects. EHFFP retained for periods longer 
than three years should be approved by the head of the DOE field office 
or his designee.



Sec. 109-27.5106  Field organization review.

    Heads of field offices and contracting officers shall conduct 
periodic reviews to ensure the validity of justifications for retaining 
EHFFP. These reviews should include onsite surveys of a representative 
sample of equipment in this classification.



Sec. 109-27.5107  Utilization.

    It is DOE policy that, where practicable and consistent with program 
needs, EHFFP be considered as a source of supply to avoid or postpone 
acquisition. Procedures shall be established to provide for--
    (a) Distribution within the holding organization of lists of EHFFP 
to acquisition offices (or some other central screening office) and 
potential users for screening against requirements prior to acquisition; 
and
    (b) Exchange of lists of EHFFP which can be made available for loan 
between organizations involved in the same or similar programs.



            Subpart 109-27.52--Management of Spare Equipment



Sec. 109-27.5200  Scope of subpart.

    This subpart provides policy guidance to be used in the management 
of spare equipment.



Sec. 109-27.5201  Definition.

    Spare equipment is equipment held as replacement spares for 
equipment in current use in DOE programs.



Sec. 109-27.5202  Exclusions.

    The following categories of equipment will not be considered spare 
equipment:
    (a) Equipment installed for emergency backup, e.g., an emergency 
power facility, or an electric motor or a pump, any of which is in place 
and electrically connected.
    (b) Equipment-like items properly classified as stores inventory.



Sec. 109-27.5203  Management policy.

    (a) Procedures shall require records of spare equipment and purpose 
for retention, cross-referenced to location in facility and engineering 
drawing number.
    (b) Reviews shall be made based on technical evaluations of the 
continued need for the equipment. Frequency of review should be 
biennial. In addition,

[[Page 206]]

individual item levels shall be reviewed when spare equipment is 
installed for use, the basic equipment is removed from service, or the 
process supported is changed.
    (c) Procedures shall be established to provide that unneeded spare 
equipment be identified and reported in excess.



            Subpart 109-27.53--Management of Precious Metals



Sec. 109-27.5300  Scope of subpart.

    This subpart provides policies, principles, and guidelines to be 
used in the management of DOE-owned precious metals by DOE organizations 
and contractors.



Sec. 109-27.5301  Definition.

    Precious metals means uncommon and highly valuable metals 
characterized by their superior resistance to corrosion and oxidation. 
Included are gold, silver, and the platinum group metals--platinum, 
palladium, rhodium, iridium, ruthenium and osmium.



Sec. 109-27.5302  Policy.

    DOE organizations and contractors shall establish effective 
procedures and practices for the administrative and physical control of 
precious metals in accordance with the provisions of this subpart.



Sec. 109-27.5303  Precious metals control officer.

    Each DOE organization and contractor holding precious metals shall 
designate a responsible individual as Precious Metals Control Officer. 
This individual shall be the organization's primary point of contact 
concerning precious metals control and management, and shall be 
responsible for the following:
    (a) Assuring that the organization's precious metals activities are 
conducted in accordance with the requirements of this subpart and 
Chapter IV of the DOE Accounting Practices and Procedures Handbook.
    (b) Maintenance of an accurate list of the names of precious metals 
custodians.
    (c) Providing instructions and training to precious metals 
custodians and/or users as necessary to assure compliance with 
regulatory responsibilities.
    (d) Insuring that physical inventories are performed as required by, 
and in accordance with, these regulations.
    (e) Witnessing physical inventories.
    (f) Performance of periodic unannounced inspections of custodian's 
precious metals inventory and records.
    (g) Conduct of an annual review of precious metals holdings to 
determine excess quantities.
    (h) Preparation and submission of the annual forecast of anticipated 
withdrawals from, and returns to, the DOE precious metals pool.
    (i) Conduct of a program for the recovery of silver from used hypo 
solution and scrap film in accordance with FPMR Secs. 101-42.3 and 109-
42.3.
    (j) Preparation and submission of the annual report on recovery of 
silver from used hypo solution and scrap film as required by Sec. 109-
42.301-1.
    (k) Developing and issuing current authorization lists of persons 
authorized by management to withdraw precious metals for stockrooms.



Sec. 109-27.5304  Practices and procedures.



Sec. 109-27.5304-1  Acquisitions.

    DOE organizations and contractors shall contact the DOE Precious 
Metals Pool Manager to determine the availability of precious metals 
prior to acquisition on the open market.



Sec. 109-27.5304-2  Designation of custodians.

    Responsible individuals shall be designated as precious metals 
custodians. Custodians shall be responsible for proper control and 
safeguarding of the precious metals when issued for use.



Sec. 109-27.5304-3  Physical protection and storage.

    Precious metals shall be afforded exceptional physical protection 
from time of receipt until disposition. Precious metals not in use shall 
be stored in a noncombustible combination locked repository with access 
limited to the custodian and an alternate. When there is a change in 
custodian or alternate having access to the repository, the combination 
shall be changed immediately.

[[Page 207]]



Sec. 109-27.5304-4  Perpetual inventory records.

    Perpetual inventory records shall be maintained as specified in 
Chapter V of the DOE Accounting Practices and Procedures Handbook.



Sec. 109-27.5304-5  Physical inventories.

    (a) Physical inventories shall be conducted semiannually by 
custodians, and witnessed by the Precious Metals Control Officer or his 
designee.
    (b) Precious metals not in use shall be inspected and weighed on 
calibrated scales. The inventoried weight and form shall be recorded on 
the physical inventory sheets by class of metal. Metals in use in an 
experimental process, or which are contaminated and therefore cannot be 
weighed, shall be listed on the physical inventory sheet as observed 
and/or not observed as applicable.
    (c) Any obviously idle or damaged metals should be recorded during 
the physical inventory. Justification for further retention of idle 
materials shall be required from the custodian or disposed of in 
accordance with established procedures.
    (d) The dollar value of physical inventory results shall be 
reconciled with the financial records. All adjustments shall be 
supported by appropriate adjustment reports, and approved by a 
responsible official.



Sec. 109-27.5304-6  Stock issue.

    Metals in stock are metals held in a central location and later 
issued to individuals when authorized requests are received. The 
following control procedures shall be followed for such metals:
    (a) Stocks shall be held to a minimum consistent with effective and 
economical support to programs.
    (b) The name and organization number of each individual authorized 
to withdraw precious metals, and the type and kind of metal, shall be 
prominently maintained in the stockroom. This authorization shall be 
issued by the Precious Metals Control Officer or his designee and 
updated semiannually. Issue of metals will be made only to authorized 
persons.
    (c) Accurate records of all movements (receipts, issues, returns, 
and disposals) shall be developed by, and maintained in, the stockroom.
    (d) Receipts for metal issues and returns to stock shall be provided 
to users. Such receipts, signed by the authorized requesting individual 
and the stockroom clerk, shall list the requesting organization, type 
and form of metal, quantity, and date of transaction.



Sec. 109-27.5304-7  Control by using organization.

    (a) After receipt, the using organization shall provide the 
necessary controls for the precious metal. Materials shall be stored in 
a locked repository at all times except for small quantities at the 
actual point of use.
    (b) Each using organization shall maintain a log showing the 
individual user, type and form of metal, and the time, place, and 
purpose of each use. The log shall be kept in a locked repository when 
not in use.
    (c) The logs and secured locked storage facilities are subject to 
review by the Precious Metals Control Officer and other audit or review 
staffs as required.
    (d) Cognizant Department Managers are responsible for assuring that 
minimum quantities of precious metals are withdrawn consistent with work 
requirements and that quantities excess to requirements are promptly 
returned to the stockroom.
    (e) Employee termination and transfer procedures shall include 
clearance for precious metals possession.



Sec. 109-27.5305  Management reviews and audits.

    (a) Unannounced inspections of custodian's precious metals inventory 
and records may be conducted between scheduled inventories.
    (b) DOE organizations and contractors holding precious metals shall 
annually review the quantity of precious metals on hand to determine if 
this quantity is in excess of programmatic requirements. Precious metals 
which are not needed for current or foreseeable requirements shall be 
promptly reported to the DOE Precious Metals Pool. The results of this 
annual review are to be documented and entered into the precious metals 
inventory records.

[[Page 208]]



Sec. 109-27.5306  Precious metals pool.



Sec. 109-27.5306-1  Purpose and operation.

    The purpose of the precious metals pool is to recycle DOE-owned 
precious metals within the Department at the minimum cost to 
participants. The pool is operated by a private firm under a contract 
with the Oak Ridge Operations Office. Current information regarding the 
contractor's name, address, and telephone number and processing charges 
can be obtained by request through the Chief, Property Management 
Branch, Oak Ridge Operations Office.



Sec. 109-27.5306-2  Withdrawals.

    Pure metal, parts, fabricated products, catalysts, or solutions, are 
generally available and the DOE pool contractor can provide assistance 
in supplying such requirements. Metals can be shipped to any facility to 
fulfill fabrication requirements.



Sec. 109-27.5306-3  Returns.

    The pool is entirely dependent on metal returns; therefore, metal 
inventories should be maintained on an as-needed basis, and any excess 
metals should be returned to the pool for recycling. With the exception 
of silver, this includes precious metals in any form, including shapes, 
scrap, or radioactively contaminated. Only high grade nonradioactively 
contaminated silver should be included. Procedures have been developed 
by the precious metals pool contractor for metal returns, including 
storing, packaging, shipping, and security.



Sec. 109-27.5306-4  Withdrawals/returns forecasts.

    The precious metals pool contractor will request annually from each 
DOE field organization its long-range forecast of anticipated 
withdrawals from the pool and returns to the pool.



Sec. 109-27.5306-5  Assistance.

    DOE organizations or contractors may obtain specific information 
relative to the operation of the precious metals pool by contacting the 
Oak Ridge Operations Office as indicated in Sec. 109-27.5306-1.



Sec. 109-27.5307  Recovery of silver from used hypo solution and scrap film.

    The requirements for the recovery of silver from used hypo solution 
and scrap film are contained in Sec. 109-42.302.



PART 109-28--STORAGE AND DISTRIBUTION--Table of Contents




Sec.
109-28.000  Scope of part.
109-28.001-50  Policy.
109-28.001-51  Storage guidelines.

                  Subpart 109-28.3--Self Service Stores

109-28.308-3  Limitations on use.
109-28.308-6  Safeguards.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25578, June 21, 1984, unless otherwise noted.



Sec. 109-28.000  Scope of part.

    This part implements and supplements FPMR Part 101-28, Storage and 
Distribution.



Sec. 109-28.001-50  Policy.

    Storage and warehouse services shall be--
    (a) Established for the receipt, storage, issue, safekeeping and 
protection of Government-owned property when advantageous to the 
Government;
    (b) Provided in the most economical and efficient manner through the 
use of Government-owned facilities, and where necessary available 
commercial facilities, consistent with program requirements; and
    (c) Operated in accordance with generally accepted industrial 
management practices and principles.



Sec. 109-28.001-51  Storage guidelines.

    (a) Adequate storage facilities shall be provided to ensure the 
proper safeguarding of all Government property.
    (1) Indoor storage areas should be arranged to obtain proper stock 
protection and maximum utilization of space within established floor 
load capacities.
    (2) Storage yards for items not requiring covered protection shall 
be protected by locked fenced enclosures to the extent necessary to 
protect the Government's interest.

[[Page 209]]

    (3) Storage areas shall be prominently posted to clearly indicate 
that the property stored therein is U.S. Government property. Entrance 
to such areas should be restricted to authorized personnel only.
    (b) The following general storage principles shall be observed in 
the planning for the storage of Government personal property:
    (1) Efficient storage demands the maximum utilization of space with 
a minimum amount of labor. Where practicable, labor should be conserved 
by use of modern materials handling equipment and storage aids which 
permit stacking by unit loads rather than by individual container units.
    (2) Fast-moving items should be stored in convenient locations from 
which they can be issued with minimum handling. Stocks of individual 
items or classes of items should be segregated to facilitate handling, 
issuing, and inventorying.
    (3) Property should be stored according to the kind of protection 
required. All items must be protected from fire and theft. Certain items 
require protection from dampness, heat, freezing, or extreme temperature 
changes. Others must be stored away from light and odors, protected from 
vermin infestation, or, because of their hazardous characteristics, 
stored separate from other stocks. These factors, as well as maximum 
protection of property against all causes of deterioration or 
destruction, must be considered in selecting proper storage locations.
    (4) Orderly arrangement is essential to efficient operation of 
storehouses. All items should be so arranged that nomenclature and 
quantity may be readily determined.
    (5) Stock rotation is based on the general storage principle of 
``first in, first out.'' Many items, such as perishables, food stuffs, 
medicines, paints, and chemicals, are subject to deterioration or 
infestation which require that the older stock be issued first.



                  Subpart 109-28.3--Self Service Stores



Sec. 109-28.308-3  Limitations on use.

    The Director of Administration and heads of field offices for their 
respective organizations shall establish internal controls for the use 
of GSA shopping plates in accordance with FPMR Sec. 101-28.308-3.



Sec. 109-28.308-6  Safeguards.

    The Director of Administration and heads of field offices for their 
respective organizations shall establish internal controls for 
safeguarding of GSA shopping plates in accordance with FPMR Sec. 101-
28.308-6.



PART 109-29--FEDERAL SPECIFICATIONS AND STANDARDS--Table of Contents




Sec.
109-29.000  Scope of part.

                        Subpart 109-29.1--General

109-29.103  Availability of Federal standardization documents.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).



Sec. 109-29.000  Scope of part.

    This part implements and supplements FPMR Part 101-29, Federal 
Specifications and Standards.

[49 FR 25579, June 21, 1984]



                        Subpart 109-29.1--General



Sec. 109-29.103  Availability of Federal standardization documents.

    The Index of Federal Specifications and Standards may be obtained 
from the Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402. Copies of Federal Specifications and Standards may 
be obtained as provided in the Index.

[49 FR 25579, June 21, 1984]



PART 109-30--FEDERAL CATALOG SYSTEM--Table of Contents




Sec.
109-30.000  Scope of part.
109-30.000-50  Applicability.

       Subpart 109-30.5--Maintenance of the Federal Catalog System

109-30.503  Maintenance actions required.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).


[[Page 210]]


    Source: 49 FR 25579, June 21, 1984, unless otherwise noted.



Sec. 109-30.000  Scope of part.

    This part supplements FPMR Part 101-30, Federal Catalog System.



Sec. 109-30.000-50  Applicability.

    The provisions in FPMR Part 101-30 and this part do not apply to 
contractors.



       Subpart 109-30.5--Maintenance of the Federal Catalog System



Sec. 109-30.503  Maintenance actions required.

    (a) [Reserved]
    (b) Standard Form 1303 shall be sent directly to GSA for processing. 
Inquiries concerning policy should be directed to the Property and 
Equipment Management Division (MA-422).

[[Page 211]]



                SUBCHAPTER F--ADP AND TELECOMMUNICATIONS





PART 109-35--TELECOMMUNICATIONS--Table of Contents




Sec.
109-35.000  Scope of part.
109-35.000-50  Applicability to contractors.

                  Subpart 109-35.1--General Provisions

109-35.107  Surveys.
109-35.108  Agency payments to common carriers.

          Subpart 109-35.2--Major Changes and New Installations

109-35.202  Definition of major changes.

    Subpart 109-35.3--Utilization and Ordering of Telecommunications 
                                Services

109-35.304  Changes in telephone listing.
109-35.306  Forms for telegraph messages.

Subpart 109-35.4--Contracting, Negotiation, and Representation Involving 
                       Telecommunications Services

109-35.402  Contracting.
109-35.405  Submission of requests.

    Authority: Sec. 161, as amended, 68 Stat. 948, sec. 205, 63 Stat. 
390, as amended; 42 U.S.C. 2201, 40 U.S.C. 486.

    Source: 47 FR 39823, Sept. 10, 1982, unless otherwise noted.



Sec. 109-35.000  Scope of part.

    This part prescribes DOE regulations governing telecommunications 
activities, which regulations implement Federal Property Management 
Regulations.



Sec. 109-35.000-50  Applicability to contractors.

    FPMR 101-37, Telecommunications Management, and DOE-PMR 109-35, 
Telecommunications, shall be applied to cost-type contractors' 
telecommunications activities as follows:
    (a) In all respects to cost-type contractors employing 
telecommunications facilities and services which are wholly owned, 
leased, or cost reimbursed by the DOE.
    (b) To all other cost-type contractors whose telecommunications 
costs are directly identifiable and chargeable to DOE, when such costs 
are considered significant and to the extent that application of DOE 
5300.1, Telecommunications, is practicable.



                  Subpart 109-35.1--General Provisions



Sec. 109-35.107  Surveys.

    Surveys of DOE communications facilities requested by GSA will be 
co-ordinated through DOE headquarters.



Sec. 109-35.108  Agency payments to common carriers.

    GSA will advise DOE Headquarters of its requests for common carrier 
bills rendered to DOE.



          Subpart 109-35.2--Major Changes and New Installations



Sec. 109-35.202  Definition of major changes.

    For the purpose of this subpart 109-35.2, the following shall be 
deemed major changes or new installations of telecommunications 
facilities:
    (a) Local telephone service. In connection with Sec. 101-37.202(a), 
installation or removal of tielines between the gateway PBX and 
satellite PBX's on the same site shall be deemed major changes or new 
installations requiring GSA review. Significant increases or decreases 
in the number of these lines or other information which could have an 
effect on the FTS traffic load will be reported to GSA.
    (b) Intercity telephone service. Applies as written in Sec. 101-
37.202(b).
    (c) Data transmission service. Installation or removal of local data 
transmission channels or equipment which are used exclusively for onsite 
transmission (i.e., in the sense that there can be no direct 
transmission by the channel or equipment off the site) shall not require 
GSA approval. This, however, does not preclude compliance with the 
requirement of Subpart 101-37(c).
    (d) Telegraph service. Installation or removal of exclusively onsite 
(i.e., in the sense that there can be no direct transmission by the 
equipment off the

[[Page 212]]

site) teletype leased lines and associated equipment shall not be deemed 
major change or new installation.
    (e) Communications security service. The GSA/DOE Agreement relating 
to communications security service provides information for GSA review 
in this area. No additional information need be provided by DOE with 
respect to facilities covered by that Agreement.
    (f) Radio service. Notification to GSA may be made through the GSA 
member of the Interdepartment Radio Advisory Committee (IRAC). DOE need 
provide additional information with respect to matters reported to IRAC 
only if specifically requested by GSA. For purposes of radio service, 
calculation of the 20 regular working days referred to in FPMR 101-
37.201-1 shall begin on the date the GSA member of IRAC is advised of 
the proposed DOE action. GSA will review applications filed for 
``Telephone Action'' and will informally advise DOE of recommendations, 
if any, within 5 working days from the date of receipt of the 
application from IRAC.
    (g) Video and audio service. The requirements of this paragraph 
shall not apply to exclusively onsite equipment (i.e., in the sense that 
there can be no direct transmission by the equipment or channels off the 
site).



    Subpart 109-35.3--Utilization and Ordering of Telecommunications 
                                Services



Sec. 109-35.304  Changes in telephone listing.

    DOE is required to use Standard Form 146 only in connection with 
joint use switchboards not operated by DOE or its contractors.



Sec. 109-35.306  Forms for telegraph messages.

    DOE is required to use Standard Form 14 only in connection with DOE 
contractors' use of GSA-operated teletypewriter centers.



Subpart 109-35.4--Contracting, Negotiation, and Representation Involving 
                       Telecommunications Services



Sec. 109-35.402  Contracting.

    Copies of existing DOE communications common carrier contracts shall 
be furnished to GSA for information and analysis.



Sec. 109-35.405  Submission of requests.

    Field office requests for GSA assistance will be submitted through 
DOE Headquarters.



PART 109-36--ADP MANAGEMENT--Table of Contents




Sec.
109-36.000  Scope of part.

 Subpart 109-36.3--Reutilization of Automatic Data Processing Equipment 
                              and Supplies

109-36.300-50  Scope of subpart.
109-36.302-50  Reassignment of ADPE within DOE.
109-36.303-1  Designation of agency ADPE point of contact.
109-36.303-3-50  Reporting excess or exchange/sale ADPE within DOE.
109-36.304  Availability list.
109-36.306  Requests for transfer of excess ADPE or exchange/sale ADPE.

                       Subpart 109-36.47--Reports

109-36.4700  Scope of subpart.
109-36.4702  Reporting excess or exchange/sale ADPE.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25579, June 21, 1984, unless otherwise noted.



Sec. 109-36.000  Scope of part.

    This part implements and supplements FPMR Part 101-36 as it relates 
to utilization and disposal of excess automatic data processing 
equipment (ADPE).

[[Page 213]]



 Subpart 109-36.3--Reutilization of Automatic Data Processing Equipment 
                              and Supplies



Sec. 109-36.300-50  Scope of subpart.

    This subpart implements and supplements FPMR Part 101-36.3. Policies 
and procedures relating to acquisition, reassignment, or retention of 
excess ADPE are contained in policies and procedures established by the 
Office of the Director of Administration.



Sec. 109-36.302-50  Reassignment of ADPE within DOE.

    (a) Transfers within DOE of excess ADPE having a current market 
price equal to or greater than that specified for major items as defined 
in the DOE Program Budget Structure are made pursuant to the requirement 
for proposals submitted in accordance with instructions from the Office 
of the Director of Administration.
    (b) Transfers within DOE of excess ADPE with a current market price 
of less than that specified for major items shall be approved by the 
head of the field office and the head of the Headquarters organization 
having ADPE responsibility for the equipment. However, when more than 
one request is received, the field office head shall notify the 
requestors that acquisition proposals prepared in accordance with 
instructions from the Office of the Director of Administration shall be 
forwarded to the field organization for review. After receipt of all 
proposals, the field office head shall--
    (1) Approve the request for transfer which is judged to be in the 
best interest of DOE; or
    (2) Where this judgment cannot be made locally, forward the 
proposals to the Director of Administration for action in a manner 
similar to proposals for equipment having a current market price equal 
to or greater than that specified for major items.



Sec. 109-36.303-1  Designation of agency ADPE point of contact.

    The Director of Administration shall designate the DOE point of 
contact to carry out the responsibilities contained in FPMR Sec. 101-
36.303-1.



Sec. 109-36.303-3-50  Reporting excess or exchange/sale ADPE within DOE.

    (a) All ADPE, either Government-owned or-leased, which is no longer 
needed or is scheduled for replacement, shall be made available for 
utilization within DOE as soon as plans for the release of such 
equipment are known.
    (b)(1) Government-owned ADPE shall be reported for utilization 
screening within DOE on Standard Form (SF) 120, Report of Excess 
Personal Property. The SF 120 shall contain the information required in 
FPMR 101-36.4702 and, for internal screening purposes, a release date 
(date of availability). If the release date is not firm, a tentative 
release date should be given, which would be subject to change until the 
actual release date is established.
    (2) The SF 120 shall be submitted to the Property and Equipment 
Management Division (MA-422) for inclusion in the Reportable Excess 
Automated Property System (REAPS) in accordance with Sec. 109-43.311-1-
50.
    (3) ADPE shall not be reported to GSA as excess until this screening 
has been accomplished and it has been established that there are no DOE 
claimants. Concurrent screening within DOE and GSA is not authorized. A 
minimum of 45 days should be allowed for screening ADPE prior to 
reporting it to GSA. In those instances where the release date can be 
determined sufficiently in advance, additional screening time should be 
allowed to permit maximum time for processing of requests to acquire 
excess ADPE.
    (c) The procedures prescribed in Sec. 109-36.303-3-50(b) shall be 
followed for leased ADPE. However, when time does not permit sequential 
DOE and GSA circularization, excess leased ADPE may be circularized 
concurrently in DOE and GSA to assure earned credits are not lost to the 
Government. The SF 120 should clearly indicate concurrent screening by 
DOE and GSA. Where time does not permit assurance that earned credits 
are not lost to the Government, announcement of availability of excess 
leased ADPE may be circularized within DOE by teletype (TWX). The TWX 
should be sent to all DOE field offices with a request to further 
distribute to applicable contractors, and copies should be sent to the 
Office

[[Page 214]]

of ADP Management (MA-24) and to the Property and Equipment Management 
Division (MA-422) at Headquarters.



Sec. 109-36.304  Availability list.

    The Director of Administration shall develop and maintain 
distribution patterns for availability lists of excess and exchange/sale 
ADPE as contemplated in FPMR Sec. 101-36.304.



Sec. 109-36.306  Requests for transfer of excess ADPE or exchange/sale ADPE.

    The Director of Administration, heads of field offices, the 
Administrator, Energy Information Administration and contracting 
officers are authorized to sign Standard Form (SF) 122, Transfer Order 
Excess Personal Property, after appropriate approvals, involving 
requests for transfer of excess or exchange/sale ADPE, as required by 
FPMR Sec. 101-36.306(a).



                       Subpart 109-36.47--Reports



Sec. 109-36.4700  Scope of subpart.

    This subpart implements and supplements FPMR Subpart 101-36.47 as it 
relates to reporting excess or exchange/sale ADPE to GSA.



Sec. 109-36.4702  Reporting excess or exchange/sale ADPE.

    Excess Government-owned or-leased ADPE and exchange/sale ADPE shall 
be reported to GSA on Standard Form (SF) 120, Report of Excess Personal 
Property, in accordance with the requirements of FPMR Sec. 101-36.4702. 
No provision is made in FPMR Sec. 101-36.4702 for the use of a TWX as a 
substitute for the SF 120 in reporting excess ADPE to GSA. When a TWX is 
used to report excess leased ADPE to GSA, it shall be followed up with 
an SF 120 to GSA, providing appropriate cross-reference information.

[[Page 215]]



             SUBCHAPTER G--TRANSPORTATION AND MOTOR VEHICLES





PART 109-38--MOTOR EQUIPMENT MANAGEMENT--Table of Contents




Sec.
109-38.000  Scope of part.
109-38.000-50  Policy.

                  Subpart 109-38.0--Definition of Terms

109-38.001  Definitions.

             Subpart 109-38.1--Reporting Motor Vehicle Data

109-38.100-1-50  Reporting DOE motor vehicle data.
109-38.102-2-50  Reporting DOE domestic and foreign vehicles.

              Subpart 109-38.2--Registration and Inspection

109-38.202-50  Registration in foreign countries.
109-38.202-51  Shipment to foreign countries.

             Subpart 109-38.3--Official U.S. Government Tags

109-38.302  Records.
109-38.303  Procurement.
109-38.305-50  Security.
109-38.305-51  Lost or stolen license tags.

       Subpart 109-38.4--Official Legend and Agency Identification

109-38.404  Procurement of decalcomanias.
109-38.404-50  Security of decals.

 Subpart 109-38.6--Exemptions From Use of Official U.S. Government Tags 
                        and Other Identification

109-38.602  Unlimited exemptions.
109-38.602-50  Additional Department of Energy exemptions.
109-38.605  Additional exemptions.
109-38.606  Approval of tag requests for exempted vehicles in the 
          District of Columbia.
109-38.607  Report of exempted motor vehicles.

 Subpart 109-38.7--Transfer of Title to Government-Owned Motor Vehicles

109-38.701  Methods of transfer.
109-38.701-50  Delegation of authority to sign Standard Forms 97 and 
          97A.

          Subpart 109-38.9--Motor Vehicle Replacement Standards

109-38.900-50  Policy.
109-38.907  Fleets.
109-38.908  Exception.
109-38.908-50  Prompt disposal of replaced passenger vehicles.

       Subpart 109-38.10--Scheduled Maintenance of Motor Vehicles

109-38.1003-50  DOE guidelines.

 Subpart 109-38.12--Preparation and Control of Standard Form 149, U.S. 
                     Government National Credit Card

109-38.1200  General.
109-38.1201  Billing code.
109-38.1202  Administrative control of credit cards.
109-38.1202-50  Additional control of credit cards.

   Subpart 109-38.13--Energy Conservation in Motor Vehicle Management

109-38.1304  Mandatory provisions affecting the acquisition and use of 
          all motor vehicles.
109-38.1304-50  Selection of type of motor vehicles.
109-38.1305  Mandatory provisions affecting the acquisition, use, and 
          replacement of passenger automobiles.
109-38.1306  Acquisition of fuel-efficient passenger automobiles.
109-38.1306-50  Certification of fuel-efficient passenger automobile 
          acquisitions.
109-38.1307  Acquisition of fuel-efficient light trucks.
109-38.1350  Conservation of motor vehicle fuels.

            Subpart 109-38.50--Utilization of Motor Vehicles

109-38.5000  General.
109-38.5001  Utilization controls and practices.
109-38.5002  Use objectives for motor vehicles.
109-38.5003  Application of use goals.

            Subpart 109-38.51--Acquisition of Motor Vehicles

109-38.5100  General requirements.
109-38.5101  Authority required for acquisition or hire of passenger 
          motor vehicles.
109-38.5102  Passenger motor vehicle allocations.

[[Page 216]]

109-38.5103  Acquisition.

                       Subpart 109-38.52--Aircraft

109-38.5200  Scope of subpart.
109-38.5201  Definitions.
109-38.5202  General.
109-38.5203  Aircraft safety.
109-38.5204  Pilot responsibility and authority.
109-38.5205  Authority required for the acquisition, hire, or borrowing 
          of aircraft.
109-38.5205-1  Statute.
109-38.5206  Aircraft authorization.
109-38.5207  Management responsibility.
109-38.5208  Registration and identification.
109-38.5209  Airworthiness.
109-38.5210  Maintenance.
109-38.5211  Operation.
109-38.5212  Records.
109-38.5213  Reports.

                      Subpart 109-38.53--Watercraft

109-38.5300  Scope of subpart.
109-38.5301  Definitions.
109-38.5302  General.
109-38.5303  Watercraft safety.
109-38.5304  Watercraft operations.
109-38.5305  Watercraft identification and numbers.
109-38.5306  Display of flags and seal.

     Subpart 109-38.54--Official Use of Motor Vehicles and Aircraft

109-38.5400  Scope of subpart.
109-38.5401  Statutory requirement.
109-38.5402  Policy.
109-38.5403  Official purposes.
109-38.5404  Approval of authorizations.
109-38.5405  Duration of authorizations.
109-38.5406  Use of a motor vehicle to drive to residence at start of 
          official travel.
109-38.5407  Use of Government-owned or Government-furnished motor 
          vehicle in travel status.
109-38.5408  Use of Government-owned or -leased bus systems.
109-38.5409  Use of Government motor vehicles in emergencies.
109-38.5410  Use of motor vehicles by the Postal Service.
109-38.5411  Instructions to motor vehicle operators.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25580, June 21, 1984, unless otherwise noted.



Sec. 109-38.000  Scope of part.

    This part implements and supplements FPMR Part 101-38 concerning the 
management of motor equipment, vehicles, aircraft and watercraft.



Sec. 109-38.000-50  Policy.

    Necessary motor equipment, vehicles, aircraft and watercraft shall 
be provided, maintained and utilized in support of DOE programs in the 
most practical and economical manner consistent with program 
requirements, safety considerations, fuel economy and applicable laws 
and regulations.



                  Subpart 109-38.0--Definition of Terms



Sec. 109-38.001  Definitions.

    As used in this part the following definitions apply:
    (a) Motor equipment means any item of equipment which is self-
propelled or drawn by mechanical power, including motor vehicles, 
motorcycles and scooters, construction and maintenance equipment, 
materials handling equipment, aircraft and watercraft.
    (b) Motor vehicle means any equipment, self-propelled or drawn by 
mechanical power, designed to be operated principally on the highways in 
the transportation of property or passengers. This includes both 
motorcycles and motor scooters.
    (c) A replacement off-set is an authorization to one DOE field 
organization to acquire a new passenger motor vehicle to replace an old 
passenger motor vehicle which has become excess to another DOE field 
organization. The transaction does not require the physical transfer of 
the excess vehicle, but is limited to a documentary transfer.
    (d) Special purpose vehicles have limited but essential missions. 
They are not generally used to carry passengers, freight or other 
materials. Trucks with permanently mounted equipment, (such as fire 
trucks, special tank trucks, wreckers and trucks with compressors or 
generators in fixed mounting on the body), may be classified as special 
purpose trucks. Vehicles other than sedans and station wagons which are 
to be used only during a defined or specified contingency, such as 
evacuation or other similar emergency, may also be classified as special 
purpose vehicles. For reporting purposes within DOE, motorcycles and 
motor scooters will also be reported as special purpose vehicles.

[[Page 217]]

    (e) Experimental vehicles are those acquired solely for testing and 
research purposes or otherwise designated for experimental purposes. 
Such vehicles are to be the object of testing and research as 
differentiated from those used as vehicular support to testing and 
research. Experimental vehicles are not to be used for passenger 
carrying services, and they are not subject to statutory price 
limitations or to authorization limitations.



             Subpart 109-38.1--Reporting Motor Vehicle Data



Sec. 109-38.100-1-50  Reporting DOE motor vehicle data.

    (a) Organizations operating DOE-owned and/or commercially term 
leased (60 continuous days or more) motor vehicles shall provide one 
copy of the following reports to the Property and Equipment Management 
Division (MA-422) by October 31 of each year.
    (1) DOE Report of Motor Vehicle Data.
    (2) DOE Report of Truck Data.
    (b) Copies of the report forms may be obtained by contacting the 
Property and Equipment Division.



Sec. 109-38.102-2-50  Reporting DOE domestic and foreign vehicles.

    Separate forms shall be prepared for vehicles located: (a) In the 
United States, including territories and possessions, and (b) in a 
foreign country.



              Subpart 109-38.2--Registration and Inspection



Sec. 109-38.202-50  Registration in foreign countries.

    Motor vehicles used in foreign countries are to be registered and 
carry license tags in accordance with the existing motor vehicle 
regulations of the country concerned.



Sec. 109-38.202-51  Shipment to foreign countries.

    (a) When motor vehicles are being shipped for use in a foreign 
country, the desk officer or individual handling the affairs pertaining 
to the country in the Department of State shall be contacted before 
shipment is made for information concerning the licensing and shipping 
of the vehicle.
    (b) The person responsible for, and expected to use, a motor vehicle 
in a foreign country shall make inquiry at the United States Embassy, 
Legation, or Consulate concerning the regulations that apply to 
registration, licensing, and operation of motor vehicles and shall be 
guided accordingly.



             Subpart 109-38.3--Official U.S. Government Tags



Sec. 109-38.302  Records.

    (a) The Property and Equipment Management Division (MA-422) assigns 
``blocks'' of U.S. Government license tag numbers to DOE organizations 
and maintains a current record of such assignments. Additional 
``blocks'' will be assigned upon request.
    (b) Each Departmental organization shall maintain a current record 
of individual assignments of license tags to the motor vehicles under 
its jurisdiction as required by FPMR Sec. 101-38.302.



Sec. 109-38.303  Procurement.

    The procedures for acquiring official Government license tags by DOE 
organizations are covered in DEAR 908.7101-7.



Sec. 109-38.305-50  Security.

    Unissued license tags shall be stored in a locked drawer, cabinet or 
storage area with restricted access to prevent possible fraud or misuse.



Sec. 109-38.305-51  Lost or stolen license tags.

    Fleet managers, upon receipt of information on lost or stolen 
Government license tags, should promptly report the loss to the local 
DOE security office and local law enforcement authorities. Lost or 
stolen Interagency Motor Pool Vehicle license tags should be reported to 
the applicable General Services Administration motor pool manager. 
District of Columbia or state license tags which are lost or stolen 
should be reported to the District of Columbia, Department of 
Transportation, or the appropriate state agency.

[[Page 218]]



       Subpart 109-38.4--Official Legend and Agency Identification



Sec. 109-38.404  Procurement of decalcomanias.

    The official legend and agency identification for DOE shall be of 
elastomeric pigmented film type decalcomania which are currently 
available in black (DOE Form 1530.1) and white (DOE Form 1530.2). These 
forms shall be requisitioned from the Logistics Management Division (MA-
235) using DOE Form 4250.2, ``Requisition for Supplies, Equipment or 
Services'', a local supply request form or a memorandum.



Sec. 109-38.404-50  Security of decals.

    Unissued decals shall be stored in a locker drawer, cabinet or 
storage area with restricted access to prevent possible fraud or misuse.



 Subpart 109-38.6--Exemptions From Use of Official U.S. Government Tags 
                        and Other Identification



Sec. 109-38.602  Unlimited exemptions.

    (a)-(d) [Reserved]
    (e) Exemptions from the requirement for the display of Federal 
license tags and other official identification may be approved by heads 
of field offices and the Director of Administration for motor vehicles 
under their cognizance which are used in the conduct of security 
operations or in the enforcement of security regulations of DOE.



Sec. 109-38.602-50  Additional Department of Energy exemptions.

    The requirements for the display of Federal license tags and other 
identification do not apply to motor vehicles used in foreign countries, 
Trust Territories, or the Pacific Test Areas (see FPMR Secs. 101-38.202 
and 109-38.202-50).



Sec. 109-38.605  Additional exemptions.

    (a) Requests made pursuant to FPMR Sec. 101-38.605 for exemption 
from the requirement for displaying U.S. Government tags and other 
identification on motor vehicles which are not within the criteria in 
FPMR Sec. 101-38.602 shall be submitted through normal administrative 
channels to the Property and Equipment Management Division (MA-422). 
Each such request shall describe the vehicle for which exemption is 
sought, the nature of the work on which it is used, and include a 
certification to the effect that conspicuous identification would 
interfere with such use.
    (b) The Property and Equipment Management Division (MA-422) shall be 
notified promptly when the need for a previously authorized exemption no 
longer exists.
    (c) Copies of certifications and cancellation notices required to be 
furnished to GSA pursuant to FPMR Sec. 101-38.605 will be transmitted to 
GSA by the Property and Equipment Management Division.



Sec. 109-38.606  Approval of tag requests for exempted vehicles in the District of Columbia.

    The Director of Administration is designated as the DOE liaison 
representative to approve requests for regular District of Columbia 
license tags for Headquarters motor vehicles exempted from carrying U.S. 
Government license tags and other official identification, and furnishes 
annually to the District of Columbia Department of Motor Vehicles the 
name and specimen signature of each representative authorized to approve 
such requests.



Sec. 109-38.607  Report of exempted motor vehicles.

    The Director of Administration and heads of field offices for their 
respective organizations shall maintain records of motor vehicles 
exempted from displaying Federal license tags and other identification 
which will permit the submission of reports by the Property and 
Equipment Management Division upon request of GSA in accordance with 
FPMR Sec. 101-38.607. The records shall contain a listing by type of 
each exempted vehicle operated during the previous fiscal year, giving 
the information for each vehicle on hand at the beginning of the year 
and each of those newly authorized during the year, including--
    (a) By whom exemption was authorized, by name and title of 
authorizing official (including any authorization by Headquarters and 
GSA);

[[Page 219]]

    (b) Date exemption was authorized;
    (c) Justification for exemptions and limitations on uses of the 
exempted vehicle;
    (d) Date of discontinuance for any exemption discontinued during the 
year; and
    (e) Probable duration of exemption for vehicles continuing in use.



 Subpart 109-38.7--Transfer of Title to Government-Owned Motor Vehicles



Sec. 109-38.701  Methods of transfer.

    (a)-(b) [Reserved]
    (c) The certificates and copies of Certificate of Release of a Motor 
Vehicle (SF's 97 and 97A) shall be numbered consecutively by each DOE 
field and Headquarters organization disposing of motor vehicles.



Sec. 109-38.701-50  Delegation of authority to sign Standard Forms 97 and 97A.

    (a) Heads of DOE field offices and the Director of Administration 
may delegate the authority to sign SF's 97 and 97A to responsible DOE 
personnel under their jurisdiction. The name of the officer delegated to 
sign will be typed on the certificate in addition to the signature in 
ink.
    (b) All DOE field and Headquarters organizations shall establish 
proper controls to prevent blank copies of SF's 97 and 97A from being 
obtained by unauthorized persons.



          Subpart 109-38.9--Motor Vehicle Replacement Standards



Sec. 109-38.900-50  Policy.

    It is the policy of DOE to continue in service motor vehicles which 
meet prescribed replacement standards, but which are in usable and 
workable condition, provided that--
    (a) A continued need exists for the vehicle;
    (b) The vehicle can be operated safely and dependably without 
excessive repair and maintenance costs. Normally, when any single repair 
job exceeds 25 percent of the estimated current market value of a 
vehicle, consideration should be given to replacement in lieu of repair 
and retention;
    (c) Repair parts are readily obtainable; and
    (d) Retention will not substantially reduce the exchange/sale value 
of the vehicle.



Sec. 109-38.907  Fleets.

    The replacement limitations cited in FPMR Sec. 101-38.907 are 
applicable to each of DOE's field organizations and may not be exceeded.



Sec. 109-38.908  Exception.

    Motor vehicles may be replaced without regard to the replacement 
standards in FPMR Sec. 101-38.9 only after certification by the 
appropriate head of the field or Headquarters organization that a 
vehicle is beyond economical repair due to accident damage or wear 
caused by abnormal operating conditions.



Sec. 109-38.908-50  Prompt disposal of replaced passenger vehicles.

    Because of the limitation on the total number of passenger vehicles 
which DOE may own, replaced passenger vehicles shall be removed from 
service and disposed of prior to or as soon as practicable after 
delivery of the replacement equipment to avoid concurrent operation of 
both vehicles. Because of disposal problems, there may be occasions 
where quick disposal of the old equipment may not be feasible or 
advantageous to the Government, e.g., it may be determined that there is 
an insufficient number for economical sale, or that sale would bring 
substantially better prices at a later date because of seasonal effects 
on sale prices. Under such circumstances, temporary retention of the 
replaced passenger vehicle may be justified. However, such retention may 
not be used as justification for concurrent operation of the new and 
replaced vehicles.



       Subpart 109-38.10--Scheduled Maintenance of Motor Vehicles



Sec. 109-38.1003-50  DOE guidelines.

    (a) Whenever practicable, existing Government service facilities 
shall be consolidated, or commercial services shall be utilized, to 
reduce to a minimum the maintenance facilities and

[[Page 220]]

equipment, supplies, parts, stocks and overhead costs.
    (b) Maintenance also shall be geared to a planned replacement 
program. Individual vehicle maintenance record files shall be kept and 
made readily available to appropriate maintenance personnel to provide 
historical records of past repairs, as a control against unnecessary 
repairs and excessive maintenance, and as an aid in determining the most 
economical time for replacement.
    (c) One-time maintenance and repair limitations shall be established 
by heads of field offices. To exceed repair limitations, approval from 
heads of field offices is required, particularly as the time of 
replacement approaches.
    (d) Adequate maintenance schedules shall be provided to accomplish 
the following objectives in the most economical manner:
    (1) To maintain equipment in safe and economical operating 
condition.
    (2) To prevent equipment failures resulting in program delays and 
excessive downtime.
    (3) To prevent premature wear and deterioration.
    (4) To prevent undue depreciation.
    (5) To conserve materials and manpower.
    (e) Warranties. (1) Special attention shall be devoted to the 
warranty on each motor vehicle to ensure that maximum benefits are 
realized. A system should be established to assure that defective 
materials and workmanship on vehicles under warranty are corrected under 
the terms of the warranty to avoid maintenance and repair of such 
vehicles at Government expense.
    (2) When motor vehicles are maintained in Government shops in 
isolated locations that are distant from franchised dealer shops, or 
when it is not practical to return the vehicles to a dealer, billback 
agreement shall be sought from manufacturers to permit warranty work to 
be performed in Government shops on a reimbursable basis.



 Subpart 109-38.12--Preparation and Control of Standard Form 149, U.S. 
                     Government National Credit Card



Sec. 109-38.1200  General.

    FPMR Sec. 101-26.406 authorizes the use of Standard Form 149, U.S. 
Government National Credit Card for Federal agencies for obtaining 
service station deliveries and services. The use of the SF-149 by each 
field organization or by Headquarters is optional. When a field 
organization elects to use the form, it shall be used on a field 
organization basis.



Sec. 109-38.1201  Billing code.

    DOE organizations shall request the assignment of billing address 
code numbers from the Property and Equipment Management Division (MA-
422). Following the assignment, DOE organizations shall submit orders 
for issuance of national credit cards in accordance with FPMR Sec. 101-
26.406-5 and the current Federal Supply Schedule FSC Group 75, Part VII. 
The billing code consists of the following:
    (a)(1) The first three digits of the 10-digit billing code embossed 
on national credit cards in use by DOE will always be 000.
    (2) The fourth digit may be used by DOE organizations and 
contractors to designate the vehicle class or provide additional billing 
code numerals. If not used for either of these purposes, zero will be 
used.
    (3) The fifth and sixth digits will be ``89'', the agency code 
assigned to DOE.
    (4) The seventh, eighth, and ninth digits indicate the billing 
address code number.
    (b) [Reserved]



Sec. 109-38.1202  Administrative control of credit cards.

    (a) The head of each organization using credit cards shall be 
responsible for establishing procedures to provide for the 
administrative control of credit cards in accordance with the guidelines 
set forth in FPMR Part Sec. 101-38.1202.

[[Page 221]]

    (b) [Reserved]



Sec. 109-38.1202-50  Additional control of credit cards.

    (a) All vehicle operators should be provided with appropriate 
instructions regarding the use and protection of credit cards against 
theft and misuse.
    (b) In the event an SF-149 is lost or stolen, reasonable precautions 
shall be taken to minimize the opportunity of purchases being made by 
unauthorized persons. In addition to the written notification required 
in FPMR Sec. 101-38.1202(b)(1), the paying office shall be promptly 
notified of the loss or theft and to be on the alert for any 
unauthorized bills.



   Subpart 109-38.13--Energy Conservation in Motor Vehicle Management



Sec. 109-38.1304  Mandatory provisions affecting the acquisition and use of all motor vehicles.

    (a)-(b) [Reserved]
    (c) The use of motor vehicles for official purposes within DOE is 
governed by the provisions of DOE subpart 109-38.54.
    (d) All requirements for term rentals or leases of sedans, station 
wagons or light trucks under 8,500 pounds gross vehicle weight shall be 
submitted to the Property and Equipment Management Division (MA-422) in 
accordance with Secs. 109-38.1306-50, 109-38.1307 and DEAR 908.1170.



Sec. 109-38.1304-50  Selection of type of motor vehicles.

    (a) All vehicles acquired for use, whether by buy, hire, lease, 
forfeiture or transfer from another agency, shall be limited to the 
minimum body and engine size, and to only that operational equipment (if 
any) necessary to fulfill programmatic needs.
    (b) The least expensive unit overall should be used, considering 
both acquisition and operating costs for units to be bought, and rental 
rates for rented or leased units.
    (c) Dual-purpose vehicles capable of hauling both personnel and 
light cargo shall be used whenever appropriate to avoid the need for two 
vehicles when one can serve both purposes. However, truck-type or van 
vehicles shall not be acquired for passenger use merely to avoid 
limitations on the number of passenger vehicles which may be acquired.
    (d) Motor scooters and motorcycles in place of higher cost motor 
vehicles can be used advantageously for certain applications within 
plant areas, such as mail and messenger service and small parts and tool 
delivery. Their advantage, however, should be weighed carefully from the 
standpoint of overall economy (comparison with cost for other types of 
motor vehicles) and increased safety hazards, particularly when mingled 
with other motor vehicle traffic.
    (e) Electric vehicles may be used advantageously for certain 
applications. The use of these vehicles is encouraged wherever it is 
feasible to use them to further the goal of fuel conservation.



Sec. 109-38.1305  Mandatory provisions affecting the acquisition, use, and replacement of passenger automobiles.

    In accordance with FPMR Sec. 101-38.1305, all requests to acquire 
passenger automobiles larger than class 1A, 1B or II shall be forwarded 
with justifications through normal administrative channels to the 
Property and Equipment Management Division (MA-422) for certification to 
GSA.



Sec. 109-38.1306  Acquisition of fuel-efficient passenger automobiles.

    (a) Organizations conducting motor vehicle operations shall forward 
annually (on or before December 1) to the Property and Equipment 
Management Division (MA-422) a plan for acquisition of passenger motor 
vehicles for the next fiscal year. This plan shall conform to the fuel 
efficiency standards for motor vehicles for the applicable fiscal year, 
as established by Executive Order 12375 and as implemented by GSA and 
current DOE directives. Additional guidance for the preparation of the 
plan will be issued by the Property and Equipment Management Division 
(MA-422) as required. This organization shall also review each 
submission for conformance with established fuel efficiency standards 
and shall develop and forward to GSA the

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Departmental consolidated annual motor vehicle acquisition forecast.
    (b) [Reserved]



Sec. 109-38.1306-50  Certification of fuel-efficient passenger automobile acquisitions.

    (a) Requisitions for the buying of passenger motor vehicles shall be 
forwarded to the Property and Equipment Management Division (MA-422) for 
review, certification and submission to GSA.
    (b) Proposals/ requests for commercially leased passenger 
automobiles, for a period of 60 continuous days or more, shall be 
forwarded to the Property and Equipment Management Division (MA-422) for 
review and certification prior to entering into an agreement to lease to 
insure compliance with Executive Order 12375 as implemented by GSA.



Sec. 109-38.1307  Acquisition of fuel-efficient light trucks.

    In accordance with FPMR Sec. 101-38.1307 and Executive Order 12375, 
the requirements of Secs. 109-38.1306 and 109-38.1306-50 also apply to 
the acquisition of any truck under 8,000 pounds gross vehicle weight and 
covered by Federal Standards 292 and 307.



Sec. 109-38.1350  Conservation of motor vehicle fuels.

    In furtherance of energy conservation objectives, each organization 
within DOE shall establish programs which will ensure achievement of the 
reduced motor vehicle fuel consumption objectives. The following actions 
shall be adopted to achieve the conservation goals of reduced motor 
vehicle fuel consumption:
    (a) Do not idle engine for long periods of time.
    (b) Reduce motor vehicle travel to the maximum extent practicable 
without jeopardizing essential business.
    (c) Use the smallest vehicle that is feasible for the job.
    (d) Maintain tire pressure to tire manufacturer's recommendations. 
Check pressure at least once each week.
    (e) Give wide publicity on proper driving techniques as prescribed 
by GSA to conserve fuels and require that all drivers diligently follow 
them.
    (f) Limit speed to the National Speed Limit.
    (g) Ensure proper maintenance and servicing procedures, such as 
tuneups, in accordance with the manufacturer's latest specifications.



            Subpart 109-38.50--Utilization of Motor Vehicles



Sec. 109-38.5000  General.

    It is DOE policy to keep the number of motor vehicles at the minimum 
needed to satisfy program requirements. To assure attainment of this 
goal, continuing attention shall be given to developing and implementing 
controls and practices which will help achieve the most practical and 
economical utilization of vehicles.



Sec. 109-38.5001  Utilization controls and practices.

    Controls and practices to be used by DOE organizations and 
contractors for achieving maximum economical utilization of motor 
vehicles shall include, but not be limited to--
    (a) The maximum use of equipment pooling arrangements, taxicabs, 
shuttle buses, or other common service arrangements;
    (b) The minimum, practicable assignment of equipment to individuals, 
groups or specific organizational components with periodic documented 
reviews of such assignments to determine if underutilization exists and 
whether reassignment is necessary;
    (c) Frequent review of vehicle utilization statistics by appropriate 
levels of management, with prompt reassignment and/or disposal action 
performed as required;
    (d) The careful selection of equipment types to permit the maximum 
appropriate use of multi-purpose equipment;
    (e) The rotation of equipment between high and low mileage 
assignments where practicable to maintain the fleet in the best overall 
replacement age and mileage balance and operating economy; and
    (f) The maintenance of individual equipment use records, such as 
trip

[[Page 223]]

tickets or vehicle logs, showing sufficiently detailed information to 
evaluate appropriateness of assignment and adequacy of use being made. 
If one-time use is involved, such as assignments from motor pools, the 
individual's trip records must, as a minimum, identify the vehicle and 
show the name of the operator, dates, destination, time of departure and 
return, and mileage.



Sec. 109-38.5002  Use objectives for motor vehicles.

    The following use goals are established for DOE as average 
objectives:
    (a) Sedans and station wagons--3,000 miles per quarter or 12,000 
miles per year.
    (b) Light trucks and general purpose vehicles, one ton and under 
(less than 12,500 GVW)--10,000 miles per year.
    (c) Medium trucks and general purpose vehicles, 1\1/2\ ton through 
2\1/2\ ton (12,500 to 16,999 GVW)--7,500 miles per year.
    (d) Heavy trucks and general purpose vehicles, three ton and over 
(17,000 GVW and over)--7,500 miles per year.
    (e) Truck tractors--10,000 miles per year.
    (f) All-wheel-drive vehicles--7,500 miles per year.
    (g) Other motor vehicles--No average use goals for other trucks, 
ambulances, buses, and special purpose vehicles are established. The use 
of such equipment shall be reviewed and necessary action taken to ensure 
that the equipment is fully utilized or declared excess to the 
Department's needs.



Sec. 109-38.5003  Application of use goals.

    Individual motor vehicle utilization cannot always be measured or 
evaluated strictly on the basis of miles operated or against any 
Department-wide mileage standard. Other measures of use will need to be 
considered. Accordingly, as an aid in achieving maximum feasible 
utilization, local use objectives which represent practical units of 
measurement for vehicle utilization and for planning and evaluating 
future vehicle requirements must be established. Such objectives should 
generally be initiated by the organization involved and reviewed and 
adjusted as appropriate, but not less often than annually. The 
objectives will take into consideration past performance, future 
requirements and special operating conditions, and should be consistent 
with the justifications used to obtain vehicle authorizations. Both 
Department-wide and local use objectives should be applied in such a 
manner that their application does not stimulate vehicle use for the 
purpose of meeting the objective. The ultimate standard against which 
vehicle use must be measured is that the minimum number of vehicles will 
be retained to satisfy program requirements.



            Subpart 109-38.51--Acquisition of Motor Vehicles



Sec. 109-38.5100  General requirements.

    The acquisition of motor vehicles shall be limited to the minimum 
number needed to adequately serve program requirements and satisfy the 
intent of Congress. Any additions to the fleet must be fully justified 
and the justification shall include substantiation that the intent of 
109-38.000-50 and 109-38.50 are satisfied.



Sec. 109-38.5101  Authority required for acquisition or hire of passenger motor vehicles.

    (a) In accordance with 31 U.S.C. 1343, authority for the buying, 
leasing, or hire of passenger motor vehicles is contained in the annual 
appropriation act for DOE.
    (b) The acquisition of passenger motor vehicles by transfer from 
another Government agency shall be considered as an addition to the DOE 
passenger motor fleet.
    (c) Passenger motor vehicles may not be bought or acquired by 
transfer or loan unless they are--
    (1) Specifically authorized by the Director of Procurement and 
Assistance Management, pursuant to the appropriation concerned or other 
law;
    (2) Acquired from excess for upgrading or replacement purposes and 
an equal number of replaced vehicles are reported for disposal as excess 
within 30 days; or
    (3) For temporary emergency needs not in excess of three months in 
lieu of commercial rentals.

[[Page 224]]

    (4) For temporary emergency needs over three months and approved by 
the Director of Procurement and Assistance Management.



Sec. 109-38.5102  Passenger motor vehicle allocations.

    (a) To assure that DOE acquisitions do not exceed the number of 
passenger motor vehicles authorized to be acquired in any fiscal year, 
the Director of Procurement and Assistance Management shall allocate to 
and inform the field organizations of the number of passenger motor 
vehicles which may be acquired each fiscal year. These allocations and 
the statutory cost limitations shall not be exceeded.
    (b) In order that unused allocations to acquire passenger motor 
vehicles may be reassigned within the Department, the organizations 
concerned shall notify the Property and Equipment Management Division 
(MA-422) when allocations will not be used. Such notification shall be 
submitted as soon as possible but not later than June 15 of each year.
    (c) Passenger motor vehicles acquired from excess to meet temporary 
emergency needs for longer than three months shall be charged against 
the number authorized for purchase unless otherwise approved by the 
Director of Procurement and Assistance Management (See Comp. Gen. 
Decision. B-154282 dated October 15, 1966).
    (d) In order that passenger vehicles no longer needed by one field 
organization may be used by another, either by actual transfer for 
continued use or as replacement off-sets, they shall be reported to the 
Property and Equipment Management Division (MA-422) prior to any 
disposal action so that such use can be properly coordinated within DOE.



Sec. 109-38.5103  Acquisition.

    (a) Policies and procedures for the procurement of new motor 
vehicles, including provisions for the acquisition of additional systems 
and equipment for sedans and station wagons, are set forth in FPMR 101-
25.304 and 101-26.5 and DEAR 908.7101.
    (b) Policies and procedures for the leasing of motor vehicles are 
set forth in FPMR Sec. 101-39.601 and DEAR 908.11. The Director of 
Administration and heads of field offices for their respective 
organizations are responsible for certifying that leased passenger 
vehicles larger than type II (compact) are essential to the mission of 
the organization concerned.



                       Subpart 109-38.52--Aircraft



Sec. 109-38.5200  Scope of subpart.

    This subpart establishes basic policies and procedures that apply to 
the management of aircraft and aircraft services, excluding aircraft 
owned and operated by other Federal activities for DOE.



Sec. 109-38.5201  Definitions.

    As used in this subpart the following definitions apply:
    (a) Aircraft means a device that is used or intended to be used for 
flight in the air, including: heavier than air, and lighter than air and 
ultra-light aircraft, gliders, helicopters, rigid and nonrigid airships, 
and balloons.
    (b) Chartered aircraft are aircraft rented or hired on an 
intermittent basis, with or without the services of a pilot or other 
operating aircrew members.
    (c) Leased aircraft are aircraft obtained on a contractual basis, 
for a stipulated time interval, as distinguished from intermittent 
charter or short-term rental.
    (d) Military aircraft are aircraft on loan from the Department of 
Defense (DOD).
    (e) Pilot is an individual possessing the required FAA credentials 
and meeting the qualification requirements and other criteria as 
required by the employing organization.
    (f) Part-time pilot is one who is employed specifically to operate 
aircraft on a ``when-needed'' basis.



Sec. 109-38.5202  General.

    Department-wide policies, standards, guidelines and procedures for 
management of aircraft and aviation services, necessary staff 
assistance, and general liaison with other Federal agencies are provided 
by the Director of Procurement and Assistance Management. Heads of field 
offices must ensure that

[[Page 225]]

management, review, approval and accounting procedures and systems are 
implemented to comply with the requirements of OMB Circular A-126, 
``Improving the Management and Use of Government Aircraft.''



Sec. 109-38.5203  Aircraft safety.

    (a) Policy development and general overview of aircraft safety in 
Departmental operations is exercised by the Assistant Secretary for 
Policy, Safety and Environment.
    (b) Aviation operations and aircraft safety standards, criteria and 
procedures for DOE aviation operations are established by the Assistant 
Secretary for Policy, Safety and Environment. Heads of field offices may 
establish higher safety standards, criteria and procedures when they 
have determined that it is necessary to assure the safety of specific 
operations under their jurisdiction.



Sec. 109-38.5204  Pilot responsibility and authority.

    (a) It shall be the responsibility of the pilot to be aware of, and 
conform to, Federal Aviation Regulations and other requirements of the 
Federal Aviation Administration (FFA), Department policies and field 
organization directives, and the regulations and directives of other 
applicable authority, including those relating to use for official 
purposes only.
    (b) The pilot is responsible for ensuring that all necessary 
maintenance, repairs and FAA inspections are accomplished and for 
determining that the aircraft is airworthy.
    (c) The pilot is at all times responsible for the safe operation of 
his aircraft and for the safety of his crew and passengers. Insofar as 
the loading of the aircraft, weather, mechanical, and other safety 
conditions are concerned, the pilot shall have final authority for 
determining whether a particular flight shall be continued or terminated 
and how it shall be made.



Sec. 109-38.5205  Authority required for the acquisition, hire, or borrowing of aircraft.



Sec. 109-38.5205-1  Statute.

    (a) In accordance with 31 USC 1343(d), authority for the buying, 
leasing, or hire of aircraft is contained in the annual appropriation 
act for DOE.
    (b) The acquisition of aircraft by transfer from another Government 
agency shall be considered as an addition to the DOE aircraft fleet.
    (c) Aircraft may not be bought, leased, or acquired by transfer or 
loan unless they are--
    (1) Specifically authorized by the Director of Procurement and 
Assistance Management, pursuant to the appropriations concerned or other 
laws (except for temporary rentals or loans of 30 days or less);
    (2) Temporary rental or loans (30 days or less) approved by the head 
of the field office; or
    (3) Acquired from Government excess for upgrading or replacement 
purposes, provided: (i) That such acquisition is without reimbursement, 
(ii) that the aircraft can be certified as airworthy without extensive 
or costly modification, and (iii) that an equal number of aircraft is 
reported for disposal as excess within 30 days after delivery of the 
replacement aircraft.



Sec. 109-38.5206  Aircraft authorization.

    (a) To assure that acquisitions do not exceed the number of aircraft 
authorized to be acquired in any fiscal year, the Director of 
Procurement and Assistance Management shall inform DOE field 
organizations each fiscal year of the number of aircraft which may be 
acquired. These authorizations shall not be exceeded.
    (b) The acquisition of specific aircraft by type shall be 
coordinated with the Office of Operational Safety (PE-242) to assure 
that the selected aircraft type can perform the mission requirements 
safely and meet all applicable safety standards.

[[Page 226]]



Sec. 109-38.5207  Management responsibility.

    The head of each field organization having an aircraft operation 
shall establish procedures to ensure--
    (a) That the acquisition of aircraft, including military aircraft, 
is centrally controlled to ensure that authorizations are not exceeded;
    (b) Because of the statutory limitations on the number of aircraft 
which DOE may acquire, replaced aircraft must be removed from service 
and disposed of prior to or as soon as practicable after delivery of the 
replacement equipment to avoid concurrent operation of both aircraft.
    (c) That each aircraft is equipped with the appropriate avionics and 
accessories required by its FAA type certification or military 
department's operators manual for the type of flight intended. Life 
jackets shall be provided and readily available for all occupants of 
aircraft on extended overwater flights as defined in Federal Aviation 
Regulation 1.1. Aircraft on flights into isolated areas shall be 
equipped with emergency rations and appropriate survival gear;
    (d) Conformance with FAA requirements for the registration, 
certification, maintenance, and operation of aircraft, engines, and 
component equipment;
    (e) Selection of qualified pilots and crew members and the 
maintenance of pilot and crew competence commensurate with job 
requirements;
    (f) Establishment of dispatching and tracking procedures or other 
controls that will assure knowledge of aircraft location when operating 
in areas where flight plan service is not available;
    (g) Overall safe, efficient, and economical operation, maintenance, 
utilization, and replacement of aircraft;
    (h) That pooling is used as necessary to obtain maximum utilization;
    (i) That contract or charter pilots are duly certified to meet all 
requirements and regulations established by the FAA for the particular 
aircraft;
    (j) That chartered, leased, or rented aircraft are operated and 
maintained in compliance with all rules, regulations, and minimum 
standards of the FAA;
    (k) Than any charter, rental or hire of aircraft and operators shall 
meet the requirements of 14 CFR 135; and
    (l) That DOE-owned, -leased, and borrowed aircraft are used for 
official purposes only and that all flight and operational personnel, 
including the pilots, are aware of the provisions of Sec. 109-38.54.



Sec. 109-38.5208  Registration and identification.

    (a) Department-owned aircraft shall be registered with the FAA. The 
certificate of registration shall be displayed in the aircraft in 
accordance with FAA requirements. A similar requirement shall be 
included in any arrangement for the charter, rent, hire, loan or lease 
of aircraft.
    (b) All aircraft shall display markings as required by the Federal 
Aviation Regulations for registered aircraft of the United States.



Sec. 109-38.5209  Airworthiness.

    With the exception of public use aircraft being operated under 
special regulations of the FAA, all aircraft shall be required to have a 
currently effective FAA Airworthiness Certificate appropriate to the 
proposed usage. This certificate shall be displayed in the aircraft. 
Exceptions to this requirement are: (a) Uncertified aircraft may be 
ferried with minimum crew when there is a written determination by the 
head of the field office or his designee that the aircraft is safe for 
flight, and (b) aircraft obtained by transfer from the Department of 
Defense or the U.S. Coast Guard may be ferried incident to such transfer 
when the aircraft has been released as airworthy for flight.



Sec. 109-38.5210  Maintenance.

    As a minimum, all aircraft, aircraft engines, propellers, 
accessories, and equipment shall be maintained and serviced in 
accordance with FAA requirements for air carrier and non-air carrier 
aircraft, as appropriate, and the instructions of the manufacturer. All 
repairs and alterations shall be performed and approved in accordance 
with applicable FAA or military standards and requirements. Preventive 
maintenance inspections shall be made of the airframe, engine, and 
accessory

[[Page 227]]

equipment in conformance with the equipment manufacturer's 
recommendations and FAA or military requirements, as applicable.



Sec. 109-38.5211  Operation.

    (a) Flight operations must comply with the Federal Aviation 
Regulations, and responsibility for such compliance rests with the pilot 
of the aircraft (Sec. 109-38.5204). Any special problem requiring 
deviation from the regulations shall be submitted through normal 
administrative channels to the Assistant Secretary for Policy, Safety 
and Environment for review and possible referral to the FAA for an 
appropriate waiver. Such a waiver is required for all fixed-wing 
aircraft engaged in low-level flying, and any change of conditions shall 
be reported to the responsible FAA District Office.
    (b) Flight plans are required for all flights over isolated areas, 
and are also required for flights under visual flight rules (VFR) 
conditions except where the flight is of a local nature. Where normal 
flight plan channels are not available, the procedures as stated in 
Sec. 109-38.5207(f) or other controls shall be followed that will assure 
current knowledge by responsible DOE or DOE contractor personnel of the 
aircraft's operating plan and of its arrival at destination.
    (c) Aircraft, engines, and equipment shall be operated within the 
operating limits prescribed by the manufacturer.
    (d) Adequate preflight and in-flight check lists shall be provided 
to, and used by, all pilots. A visual preflight inspection shall be made 
by the pilot before each takeoff, and any deficiency which might affect 
the safety of the flight shall be corrected before takeoff.
    (e) All flights shall be planned and conducted so that the aircraft 
will arrive over its destination with a fuel reserve sufficient to reach 
a planned alternate destination. Flights conducted under FAA Instrument 
Flight Rules shall be required to conform to FAA fuel-time minimum 
requirements, or better.



Sec. 109-38.5212  Records.

    As a minimum, flight, aircraft, and engine logs shall be maintained 
in accordance with FAA requirements, and records of operations, 
maintenance, and costs shall be maintained as required for management 
budgetary and reporting purposes. Heads of field offices shall establish 
requirements for other records needed.



Sec. 109-38.5213  Reports.

    (a) Organizations operating aircraft shall complete a DOE Form 
4450.1, Aircraft Cost and Operations Report, for each DOE-owned, -leased 
(over 30 days) or borrowed aircraft operated during the fiscal year. The 
completed forms shall be submitted to the Property and Equipment 
Management Division (MA-422) by December 31 of each year, or upon 
receipt or disposal of individual aircraft.
    (b) Reports shall be submitted as required by the Federal Aviation 
Administration, the National Transportation Safety Board, the General 
Services Administration, and the Assistant Secretary for Policy, Safety 
and Environment. Heads of field offices shall establish the requirements 
for other reports that may be needed for management or other purposes.
    (c) All accidents involving aircraft shall be reported promptly to 
the National Transportation Safety Board, the Federal Aviation 
Administration as required, the head of the field organization concerned 
and the Assistant Secretary for Policy, Safety and Environment.



                      Subpart 109-38.53--Watercraft



Sec. 109-38.5300  Scope of subpart.

    This subpart establishes basic policies and procedures that apply to 
the management of all watercraft operated by DOE organizations and 
contractors. The policies and procedures set forth herein are minimal, 
and the head of each Departmental organization operating watercraft 
shall issue such supplemental instructions as may be needed to ensure 
the effective and efficient management of watercraft.



Sec. 109-38.5301  Definitions.

    As used in this subpart the following definitions apply:
    (a) Watercraft means any vessel used to transport persons or 
material on water.

[[Page 228]]

    (b) Qualified Operator means any person who has exhibited skill in 
handling watercraft, knowledge of ``Rules of the Road,'' and other basic 
watercraft knowledge necessary for safe and efficient operation.
    (c) Rules of the Road means laws which govern the operation of 
watercraft on: (1) Great Lakes, (2) western rivers, (3) Inland, and (4) 
International Waters.



Sec. 109-38.5302  General.

    Departmental-wide policies, standards, guidelines and procedures for 
management of watercraft are established by the Director of Procurement 
and Assistance Management.



Sec. 109-38.5303  Watercraft safety.

    Policy development and general overview of watercraft safety in 
Departmental operations is exercised by the Assistant Secretary for 
Policy, Safety and Environment.



Sec. 109-38.5304  Watercraft operations.

    (a) No person may operate a watercraft on a waterway until skill of 
operation, knowledge of rules of the road, and basic watercraft 
knowledge have been exhibited to the head of the field office. The U.S. 
Coast Guard Auxiliary (USCG), American Red Cross and U.S. Power 
Squadrons teach public courses in some locations which are applicable to 
small boat operations (non-commercial watercraft up to 65' overall 
length).
    (b) Before a watercraft is put underway, the operator shall check 
the vessel to ensure that the necessary equipment, including personal 
flotation devices and lights, as required by laws applicable to the area 
of operation, are present, properly stowed and in proper working order. 
Optional equipment recommended by USCG or other competent authority 
shall also be included when determined to be necessary by the 
responsible field office.
    (c) Operators shall comply with all applicable Federal, state and 
local laws pertaining to the operation of watercraft. Where no state 
boating law exists, the requirements of the Federal Boating Act of 1958, 
as amended, shall apply.
    (d) Operators shall not use watercraft or carry passengers except in 
the performance of official Departmental assignments.



Sec. 109-38.5305  Watercraft identification and numbers.

    (a) Watercraft in the custody of DOE or DOE contractors shall 
display identifying numbers, whether issued by the U.S. Coast Guard, 
state or local field office. The numbers will be in addition to 
Departmental property control or other identification. Numbers shall be 
in block form affixed to the bow section, on both sides. Numbers and/or 
letters shall read from left to right in contrasting color to background 
not less than three (3) inches in height. When a watercraft is not 
registered by either the U.S. Coast Guard or state, the field 
organization shall assign an alpha-numeric designation, which will 
reflect Departmental and field office issue. Example--DOE-4560-SR. 
(Note: Some states specify the arrangement of numbers and letters which 
shall be used by Federal small boats home posted in the state's waters. 
Compliance with such a requirement is appropriate.)
    (b) DOE is not required to have DOE-owned watercraft inspected and 
registered by the U.S. Coast Guard, but these services may be provided 
upon request.



Sec. 109-38.5306  Display of flags and seal.

    Watercraft with overall length of twenty (20) feet or more, except 
barges, shall display the U.S. Ensign (National Flag). The display of 
the Departmental flag is optional. Location and times of display of 
flags shall be in accordance with accepted practice. A facsimile of the 
Departmental seal may also be displayed. When the seal is used it shall 
be placed on the superstructure in a prominent place and a size 
appropriate to the superstructure; except that if there is no 
superstructure, the seal shall be placed above the water line in the 
midship section of watercraft.

[[Page 229]]



     Subpart 109-38.54--Official Use of Motor Vehicles and Aircraft



Sec. 109-38.5400  Scope of subpart.

    This subpart supplements FPMR Part 101-38, implements the provisions 
of statutes concerning the use of Government-owned, -rented or -leased 
motor vehicles and aircraft for official purposes and prescribes 
policies and procedures governing the use of such vehicles and aircraft 
acquired for official purposes.



Sec. 109-38.5401  Statutory requirement.

    (a) 31 U.S.C. 1344(a) provides that, unless otherwise specifically 
provided, no appropriation available for any department shall be 
expended for the maintenance, operation, and repair of any Government-
owned passenger motor vehicle or aircraft not used exclusively for 
official purposes. Official purposes shall not normally include the 
transportation of officers and employees between their domiciles and 
places of employment, except in cases of medical officers on outpatient 
medical service, and where officers and employees are performing field 
work which makes such transportation necessary and which has been 
approved by the head of the department concerned.
    (b) In accordance with 31 U.S.C. 1349(b), any officer or employee of 
the Government who willfully uses or authorizes the use of any 
Government-owned motor vehicle or aircraft or any motor vehicle or 
aircraft leased by the Government, for other than official purposes, 
shall be suspended from duty by the head of the department concerned, 
without compensation, for not less than one month and shall be suspended 
for a longer period or summarily removed from office if circumstances 
warrant.
    (c) Under the provisions of 18 U.S.C. 641, any person who knowingly 
misuses any Government property (which includes Government motor 
vehicles) is subject to criminal prosecution and, upon conviction, to 
fines up to $10,000 and/or imprisonment for up to 10 years.
    (d) In addition to the potential administrative sanctions and 
criminal prosecution cited above, 31 U.S.C. 1344 is interpreted to 
preclude reimbursement to Government contractors for the maintenance, 
operation or repair of Government-owned, -rented, or -leased passenger 
motor vehicles or aircraft which are used by contractor personnel for 
other than official purposes.



Sec. 109-38.5402  Policy.

    All Government-owned, -rented or -leased motor vehicles and aircraft 
operated by DOE and its contractors shall be utilized for official 
purposes only, and officers, employees and contractors of the Department 
shall not use or authorize others to use any Government-owned, -rented 
or -leased motor vehicle or aircraft for other than official purposes. 
It should be understood that use of Government-owned, -rented or -leased 
motor vehicles between an employee's domicile and place of employment 
when adequately justified may be authorized only as an exceptional 
action but not as a routine occurrence.



Sec. 109-38.5403  Official purposes.

    (a) The term ``official purposes'' means those purposes required to 
carry out authorized programs, including program work carried out under 
contracts made pursuant to authority vested in the Department. 
``Official purpose'' largely is a matter of administrative discretion 
and determination based on the particular facts of the case and the 
Government interest in the proposed use of the Government motor vehicle. 
It is the responsibility of the person authorizing or approving the use 
to examine the circumstances surrounding such use and assure that the 
facts sufficiently justify a conclusion of ``official purpose.''
    (b) The term ``field work'' as used in 31 U.S.C. 1344a quoted above 
refers to the nature of the work performance; it is not restricted to 
``field service'' as distinguished from ``Headquarters service.''



Sec. 109-38.5404  Approval of authorizations.

    (a) The Director of Administration and heads of field offices for 
their respective organizations may approve the use of a Government-
owned, -rented, or -leased motor vehicle between a DOE

[[Page 230]]

employee's domicile and place of employment. This authority may be 
redelegated but not below the chief administrative officer level.
    (b) Heads of field offices and contracting officers shall require:
    (1) Contracting officer approval for all contractor authorizations 
over 10 days;
    (2) That contractors prescribe and issue, subject to approval by the 
head of the field organization or contracting officer, such local 
written guidelines regarding the official use of motor vehicles or 
aircraft and the penalties for unauthorized use as may be necessary and 
appropriate for particular operating situations; and
    (3) That the use of Government-owned, -rented, or -leased motor 
vehicles or aircraft by contractor employees for transportation between 
places of employment and domiciles, including storage at or near such 
domiciles, is justified in accordance with Sec. 109-38.5403, and that 
such justifications, administrative determinations, and authorizations 
for such use and storage by contractor employees are documented and 
approved at appropriate supervisory levels within the contractor's 
organization and by the contracting officer when required by Sec. 109-
38.5404(b)(1).
    (c) The approving official shall determine whether the official 
duties of the employees justify a conclusion of official purpose in 
accordance with Sec. 109-38.5403. All approvals and supporting 
documentation shall be in writing and retained for three calendar years.



Sec. 109-38.5405  Duration of authorizations.

    An authorization to use a motor vehicle for transportation between a 
domicile and place of employment shall be limited to the period of 
actual need or 60 days, whichever is less. Requests for renewals of such 
authorizations shall be subject to the same justification and document 
retention procedures as original requests, and must also indicate what 
attempts were made during the original period to eliminate the necessity 
for such use.



Sec. 109-38.5406  Use of a motor vehicle to drive to residence at start of official travel.

    The use of a Government motor vehicle by an officer or employee to 
drive to his/her residence when it is in the interest of the Government 
that the employee start on official travel in the vehicle from that 
point, rather than from his/her place of business, is not regarded as 
prohibited by 31 USC 1344(a), (25. Comp. Gen. 844) or by Departmental 
policy.



Sec. 109-38.5407  Use of Government-owned or Government-furnished motor vehicles in travel status.

    The use of Government-owned or Government-furnished motor vehicles 
by Government employees while in travel is governed by the Federal 
Travel Regulations (FTR 1-2.6a) and Chapter III-3 of DOE Order 1500.2 
(DOE Travel Policy and Procedures Manual).



Sec. 109-38.5408  Use of Government-owned or -leased bus systems.

    The provisions of this subpart do not affect passenger use of 
Government-owned or -leased bus systems (regardless of type of vehicle 
used in such system) established under the provisions of section 161e of 
the Atomic Energy Act of 1954, as amended (42 U.S.C. 2201e).



Sec. 109-38.5409  Use of Government motor vehicles in emergencies.

    In limiting the use of Government motor vehicles to official 
purposes, it is not intended to preclude their use in emergencies 
threatening loss of life or property (see Sec. 109-1.5102). Such use 
shall be documented.



Sec. 109-38.5410  Use of motor vehicles by the Postal Service.

    (a) Section 411 of the Postal Reorganization Act provides that 
executive agencies are authorized to furnish property and services to 
the Postal Service under such terms and conditions, including 
reimbursability, as the Postal Service and the agency concerned deem 
appropriate. Executive Order 11672 establishes a requirement for 
reimbursement at fair market value of such property or at a rate based 
on appropriate commercial

[[Page 231]]

charges for comparable property , as agreed to by the agency head and 
the Postmaster General, unless the Director of the Office of Management 
and Budget finds that a different basis of valuation is more equitable 
or better serves the public interest.
    (b) Pursuant to the authority in 39 U.S.C. 411, motor vehicles may 
be made available to the Postal Service for temporary use. The rental 
rate to be charged shall be the same as is charged by the General 
Services Administration for similar motor vehicles available from the 
interagency motor pool serving the geographical area involved, with 
appropriate allowances for any fuel and oil furnished by the Postal 
Service.



Sec. 109-38.5411  Instructions to motor vehicle operators.

    Procedures shall be established to inform motor vehicle operators 
concerning--
    (a) The statutory requirement that motor vehicles shall be used only 
for official purposes;
    (b) Personal responsibility for safe driving and operation of motor 
vehicles, and for compliance with Federal, State, and local laws and 
regulations, and all accident reporting requirements;
    (c) Protection for DOE employees under the Federal Tort Claims Act 
(28 U.S.C. 2671) when acting within the scope of their employment;
    (d) The penalties for unauthorized use of motor vehicles;
    (e) The prohibition against picking up strangers or hitchhikers, and 
the transportation of non-official passengers:
    (f) The proper care, control and use of credit cards; and
    (g) Any other duties and responsibilities assigned to motor vehicle 
operators with regard to use, care, operation, and maintenance of motor 
vehicles.



PART 109-39--INTERAGENCY MOTOR VEHICLE POOLS--Table of Contents




Sec.
109-39.000  Scope of part.

               Subpart 109-39.3--Motor Vehicle Exemptions

109-39.302  Unlimited exemptions.
109-39.303  Limited exemptions.

  Subpart 109-39.4--Establishment, Modification, and Discontinuance of 
                               Motor Pools

109-39.404-3  Problems involving service or cost.
109-39.404-4  Agency requests to withdraw participation.

Subpart 109-39.6--Official Use of Government Motor Vehicles and Related 
                           Motor Pool Services

109-39.602-1  Government vehicles.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25589, June 21, 1984, unless otherwise noted.



Sec. 109-39.000  Scope of part.

    This part implements and supplements FPMR Part 101-39 concerning the 
establishment and operation of interagency motor vehicle pools and 
systems.



               Subpart 109-39.3--Motor Vehicle Exemptions



Sec. 109-39.302  Unlimited exemptions.

    In those instances where it is determined that an unlimited 
exemption from inclusion of a vehicle in a motor pool system is 
warranted under the criteria set forth in FPMR Sec. 101-39.302, full 
particulars shall be forwarded to the Property and Equipment Management 
Division (MA-422) for consideration and possible referral to the 
Administrator of General Services.

[[Page 232]]



Sec. 109-39.303  Limited exemptions.

    The procedure established in Sec. 101-39.302 shall be followed in 
seeking limited exemptions under the criteria set forth in FPMR 
Sec. 101-39.303.



  Subpart 109-39.4--Establishment, Modification, and Discontinuance of 
                               Motor Pools



Sec. 109-39.404-3  Problems involving service or cost.

    To resolve problems involving motor pool service or cost, the 
affected field or Headquarters organization shall bring the matter to 
the attention of the chief of the motor pool providing the vehicles. In 
the event a satisfactory solution does not result, full particulars 
shall be forwarded to the Property and Equipment Management Division 
(MA-422) for consideration and possible referral to the Administrator of 
General Services.



Sec. 109-39.404-4  Agency requests to withdraw participation.

    Should circumstances arise at a given interagency motor pool 
location which tend to justify discontinuance or curtailment of 
participation by a DOE organization, as contemplated in FPMR Sec. 101-
39.404-4, the participating organization should forward complete details 
to the Property and Equipment Management Division (MA-422) for 
consideration and possible referral to the Administrator of General 
Services.



Subpart 101-39.6--Official Use of Government Motor Vehicles and Related 
                           Motor Pool Services



Sec. 109-39.602-1  Government vehicles.

    (a) Subpart 109-38.54, Official Use of Motor Vehicles and Aircraft, 
prescribes DOE policies and procedures governing the official use of 
Government motor vehicles.



PART 109-40--TRANSPORTATION AND TRAFFIC MANAGEMENT--Table of Contents




Sec.
109-40.000  Scope of part.
109-40.000-50  Applicability to contractors.

                  Subpart 109-40.1--General Provisions

109-40.102  Representation before regulatory bodies.
109-40.103  Selection of carriers.
109-40.103-1  Domestic transportation.
109-40.103-2  Disqualification and suspension of carriers.
109-40.103-3  International transportation.
109-40.104  Use of Government owned transportation equipment.
109-40.109  Utilization of special contracts and agreements.
109-40.110  Assistance to economically disadvantaged transportation 
          businesses.
109-40.110-1  Small business assistance.
109-40.110-2  Minority business enterprises.
109-40.112  Transportation factors in the location of Government 
          facilities.
109-40.113  Insurance against transportation hazards.

                  Subpart 109-40.3--Traffic Management

109-40.301  Traffic management functions administration.
109-40.302  Standard routing principle.
109-40.303-3  Most fuel efficient carrier/mode.
109-40.304  Rate tenders to the Government.
109-40.305-50  Negotiations involving national security.
109-40.306-1  Recommended rate tender format.
109-40.306-2  Required shipping documents and annotations.
109-40.306-3  Distribution.

                   Subpart 109-40.50--Bills of Lading

109-40.5000  Scope of subpart.
109-40.5001  Policy.
109-40.5002  Applicability.
109-40.5003  Commercial bills of lading.
109-40.5004  Government bills of lading.
109-40.5005  Description of property for shipment.

 Subpart 109-40.51--Price-Anderson Coverage Certifications for Nuclear 
                                Shipments

109-40.5100  Scope of subpart.
109-40.5101  Policy.

    Authority: Sec. 161, as amended, 68 Stat. 948; 42 U.S.C. 2201; sec. 
205, as amended, 63 Stat. 390; 40 U.S.C. 486; sec. 644, 91 Stat. 585, 42 
U.S.C. 7254.

    Source: 45 FR 80287, Dec. 4, 1980, unless otherwise noted.



Sec. 109-40.000  Scope of part.

    This part describes DOE regulations governing transportation and 
traffic management activities. It also covers arrangements for 
transportation and related services by bill of lading. These

[[Page 233]]

regulations are designed to ensure that all transportation and traffic 
management activities will be carried out in the manner most 
advantageous to the Government in terms of economy, efficiency, service, 
environment, safety, and security.



Sec. 109-40.000-50  Applicability to contractors.

    DOE-PMR 109-40. Transportation and Traffic Management, should be 
applied to cost-type contractors' transportation and traffic management 
activities. Departure by cost-type contractors from the provisions of 
these regulations may be authorized by the contracting officer provided 
the practices and procedures followed are consistent with the basic 
policy objectives in these regulations and DOE Order 1540.1 and except 
to the extent such departure is prohibited by statute or executive 
order.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]



                  Subpart 109-40.1--General Provisions



Sec. 109-40.102  Representation before regulatory bodies.

    Participation in proceedings related to carrier applications to 
regulatory bodies for temporary or permanent authority to operate in 
specified geographical locations shall be confined to statements or 
testimony in support of a need for service and shall not extend to 
support of individual carriers or groups of carriers.



Sec. 109-40.103  Selection of carriers.



Sec. 109-40.103-1  Domestic transportation.

    (a) Preferential treatment, normally, shall not be accorded to any 
mode of transportation (motor, rail, air, water) or to any particular 
carrier when arranging for domestic transportation service. However, 
where, for valid reasons, a particular mode of transportation or a 
particular carrier within that mode must be used to meet specific 
program requirements and/or limitations, only that mode or carrier shall 
be considered. Examples of valid reasons for considering only a 
particular mode or carrier are (1) where only a certain mode of 
transportation or individual carrier is able to provide the needed 
service or is able to meet the required delivery date; and (2) where the 
consignee's installation and related facilities preclude or are not 
conducive to service by all modes of transportation.
    (b) The following factors are considered in determining whether a 
carrier or mode of transportation can meet DOE's transportation service 
requirements for each individual shipment:
    (1) Availability and suitability of carrier equipment;
    (2) Carrier terminal facilities at origin and destination;
    (3) Pickup and delivery service, if required;
    (4) Availability of required or accessorial and special services, if 
needed;
    (5) Estimated time in transit;
    (6) Record of past performance of the carrier; and
    (7) Availability and suitability of transit privileges.



Sec. 109-40.103-2  Disqualification and suspension of carriers.

    Disqualification and suspension are measures which exclude carriers 
from participation, for temporary periods of time, in DOE traffic. To 
ensure that the Government derives the benefits of full and free 
competition of interested carriers, disqualification and suspension 
shall not apply for any period of time longer than necessary to protect 
the interests of the Government.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]



Sec. 109-40.103-3  International transportation.

(See 4 CFR 52.2 for a certificate required in nonuse of U.S. flag 
vessels or U.S. flag certificated air carriers)

    (a) U.S.-flag ocean carriers. Arrangements for international ocean 
transportation services shall be made in accordance with the provisions 
of section 901(b) of the Merchant Marine Act of 1936, as amended (46 
U.S.C. 1241(b) concerning the use of privately owned U.S.-flag vessels.
    (b) U.S.-flag certificated air carriers. Arrangements for 
international air transportation services shall be made

[[Page 234]]

in accordance with the provisions of section 5(a) of the International 
Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. 
1517), which requires the use of U.S.-flag certificated air carriers for 
international travel of persons or property to the extent that service 
by these carriers is available.



Sec. 109-40.104  Use of Government owned transportation equipment.

    The preferred method of transporting property for the Government is 
through use of the facilities and services of commercial carriers. 
However, Government vehicles may be used when they are available to meet 
emergencies, and accomplishment of program objectives which cannot be 
attained through use of commercial carriers.



Sec. 109-40.109  Utilization of special contracts and agreements.

    From time to time special transportation agreements are entered into 
on a Government-wide or a DOE-wide basis and are applicable, generally 
to DOE shipments. The DOE-HQ Manager, Transportation Operations and 
Traffic, will distribute information on such agreements to field offices 
as it becomes available.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]



Sec. 109-40.110  Assistance to economically disadvantaged transportation businesses.



Sec. 109-40.110-1  Small business assistance.

    Consistent with the policies of the Government with respect to small 
businesses, DOE shall place with small business concerns a fair 
proportion of the total purchases and contracts for transportation and 
related services such as packing and crating, loading and unloading, and 
local drayage.



Sec. 109-40.110-2  Minority business enterprises.

    Minority business enterprises shall have the maximum practicable 
opportunity to participate in the performance of Government contracts. 
DOE shall identify transportation-related minority enterprises and 
encourage them to provide services that will support the DOE's 
transportation requirements.



Sec. 109-40.112  Transportation factors in the location of Government facilities.

    Transportation rate, charges, and commercial carrier transportation 
services shall be considered and evaluated prior to the selection of new 
site locations and during the planning and construction phases in the 
establishment of leased or relocated Government installations or 
facilities to ensure that consideration is given to the various 
transportation factors that may be involved in this relocation or 
deactivation.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]



Sec. 109-40.113  Insurance against transportation hazards.

    The policy of the Government with respect to insurance of its 
property while in the possession of commercial carriers is set forth in 
41 CFR 1-19.107.



                  Subpart 109-40.3--Traffic Management



Sec. 109-40.301  Traffic management functions administration.

    The DOE traffic management functions are accomplished by established 
field traffic offices under provisions of appropriate Departmental 
directives and headquarters' staff traffic management supervision.



Sec. 109-40.302  Standard routing principle.

    (a) Shipments shall be routed using the mode of transportation, or 
individual carriers within the mode, that can provide the required 
service at the lowest overall delivered cost to the Government.
    (b) When more than one mode of transportation, or more than one 
carrier within a mode, can provide equally satisfactory service at the 
same overall cost the traffic shall be distributed as equitably as 
practicable among the modes and among the carriers within the modes.

[[Page 235]]



Sec. 109-40.303-3  Most fuel efficient carrier/mode.

    When more than one mode, or more than one carrier within a mode, can 
satisfy the service requirements of a specific shipment at the same 
lowest aggregate delivered cost, the carrier/mode determined to be the 
most fuel efficient will be selected. In determining the most fuel 
efficient carrier/mode, consideration will be given to such factors as 
use of the carrier's equipment in ``turn around'' service, proximity of 
carrier equipment to the shipping activity, and ability of carriers to 
provide the most direct service to the destination points.



Sec. 109-40.304  Rate tenders to the Government.

    Under the provisions of section 10721 (formerly section 22) of the 
Interstate Commerce Act (49 U.S.C. 10721), common carriers are permitted 
to submit to the Government tenders which contain rates lower than 
published tariff rates available to the general public. In addition, 
rate tenders may be applied to shipments other than those made by the 
Government provided the total benefits accrue to the Government; that 
is, provided the Government pays the charges or directly and completely 
reimburses the party that initially bears the freight charges (323 ICC 
347 and 332 ICC 161).



Sec. 109-40.305-50  Negotiations involving national security.

    Title 49 U.S.C., section 10721(b)(2) provides that rate tenders to 
the Government must be filed by the carriers with the Interstate 
Commerce Commission unless ``a carrier is advised by the U.S. Government 
that disclosure of a quotation or tender of a rate established * * * for 
transportation provided to the U.S. Government would endanger the 
National security.'' Carriers will be informed by the negotiating 
official if any quotation or tender to the Department of Energy involves 
such information.



Sec. 109-40.306-1  Recommended rate tender format.

    Only those rate tenders which have been submitted by the carriers in 
writing shall be considered for use. Carriers should be encouraged to 
use the format ``Uniform Tender of Rates and/or Charges for 
Transportation Services'' when preparing and submitting rate tenders to 
the Government. Rate tenders that are ambiguous in meaning shall be 
resolved in favor of the Government.



Sec. 109-40.306-2  Required shipping documents and annotations.

    (a) To qualify for transportation under section 10721 rates, 
property must be shipped by or for the Government on:
    (1) Government bills of lading;
    (2) Commercial bills of lading endorsed to show that these bills of 
lading are to be converted to Government bills of lading after delivery 
to the consignee:
    (3) Commercial bills of lading showing that the Government is either 
the consignor or the consignee and endorsed with the following 
statement:

    Transportation hereunder is for the U.S. Department of Energy, and 
the actual total transportation charges paid to the carrier(s) by the 
consignor or consignee are assignable to, and are to be reimbursed by, 
the Government.

    (b) When a rate tender is used for transportation furnished under a 
cost-reimbursable contract, the following endorsement shall be used on 
covering commercial bills of lading:

    Transportation hereunder is for the U.S. Department of Energy and 
the actual total transportation charges paid to the carrier(s) by the 
consignor or the consignee are to be reimbursed by the Government, 
pursuant to cost-reimbursable contract number (  ). This may be 
confirmed by contacting the agency representative at (name and telephone 
number). (See 332 ICC 161.)

    (c) To ensure proper application of a Government rate tender on all 
shipments qualifying for their use, the issuing officer shall show on 
the bills of lading covering such shipments the applicable rate tender 
number and carrier identification: such as, ``Section 10721 tender, ABC 
Transportation Company, ICC No. 374.'' In addition, if commercial bills 
of lading are used, they shall be endorsed as specified above.

[[Page 236]]



Sec. 109-40.306-3  Distribution.

    Each agency receiving rate tenders shall promptly submit one signed 
copy to the Transportation and Public Utilities Service (WIT), General 
Services Administration, Washington, DC 20407. Also, two copies 
(including at least one signed copy) shall be promptly submitted to the 
General Services Administration (TA). Chester A. Arthur Building, 
Washington, DC 20406.



                   Subpart 109-40.50--Bills of Lading



Sec. 109-40.5000  Scope of subpart.

    This subpart sets forth the requirements under which commercial or 
Government bills of lading may be used.



Sec. 109-40.5001  Policy.

    Generally DOE cost-type contractors will use commercial bills of 
lading in making shipments for the account of the DOE. Cost-type 
contractors may be authorized by the contracting officer to use 
Government bills of lading if such use will be advantageous to the 
Government. Such authorizations shall be coordinated with the DOE-HQ 
Manager, Transportation Operations and Traffic.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]



Sec. 109-40.5002  Applicability.

    The policy and procedures set forth in this subpart shall be applied 
when DOE's cost-type contractors use commercial bills of lading.



Sec. 109-40.5003  Commercial bills of lading.

    (a) DOE's cost-type contractors using commercial bills of lading in 
making shipments for the account of the DOE shall include the following 
statement or one substantially the same on all commercial bills of 
lading:

    This shipment is for the account of the U.S. Government which will 
assume the freight charges and is subject to the terms and conditions 
set forth in the standard form of the U.S. Government bills of lading 
and to any available special rates or charges.

    (b) The foregoing language may be varied without materially changing 
its substance to satisfy the needs of particular cost-type contractors 
for the purpose of obtaining the benefit of the lowest available rates 
for account of the Government.
    (c) Where practicable, commercial bills of lading shall provide for 
consignment of a shipment to the DOE c/o the cost-type contractor or by 
the contractor ``for the DOE.''
    (d) Commercial bills of lading exceeding $10,000 issued by cost-type 
contractors shall be annotated with a typewritten, rubber stamp, or 
similar impression containing the following wording:

    Equal Employment Opportunity. All provisions of Executive Order 
11246 as amended by Executive Order 11375 and of the rules, regulations, 
and relevant orders of the Secretary of Labor are incorporated herein.



Sec. 109-40.5004  Government bills of lading.

    (a) In those instances where DOE cost-type contractors are 
authorized to use Government bills of lading, specific employees of 
cost-type contractors will be authorized by the contracting officer to 
issue such Government bills of lading (see Title V, U.S. Government 
Accounting Office Policy and Procedures Manual for Guidance of Federal 
Agencies).
    (b) [Reserved]



Sec. 109-40.5005  Description of property for shipment.

    (a) Each shipment shall be described on the bill of lading or other 
shipping document as specified by the governing freight classification, 
carrier's tariff, or rate tender. Shipments shall be described as 
specifically as possible. Trade names such as ``Foamite'' or ``Formica'' 
or general terms such as ``vehicles,'' ``furniture,'' or ``Government 
supplies,'' shall not be used as bill of lading descriptions.
    (b) A shipment containing hazardous materials, such as explosives, 
radioactives, flammable liquids, flammable solids, oxidizers, or poison 
A or poison B, shall be prepared for shipment and described on bills of 
lading or other shipping documents in accordance with the Department of 
Transportation Hazardous Materials Regulations, 49 CFR, parts 100-189.

[[Page 237]]



  Subpart 109-40.51--Price-Anderson Coverge Certifications for Nuclear 
                                Shipments



Sec. 109-40.5100  Scope of subpart.

    This subpart sets forth the policy for issuance of certifications 
regarding Price-Anderson coverage of particular shipments of nuclear 
materials.



Sec. 109-40.5101  Policy.

    Upon request of a carrier, an appropriate certification will be 
issued by an authorized representative of the DOE to the carrier 
regarding the applicability of Price-Anderson indemnity to a particular 
shipment. Copies of such certifications if performed by a Field Manager 
or a DOE cost-type contractor shall be provided to the DOE-HQ Manager, 
Transportation Operations and Traffic.

[45 FR 80287, Dec. 4, 1980, as amended at 47 FR 46850, Oct. 21, 1982]

[[Page 238]]



                 SUBCHAPTER H--UTILIZATION AND DISPOSAL





PART 109-42--PROPERTY REHABILITATION SERVICES AND FACILITIES--Table of Contents




Sec.
109-42.000  Scope of part.
109-42.000-50  Applicability.

Subpart 109-42.3--Recovery of Precious Metals and Strategic and Critical 
                                Materials

109-42.301  General.
109-42.301-1  Guidelines for conducting agency surveys and reporting to 
          GSA.
109-42.302  Recovery of silver from used hypo solution and scrap film.
109-42.350  Excess precious metals.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25590, June 21, 1984, unless otherwise noted.



Sec. 109-42.000  Scope of part.

    This part implements and supplements FPMR Part 101-42, Property 
Rehabilitation Services and Facilities.



Sec. 109-42.000-50  Applicability.

    The provisions of FPMR 101-42 and this part apply to contractors 
which generate used hypo solution, scrap film, other precious metals 
scrap and other recoverable scrap materials.



Subpart 109-42.3--Recovery of Precious Metals and Strategic and Critical 
                                Materials



Sec. 109-42.301  General.

    The Director of Administration and heads of field offices for their 
respective organizations are responsible for establishing a program for 
the recovery of precious metals and strategic and critical materials in 
accordance with FPMR 101-42.3 and this subpart.



Sec. 109-42.301-1  Guidelines for conducting agency surveys and reporting to GSA.

    Each DOE organization and contractor generating silver or other 
precious metals shall prepare the report on precious metals recovery in 
accordance with FPMR Sec. 101-42.301-1, except that the reports shall be 
prepared on an annual basis for the fiscal year. Negative reports are 
required. Contractors shall submit reports to the DOE contracting office 
for review and approval. DOE organizations shall submit reports, 
including contractor reports, to the Property and Equipment Management 
Division (MA-422) not later than 30 days after the end of the fiscal 
year.



Sec. 109-42.302  Recovery of silver from used hypo solution and scrap film.

    The Director of Administration and heads of field offices for their 
respective organizations are responsible for the establishment and 
maintenance of a program for silver recovery from used hypo solution and 
scrap film in accordance with FPMR Sec. 101-42.302.



Sec. 109-42.350  Excess precious metals.

    See Sec. 109-43.313-54 for procedures for reporting excess precious 
metals to the DOE precious metals pool for recovery and subsequent 
redistribution within DOE.



PART 109-43--UTILIZATION OF PERSONAL PROPERTY--Table of Contents




Sec.
109-43.000  Scope of part.
109-43.000-50  Applicability.
109-43.001-14  Personal property.

                  Subpart 109-43.1--General Provisions

109-43.101  Surveys.
109-43.102  Reassignment of property within executive agencies.
109-43.103  Agency utilization officials.

                 Subpart 109-43.3--Utilization of Excess

109-43.301-50  Policy.
109-43.302-50  Utilization and disposal by contractors.
109-43.303-1  Acquisition of mercury.
109-43.306  Property not required to be reported.
109-43.311-1-50  DOE utilization screening.
109-43.311-1-51  Procedures for effecting transfers within DOE.
109-43.311-5  Property at installations due to be discontinued.
109-43.312  Exceptions to reporting.
109-43.313-2  Printing, binding, and blankbook equipment and supplies.
109-43.313-50  Radioactively and chemically contaminated property.

[[Page 239]]

109-43.313-51  Automatic data processing equipment.
109-43.313-52  Classified property.
109-43.313-53  Naval gun mounts.
109-43.313-54  Precious metals.
109-43.313-55  Shielding material.
109-43.313-56  Property in which the Government has an interest.
109-43.313-57  Lead.
109-43.315-5  Procedure for effecting transfers.
109-43.317-1  Cost of care and handling.
109-43.317-2  Proceeds.
109-43.319  Use of excess property on cost-reimbursement type contracts.
109-43.321  Certification of non-Federal agency screeners.

    Subpart 109-43.5--Utilization of Foreign Excess Personal Property

109-43.503  Holding agency responsibilities.
109-43.504-50  Disposition of property not selected for return to the 
          United States.

                       Subpart 109-43.47--Reports

109-43.4701  Performance reports.

Subpart 109-43.51--Utilization of Personal Property Held for Facilities 
                               in Standby

109-43.5100  Scope of subpart.
109-43.5101  Definition.
109-43.5102  Policy.
109-43.5103  Reviews to determine need for retaining items.
109-43.5104  Utilization of property in facilities in standby status.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25590, June 21, 1984, unless otherwise noted.



Sec. 109-43.000  Scope of part.

    This part implements and supplements FPMR Part 101-43, Utilization 
of Personal Property.



Sec. 109-43.000-50  Applicability.

    The provisions of FPMR Part 101-43 and this part are applicable to 
contractors unless otherwise provided herein.



Sec. 109-43.001-14  Personal property.

    For the purposes of this part personal property means property of 
any kind or type except real and related personal property; records; 
special source materials, which includes source materials and special 
nuclear material, and those other materials to which the provisions of 
DOE Order 5630.2 ``Control and Accountability of Nuclear Materials, 
Basic Principles'' apply, such as deuterium, enriched lithium, neptunium 
237 and tritium, and atomic weapons and byproduct materials as defined 
in Section 11 of the Atomic Energy Act of 1954, as amended; enriched 
uranium in stockpile storage; and petroleum in the Strategic Petroleum 
Reserve and the Naval Petroleum Reserves.



                  Subpart 109-43.1--General Provisions



Sec. 109-43.101  Surveys.

    The Director of Administration and heads of field offices are 
responsible for continuously surveying property under their control to 
assure efficient use and shall promptly identify and report excess 
property available for use elsewhere. See 109-25.109-1 for DOE policy on 
the conduct of management walk-through inspection tours to identify idle 
and unneeded equipment.



Sec. 109-43.102  Reassignment of property within executive agencies.

    See Chapter XI of the DOE Accounting Practices and Procedures 
Handbook for preparation of the feeder reports upon which the 
consolidated DOE report of internal property reassignments is based.



Sec. 109-43.103  Agency utilization officials.

    The Director, Property and Equipment Management Division, 
Headquarters, is designated as the DOE National Utilization Officer.



                 Subpart 109-43.3--Utilization of Excess



Sec. 109-43.301-50  Policy.

    It is the policy of DOE to consider excess property as the first 
source of supply. In no case, however, will excess property be acquired 
unless a present or foreseeable program need exists for the property. In 
carrying out this policy, the objective of which is to obtain maximum 
effective and economical utilization of property already owned by the 
Federal Government, consideration should be given to such factors as--

[[Page 240]]

    (a) Nature and cost of any repairs required to restore excess 
equipment to a safe, dependable, and economical operating condition;
    (b) Duration of the job on which the equipment will be used;
    (c) Economic feasibility of ownership vs. loan or rental of the 
equipment. Frequency of use, particularly where the equipment will be 
needed only infrequently, is one of the factors which must be considered 
in determining the most economical method of acquisition; and
    (d) Handling and transportation costs involved in acquisition of 
excess property.



Sec. 109-43.302-50  Utilization and disposal by contractors.

    Heads of field offices may authorize contractors to perform the 
functions pertaining to utilization and disposal of excess property, 
provided such activities are in accordance with written policies and 
procedures which they have approved as being consistent with this part 
and those contained in FPMR Part 101-45 and Part 109-45.



Sec. 109-43.303-1  Acquisition of mercury.

    Requests for 76 pound flasks of mercury, for use by DOE or its 
contractors, shall be forwarded to the Director, Supply Division, Oak 
Ridge Operations Office, Oak Ridge, Tennessee.



Sec. 109-43.306  Property not required to be reported.

    To the extent practicable and economical, notification of 
availability of nonreportable excess property (See FPMR Sec. 101-43.312) 
shall be made on an informal basis to other DOE installations in the 
area known to use such property. If no requirement is established within 
a reasonable time, usually not more than 30 days after the availability 
of the property is announced, the property will be considered excess to 
the needs of the DOE and made available to GSA as provided for in FPMR 
Part 101-43.306.



Sec. 109-43.311-1-50  DOE utilization screening.

    (a) Prior to reporting excess personal property to GSA as required 
by FPMR Sec. 101-43.311-1, reportable property, as identified in FPMR 
Sec. 101-43.4801, shall be reported to the Property and Equipment 
Management Division (MA-422) through the DOE Reportable Excess Automated 
Property System (REAPS) for completion of the 30-day DOE screening 
period. Information regarding REAPS reporting and screening procedures 
are provided in instructions and directives issued by MA-422.
    (b) In exceptional cases where time does not permit formal DOE 
utilization screening through REAPS, notification of the availability of 
excess property may be made by telegram, teletype or telephone, with due 
consideration to the additional costs involved.
    (c) Concurrent utilization screening within DOE and to other Federal 
agencies generally shall not be permitted.
    (d) If, after DOE circularization, reportable property is desired by 
another Federal agency, it may be transferred as provided in FPMR 
Sec. 101-43.315-5(a).



Sec. 109-43.311-1-51  Procedures for effecting transfers within DOE.

    In accordance with instructions provided for the operation of the 
REAPS program, transfers between DOE organizations and contractors shall 
be effected by completion of an SF-122, Transfer Order Excess Personal 
Property. Except for those contractors authorized by the DOE contracting 
office to execute transfer orders, transfers to DOE contractors must be 
approved by the cognizant DOE contracting officer for the contractors 
receiving the property.



Sec. 109-43.311-5  Property at installations due to be discontinued.

    (a) In closing out installations or any activities where it is 
important that upon completion of the work the personnel be released and 
activities ended as quickly as possible in order to avoid large 
expenditures, arrangements may be made for expediting the utilization 
and disposal of excess inventories and other excess property.
    (b) Personal and real property staffs of DOE field organizations 
shall work with appropriate GSA regional offices to develop a 
utilization and disposal program which takes into consideration all the 
factors involved, is expedited to the maximum degree, and is

[[Page 241]]

mutually satisfactory and in the best overall interest of the 
Government. When closeout involves an activity which is not located 
geographically in a DOE installation, information concerning the 
situation shall be given to the appropriate regional administrator of 
GSA, as early as possible, by letter (copy to the Property and Equipment 
Management Division (MA-422)). The information should include the types 
of property available and indicate that the activity is to be 
discontinued, the scheduled date for the removal of personnel from the 
location, and the last dates when the property will be needed. The 
following guidelines are furnished for possible use, although variations 
may be used as long as agreement is reached with GSA and there is no 
conflict with DOE requirements except as noted in paragraph (b)(1) of 
this section:
    (1) If a proposed expedited program provides for deviation from the 
DOE policy or procedural requirements, approval of the Director of 
Procurement and Assistance Management shall be obtained.
    (2) Approval of the proposed program by the appropriate GSA regional 
office, when deviation from existing GSA regulations is involved, will 
be sufficient to validate the program. A copy of the approved program 
should be forwarded for information to the Property and Equipment 
Management Division (MA-422).
    (3) In developing an expedited disposal program, property shall be 
determined to be excess to DOE before it is reported to GSA. Concurrent 
circularization of lists of DOE excess property within DOE and to other 
Federal agencies generally is not permitted.
    (4) Summary catalog listings of certain categories of excess 
property, such as property in classes 48, 51, 55, 56, etc., showing 
estimated release dates, might be furnished GSA with good utilization 
results. Excess property in such classes as 23, 24, 32, 34 and 38 shall 
normally be listed by individual item with sufficient description for 
ready identification.
    (5) In order to obtain maximum utilization of the property by other 
Federal agencies, the disposal program shall provide that the field 
organization will furnish assistance to GSA, upon request, to arrange 
for invitational inspections by Federal agency representatives.
    (6) Upon request, DOE can provide assistance to GSA in its 
circularization of reportable items to other Federal agencies or in 
locating potential users within the government.
    (7) Care should be exercised to be sure that orders from other 
Federal agencies for excess property are processed through GSA, as may 
be required by the GSA regional office concerned.
    (8) Although it may be possible to arrange for expediting donations 
for educational, public health, or civil defense purposes, adequate time 
must be allowed for the screening of all donable property.
    (9) Provisions should be made for accelerated release by GSA of 
excess property for disposal as surplus, particularly where there is 
little or no potential use by other Federal Agencies.
    (10) Methods should be developed whereby last minute requests for 
surplus property, cataloged for an auction sale or listed in a sealed 
bid invitation and inspected by prospective bidders, can be kept to a 
minimum.



Sec. 109-43.312  Exceptions to reporting.

    In addition to the categories of nonreportable property identified 
in FPMR Sec. 101-43.312 (a) through (g), the following property, when 
determined excess to a DOE installation, is not reportable and shall not 
be formally circularized within DOE or reported to GSA--
    (h) Asphalt products in less than carload (LCL) quantities (roofing 
tile, paving materials);
    (i) Cement and fabricated cement products in LCL quantities 
(concrete block, pumic block, cinder block, pipe and fittings);
    (j) Fabricated clay products in LCL quantities (brick, tile, pipe 
and fittings);
    (k) Fuels in LCL quantities (gasoline, diesel fuels, coal, coke and 
kerosene);
    (l) Special purpose or site fabricated shelving, cabinets, shop 
tables, etc., of limited adaptability or with high cost of disassembly 
or transportation;
    (m) Uncrated window glass; and

[[Page 242]]

    (n) Equipment, parts, accessories, jigs and components, which are of 
special design, composition, or manufacture and which are intended for 
use only by specific DOE installations, such as spare parts for 
equipment used in atomic processes.



Sec. 109-43.313-2  Printing, binding, and blankbook equipment and supplies.

    DOE organizations shall report excess printing, binding and 
blankbook equipment to the Office of Administrative Services, 
Headquarters, for processing in accordance with the Joint Committee on 
Printing Regulations.



Sec. 109-43.313-50  Radioactively and chemically contaminated property.

    Radioactively and chemically contaminated property should be handled 
in accordance with Sec. 109-45.50.



Sec. 109-43.313-51  Automatic data processing equipment.

    Automatic data processing equipment should be handled in accordance 
with FPMR Secs. 101-36.3 and 109-36.3.



Sec. 109-43.313-52  Classified property.

    Classified personal property which is excess to DOE needs shall be 
stripped of all characteristics which cause it to be classified, or 
otherwise rendered unclassified prior to disposal, in accordance with 
instructions of the head of the field organization concerned. 
Declassification shall be accomplished in a manner which will preserve, 
so far as practicable, any civilian utility or commercial value of the 
property.



Sec. 109-43.313-53  Naval gun mounts.

    When a naval gun mount obtained from the Naval Sea Systems Command, 
Department of the Navy, becomes excess, it may be listed, circularized, 
and transferred within DOE in the same manner as other excess property. 
However, when a naval gun mount is determined to be excess to DOE, it 
shall be reported to the Department of the Navy, Naval Sea Systems 
Command, Washington, D.C. 20360, and shall be disposed of in accordance 
with instructions of that Department.



Sec. 109-43.313-54  Precious metals.

    All precious metals which become excess to current or foreseeable 
requirements shall be reported to the Oak Ridge Operations Office. With 
the exception of silver, this includes precious metals in any form, 
including shapes, scrap or radioactively contaminated. Only high grade 
nonradioactively contaminated silver should be reported, i.e., silver-
bearing photo solutions, scrap film, or other low grade silver scrap 
should not be reported. (See Sec. 109-27.53)



Sec. 109-43.313-55  Shielding material.

    All excess movable shielding material of any type will be 
circularized within DOE using normal excessing procedures. However, 
prior to disposal outside DOE, the Property and Equipment Management 
Division (MA-422) shall be advised concerning the types and quantities 
which remain available.



Sec. 109-43.313-56  Property in which the Government has an interest.

    Personal property in which the Government has an interest means: (a) 
Government-owned property which is available for exchange or sale, and 
(b) property leased with an option to purchase. Such property shall be 
circularized within DOE in accordance with Sec. 109-43.311-1-50 for 
possible utilization whenever it is practicable to do so, considering 
the contract terms, cost in relation to remaining useful life, location 
of item, purchase option time remaining, etc.



Sec. 109-43.313-57  Lead.

    Excess lead and lead bearing scrap, such as batteries, with the 
exception of radioactively contaminated lead, should be reported to the 
Idaho Operations Office for reclaiming and subsequent redistribution 
within DOE from the DOE lead bank. Only quantities of 40,000 pounds or 
more should be reported. The Idaho Operations Office will furnish 
shipping instructions upon request.



Sec. 109-43.315-5  Procedure for effecting transfers.

    In accordance with a DOE agreement with GSA, execution of transfer 
orders by a DOE official is not required in

[[Page 243]]

those cases where heads of field offices have authorized contractors to 
perform this function, and GSA has been notified of such authorization. 
GSA regional offices will furnish the cognizant DOE field organization a 
copy of each transfer ordered received from contractors. This copy of 
the transfer order will be reviewed by the cognizant DOE field 
organization to determine if the contractor has been authorized to 
submit orders for excess property. If the contractor submitting the 
transfer order to the GSA regional office has not been authorized in 
writing to submit such orders, GSA will not honor such requests unless 
they are subsequently executed by an appropriate DOE official.



Sec. 109-43.317-1  Cost of care and handling.

    DOE field organizations and contractors shall comply with the 
provisions of Chapter III of the DOE Accounting Practices and Procedures 
Handbook as they relate to billings for direct costs incurred in the 
transfer of excess property.



Sec. 109-43.317-2  Proceeds.

    For DOE procedures on the handling of proceeds from transfer of 
excess property to another Government agency with reimbursement, see 
Chapter III of the DOE Accounting Practices and Procedures Handbook.



Sec. 109-43.319  Use of excess property on cost-reimbursement type contracts.

    (b) It is DOE policy for contractors to use Government excess 
personal property to the maximum extent possible to reduce contract 
costs. However, the determination required in FPMR Sec. 101-43.319(b) 
does not apply to such contracts and the acquisitions of Government 
excess personal property by these contractors are not subject to the 
annual reporting requirements of FPMR Sec. 101-43.4701(c). The 
procedures prescribed in Sec. 109-43.315-5 for execution of transfer 
orders apply.



Sec. 109-43.321  Certification of non-Federal agency screeners.

    Contracting officers shall maintain a record of the number of 
certified non-Federal agency screeners operating under their authority 
and shall immediately notify the appropriate GSA regional office of any 
changes in screening arrangements.



    Subpart 109-43.5--Utilization of Foreign Excess Personal Property



Sec. 109-43.503  Holding agency responsibilities.

    (a) Property which remains excess after utilization screening within 
the general foreign geographical area where the property is located 
should be reported by the accountable field office or Headquarters 
program organization to the Property and Equipment Management Division 
(MA-422) for consideration for return to the U.S. for further 
utilization within DOE, by other Government agencies, or for donation, 
based on such factors as cost, residual value, usefulness in ongoing or 
future programs, condition, and cost of transportation.
    (b) [Reserved]



Sec. 109-43.504-50  Disposition of property not selected for return to the United States.

    Property not selected for return to the United States for 
utilization within DOE or the Government or for donation in accordance 
with FPMR Sec. 101-44.7 shall be disposed of in accordance with 109-
45.5105.



                       Subpart 109-43.47--Reports



Sec. 109-43.4701  Performance reports.

    (a) The DOE report of the utilization of domestic excess personal 
property as required in FPMR Sec. 101-43.4701(a) is submitted to GSA by 
the Property and Equipment Management Division (MA-422). DOE field 
organizations and contractors reporting under the DOE financial 
reporting system should furnish this information to the Office of 
Controller in accordance with Chapter III of the DOE Accounting 
Practices and Procedures Handbook. Those activities which do not report 
under the DOE financial reporting system shall submit an SF 121 directly 
to MA-422 by November 15.
    (b) [Reserved]
    (c) The report required in FPMR Sec. 101-43.4701(c) shall be 
submitted to the

[[Page 244]]

Property and Equipment Management Division (MA-422) within 45 days after 
the close of each fiscal year, in the format illustrated below. This 
reporting requirement does not apply to excess property acquired by 
management and operating contractors.

------------------------------------------------------------------------
                                               Original   Federal supply
 Name and address of recipient  Recipient's    cost of    classification
                                   status      property        group    
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------



Subpart 109-43.51--Utilization of Personal Property Held for Facilities 
                               in Standby



Sec. 109-43.5100  Scope of subpart.

    This subpart supplements FPMR Part 101-43 by providing policies and 
procedures for the economic and efficient utilization of personal 
property associated with facilities placed in standby status.



Sec. 109-43.5101  Definition.

    Facility in standby is a significant segment of plant and equipment, 
such as a complete plant or section of a plant, which is neither ``in 
service'' or declared ``excess''.



Sec. 109-43.5102  Policy.

    Procedures and practices shall assure economical and efficient 
utilization of property associated with facilities placed in standby 
status as provided for in this subpart.



Sec. 109-43.5103  Reviews to determine need for retaining items.

    Procedures and practices shall require an initial review at the time 
the plant is placed in standby to determine which items can be made 
available for use elsewhere within the established startup criteria, 
periodic reviews (no less than biennially) to determine need for 
continued retention of property, and special reviews when a change in 
startup time is made or when circumstances warrant. Such procedures 
should recognize that:
    (a) Generally, equipment, spares, stores items, and materials 
peculiar to a plant should be retained for possible future operation of 
the plant,
    (b) Where practicable, common-use stores should be removed and used 
elsewhere, and
    (c) Uninstalled equipment and other personal property not required 
should be utilized elsewhere onsite or be disposed of as excess.



Sec. 109-43.5104  Utilization of property in facilities in standby status.

    (a) Procedures and practices shall require that property comprising 
the plant in standby, to the extent consistent with program requirements 
reflected by the startup criteria, be considered as a source of supply 
prior to procurement. Such procedures should provide for:
    (1) Furnishing potential users and procurement officers or some 
other responsible screening office with listings of equipment and other 
significant property holdings available for loan or transfer, and
    (2) Removal and use elsewhere of installed equipment which can be 
replaced or returned within the established startup criteria.
    (b) In addition to the above procedures, DOE organizations and 
contractors should encourage informal contacts between their technical 
staffs and those engaged in similar work at other DOE locations for the 
purpose of ascertaining the availability of Government property to meet 
their program requirements.



PART 109-44--DONATION OF PERSONAL PROPERTY--Table of Contents




Sec.
109-44.000  Scope of part.

        Subpart 109-44.7--Donations of Property to Public Bodies

109-44.701  Findings justifying donation to public bodies.

                       Subpart 109-44.47--Reports

109-44.4701  Reports.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25593, June 21, 1984, unless otherwise noted.

[[Page 245]]



Sec. 109-44.000  Scope of part.

    This part implements and supplements FPMR Part 101-44, Donation of 
Personal Property. For donation of surplus personal property in foreign 
areas, see Sec. 109-45.51.



        Subpart 109-44.7--Donations of Property to Public Bodies



Sec. 109-44.701  Findings justifying donation to public bodies.

    The Director of Administration and heads of field offices for their 
respective organizations shall appoint officials to make findings and 
reviews as required in FPMR Sec. 101-44.7.



                       Subpart 109-44.47--Reports



Sec. 109-44.4701  Reports.

    The report of the donation of surplus personal property is furnished 
to GSA in combination with the report of the utilization of domestic 
excess personal property required in FPMR Sec. 101-43.4701. See 
Sec. 109-43.4701 for DOE reporting requirements.



PART 109-45--SALE, ABANDONMENT, OR DESTRUCTION OF PERSONAL PROPERTY--Table of Contents




Sec.
109-45.000  Scope of part.

                        Subpart 109-45.1--General

109-45.101-50  Applicability.
109-45.103-1  Responsibilities of the General Services Administration.
109-45.103-2  Responsibilities of holding agencies.
109-45.105-3  Exemptions.

               Subpart 109-45.3--Sale of Personal Property

109-45.301-50  Sales by DOE contractors.
109-45.302-50  Sales to DOE and contractor employees.
109-45.303-50  Contractor reporting of property for sale.
109-45.304-2-50  Negotiated sales and negotiated sales at fixed prices.
109-45.304-6  Reviewing authority.
109-45.304-50  Processing bids and award of contract.
109-45.304-51  Documentation.
109-45.307  Proceeds from sales.
109-45.309-50  Unserviceable property (salvage and scrap).
109-45.310  Antitrust laws.
109-45.316  Report on identical bids.

    Subpart 109-45.5--Abandonment or Destruction of Surplus Property

109-45.501-1  General.
109-45.502-1  Reviewing authority.

                       Subpart 109-45.47--Reports

109-45.4701  Performance reports.

   Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
                     Contaminated Personal Property

109-45.5001  Scope of subpart.
109-45.5002  Policy.
109-45.5003  Responsibilities.
109-45.5003-1  Development of criteria for utilization and disposal 
          outside DOE.
109-45.5003-2  Implementation of policy.
109-45.5004  Procedures.
109-45.5004-1  Suspect personal property.
109-45.5004-2  Handled as uncontaminated equipment.

Subpart 109-45.51--Disposal of Excess Personal Property in Foreign Areas

109-45.5100  Scope of subpart.
109-45.5101  Authority.
109-45.5102  General.
109-45.5103  Definitions.
109-45.5104  Responsibilities.
109-45.5104-1  Director of Procurement and Assistance Management.
109-45.5104-2  Heads of offices in foreign areas.
109-45.5105  Disposal.
109-45.5105-1  General.
109-45.5105-2  Methods of disposal.
109-45.5106  Reports.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25594, June 21, 1984, unless otherwise noted.



Sec. 109-45.000  Scope of part.

    This part implements and supplements FPMR 101-45, Sale, Abandonment, 
or Destruction of Personal Property, but does not apply to--
    (a) Properties which are sold or otherwise disposed of pursuant to 
special statutes, or;
    (b) Disposal of personal property in foreign areas (see Sec. 101-
45.51).

[[Page 246]]



                        Subpart 109-45.1--General



Sec. 109-45.101-50  Applicability.

    The provisions of FPMR 101-45 and this part are applicable to 
contractors authorized to dispose of surplus personal property.



Sec. 109-45.103-1  Responsibilities of the General Services Administration.

    GSA regional offices are responsible for the conduct of sales of 
surplus and replacement property in the custody of DOE direct 
operations, except that DOE will continue to sell replacement property 
where trade-in offers are also involved in the transaction.



Sec. 109-45.103-2  Responsibilities of holding agencies.

    See Secs. 109-45.105-3 and 109-45.3 for policy and procedures 
governing the sale of personal property by DOE contractors.



Sec. 109-45.105-3  Exemptions.

    The General Services Administration, by letter dated May 28, 1965, 
authorized DOE contractors to sell contractor inventory, including 
replacement property. This exemption is for sales of contractor 
inventory only. All surplus property in the custody of DOE direct 
operations (except replacement property where trade-in offers are 
involved) will be reported to GSA in accordance with FPMR Sec. 101-
45.303.



               Subpart 109-45.3--Sale of Personal Property



Sec. 109-45.301-50  Sales by DOE contractors.

    Sales of surplus contractor inventory will be made by DOE 
contractors when heads of field offices determine that it is in the best 
interests of the Government to do so.



Sec. 109-45.302-50  Sales to DOE and contractor employees.

    (a) Employees of DOE and DOE contractors shall be afforded the same 
opportunity to acquire Government-owned property as is afforded the 
general public, provided the employees warrant in writing prior to award 
that they have not either directly or indirectly--
    (1) Participated in the determination to dispose of the property;
    (2) Participated in the preparation of the property for sale;
    (3) Participated in determining the method of sale; or
    (4) Obtained information not otherwise available to the general 
public regarding usage, condition, quality, or value of the property.
    (b) Special clothing and other articles of personal property 
acquired for the exclusive use of and fitted to an individual employee, 
when not otherwise usable by, and in all respects excess to the needs 
of, the holding organization, may be sold to DOE or contractor employees 
at the best price obtainable in the event of termination of their 
employment or their permanent assignment to duties not requiring such 
clothing or property.



Sec. 109-45.303-50  Contractor reporting of property for sale.

    GSA normally initiates sales action from the items remaining as 
surplus after utilization and donation screening. In order to assure no 
misunderstanding at GSA regional offices as to who is to perform the 
sales function for contractor inventory, each Standard Form 120 report 
forwarded to GSA shall bear a capitalized notation in a prominent place 
reading either ``TO BE SOLD BY GSA'' or ``NOT TO BE SOLD BY GSA'' as 
appropriate.



Sec. 109-45.304-2-50  Negotiated sales and negotiated sales at fixed prices.

    (a) Negotiated sales, including purchases or retentions at less than 
cost by the contractor, may be made when the contracting officer 
determines and documents that the use of this method of sale is 
essential to expeditious contract closeout, or is otherwise justified on 
the basis of circumstances enumerated below, provided that the 
Government's interests are adequately protected. Negotiated sales, 
including purchases or retentions at less than cost by the contractor, 
shall be at prices which are fair and reasonable and not less than the 
proceeds which could reasonably be expected to be obtained if

[[Page 247]]

the property was offered for competitive sale. Specific conditions 
justifying negotiated sales are when--
    (1) No acceptable bids have been received as a result of competitive 
bidding under a suitably advertised sale;
    (2) Property is of such small value that the proceeds to be derived 
would not warrant the expense of a formal competitive sale;
    (3) The disposal will be to States, territories, possessions, 
political subdivisions thereof, or tax-supported agencies therein, and 
the estimated fair market value of the property and other satisfactory 
terms of disposal are obtained;
    (4) The specialized nature and limited use potential of the property 
would create negligible bidder interest;
    (5) Removal of the property would result in a significant reduction 
in value, or the accrual of disproportionate expense in handling; or
    (6) It can be clearly established that such action is in the best 
interests of the Government.
    (b) Negotiated sales at fixed prices. When determined to be in the 
best interests of the Government, heads of field offices may authorize 
fixed-price sale of contractor inventory by DOE contractors provided (1) 
the reasonable recovery value of the property to be sold to any one 
purchaser at any one time does not exceed $1000, (2) adequate procedures 
for publicizing such sales have been established, (3) the sales prices 
are not less than could reasonably be expected if competitive bid sales 
were employed and the prices have been approved by a reviewing authority 
designated by the heads of field offices, and (4) the warranty 
prescribed in Sec. 109-45.302-50(a) is obtained when sales are made to 
employees.



Sec. 109-45.304-6  Reviewing authority.

    The reviewing authority required under FPMR Sec. 101-45.304-6 may 
consist of one or more persons designated by the head of the field 
office who will be responsible for providing an adequate and independent 
review of proposed sales for the purpose of determining whether--
    (a) The method of sale is in accordance with established policies 
and procedures; and
    (b) Proceeds constitute a reasonable return for the property sold.



Sec. 109-45.304-50  Processing bids and award of contract.

    The procedures established in Federal Acquisition Regulation 14.4 
and DEAR 914.4 shall be made applicable to execution, receipt, 
safeguarding, opening, abstracting, and evaluation of bids and awarding 
contracts, except that in evaluating bids and awarding contracts, 
disposal under conditions most advantageous to the Government based on 
high bids received shall be the determining factor. For mistakes in 
bids, see FPMR 101-45.8.



Sec. 109-45.304-51  Documentation.

    Files pertaining to sales shall contain copies of all documents 
necessary to provide a complete record of the transaction and as a 
minimum shall include the following:
    (a) A copy of request for proposals if written proposals are 
employed.
    (b) A list of prospective bidders contacted.
    (c) An abstract of proposals received, whether oral or written.
    (d) Copies of written proposals or confirming proposals received, 
including Standard Forms 119 (see FPMR Sec. 101-45.313-9) which have 
been received from prospective bidders, together with other relevant 
information.
    (e) A notation concerning basis for determination that proceeds 
constitute a reasonable return for property sold.
    (f) Full and adequate justification for not advertising for 
competitive bids when the fair market value of property sold in this 
manner in any one case exceeds $1,000.
    (g) A notation concerning any award made to other than the high 
bidder.
    (h) The approval of reviewing authority when required.
    (i) A copy of notice of award.
    (j) All related correspondence.
    (k) In the case of auction or spot bid sales, the following 
additional information should be included:
    (1) A list of items or lots sold indicating book cost and sales 
price for each item or lot sold.
    (2) A copy of advertising literature distributed to prospective 
bidders.

[[Page 248]]

    (3) A summary listing of advertising by means of newspapers, radio, 
television, public posting, etc.
    (4) The names of prospective bidders who attended sale if list was 
made.
    (5) A copy of any pertinent contract for auctioneering services and 
related documents or appropriate reference to files containing such 
documents.
    (6) A record of deposits and payments made or appropriate reference 
to files containing such records.



Sec. 109-45.307  Proceeds from sales.

    DOE installations shall comply with the provisions of Chapter IV of 
the DOE Accounting Practices and Procedures Handbook.



Sec. 109-45.309-50  Unserviceable property (salvage and scrap).

    (a) A continuous cleanup program shall be maintained at all DOE 
installations to locate, efficiently handle, and promptly dispose of 
unserviceable property (salvage and scrap). Property inventories and 
construction, wrecking, dismantling and other projects which might 
produce scrap, should be regularly reviewed, particularly for metals and 
other items which offer potential as marketable materials and for 
economic returns to the Government. (See FPMR Parts 101-42 and Part 109-
42 for recovery of precious metals and reporting requirements.)
    (b) Scrap metals shall be segregated to the maximum economical 
extent consistent with good industrial practice.
    (c) Scrap metal which is contaminated with radioactive material and/
or chemically hazardous materials shall be segregated and appropriately 
marked at the source as to type and degree of contamination and shall be 
controlled and disposed of in accordance with application regulations. 
(See Subpart 109-45.50).



Sec. 109-45.310  Antitrust laws.

    Selling organizations shall submit to the Office of the General 
Counsel, with a copy to the Director of Procurement and Assistance 
Management, the report on proposed sales of surplus personal property 
with an acquisition cost of $3,000,000 or more, or a patent, process, 
technique, or invention, regardless of cost. Information to be included 
is contained in FPMR Sec. 101-45.310.



Sec. 109-45.316  Report on identical bids.

    Selling organizations shall forward the report on identical bids 
required by FPMR Sec. 101-45.316 to the Office of the General Counsel, 
with a copy to the Director of Procurement and Assistance Management.



    Subpart 109-45.5--Abandonment or Destruction of Surplus Property



Sec. 109-45.501-1  General.

    (a) The finding required by FPMR Sec. 101-45.501-1(a) that property 
has no commercial value or the estimated cost of its continued care and 
handling would exceed the estimated proceeds from its sale shall be in 
writing and shall be made by an official designated by the head of the 
field office concerned.



Sec. 109-45.501-2  Reviewing authority.

    The head of the field office concerned will be the reviewing 
authority for approval to abandon or destroy property with an 
acquisition cost of more than $1,000.



                       Subpart 109-45.47--Reports



Sec. 109-45.4701  Performance reports.

    The report of the sale or other disposition of surplus personal 
property is furnished to GSA in combination with the report of the 
utilization of domestic excess personal property required in FPMR 
Sec. 101-43.4701. See Sec. 109-43.4701 for DOE reporting requirements.



   Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
                     Contaminated Personal Property



Sec. 109-45.5001  Scope of subpart.

    This subpart sets forth policies and procedures for the utilization 
and disposal outside of DOE of excess and surplus personal property 
which has been radioactively or chemically contaminated.

[[Page 249]]



Sec. 109-45.5002  Policy.

    When the holding organization determines it is appropriate to 
dispose of contaminated personal property, such contaminated personal 
property shall be disposed of by DOE in accordance with appropriate 
Federal regulations governing radiation/chemical exposure to the public 
and contamination in the environment. In special cases where Federal 
regulations do not exist or apply, appropriate national consensus 
standards shall be used.



Sec. 109-45.5003  Responsibilities.



Sec. 109-45.5003-1  Development of criteria for utilization and disposal outside DOE.

    The Assistant Secretary for Policy, Safety and Environment (PE-1) 
has responsibility for the development of criteria for utilization and 
disposal of excess and surplus radioactively and chemically contaminated 
personal property outside of DOE.



Sec. 109-45.5003-2  Implementation of policy.

    Heads of field offices shall overview the implementation of policy 
as set forth in Sec. 109-45.5002 and approve or disapprove requests for 
utilization and disposal outside of DOE.



Sec. 109-45.5004  Procedures.



Sec. 109-45.5004-1  Suspect personal property.

    (a) Each excess item of personal property (including scrap), having 
a history of use in an area where exposure to radioactively or 
chemically contaminated materials may occur, shall be considered suspect 
and shall be monitored using appropriate instruments and techniques by 
qualified personnel of the DOE office or contractor generating the 
excess.
    (b) Prior to utilization or disposal outside DOE, with due 
consideration to the economic factors involved, every effort shall be 
made to reduce the level of contamination of items of excess or surplus 
property to the lowest practicable level.
    (c) If contamination is suspect and the property is of such size, 
construction, or location as to make the contamination inaccessible for 
the purpose of measurement, such property shall not be utilized or 
disposed of outside DOE through normal channels.



Sec. 109-45.5004-2  Handled as uncontaminated equipment.

    If monitoring of suspect equipment indicates that the contamination 
does not exceed applicable standards, it may be utilized and disposed of 
in the same manner as uncontaminated equipment, provided the guidance in 
Sec. 109-45.5004-1(b) has been considered. However, recipients shall be 
advised where levels of radioactive contamination require specific 
controls for shipment as provided in Department of Transportation 
Regulations for shipment of radioactive materials (49 CFR parts 171-179, 
inclusive). In addition, when any contaminated equipment is circularized 
within DOE, reported to GSA, or otherwise disposed of, the kind and 
degree of contamination must be plainly indicated on all pertinent 
documents.



Subpart 109-45.51--Disposal of Excess Personal Property in Foreign Areas



Sec. 109-45.5100  Scope of subpart.

    This subpart sets forth policies and procedures governing the 
disposal of DOE-owned foreign excess and surplus personal property.



Sec. 109-45.5101  Authority.

    The policies and procedures contained in this subpart are issued 
pursuant to the provisions of the Federal Property and Administrative 
Services Act of 1949, as amended (40 U.S.C. 471). Title IV of that Act 
entitled ``Foreign Excess Property'' provides that, except where 
commitments exist under previous agreements, all excess property located 
in foreign areas shall be disposed of by the owning agency, and directs 
that the head of such agency conform to the foreign policy of the United 
States in making such disposals.



Sec. 109-45.5102  General.

    Disposal of Government-owned property in the custody of DOE 
organizations or its contractors in foreign areas

[[Page 250]]

shall be made in an efficient and economical manner, and in conformance 
with the foreign policy of the United States.



Sec. 109-45.5103  Definitions.

    As used in this subpart, the following definitions apply:
    (a) Foreign means outside the United States, Puerto Rico, American 
Samoa, Guam, the Trust Territory of the Pacific Islands, and the Virgin 
Islands.
    (b) Foreign service post means the local diplomatic or consular post 
in the area where the excess property is located.



Sec. 109-45.5104  Responsibilities.



Sec. 109-45.5104-1  Director of Procurement and Assistance Management.

    The Director of Procurement and Assistance Management develops and 
interprets policies, principles, and general procedures for the disposal 
of excess property in foreign areas.



Sec. 109-45.5104-2  Heads of offices in foreign areas.

    Heads of DOE foreign offices--
    (a) Are authorized to handle foreign excess disposal matters in 
accordance with Title IV, ``Foreign Excess Property'' of the Federal 
Property and Administrative Services Act of 1949, as amended and this 
subpart;
    (b) Shall refer to the Property and Equipment Management Division 
(MA-422), any requests for advice or approval of the State Department on 
proposed disposals of excess property in foreign areas for review, 
coordination and handling through appropriate channels; and
    (c) Shall approve the exchange or lease of foreign excess property 
when in their opinion such action is clearly in the best interest of the 
Government as provided in Sec. 109-45.5105-2(b).



Sec. 109-45.5105  Disposal.



Sec. 109-45.5105-1  General.

    (a) Foreign excess property which is not required for transfer 
within DOE or to other U.S. Government agencies shall be considered 
surplus and may be disposed of by transfer, sale, exchange, or lease, 
for cash, credit, or other property and upon such other terms and 
conditions as may be deemed proper. Such property may also be donated, 
abandoned, or destroyed under the conditions specified in Sec. 109-
45.5105-2(c). Most foreign governments have indicated to the State 
Department that they wish to be consulted before U.S. Government 
property is disposed of in their countries (except in the case of 
transfers to other U.S. Government agencies). Matters concerning customs 
duties and taxes, or similar charges, may require prior agreement with 
the foreign government involved. The State Department shall be contacted 
in regard to these problems. Whenever advice or approval of the State 
Department is required by this subpart, it may be obtained either 
through the foreign service post in the foreign area involved or from 
the State Department in Washington, D.C. If the problem is to be 
presented to the State Department in Washington, D.C., it shall be 
referred through appropriate administrative channels to the Director of 
Procurement and Assistance Management, for review, coordination and 
handling.
    (b) Foreign excess property which is not transferred for use may be 
transferred to other U.S. Government agencies for disposal. This 
procedure may often prove advantageous, particularly when only small 
amounts of property are involved or when personnel of the other agencies 
are generally engaged in disposal activities.



Sec. 109-45.5105-2  Methods of disposal.

    (a) Sales of foreign excess shall be conducted in accordance with 
the following guidelines:
    (1) Generally, all sales of surplus foreign excess property shall be 
conducted under the competitive bid process unless it is advantageous 
and more practicable to the Government not to do so. When competitive 
bids are not solicited, reasonable inquiry of prospective purchasers 
shall be made in order that sales may be made on terms most advantageous 
to the U.S. Government.
    (2) In no event shall any property be sold in foreign areas without 
a condition which states that its importation into the United States is 
forbidden unless the U.S. Secretary of Agriculture

[[Page 251]]

(in the case of any agricultural commodity, food, or cotton or woolen 
goods), or the U.S. Secretary of Commerce (in the case of any other 
property), determines or has determined that the importation of such 
property would relieve domestic shortages or otherwise be beneficial to 
the economy of the United States.
    (3) Sales documents shall provide that the purchaser must pay any 
import duties or taxes levied against property sold in the country 
involved and further provide that the amount of this duty or tax shall 
not be included as a part of the price paid the U.S. Government for the 
property. In the event the levy is placed upon the seller by law, the 
buyer will be required to pay all such duties or taxes and furnish the 
seller copies of his receipt prior to the release of the property to 
him. However, if the foreign government involved will not accept payment 
from the buyer, the seller will collect the duties or taxes and turn the 
amounts collected over to the foreign government. Accounting for the 
amounts collected shall be coordinated with the disbursing officer of 
the nearest United States foreign service post. The property shall not 
be released to the purchaser until the disposal officer is satisfied 
that there is no responsibility for payment by the United States (as 
contrasted to collection by the United States) of taxes, duties, 
excises, etc.
    (4) Certain categories of property, including small arms and machine 
guns; artillary and projectiles; ammunition, bombs, torpedoes, rockets 
and guided missiles; fire control equipment and range finders; tanks and 
ordnance vehicles; chemical and biological agents, propellents and 
explosives; vessels of war and special naval equipment; aircraft and all 
components, parts and accessories for aircraft; military electronic 
equipment; aerial cameras, military photo-interpretation, stereoscopic 
plotting and photogrammetry equipment; and all material not enumerated 
which is classified from the standpoint of military security (United 
States Munitions List, 22 CFR 121.01), are subject to restrictions as to 
disposal. Advance approval must be obtained from the State Department 
for the sale of all such articles. Therefore, prior to the sale of any 
of the articles enumerated in the U.S. Munitions List, the foreign 
service post in the area shall be consulted.
    (5) Prior to the sale of property which had a total acquisition cost 
of $250,000 or more, plans for such sale shall be reported to the 
Property and Equipment Management Division (MA-422) in ample time to 
allow considerations of possible foreign policy aspects and advice 
thereon from the State Department. (See Sec. 109-45.5106(a)). All 
proposed sales, regardless of the total acquisition cost of the property 
involved, which the head of the DOE foreign office believes might have a 
significant effect on the economic or political situation in a 
particular area, shall be discussed with the foreign service post.
    (b) While there is authority for exchange or lease of foreign 
surplus property, such authority shall be exercised only when such 
action is clearly in the best interests of the U.S. Government. 
Disposals by exchange are subject to the same requirements as disposals 
by sale under Sec. 109-45.5105-2(a).
    (c) Foreign excess or surplus property (including waste, salvage, 
and scrap) may be donated, abandoned, or destroyed provided (1) the 
property has no commercial value, or the estimated cost of its care and 
handling would exceed the estimated proceeds from its sale, and (2) a 
written finding to that effect is made and approved by the head of the 
DOE foreign office. No property shall be abandoned or destroyed if 
donation is feasible. Donations under these conditions may be made to 
any agency of the U.S. Government, or to educational, public health or 
charitable nonprofit organizations of governments. Foreign excess 
property may also be abandoned or destroyed when such action is required 
by military necessity, safety, or considerations of health or security. 
A written statement explaining the basis for disposal by this means and 
approval by the head of the DOE foreign office is required. Property 
shall not be abandoned or destroyed in a manner which is detrimental or 
dangerous to public health and safety, or which will cause infringement 
on the rights of other persons.

[[Page 252]]



Sec. 109-45.5106  Reports.

    (a) Proposed sales of foreign excess property having an acquisition 
cost of $250,000 or more reported to the Property and Equipment 
Management Division (MA-422) should present all pertinent data, 
including the following:
    (1) The description of property to be sold, including--
    (i) Identification of property (description should be in terms 
understandable to persons not expert in technical nomenclature); 
property covered by the Munitions List and regulations pertaining 
thereto (as published in 22 CFR 121.01) should be clearly indicated;
    (ii) Quantity;
    (iii) Condition; and
    (iv) Acquisition cost.
    (2) The proposed method of sale (i.e., bid, negotiated sale, etc.).
    (3) Any currency to be received and payment provisions (i.e., U.S. 
dollars, foreign currency, or credit, including terms of proposed 
agreement).
    (4) Any restrictions on use of property to be sold (such as 
retransfer of property, disposal as scrap, demilitarization, etc.).
    (5) Any special terms.
    (6) The categories of prospective purchasers (e.g., host country, 
other foreign countries, special qualifications, etc.).
    (7) How taxes, excises, duties, etc. will be handled.
    (b) Instructions for reporting foreign excess utilization and 
disposal transactions are contained in Chapter III of the DOE Accounting 
Practices and Procedures Handbook.



PART 109-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT TO EXCHANGE/SALE AUTHORITY--Table of Contents




Sec.
109-46.000  Scope of part.
109-46.000-50  Applicability.

                       Subpart 109-46.4--Disposal

109-46.406  Records.
109-46.407  Reports.

    Authority: Sec. 644, Pub. L. 95-91, Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25597, June 21, 1984, unless otherwise noted.



Sec. 109-46.000  Scope of part.

    This part implements and supplements FPMR part 101-46.



Sec. 109-46.000-50  Applicability.

    Except as set forth below, the requirements of FPMR part 101-46 and 
this part are not applicable to DOE contractors. Contractors shall 
comply with the following requirements:

    FRMR Sec. 101-46.201
    FPMR Sec. 101-46.202(a)
    FPMR Sec. 101-46.202(d) (1), (2), (4), (5), (6), (7), and (10)
    FPMR Sec. 101-46.202(e)
    FPMR Sec. 101-46.401
    DOE-PMR Sec. 109-46.406



                       Subpart 109-46.4--Disposal



Sec. 109-46.406  Records.

    Contractor shall prepare and maintain such records as will show full 
compliance with the applicable provisions of FPMR part 101-46.



Sec. 109-46.407  Reports.

    The report of exchange/sale transactions required by FPMR Sec. 101-
46.407 shall be submitted through normal administrative channels to the 
Property and Equipment Management Division (MA-422) within 60 days after 
the close of the fiscal year. Negative reports are required.



PART 109-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND FORFEITED PERSONAL PROPERTY--Table of Contents




Sec.
109-48.000  Scope of part.
109-48.001-50  Applicability.

   Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
                                Property

109-48.101-6  Transfer to other Federal agencies.
109-48.102-4  Proceeds.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25598, June 21, 1984, unless otherwise noted.



Sec. 109-48.000  Scope of part.

    This part implements and supplements FPMR Part 101-48, Utilization,

[[Page 253]]

Donation, or Disposal of Abandoned and Forfeited Personal Property.



Sec. 109-48.001-50  Applicability.

    The provisions of FPMR 101-48 and this part are applicable to 
contractor operations where the abandoned or forfeited personal property 
is found on premises owned or leased by the Government.



   Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
                                Property



Sec. 109-48.101-6  Transfer to other Federal agencies.

    (a)-(c) [Reserved]
    (d) Transfer orders covering requests for transfers of forfeited or 
voluntarily abandoned distilled spirits, wine and malt beverages for 
medicinal, scientific or mechanical purposes shall be forwarded through 
normal administrative channels for signature by the Property and 
Equipment Management Division (MA-422) and for subsequent forwarding to 
GSA for release.



Sec. 109-48.102-4  Proceeds.

    After retention of any monies received from disposal of abandoned or 
forfeited property for the three-year period specified in FPMR Sec. 101-
48.102-4 with no claim being filed, such monies shall be deposited as 
provided in Chapter IV of the DOE Accounting Practices and Procedures 
Handbook.



PART 109-50--PROGRAMMATIC DISPOSAL OF DOE PROPERTY--Table of Contents




Sec.
109-50.000  Scope of part.
109-50.001  Applicability.

                        Subpart 109-50.1--General

109-50.101  Authority.

Subpart 109-50.3--Used Energy-Related Laboratory Equipment Grant Program

109-50.300  Scope of subpart.
109-50.301  Applicability.
109-50.302  General.
109-50.303  Authority.
109-50.304  Definitions.
109-50.305  Responsibilities and authorities.
109-50.305-1  Director of Procurement and Assistance Management.
109-50.305-2  Director, Office of Field Operations Management, Office of 
          Energy Research.
109-50.305-3  Heads of field offices.
109-50.305-4  Contracting officers.
109-50.305-5  Excess used energy-related laboratory equipment holding 
          organizations.
109-50.305-6  Screening locations.
109-50.306  Types of equipment which may be granted.
109-50.307  Types of equipment which may not be granted.
109-50.308  Procedure.
109-50.309  Reports.
109-50.310  Screening locations.

Subpart 109-50.4--Programmatic Disposal to Contractor of DOE Property in 
                            a Mixed Facility

109-50.400  Scope of subpart.
109-50.401  Definitions.
109-50.402  Responsibilities and authorities.
109-50.402-1  Director of Procurement and Assistance Management.
109-50.402-2  Heads of Headquarters program organizations.
109-50.402-3  Heads of field offices and contracting officers.
109-50.403  Programmatic disposal of DOE property in mixed facilities.
109-50.403-1  Submission of proposals.
109-50.403-2  Need to establish DOE program benefit.
109-50.404  Notification.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25598, June 21, 1984, unless otherwise noted.



Sec. 109-50.000  Scope of part.

    This part provides guidance on the authorities, policies, and 
procedures for the disposal of DOE property for programmatic purposes.



Sec. 109-50.001  Applicability.

    The provisions of this part 109-50 apply to direct DOE operations, 
but do not apply to contractors unless specifically provided in the 
appropriate subpart.



                        Subpart 109-50.1--General



Sec. 109-50.101  Authority.

    Programmatic disposals of DOE property generally are made under the 
authority and subject to the provisions of the Atomic Energy Act of 
1954, as amended (42 U.S.C. 2011), the Energy Reorganization Act of 1974 
(42 U.S.C.

[[Page 254]]

5801), the Department of Energy Organization Act (42 U.S.C. 7101), and 
other special laws which provide authority for DOE program activities.



Subpart 109-50.3--Used Energy-Related Laboratory Equipment Grant Program



Sec. 109-50.300  Scope of subpart.

    This subpart provides guidance on the granting of used, energy-
related laboratory equipment to universities and colleges and other 
nonprofit educational institutions of higher learning in the United 
States for use in energy-oriented educational programs.



Sec. 109-50.301  Applicability.

    This subpart is applicable to direct operations and to contractors.



Sec. 109-50.302  General.

    DOE, to encourage research in the field of energy, awards grants of 
used energy-related laboratory equipment to eligible institutions for 
use in energy-oriented educational programs. Under the Used Energy-
Related Laboratory Equipment Grant Program, grants of used energy-
related equipment excess to the requirements of DOE offices and 
contractors may be made to eligible institutions prior to reporting the 
equipment to GSA for utilization.



Sec. 109-50.303  Authority.

    The used Energy-Related Laboratory Equipment Grant Program is 
conducted under the authority of Article 31 of the Atomic Energy Act of 
1954, as amended, section 103, paragraph 10, of the Energy 
Reorganization Act of 1974, and Title III of the Department of Energy 
Organization Act.



Sec. 109-50.304  Definitions.

    As used in this subpart the following definitions apply:
    (a) Book value means acquisition cost less depreciation.
    (b) Eligible institution means any nonprofit educational institution 
of higher learning, such as universities, colleges, junior colleges, 
hospitals, and technical institutes or museums located in the United 
States and interested in establishing or upgrading energy-oriented 
educational programs.
    (c) Energy-oriented education program means one that deals partially 
or entirely in energy or energy-related topics.
    (d) DOE Financial Assistance Rules (10 CFR part 600) is the 
Department of Energy directive which establishes a uniform 
administrative system for application, awards, and administration of 
assistance awards, including grants and cooperative agreements.



Sec. 109-50.305  Responsibilities and authorities.



Sec. 109-50.305-1  Director of Procurement and Assistance Management.

    The Director of Procurement and Assistance Management establishes 
policies and procedures for the award and administration of grants.



Sec. 109-50.305-2  Director, Office of Field Operations Management, Office of Energy Research.

    The Director, Office of Field Operations Management, Office of 
Energy Research--
    (a) Has program responsibility for the Used Energy-Related 
Laboratory Equipment Grant Program;
    (b) Issues general instructions and information on the program to 
institutions;
    (c) Reviews and, where appropriate, approves requests from 
institutions for used equipment where the book value of an item of 
equipment exceeds $100,000 or where the cumulative book value of used 
equipment grants to any one institution exceeds $100,000; and
    (d) Issues annual summary reports of equipment granted under this 
program to field and Headquarters organizations. Advises when grants to 
individual institutions approach the $100,000 book value cumulative 
limit.



Sec. 109-50.305-3  Heads of field offices.

    Heads of field offices shall establish procedures for review and 
evaluation of equipment grant proposals in accordance with this subpart.



Sec. 109.50.305-4  Contracting officers.

    Contracting Officers--
    (a) Award energy-related laboratory equipment grants under this 
program

[[Page 255]]

in accordance with the DOE Financial Assistance Rules and program 
instructions issued by the Director, Office of Energy Research and this 
subpart;
    (b) Forward a copy of each approved and accepted grant to the Office 
of Energy Research; and
    (c) Forward to the Office of Field Operations Management, Office of 
Energy Research, for approval prior to award of grant, requests from 
institutions for used equipment where the book value of the equipment 
exceeds $100,000 or where the cumulative book value of grants to an 
institution exceeds $100,000.



Sec. 109-50.305-5  Excess used energy-related laboratory equipment holding organizations.

    Each DOE and contractor organization holding excess used energy-
related laboratory equipment shall forward copies of excess reports (SF-
120) to screening locations cited in Sec. 109-50.310 after DOE screening 
through the REAPS program (See Sec. 109-43.311-1-50).



Sec. 109-50.305-6  Screening locations.

    Organizations designated in Sec. 109-50.310 shall retain current 
files of reports of excess used energy-related laboratory equipment for 
review by eligible institutions.



Sec. 109-50.306  Types of equipment which may be granted.

    Examples of types of equipment which may be granted under the Used 
Energy-Related Laboratory Equipment Grant Program are listed below. 
These examples are merely illustrative and not inclusive.

--Radiation detectors, monitors, scalers, and counters
--Nuclear reactors and accelerators
--Neutron howitzers and generators
--Critical and subcritical assemblies
--Bubble and cloud chambers
--Dosimeters, survey meters, radiometers, and spectroscopes
--Radiation shields and reactor associate components
--Mass spectrometers, infrared spectrometers, and ultraviolet 
spectrometers
--Gas and liquid chromatographs
--Ammeters, voltmeters, electrometers
--Linear and pulse-height analyzers
--Power supplies
--Catalyst test units
--Distillation columns
--Temperature and pressure recorders
--Ion control gauges
--Gas tracers and analyzers
--Solar collectors and heliometers



Sec. 109-50.307  Types of equipment which may not be granted.

    Types of equipment which will not be granted include--
    (a) Any equipment determined to be required by DOE direct operations 
or DOE contractors;
    (b) General supplies, such as Bunsen burners, hoods and work 
benches; furniture; office equipment, such as typewriters, adding 
machines, and duplicating machines; drafting and office supplies; 
refrigerators; tools; presses, lathes, furnaces, hydraulic and 
mechanical jacks, cranes and hoists; and computing equipment; or
    (c) Any equipment which has been obtained as excess from another 
Federal agency.



Sec. 109-50.308  Procedure.

    (a) After completion of DOE utilization screening, copies of excess 
reports (SF 120) of used energy-related laboratory equipment will be 
forwarded by each holding organization to the sites listed in Sec. 109-
50.310 for use by eligible institutions in reviewing and earmarking 
specific equipment. These reports will be separately prepared and 
identified with the caption ``Used Energy-Related Laboratory 
Equipment.''
    (b) The following periods have been established during which time 
equipment will remain available to this program prior to reporting it to 
the General Services Administration for utilization by other Federal 
agencies:
    (1) Sixty days from the date DOE utilization screening is completed 
and the report is issued to screening locations, to permit suitable time 
for eligible institutions to review and earmark the desired equipment.
    (2) An additional sixty days after the equipment is earmarked to 
permit the eligible institutions to prepare and submit an equipment 
proposal request and to provide time for field organizations to review 
and evaluate the proposal and take appropriate action.
    (c) Upon approval of the proposal, the issuance of the grant 
instrument and acceptance by the institution are deemed to constitute 
transfer of title.

[[Page 256]]

    (d) A Standard Form 120, accompanied by a copy of the completed 
grant, shall be used to drop accountability of the granted equipment 
from the financial records.
    (e) The cost of care and handling of property incident to the grant 
shall be charged to the receiving institution. Such costs may consist of 
packing, crating, shipping and insurance, and are limited to actual 
costs. In addition, where appropriate, the cost of any repair and/or 
modification to any equipment shall be borne by the recipient 
institution.



Sec. 109-50.309  Reports.

    (a) In addition to the copy of the awarded grant required to be 
forwarded in accordance with Sec. 109-50.305-4(b), each awarded grant 
shall be reported in the Procurement Assistance Data System.
    (b) Heads of field offices shall include grants made under this 
program in the annual report of property transferred to non-Federal 
recipients, as required by FPMR Sec. 101-43-4701(c).



Sec. 109-50.310  Screening locations.

    The locations shown on the following pages shall retain current 
files of SF-120s, reports of excess used energy-related laboratory 
equipment, for review by eligible institutions. After completion of DOE 
utilization screening through REAPS, DOE activities shall forward copies 
of SF 120s covering used energy-related laboratory equipment to these 
locations.

                               California

Property Management Office, Atomics International Division, Rockwell 
International Corporation, 8900 DeSoto Avenue, Canoga Park, California 
91305
Property Manager, Lawrence Livermore Laboratory, University of 
California, Livermore, California 94720
Business Services, L-53, Lawrence Livermore Laboratory, University of 
California, Livermore, California 94550

                                Colorado

Department of Energy, P.O. Box 26247, Belmar Branch, 1075 S. Yukon, 
Lakewood, Colorado 89226
Department of Energy, Rocky Flats Area Office, P.O. Box 928, Golden, 
Colorado 80401

                          District of Columbia

Department of Energy, ER-44 Room 3F-053, 1000 Independence Avenue., SE. 
Washington, DC 20585. Attn: Dr. Larry L. Barker, (202) 252-6512
Department of Energy, MA-422, Room 8H-089, 1000 Independence Avenue., 
SE. Washington, DC 20585. Attn: Mr. J. H. Mackey, (202) 252-8261

                                 Georgia

Department of Energy, 1655 Peachtree Street, NE., 8th Floor, Atlanta, 
Georgia 30309

                                  Idaho

EG & G, Property Management Branch, 539 Second Street, Idaho Falls, 
Idaho 83401
Department of Energy, Idaho Operations Office, Property Management and 
Administrative Services Branch, 550 Second Street, Idaho Falls, Idaho 
83401

                                Illinois

Argonne National Laboratory, Plant Operations, Plant Management, 9700 
South Cass Avenue, Argonne, Illinois 60439

                                  Iowa

Ames Laboratory, Iowa State University, Materials Handling and Property 
Office, Room 152, Research Building, Ames, Iowa 50010

                                Missouri

Department of Energy, 23rd Floor, 324 E. 11th St., Kansas City, Missouri 
64106
Department of Energy, Kansas City Area Office, P.O. Box 202, Kansas 
City, Missouri 64141

                                 Nevada

Department of Energy, Nevada Operations Office, Contract and Property 
Division, Property Management Branch, P.O. Box 14100, Las Vegas, Nevada 
89114

                               New Mexico

Sandia Laboratories, Office of University Relations, P.O. Box 5800, 
Albuquerque, New Mexico 87115

                                New York

Brookhaven National Laboratory, Supply and Materials Office, Upton, Long 
Island, New York 11973

                                  Ohio

Monsanto Research Corporation, Mound Laboratory, Property Management, 
P.O. Box 32, Miamisburg, Ohio 45342

[[Page 257]]

                              Pennsylvania

Department of Energy, 1421 Cherry Street, 10th Floor, Philadelphia, 
Pennsylvania 10102

                             South Carolina

E. I. Dupont de Nemours & Co., Savannah River Laboratory, University 
Relations Office, Aiken, South Carolina 29801

                                Tennessee

Oak Ridge National Laboratory, Material and Services, P.O. Box X, Oak 
Ridge, Tennessee 37830

                                  Texas

Department of Energy, P.O. Box 5800, 2626 Mockingbird Lane, Dallas, 
Texas 75235

                               Washington

Rockwell Hanford, Excess Utilization, Building 1167-A, P.O. Box 250, 
Richland, Washington 99352



Subpart 109-50.4--Programmatic Disposal to Contractor of DOE Property in 
                            a Mixed Facility



Sec. 109-50.400  Scope of subpart.

    This subpart contains guidance to be followed when it is proposed to 
sell or otherwise transfer DOE personal property located in a mixed 
facility to the contractor who is the operator of that facility.



Sec. 109-50.401  Definitions.

    As used in this subpart, the following definitions apply:
    (a) DOE property is the DOE-owned personal property in a mixed 
facility.
    (b) Contractor is the operator of the mixed facility.
    (c) Mixed facility is a partly DOE-owned and partly contractor-owned 
facility. For purposes of this subpart, however, this definition does 
not apply to such a facility operated by an educational or other 
nonprofit institution under a basic research contract with DOE.
Sec. 109-50.402  Responsibilities and authorities.



Sec. 109-50.402-1  Director of Procurement and Assistance Management.

    The Director of Procurement and Assistance Management is authorized 
to approve proposals for the programmatic disposal of DOE personal 
property in a mixed facility to the contractor operating that facility.



Sec. 109-50.402-2  Heads of Headquarters program organizations.

    Heads of Headquarters program organizations shall review and forward 
to the Property and Equipment Management Division (MA-422) for approval, 
proposals for programmatic disposal of DOE personal property in a mixed 
facility to the contractor operating that facility.



Sec. 109-50.402-3  Heads of field offices and contracting officers.

    Heads of field offices and contracting officers shall submit 
proposals involving programmatic disposals of DOE property in mixed 
facilities through appropriate administrative channels to the cognizant 
Headquarters program organization for review and forwarding for 
approval.



Sec. 109-50.403  Programmatic disposal of DOE property in mixed facilities.



Sec. 109-50.403-1  Submission of proposals.

    Proposals involving programmatic disposals for DOE personal property 
in mixed facilities to contractors operating the facility shall be 
forwarded through the appropriate program organization to the Property 
and Equipment Management Division (MA-422) for review and processing for 
approval. Each such request for review and approval shall include all 
information necessary for a proper evaluation of the proposal. The 
proposal shall include, as a minimum--
    (a) The purpose of the mixed facility;
    (b) The character, condition and present use of the DOE property 
involved, as well as its acquisition cost, accumulated depreciation, and 
net book value;
    (c) The programmatic benefits which would acrue to DOE from the 
disposal to the contractor (including the considerations which become 
important if the disposal is not made);
    (d) The appraised value of the DOE property (preferably by 
independent appraisers); and
    (e) The proposed terms and conditions of disposal (covering for 
example,

[[Page 258]]

(1) price, (2) priority to be given work for DOE requiring the use of 
the transferred property, and including the basis for any proposed 
charge to DOE for amortizing the cost of plant and equipment items, (3) 
recapture of the property if DOE foresees a possible future urgent need, 
and (4) delivery of the property, whether ``as is-where is,'' etc.).



Sec. 109-50.403-2  Need to establish DOE program benefit.

    When approval for a proposed programmatic disposal of DOE personal 
property in a mixed facility is being sought, it must be established 
that the disposal will benefit a DOE program. For example, approval 
might be contingent on a showing that--
    (a) The entry of the contractor as a private concern into the energy 
program is important and significant from a programmatic standpoint; and
    (b) The sale of property to the contractor will remove obstacles 
which otherwise discourage his entry into the field.



Sec. 109-50.404  Notification.

    The Under Secretary will be advised prior to any disposal which is 
considered sensitive.

[[Page 259]]



                SUBCHAPTER I--INDUSTRIAL PLANT EQUIPMENT





PART 109-51--LOANS OF INDUSTRIAL PLANT EQUIPMENT FROM THE DEFENSE INDUSTRIAL PLANT EQUIPMENT CENTER--Table of Contents




Sec.
109-51.000  Scope of part.
109-51.001  Policy.
109-51.002  Memorandum of Agreement.
109-51.003  General provisions.
109-51.004  DIPEC Handbook.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25601, June 21, 1984, unless otherwise noted.



Sec. 109-51.000  Scope of part.

    This part prescribes the policy and conditions for loans of 
industrial plant equipment (IPE) from the Department of Defense General 
Reserve under the management of the Defense Industrial Plant Equipment 
Center (DIPEC) and makes reference to the DOE DIPEC Handbook which 
prescribes procedures for arranging loans of IPE from DIPEC.



Sec. 109-51.001  Policy.

    Since loan of DIPEC equipment is at no cost, except for packing, 
crating, handling, and transportation charges, DOE field organizations 
and contractors are encouraged to use DIPEC as a source of industrial 
plant equipment in lieu of purchasing such equipment.



Sec. 109-51.002  Memorandum of Agreement.

    An agreement between DOE and the Defense Logistics Agency 
establishes the policies, procedures and conditions by which DOE may 
obtain loans of IPE from DIPEC. (Exhibit A of the DIPEC Handbook).



Sec. 109-51.003  General provisions.

    (a) DOE field organizations and contractors may requisition IPE on a 
loan basis for periods up to five years. The IPE loan period may be 
extended on mutual agreement between DIPEC and the DOE field office 
involved.
    (b) DOE has a 30-day period to accept or reject IPE placed on hold 
by DIPEC.
    (c) DOE field organizations or contractors will pay costs of 
transportation, dismantling, crating and handling of IPE from and to 
DOD.
    (d) On completion of the loan period, the DOE field organization or 
contractor shall return the DIPEC-IPE in the same condition as received 
except for fair wear and tear.
    (e) DOE is required under terms of the agreement to decontaminate 
IPE prior to return or replace the equipment with an equivalent item.



Sec. 109-51.004  DIPEC Handbook.

    The DIPEC Handbook is available through field organizations or by 
request to the Property and Equipment Management Division (MA-422). The 
Handbook cites the procedures for arranging loan of IPE, illustrates the 
forms used and provides a bibliography of DIPEC publications which list 
the available IPE by type of equipment and by DIPEC control numbers.

[[Page 260]]



                         SUBCHAPTER J [RESERVED]



SUBCHAPTER K--GOVERNMENT PROPERTY IN THE POSSESSION OF OFF-SITE CONTRACTORS



PART 109-60--MANAGEMENT OF GOVERNMENT PROPERTY IN THE POSSESSION OF OFF-SITE CONTRACTORS--Table of Contents




Sec.
109-60.000  Scope and applicability of part.
109-60.001  Definitions.

              Subpart 109-60.1--Contractor's Responsibility

109-60.100  General.
109-60.101  Assumption of responsibility.
109-60.102  Contractor's liability.
109-60.103  Segregation of Government property.
109-60.104  Physical protection of property.
109-60.105  Control of sensitive items of property.
109-60.106  Disposition.
109-60.107  Relief from responsibility.

             Subpart 109-60.2--Records and Financial Reports

109-60.200  General.
109-60.201  Unit cost.
109-60.202  Records of plant and capital equipment.
109-60.203  Records of material maintained in stores.
109-60.204  Records of material issued upon receipt.
109-60.205  Financial property control reports.
109-60.206  DOE plant and equipment asset types.

                    Subpart 109-60.3--Identification

109.60.300  General.

                 Subpart 109-60.4--Physical Inventories

109-60.400  General.
109-60.401  Frequency.
109-60.402  Reporting results of inventories.
109-60.403  Records of inventories.
109-60.404  Inventories upon termination or completion.

                 Subpart 109-60.5--Care and Maintenance

109-60.500  General.
109-60.501  Contractor's maintenance program.

         Subpart 109-60.6--Utilization, Disposal, and Retirement

109-60.600  General.
109-60.601  Maximum use of property.
109-60.602  Disposal.
109-60.603  Retirement of property.

         Subpart 109-60.7--Motor Vehicle and Aircraft Management

109-60.700  Scope of subpart.
109-60.701  Definition.
109-60.702  Policy.
109-60.703  Classification of motor vehicles.
109-60.704  Acquisition of motor vehicles.
109-60.705  Identification of motor vehicles.
109-60.706  Use of the GSA Interagency Motor Pool System.
109-60.707  Official use of motor vehicles.
109-60.708  Maintenance.
109-60.709  Disposition of motor vehicles.
109-60.710  Required motor vehicle reports.
109-60.711  Aircraft.

                 Subpart 109-60.8--109-60.46 [Reserved]

                       Subpart 109-60.47--Reports

109-60.4700  Required reports.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 7254).

    Source: 49 FR 25601, June 21, 1984, unless otherwise noted.



Sec. 109-60.000  Scope and applicability of part.

    This part sets forth the minimum requirements to be observed by off-
site contractors in establishing and maintaining control over Government 
property provided pursuant to a contract with DOE. This part does not 
apply to transportation contracts, grants, cooperative agreements, 
contracts with state and local governments, and to operating and on-site 
service contractors. To the extent of any inconsistency between this 
part and the terms of the contract under which the Government property 
is provided, the terms of the contract shall govern.



Sec. 109-60.001  Definitions.

    As used in this part the following definitions apply:

[[Page 261]]

    (a) Accessory item means an item that facilitates or enhances the 
operation of capitalized equipment but which is not essential for its 
operation, such as remote control devices.
    (b) Auxiliary item means an item without which the basic unit of 
equipment cannot operate, such as motors for pump and machine tools.
    (c) Capital equipment means personal property items having a unit 
acquisition cost of generally $1,000.00 or more and an anticipated 
service life in excess of one (1) year, regardless of type of funding, 
are not properly chargeable to buildings or utilities, and having the 
potential for maintaining their integrity as capital items, i.e., not 
expendable due to use.
    (d) Government personal property means all property provided at 
Goverment expense for performance of the contract, regardless of the 
method by which it is provided, including rented or leased equipment, 
except real property, records of the Federal Government, nuclear and 
special source materials, and atomic weapons and by-product materials.
    (1) Government-furnished property means property in the possession 
of or directly acquired by the Government and subsequently made 
available to the contractor for use in performance of the contract.
    (2) Contractor-acquired Government property means property acquired 
or otherwise provided by the contractor for performance of a contract 
and to which the Government has title or the right to take title under 
the contract terms.
    (e) Materials means property which may be incorporated into or 
attached to an end item to be delivered under a contract or which may be 
consumed or expended in normal use in the performance of a contract. It 
includes, but is not limited to, raw and processed material, parts, 
components, assemblies, or supplies.
    (f) Property administrator means an authorized representative of the 
contracting officer assigned to administer the contract requirements and 
obligations relative to Government property. If an authorized 
representative has not been designated as the property administrator, 
the contracting officer is the property administrator.
    (g) Plant and equipment means land, land rights, depletable 
resources, improvements to land, buildings and structures, utilities, 
and capital equipment having an anticipated service life of 1 year or 
more, the individual units of which satisfy the monetary and other 
criteria for capital charges and which therefore justify the maintenance 
of continuing plant and equipment records.
    (h) Salvage means that property which has some value in excess of 
its basic material content but which is in such condition that it has no 
reasonable prospect of use for any purpose as a unit and its repair or 
rehabilitation for use is clearly impracticable.
    (i) Scrap means property that has no value except for the 
recoverable value of its basic material content.
    (j) Sensitive items means those items of property which are 
susceptible to being appropriated for personal use or which can be 
readily converted to cash. Examples are firearms, photographic 
equipment, binoculars, tape recorders, calculators, and power tools.
    (k) Special test equipment means either single or multipurpose 
integrated test units engineered, designed, fabricated, or modified to 
accomplish special purpose testing in the performance of a contract. It 
consists of items or assemblies of equipment that are interconnected and 
interdependent so as to become a new functional entity for special 
testing purposes. It does not include material, special tooling, 
facilities (except foundations and similar improvements necessary for 
the installation of special test equipment), and equipment items used 
for general testing purposes.
    (l) Special tooling means jigs, dies, fixtures, molds, patterns, 
taps, gauges, other equipment and manufacturing aids, all components of 
these items, and replacement of these items, which are of such a 
specialized nature that without substantial modification or alteration 
their use is limited to the development or production of particular 
supplies or parts thereof or the performance of particular services. It 
does not include material, special test

[[Page 262]]

equipment, facilities (except foundations and similar improvements 
necessary for the installation of special tooling), general or special 
machine tools, or similar capital items.



              Subpart 109-60.1--Contractor's Responsibility



Sec. 109-60.100  General.

    (a) The contractor is directly responsible and accountable for all 
Government property in its possession or control in accordance with the 
provisions of the contract, including property provided under such 
contract which may be in the possession or control of a subcontractor. 
The contractor shall establish and maintain a system, in accordance with 
the provisions of this part, to control, protect, preserve and maintain 
all Government property. If the contractor is expected to acquire and be 
accountable for, or does acquire Government personal property with an 
acquisition value of $500,000 or more, the contractor's property 
management system shall be in writing. Contractors holding Government 
personal property with an acquisition value of less than $500,000 may, 
at the discretion of the contracting officer, be required to have their 
property management system in writing. The requirement for written 
systems may be waived in writing by the contracting officer where the 
contracting officer determines that maintenance of a written system is 
unnecessary. The system shall be reviewed and if satisfactory, approved 
in writing by the contracting officer.
    (b) The contractor shall maintain and make available such records as 
are required by subpart 109-60.2 and shall account for all Government 
property until relieved of that responsibility. Liability for loss, 
damage, or improper use of property in a given instance will depend upon 
all the circumstances surrounding the particular case and will be 
determined in accordance with the provisions of the contract. The 
contractor shall furnish all data necessary to substantiate any request 
for discharge from responsibility.
    (c) The contractor shall require subcontractors provided Government 
property under the prime contract to comply with the provisions of this 
part. Procedures for assuring subcontractor compliance shall be included 
in the contractor's property control system.
    (d) If any portion of the contractor's property control system is 
found to be inadequate upon review by the property administrator, 
necessary corrective action will be accomplished by the contractor prior 
to approval of the system. When agreement as to adequacy of control or 
corrective action cannot be reached between the contractor and the 
property administrator, the matter will be referred to the contracting 
officer.
    (e) The property records and the premises where any Government 
property is located shall be accessible to the property administrator or 
other authorized representative during contract performance, at contract 
completion or termination, or at all reasonable times. The contractor's 
property control system is subject to audit by the Government as often 
as circumstances warrant during the contract's performance, at its 
completion or termination, or at any time thereafter while the 
contractor is required to retain the contract records. All these 
records, including related correspondence, shall be made available to 
the auditors.



Sec. 109-60.101  Assumption of responsibility.

    (a) The contractor becomes responsible for Government-furnished 
property upon its delivery into the contractor's custody or control. For 
contractor-acquired Government property, the contractor assumes 
responsibility in accordance with the property provisions of the 
contract.
    (b) All Government-furnished property shall be inspected and checked 
promptly at the time of receipt. Any visible or other external evidence 
of damage or error in quantity should be noted on the waybill with the 
signature of the carrier's agent. As soon as possible, the contractor 
shall send the contracting officer a full report of the damage or 
quantity error, including extent, apparent cause, and the estimated cost 
of repairs. The contracting officer will advise the contractor of the 
action to be taken.

[[Page 263]]

    (c) It is the contractor's responsibility to inspect, at the time of 
receipt, all property not furnished by the government that is acquired 
in the performance of the contract, and to take any necessary action 
with the vendor and/or carrier if there should be any damage or error in 
quantity.
    (d) Procedures shall be established to protect any warranty rights 
which accrue to the Government with the acquisition of Government 
property.



Sec. 109-60.102  Contractor's liability.

    (a) Subject to the terms of the contract, the contractor may be 
liable for shortage, loss, damage, or destruction of Government property 
or when there is evidence of improper or unreasonable use or consumption 
of Government property.
    (b) The contractor shall report promptly to the property 
administrator any shortage, loss, damage, or destruction of Government 
property in its possession or control, or in the possession or control 
of any subcontractor, together with all the facts and circumstances of 
the case.
    (c) Any loss that may be due to theft shall be reported by the 
contractor immediately to the local police and/or Federal Bureau of 
Investigation and the property administrator.



Sec. 109-60.103  Segregation of Government property.

    Ordinarily, provisions shall be made by the contractor to keep 
Government property segregated from contractor-owned property. 
Commingling of Government and contractor-owned property may be allowed 
only when the segregation of the property would materially hinder the 
progress of the work, (e.g., segregation is not feasible for reasons 
such as quantities, lack of space, or costs caused by additional 
handling), and where control procedures are adequate, i.e., the 
Government property is identified as being Government property. 
Commingling must be approved in advance by the property administrator, 
In case of research and development contracts with educational 
institutions, commingling is authorized without the requirement for 
advance approval unless physical segregation is otherwise required by 
the contracting officer.



Sec. 109-60.104  Physical protection of property.

    (a) Controls such as property pass systems, memorandum records, 
marking of tools, regular or intermittent gate checks and perimeter 
fencing shall be implemented, recognizing the value of the property, to 
prevent loss, theft, or unauthorized movement of Government property 
from the premises on which such property is located.
    (b) Classified Government property will be handled in accordance 
with instructions of the contracting officer.



Sec. 109-60.105  Control of sensitive items of property.

    (a) The contractor shall assure that effective procedures and 
practices are established for the administrative and physical control of 
sensitive property items before and after issuance. Each contractor 
shall prepare a list of the types of property considered to be 
sensitive. This list, together with control procedures, shall be 
provided to the property administrator for review and approval.
    (b) At a minimum, controls on sensitive property shall include 
property records, memorandum receipts, bin or tool check systems, or 
combinations thereof. Procedures shall provide for physical inventories 
at least once each year, and methods for adjustment of inventory levels 
due to losses, thefts and damage. More frequent inventories of sensitive 
property may be necessary where the value of the property, degree of 
security achieved, or loss experience indicates greater controls are 
required in order to protect the Government's interest. Such procedures 
and practices shall be subject to review and approval by the property 
administrator.



Sec. 109-60.106  Disposition.

    The contractor is responsible for disposing of Government property 
as provided for in the contract or as directed by the contracting 
officer. The contractor shall promptly advise the property administrator 
of any Government property that becomes excess to requirements for 
contract performance

[[Page 264]]

and to take such action for its disposition as directed.



Sec. 109-60.107  Relief from responsibility.

    Subject to instructions of the contracting officer and the terms of 
the contract, the contractor may be relieved of responsibility for 
Government property when the property is--
    (a) Consumed or expended in contract performance--to the extent the 
contracting officer has determined that its consumption or expenditure 
was for proper purposes and in reasonable quantity for performance of 
the contract;
    (b) Removed from contractor's possession--when removed as directed 
by the property administrator or contracting officer;
    (c) Lost, damaged or destroyed (including property consumed or 
expended in excess of reasonable requirements, and non-severable 
Government-owned property which has been connected to contractor-owned 
property for the performance of the contract and cannot be removed 
without destroying its serviceability)--when the contracting officer has 
determined the contractor's liability, if any; the Government has been 
reimbursed to the extent required by the contracting officer's 
determination; and, property disposition has been made of any property 
rendered unserviceable by damage; or
    (d) Retained by the contractor, with approval of the contracting 
officer, and for which the Government has received adequate 
consideration.



             Subpart 109-60.2--Records and Financial Reports



Sec. 109-60.200  General.

    (a) The contractor shall establish and maintain adequate property 
control records, either manual or mechanized and consistent with the 
requirements of this subpart, for all Government property provided under 
a contract, including property provided under such contract as may be in 
the possession or control of a subcontractor. Unless otherwise directed 
by the contracting officer, records of Government property established 
and maintained by the contractor under the terms of the contract shall 
be designated and utilized as the official contract records. Duplicate 
records shall not be furnished to nor be maintained by the Government.
    (b) If a contractor has multiple contracts with DOE, separate 
property records for each contract should be maintained. However, if 
approved by the contracting officer, a consolidated property record may 
be maintained if it provides the pertinent information set forth in this 
subpart and the property is identified to the applicable contract.
    (c) Property records of the type established for components acquired 
separately shall be used for serviceable components removed from items 
of Government property as a result of modification.
    (d) The contractor's property control system shall contain a system 
or technique to locate any item of Government property with reasonable 
promptness.



Sec. 109-60.201  Unit cost.

    (a) The unit cost of each item of Government property shall consist 
of the acquisition cost and the cost of any additional components, and 
shall be contained in the contractor's property control system. Unless 
the contractor's quantitative inventory record contains unit cost, the 
supplementary records containing this information must be identified and 
recognized as a part of the official property records. For Government-
furnished property, copies of documents needed for record purposes, 
including pricing, will be furnished to the contractor.
    (b) For property record purposes, original transportation and 
installation costs are to be considered as part of the acquisition cost 
of an item. Subsequent costs incurred in transporting and/or installing 
transferred or relocated property should not be added to the original 
acquisition cost.



Sec. 109-60.202  Records of plant and capital equipment.

    (a) For each item of plant and capital equipment (as defined in 
Sec. 109-60.001), the contractor shall maintain an individual item 
record containing, at a minimum the--
    (1) Contract number;
    (2) Asset type (Ref. Sec. 109-60.206);

[[Page 265]]

    (3) Nomenclature or description of item;
    (4) U.S. Government identification tag number;
    (5) Manufacturer's name;
    (6) Manufacturer's model number;
    (7) Serial number;
    (8) Acquisition document reference and date;
    (9) Location; and
    (10) Unit cost (including transportation and installation).
    (b) Accessory and auxiliary items that are attached to, part of, or 
acquired for use with a specific item of capital equipment shall be 
recorded on the record of the associated item of capital equipment. 
Useable accessory and auxiliary items that are removed from items of 
Government equipment shall also be separately recorded, and the cost of 
the basic item reduced proportionally.



Sec. 109-60.203  Records of material maintained in stores.

    Records of Government-owned material maintained by the contractor in 
stores, and held under inventory control, shall contain the--
    (a) Contract number;
    (b) Nomenclature or description of item;
    (c) Quantity received;
    (d) Quantity issued;
    (e) Balance on hand;
    (f) Posting reference and date of transaction;
    (g) Unit price;
    (h) Location; and
    (i) Disposition.



Sec. 109-60.204  Records of material issued upon receipt.

    (a) The property administrator may authorize the contractor to 
maintain, in lieu of stock records, a file of appropriately cross-
referenced documents evidencing receipt, issue, and use of Government-
provided materials that is issued for immediate consumption and not 
entered in the inventory records as a matter of sound business practice.
    (b) With respect to non-profit organizations, where material is 
issued directly upon receipt, Government invoices, contractor's purchase 
documents, or other evidence of acquisition and issue will be accepted 
as adequate property records for material furnished to or acquired by 
the contractor and issued directly so to be considered consumed under 
the contract.



Sec. 109-60.205  Financial property control reports.

    The contractor shall prepare a semi-annual report, as of March 31 
and September 30 of each year, for each contract and subcontract 
thereunder showing the dollar amount and the number of line items of 
plant and capital equipment, by DOE asset type (see Sec. 109-60.206), 
acquired or disposed or during the period. The report will show, at a 
minimum, the beginning balance, acquisition, disposition, and ending 
balance. The report format and the DOE office to which the report will 
be furnished will be as directed by the property administrator. The 
reports are due not later than 45 days after the end of the reporting 
period.



Sec. 109-60.206  DOE plant and equipment asset types.

401  Land
410  Land Rights
430  Minerals
440  Timber
460  Site Preparation, Grading and Landscaping
470  Roads, Walks, and Paved Areas
480  Fences and Guard Towers
490  Other Improvements to Land
501  Buildings
550  Other Structures
610  Communications Systems
615  Electric Generation, Transmission and Distribution Systems
620  Fire Alarm Systems
625  Gas Production, Transmission and Distribution Systems
630  Irrigation Systems
635  Railroad Systems
640  Sewerage Systems
645  Steam Generation and Distribution Systems
650  Water Supply, Pumping, Treatment and Distribution Systems
655  Nuclear Steam and Electric Generation and Transmission Systems
660  SPR Crude Oil Piping System
665  NPR Crude Oil Extraction and Distribution System
710  Heavy Mobile Equipment
715  Hospital and Medical Equipment
720  Laboratory Equipment
725  Motor Vehicles and Aircraft
730  Office Furniture and Equipment
735  Process Equipment
740  Railroad Rolling Stock

[[Page 266]]

745  Reactors and Accelerators
750  Security and Protection Equipment
755  Shop Equipment
760  Reserve Construction Equipment Pool
770  Automatic Data Processing Equipment
799  Miscellaneous Equipment
800  Improvements to Property of Others
900  Unclassified Plant and Equipment



                    Subpart 109-60.3--Identification



Sec. 109-60.300  General.

    (a) The contractor shall identify, mark, and record all capital and 
sensitive items of equipment promptly upon receipt, except leased or 
rented equipment, and shall maintain this identification as long as such 
property remains in the custody, possession, or control of the 
contractor. Property identification numbers will be recorded on all 
applicable receiving, shipping, and disposal documents, and any other 
documents pertaining to the property control system where practicable. 
Marking and numbering shall be accomplished by etching, stamping, 
painting, attaching metal or plastic tags or decalcomanias. Each item 
shall be marked ``Property of the U.S. Government, Department of 
Energy.'' Information on property numbers will be furnished by the 
property administrator. If practicable, such markings shall be removed 
or obliterated from the property involved, if and when Government 
ownership is relinquished. Leased or rented equipment shall be 
identified in such manner as will not damage the property. Property 
which by its nature or size cannot be marked shall not be commingled 
with contractor-owned property unless approved by the property 
administrator. When items are not susceptible to marking, they shall be 
subject to other specific control measures, such as custodial receipts.
    (b) Where special tooling or special test equipment is utilized 
under a contract or subcontract, it shall be identified as required by 
the contracting officer.



                 Subpart 109-60.4--Physical Inventories



Sec. 109-60.400  General.

    The contractor shall periodically physically inventory Government 
property in its possession or control and shall require such inventories 
of property held by subcontractors. The physical inventory shall be 
consistent with approved contractor procedures and generally accepted 
accounting principles. Procedures that are limited solely to a check-off 
of a listing of recorded property do not meet the requirements of a 
physical inventory. Personnel who perform the physical inventory shall 
not be the same individuals who maintain the property records or have 
custody of the property unless the contractor's operation is too small 
to do otherwise.



Sec. 109-60.401  Frequency.

    Physical inventories of permanently affixed plant (such as fencing, 
buildings, other structures, utilities and systems) are to be taken not 
less frequently than every 10 years. Inventories of movable capital 
equipment are to be taken not less frequently than every 2 years. 
Inventories of sensitive items (capital and non-capital) shall be taken 
not less frequently than annually. Substantial quantities of materials 
(stores) held under inventory control shall be inventoried annually. 
Small quantities of material representing bench stock need not be 
inventoried.



Sec. 109-60.402  Reporting results of inventories.

    The contractor shall, at a minimum, submit to the property 
administrator a listing of all discrepancies disclosed by a physical 
inventory, and a signed statement that the physical inventory was 
completed on a certain date and that the official property records were 
found to be in agreement with the physical inventory, except for the 
discrepancies reported. As a minimum, the discrepancy listing shall 
contain the property number, nomenclature,

[[Page 267]]

and unit cost. The listing and signed statement shall be furnished with 
a minimum of delay after completion of the physical inventory, but no 
later than 60 days after its completion.



Sec. 109-60.403  Records of inventories.

    Appropriate inventory records and reports shall be maintained and 
will serve as a basis for (a) effecting maximum utilization of available 
property, (b) prompt identification and reporting of excess property, 
(c) effective physical protection of property, and (d) the preparation 
of special and recurring reports. Full use will be made of accounting 
records and reports to avoid duplication.



Sec. 109-60.404  Inventories upon termination or completion.

    (a) Immediately upon termination or completion of a contract, the 
contractor shall submit an inventory report adequate for determining 
appropriate disposal of all Government property applicable to the 
terminated or completed contract. Further, this report shall include an 
inventory report of all Government property in a subcontractor's 
possession or control which is also applicable to the terminated or 
completed contract. This inventory report will be submitted to the 
property administrator for verification and disposition action.
    (b) Exception. The requirement for physical inventory of Government 
property at the completion of a contract may be waived by the 
contracting officer when the property is authorized for use on a follow-
on contract, provided that--
    (1) Past experience has established the adequacy of property 
controls; and
    (2) A statement is provided by the contractor indicating that 
transfer of record balances has been made in lieu of preparing a formal 
inventory list and the contractor accepts responsibility and 
accountability for those balances under the terms of the follow-on 
contract.



                 Subpart 109-60.5--Care and Maintenance



Sec. 109-60.500  General.

    The contractor shall be responsible for the proper care and 
maintenance of Government property in its possession or control from the 
time of receipt until properly relieved of responsibility. The removal 
of Government property to storage, or its contemplated transfer, does 
not relieve the contractor of these responsibilities.



Sec. 109-60.501  Contractor's maintenance program.

    The contractor's maintenance program shall be consistent with sound 
economic industrial practice, the manufacturer's recommendation, and the 
terms of the contract, and shall include the following:
    (a) Preventive maintenance. Preventive maintenance is generally 
performed on a regularly scheduled basis in order to detect and correct 
unfavorable conditions or defects before they result in breakdowns and 
to maximize the useful life of the equipment. An effective preventive 
maintenance program shall consist of, but not be limited to--
    (1) Inspection of equipment at periodic intervals to detect 
maladjustment, wear, or impending breakdown;
    (2) Regular lubrication of bearings and moving parts in accordance 
with a lubrication plan;
    (3) Adjustments for wear, repair, or replacement of worn or damaged 
parts and the elimination of causes of deterioration;
    (4) Removal of sludge, chips, and cutting oils from equipment which 
will not be used for a period of time;
    (5) Taking necessary precautions to prevent deterioration from 
contamination and corrosion; and
    (6) Proper storage and preservation of accessories and special tools 
furnished with an item of equipment but not regularly used with it.
    (b) Major repairs or rehabilitation. The maintenance program of the 
contractor shall provide for the disclosure and reporting to the 
property administrator

[[Page 268]]

of the need for major repairs, replacement, and other rehabilitation 
work on Government property in its possession or control.
    (c) Records of maintenance. The contractor shall keep records 
sufficient to disclose the maintenance and repair performed and 
associated cost.



         Subpart 109-60.6--Utilization, Disposal, and Retirement



Sec. 109-60.600  General.

    It is DOE's policy that all property furnished under a contract 
shall be utilized to the fullest extent possible. The contractor's 
procedures shall be adequate to assure that Government property will be 
utilized only for those purposes authorized in the contract, and that 
the contracting officer's approval is obtained prior to noncontract use.



Sec. 109-60.601  Maximum use of property.

    Property and supply management practices shall assure that the 
maximum and best possible use is made of property. Materials and 
equipment shall be limited to those items essential for effective 
execution of work performed under the contract.



Sec. 109-60.602  Disposal.

    Unless otherwise authorized, contractors having property determined 
to be excess shall contact the property administrator for instruction as 
to the proper method of disposal. Property shall not be disposed of 
without prior approval of the contracting officer.



Sec. 109-60.603  Retirement of property.

    When capital equipment is worn out, lost, stolen, destroyed, 
abandoned or damaged beyond economical repair, it shall be listed on a 
retirement work order. A full explanation shall be made, supported by an 
investigation, if necessary, as to the date and circumstances 
surrounding loss, theft, destruction, or damage. The retirement work 
order shall be signed by the responsible contractor administrative 
official initiating the report and reviewed and approved by an official 
at least one supervisory echelon above the official initiating the 
report, and the property administrator. Detailed information concerning 
the retention and/or submission of retirement work orders will be 
furnished by the property administrator.



         Subpart 109-60.7--Motor Vehicle and Aircraft Management



Sec. 109-60.700  Scope of subpart.

    This subpart prescribes basic policies and procedures for the 
management of Government-owned motor vehicles and aircraft in the 
possession of off-site contractors.



Sec. 109-60.701  Definition.

    Government-furnished motor vehicles are DOE-owned vehicles, vehicles 
leased from the General Services Administration Interagency Motor Pool 
System (GSA-IMPS), and vehicles leased from commercial sources.



Sec. 109-60.702  Policy.

    (a) Government-furnished motor vehicles and aircraft shall be 
provided to or acquired by off-site contractors when considered 
essential for the performance of the contract work and when approved by 
the contracting officer.
    (b) Government-owned motor vehicles and aircraft shall be maintained 
and utilized by contractors in the most practical and economical manner 
consistent with DOE program requirements, safety considerations, fuel 
economy, and applicable laws and regulations.
    (c) DOE-PMR Parts 109-38 and 109-39 (41 CFR chapter 109) contain the 
requirements for management of DOE-owned motor vehicles and aircraft. 
DOE contracting officers shall apply the applicable provisions contained 
therein in their management of contractor motor vehicle and aircraft 
operations.
    (d) Contractors shall conform fully to the average fuel economy 
standards established by law and these regulations in the selection of 
Government-furnished motor vehicles.
    (e) Contractors shall maintain and operate motor vehicles in such a 
manner as to foster reduced fuel consumption.
    (f) Normally, motor vehicles will not be furnished to fixed-price 
contractors.

[[Page 269]]

    (g) Prior approval of GSA must be obtained before--
    (1) Fixed-price contractors can use the GSA-IMPS; and
    (2) DOE-owned motor vehicles can be furnished to any contractor in 
an area served by a GSA-IMPS.



Sec. 109-60.703  Classification of motor vehicles.

    Because of differences in controls or limitations on possession and 
use, Government vehicles are classified as follows:
    (a) Passenger vehicles. (1) Sedans and station wagons (small, 
subcompact, compact, mid-size, and large).
    (2) Ambulances.
    (3) Buses.
    (b) Trucks. (1) Light, less than 8,500 GVWR (Gross Vehicle Weight 
Rating).
    (i) 4 x 2.
    (ii) 4 x 4.
    (2) Light, 8,500 to 12,499 GVWR.
    (i) 4 x 2.
    (ii) 4 x 4.
    (3) Medium, 12,500 to 23,999 GVWR.
    (4) Heavy, 24,000 GVWR or more.
    (c) Special purpose vehicles. (1) Fire trucks.
    (2) Construction vehicles.
    (3) Other vehicles equipped for special purposes.



Sec. 109-60.704  Acquisition of motor vehicles.

    (a) GSA has the responsibility for procurement of motor vehicles for 
Government agencies.
    (b) Contractors shall submit motor vehicle requirements to the 
contracting officer for approval.
    (c) The acquisition of passenger vehicles is limited to small, 
subcompact, and compact vehicles which meet Government fuel economy 
standards.
    (d) The DOE Procurement and Assistance Management Directorate, 
Headquarters, (MA-422), shall certify all requisitions for the 
following:
    (1) The acquisition of small, subcompact, and compact passenger 
vehicles.
    (2) The lease (60 continuous days or more) of light trucks less than 
8,500 GVWR.
    (e) Purchase requisitions for acquisition of passenger vehicles by 
purchase or lease must be processed in accordance with 41 CFR 109-
38.1306.
    (f) Purchase requisitions for other motor vehicles may be submitted 
to GSA as directed by the contracting officer.
    (g) Contractors shall thoroughly examine motor vehicles acquired 
under a GSA contract for defects. Any defect shall be reported promptly 
to GSA, and repairs shall be made under terms of the warranty.



Sec. 109-60.705  Identification of motor vehicles.

    (a) Except as indicated in Sec. 109-60.705(b), DOE-owned motor 
vehicles will have Government license tags and the following 
identification, which will be furnished and displayed as specified by 
the property administrator:

For Official Use Only
U.S. Government
Department of Energy

    (b) Security vehicles may be exempted from the above requirements by 
the contracting officer. All other exemptions require approval by the 
DOE Director of Procurement and Assistance Management Directorate.



Sec. 109-60.706  Use of the GSA Interagency Motor Pool System.

    Where authorized by the contracting officer, contractors may use the 
services of the GSA-IMPS.



Sec. 109-60.707  Official use of motor vehicles.

    Government-owned vehicles are to be used for ``Official Use Only.'' 
Contracting officers may approve home-to-work or work-to-home 
transportation on a one-time exceptional basis. Home-to-work or work-to-
home transportation on a continuing basis requires approval of the head 
of the cognizant DOE field office. Records of such approval will be kept 
on file.



Sec. 109-60.708  Maintenance.

    Contractors shall maintain Government-owned vehicles according to a 
systematic written procedure and in accordance with manufacturer's 
specifications and the terms of the warranty. The GSA publication 
``Guide for the Preventive Maintenance of Motor

[[Page 270]]

Vehicles'' provides guidance for the maintenance of Government-owned 
vehicles.



Sec. 109-60.709  Disposition of motor vehicles.

    (a) The contractor shall dispose of DOE-owned motor vehicles as 
directed by the contracting officer.
    (b) DOE-owned motor vehicles may be disposed of as exchange/sale 
items when directed by the contracting officer; however, a designated 
DOE official must execute the Title Transfer forms.



Sec. 109-60.710  Required motor vehicle reports.

    Contractors shall submit the following annual fiscal year-end 
reports of Government-furnished motor vehicles to the contracting 
officer. Information on preparation and submission of the reports will 
be furnished by the property administrator.
    (a) Agency Report of Motor Vehicle Data (Standard Form 82).
    (b) Special Purpose Vehicle Report.
    (c) Age and Mileage Analysis.



Sec. 109-60.711  Aircraft.

    (a) Acquisition of aircraft requires statutory authority. 
Contracting officers may authorize a lease, rental, hire, or loan of an 
aircraft if the period is less than 30 days. If longer than 30 days, 
approval must be obtained from the DOE Director of Procurement and 
Assistance Management.
    (b) Aircraft shall be used for official purposes only.



                 Subpart 109-60.8--109-60.46 [Reserved]



                       Subpart 109-60.47--Reports



Sec. 109-60.4700  Required reports.

    Following is a summary listing of those property reports required to 
be submitted by the contractor, along with the frequency of the reports 
and the subpart which describes the report:
    (a) Loss, damage, or destruction of Government property (On 
occurrence) Sec. 109-60.102(b).
    (b) Loss due to theft (On occurrence) Sec. 109-60.102(c).
    (c) Financial property control reports (Semi-annual) Sec. 109-
60.205.
    (d) Physical inventories of permanently affixed plant (Not less 
frequently than every 10 years) Sec. 109-60.402.
    (e) Physical inventories of capital equipment (Not less frequently 
than biennial) Sec. 109-60.402.
    (f) Physical inventories of sensitive items (Not less frequently 
than annual) Sec. 109-60.402.
    (g) Termination inventories (Termination or completion) Sec. 109-
60.404.
    (h) Motor vehicle reports (Annual) Sec. 109-60.710.

[[Page 271]]



                 CHAPTER 114--DEPARTMENT OF THE INTERIOR




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Part                                                                Page
114-51          Government furnished quarters...............         272

[[Page 272]]



PART 114-51--GOVERNMENT FURNISHED QUARTERS--Table of Contents




    Authority: 5 U.S.C. 301.



                        Subpart 114-51.1--General



Sec. 114-51.100  Departmental Quarters Handbook.

    The Office of Acquisition and Property Management (PAM) has prepared 
the Departmental Quarters Handbook (DQH), 400 DM, which provides 
detailed guidelines governing administration, management and rental rate 
establishment activities relating to Government furnished quarters 
(GFQ). Officials responsible for administration and management of 
quarters shall implement and comply with the provisions of the DQH, and 
shall ensure its availability for examination by all employees.

[60 FR 3555, Jan. 18, 1995]

[[Page 273]]



              CHAPTER 115--ENVIRONMENTAL PROTECTION AGENCY




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Part                                                                Page
115-1           Introduction................................         274

[[Page 274]]



PART 115-1--INTRODUCTION--Table of Contents




                   Subpart 115-1.1--Regulation System

Sec.
115-1.100  Scope of subpart.
115-1.103  Temporary-type FPMR.
115-1.103-50  Temporary-type changes to EPPMR.
115-1.104  Publication of FPMR.
115-1.104-50  Publication of EPPMR.
115-1.106  Applicability of FPMR.
115-1.108  Agency implementation and supplementation of FPMR.
115-1.109  Numbering in FPMR system.
115-1.110  Deviations.

    Authority: Sec. 205(c), 63 Stat. 377, as amended; 40 U.S.C. 486(c).

    Source: 36 FR 8568, May 8, 1971, unless otherwise noted.



                   Subpart 115-1.1--Regulation System



Sec. 115-1.100   Scope of subpart.

    This subpart establishes the Environmental Protection Agency 
Property Management Regulations (EPPMR), chapter 115 of the Federal 
Property Management Regulations System (FPMR) (41 CFR chapter 101); 
states its relationship to the FPMR, and provides instructions governing 
the property management policies and procedures of the Environmental 
Protection Agency (EPA).



Sec. 115-1.103   Temporary-type FPMR.



Sec. 115-1.103-50   Temporary-type changes to EPPMR.

    Where required, temporary changes will be published as EPPMR-
Temporary Regulations. Temporary Regulations will be cross-referenced to 
related EPPMR subparts and will indicate dates for compliance with, and 
cancellation of each issuance.



Sec. 115-1.104   Publication of FPMR.



Sec. 115-1.104-50   Publication of EPPMR.

    (a) Material published in the EPPMR will generally not be of 
interest to nor directly affect the public. Therefore, most EPPMR 
material will not be published in the Federal Register.
    (b) Arrows printed in the margin of a page indicate material 
changed, deleted, or added by the EPPMR Transmittal Notice cited at the 
bottom of that page. (See GSA, FPMR Amendment Transmittal pages for 
illustrations.)



Sec. 115-1.106   Applicability of FPMR.

    The FPMR apply to all EPA activities unless otherwise specified, or 
unless a deviation is approved.



Sec. 115-1.108   Agency implementation and supplementation of FPMR.

    (a) EPPMR implements and supplements the FPMR and follows the FPMR 
in style, arrangement and numbering sequence. Except to assure 
continuity and understanding FPMR material will not be repeated or 
paraphrased in the EPPMR.
    (b) Implementing material expands upon related material in the FPMR. 
Supplementing material deals with subject material not covered in the 
FPMR.



Sec. 115-1.109   Numbering in FPMR system.

    (a) The numbering system used in EPPMR conforms to that of the FPMR 
except for the chapter number. The first three digits represent the 
Chapter number assigned to this Agency in title 41, Code of Federal 
Regulations (CFR). In FPMR the chapter number is 101 and in EPPMR the 
Chapter number is 115.
    (b) Where EPA Chapter 115 implements Chapter 101 the material will 
be numbered and captioned to correspond to the FPMR part, subpart, 
section or subsection, e.g., 115-1.106 ``Applicability of FPMR'' 
implements 101-1.106 of FPMR.
    (c) Where Chapter 115 supplements the FPMR and deals with subject 
matter not contained in the FPMR, the EPPMR material is numbered to 
follow that which is most closely related to similar material in the 
FPMR, Supplementing material is numbered ``50'' or higher.



Sec. 115-1.110   Deviations.

    Where deemed necessary that regulations set forth in the FPMR or 
EPPMR be changed in the interest of program effectiveness, a proposed 
revision will be submitted in accordance with FPR Sec. 1-1.009, to the 
Division of Data and Support Systems (DSSD) for review and 
consideration.

[[Page 275]]



                   CHAPTER 128--DEPARTMENT OF JUSTICE




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Part                                                                Page
128-1           Introduction................................         276
128-18          Acquisition of real property................         283
128-48          Utilization, donation, or disposal of 
                    abandoned and forfeited personal 
                    property................................         284
128-50          Seized personal property....................         286

[[Page 276]]



PART 128-1--INTRODUCTION--Table of Contents




                   Subpart 128-1.1--Regulation System

Sec.
128-1.100  Scope of subpart.
128-1.101  Justice Property Management Regulations.
128-1.105  Authority for JPMR.
128-1.152  Citation.

Subpart 128-1.50--Authorities and Responsibilities for Personal Property 
                               Management

128-1.5001  Scope of subpart.
128-1.5002  Definitions.
128-1.5002-1  Acquire.
128-1.5002-2  Department.
128-1.5002-3  Head of the Agency/Department.
128-1.5002-4  Bureau.
128-1.5002-5  Personal property.
128-1.5002-6  Personal property management.
128-1.5002-7  Property management officer (PMO).
128-1.5002-8  Property custodian (PC).
128-1.5002-9  Supply support system.
128-1.5003  Primary authority and responsibility.
128-1.5004  Basis for delegations of authority and assignment of 
          responsibilities.
128-1.5005  Delegations of authority.
128-1.5005-1  Primary delegations.
128-1.5005-2  Redelegations of authority.
128-1.5006  General responsibilities.
128-1.5006-1  Head of bureau.
128-1.5006-2  Property management officer (PMO).
128-1.5006-3  Department employees.
128-1.5007  Reproduction of departmental and bureau seals.

                Subpart 128-1.80--Seismic Safety Program

128-1.8000  Scope.
128-1.8001  Background.
128-1.8002  Definitions of terms.
128-1.8003  Objective.
128-1.8004  Seismic Safety Coordinators.
128-1.8005  Seismic safety standards.
128-1.8006  Seismic Safety Program requirements.
128-1.8007  Reporting.
128-1.8008  Exemptions.
128-1.8009  Review of Seismic Safety Program.
128-1.8010  Judicial review.

    Authority: 5 U.S.C. 301, 40 U.S.C. 486(c), 41 CFR 101-1.108, and 28 
CFR 0.75(i), unless otherwise noted.

    Source: 41 FR 45987, Oct. 19, 1976, unless otherwise noted.



                   Subpart 128-1.1--Regulation System



Sec. 128-1.100   Scope of subpart.

    This subpart introduces the Department of Justice Property 
Management Regulations (JPMR) as part of the Federal Property Management 
Regulations System (FPMR) (41 CFR part 101); states its relationship to 
the FPMR; and provides instructions for the issuance and use of these 
property management policies and procedures of the Department of 
Justice.



Sec. 128-1.101   Justice Property Management Regulations.

    The JPMR, established in this subpart, implement and supplement, as 
necessary, the FPMR provisions governing the acquisition, utilization, 
management, and disposal of real and personal property. The JPMR are 
issued to establish uniform property management policies, regulations, 
and, as necessary, procedures in the Department of Justice.



Sec. 128-1.105   Authority for JPMR.

    The Department of Justice Property Management Regulations are 
prescribed by the Assistant Attorney General for Administration under 
authority of 5 U.S.C. 301, 40 U.S.C. 486(c), 41 CFR 101-1.108, and 28 
CFR 0.75(j).



Sec. 128-1.152   Citation.

    The JPMR will be cited in accordance with the Federal Register 
standards applicable to the FPMR. Accordingly, when this section is 
referred to formally in official documents, it should be cited as ``41 
CFR 128-1.152.'' When a section of the JPMR is referred to informally, 
however, it may be identified simply by ``JPMR'' followed by the 
complete paragraph reference number, e.g., ``JPMR 128-1.152.''



Subpart 128-1.50--Authorities and Responsibilities for Personal Property 
                               Management



Sec. 128-1.5001   Scope of subpart.

    This subpart sets forth general definitions of terms used throughout 
the JPMR and states responsibilities and authorities within the 
Department of

[[Page 277]]

Justice as they pertain to personal property management functions.



Sec. 128-1.5002   Definitions.



Sec. 128-1.5002-1   Acquire.

    To procure, purchase, or obtain in any manner, except by lease, 
including transfer, donation or forfeiture, manufacture, or production 
at Government-owned plants or facilities.



Sec. 128-1.5002-2   Department.

    The Department of Justice, including all its Bureaus and their 
respective field operations in all locations.



Sec. 128-1.5002-3   Head of the Agency/Department.

    The Attorney General of the United States.



Sec. 128-1.5002-4   Bureau.

    The Federal Bureau of Investigation; the Law Enforcement Assistance 
Administration; the Immigration and Naturalization Service; the Drug 
Enforcement Administration; the Bureau of Prisons; the Federal Prison 
Industries, Incorporated; and the Operations Support Staff (OSS) of the 
Office of Management and Finance. The OSS has authority and is 
responsible for all personal property management functions for the 
Offices, Boards, and Divisions of the Department, the United States 
Marshals Service, and the United States Parole Commission.



Sec. 128-1.5002-5   Personal property.

    Property of any kind or interest therein, except real and related 
property (as defined in FPMR 41 CFR 101-43.104-15), records of the 
Federal Government, and naval vessels, cruisers, aircraft-carriers, 
destroyers, and submarines (FPMR 41 CFR 101-43.104-13). For management 
and accounting control, personal property is categorized as follows:
    (a) ``Expendable personal property'' is that which, by its nature or 
function, is consumed in use; is used as repair parts or components of 
an end product considered nonexpendable; or has an expected service life 
of less than one year.
    (b) ``Non-expendable personal property'' is that which is complete 
within itself, does not lose its identity or become a component part of 
another article when put into use, and is of a durable nature with an 
expected service life one or more years.
    (c) ``Controlled personal property'' is that personal property for 
which good management practice dictates that it would be in the interest 
of the Government to assign and record accountability to assure the 
proper use, maintenance, protection and disposal of property for which 
the Government is responsible. Includes, but is not restricted to 
property which:
    (1) Is leased by, in the custody of, or is loaned to or from the 
Department.
    (2) Due to inherent attractiveness and/or portability is subject to 
a high probability of theft or misuse.
    (3) Is warranted, requires knowledge of age and/or previous repair 
data when determining whether repair or replacement is appropriate.



Sec. 128-1.5002-6   Personal property management.

    A system for controlling the acquisition, receipt, storage issue, 
utilization, maintenance, protection, accountability, and disposal of 
personal property to best satisfy the program needs of the Department.



Sec. 128-1.5002-7   Property management officer (PMO).

    An individual responsible for the overall administration, 
coordination, and control of the personal property management program of 
a bureau. The designation as PMO may or may not correspond to the 
individual's official job title.



Sec. 128-1.5002-8   Property custodian (PC).

    An individual responsible for the immediate physical custody of all 
personal property under his control and for providing documentation as 
required on all actions affecting the personal property within his 
jurisdiction. The designation as PC may or may not correspond to the 
individual's official job title.

[[Page 278]]



Sec. 128-1.5002-9   Supply support system.

    The sum of all actions taken in providing buildings, equipment, 
supplies, and services to support program areas.



Sec. 128-1.5003   Primary authority and responsibility.

    (a) The Attorney General of the United States has the primary 
authority and responsibility for providing direction, leadership, and 
general supervision in the development and administration of an 
effective and efficient supply support system for the Department, to 
include:
    (1) The establishment of Department-wide policies, directions, 
regulations, and procedures satisfying the requirements of law, 
regulations, and sound management practice; and
    (2) The review, evaluation, and improvement of personal property 
management programs, functions, operations, and procedures throughout 
the Department.
    (b) Pursuant to 28 CFR 0.75 and subject to the general supervision 
of the Attorney General and the direction of the Deputy Attorney 
General, the functions described above are assigned to the Assistant 
Attorney General for Administration as delegations of authority.



Sec. 128-1.5004   Basis for delegations of authority and assignment of responsibilities.

    Certain personal property management functions can be performed by 
an individual only under a specific grant of authority to that 
individual. Other functions may be performed simply on the basis of 
general instructions or directions or by virtue of an individual 
occupying the position to which the responsibility for the function is 
assigned. In either situation, to eliminate excessive delay and to 
reduce unnecessary involvement of multiple management levels, it is 
considered generally desirable to place authority and responsibility for 
and to exercise property management actions at the lowest organizational 
unit practical. Accordingly, specific redelegations of the authority 
vested in the Assistant Attorney General for Administration are made to 
the heads of bureaus for the personal property management functions 
listed in Sec. 128-1.5005 below. The authority to prescribe and issue 
Department-wide policies, regulations, and procedures for personal 
property management is not redelegated and remains solely within the 
jurisdiction of the Assistant Attorney General for Administration.



Sec. 128-1.5005   Delegations of authority.



Sec. 128-1.5005-1   Primary delegations.

    The following authorities are redelegated to the heads of bureaus 
for use within their respective jurisdictions and shall be exercised in 
accordance with the policies and procedures established by the Assistant 
Attorney General for Administration.
    (a) Designating the PMO, for the bureau, within the following 
limitations:
    (1) Only one PMO is to be designated for the bureau, at the bureau 
level. Neither the title designation nor the responsibilities of the PMO 
are to be delegated below that level.
    (2) One or more PC's also may be designated for the bureau, 
depending upon the size and complexity of the organizational structure. 
Each PC is responsible solely for that property within his respective 
jurisdiction. The number and distribution of PC's designated is entirely 
at the option of the head of the bureau.
    (3) There is no restriction on designating a single individual as 
PMO and PC providing that the functions and responsibilities are 
compatible and are within the capabilities of a single person.
    (b) Authorizing exceptions to the FPMR use and replacement standards 
for office machines, furniture, furnishings and typewriters specified in 
Secs. 101-25.3 and 101-25.4.
    (c) Authorizing exceptions to FPMR replacement standards for 
materials handling equipment specified in Sec. 101-25.304.
    (d) Authorizing the procurement of passenger motor vehicles with 
additional systems or equipment or the procurement of additional systems 
or equipment for passenger motor vehicles already owned or operated by 
the Government, in conformance with Federal Standards No. 122 and 
Sec. 101-25.304.

[[Page 279]]

    (e) Authorizing the retention for official use by the bureau of 
abandoned or other unclaimed personal property and of personal property 
which is voluntarily abandoned or forfeited other than by court decree.
    (f) Determining when personal property becomes excess and reporting 
the excess property to the General Services Administration (GSA).
    (g) Assigning or transferring excess personal property within the 
bureau to other bureaus of the Department, other Federal agencies, the 
Legislative Branch to the Judicial Branch, to wholly-owned or mixed-
ownership Government corporations, to cost-reimbursable type 
contractors, or to authorized grantees.
    (h) Transferring property forfeited to the Government to other 
authorized recipients or requesting judicial transfer of such property 
from others to the bureau.
    (i) Determining fair market value of abandoned and other unclaimed 
property retained for official use by the bureau, for deposit to a 
special fund for reimbursement of owners.
    (j) Approving claims and reimbursing, less direct costs, former 
owners of abandoned or other unclaimed personal property which has been 
sold or retained for official use.
    (k) Recommending non-Federal grantee excess property screeners to 
GSA as required in FPMR 101-43.320(h).
    (l) When authorized by statutory authority, vesting title to 
Government-furnished personal property in contractors or grantees.
    (m) Acquiring excess personal property from other bureaus and from 
other Federal agencies.



Sec. 128-1.5005-2   Redelegations of authority.

    (a) The authorities delegated by the Assistant Attorney General for 
Administration to heads of bureaus may, in turn, be redelegated as 
necessary to enable personal property management functions to be 
performed at the organizational level best equipped to handle such 
functions, unless otherwise prohibited by this regulation.
    (b) Such redelegations can be made without the specific approval of 
the Assistant Attorney General for Administration to deputies, principal 
administrative officers, heads of field offices and installations and 
their respective deputies. Such redelegations shall not conflict with 
the duties or responsibilities assigned to the PMO, or PC under the 
JPMR.
    (c) Existing delegations of authority by the Assistant Attorney 
General for Administration in matters of personal property management 
which are not covered in this section shall continue in effect until 
modified or revoked.
    (d) Redelegations of authorities made in accordance with this 
section shall be in writing and shall be made available for audits, 
surveys, or as otherwise appropriate.



Sec. 128-1.5006   General responsibilities.



Sec. 128-1.5006-1   Head of bureau.

    The head of a bureau is responsible for establishing and 
administering a property management program within his respective 
operation which will provide for:
    (a) The planning and scheduling of property requirements to assure 
that supplies, equipment, and space are readily available to satisfy 
program needs while minimizing operating costs and inventory levels.
    (b) The creation and maintenance of complete, accurate inventory 
control and accountability record systems.
    (c) The maximum utilization of available property for official 
purposes.
    (d) The proper care and securing of property, to include storage, 
handling, preservation, and preventative maintenance.
    (e) The identification of property excess to the needs of the bureau 
which must be made available to other Departmental activities and 
reported to GSA for transfer, donation, or disposal, as appropriate, 
under the provisions of the FPMR and JPMR.
    (f) The submission of required property management reports.
    (g) The conducting of periodic management reviews within the 
activity to assure compliance with prescribed policies, regulations, and 
procedures and to determine additional guidance or training needs.

[[Page 280]]

    (h) Advising all bureau employees of their responsibilities for 
Government property.
    (i) Supporting general ledger control accounts for personal property 
by establishing subsidiary accounts and records as prescribed by the 
bureau in accordance with the provisions of DOJ Order 2110.1, Paragraph 
4(b)(c).



Sec. 128-1.5006-2   Property management officer (PMO).

    The property management officer of a bureau is responsible for 
coordinating and conducting the activities of the personal property 
management program and for performing the following functions:
    (a) Providing the required leadership, guidance, and operating 
procedures for personal property management functions.
    (b) Ensuring general ledger control accounts for personal property 
are supported by property records in accordance with DOJ Order 2110.1, 
Paragraph 6.103b(4).
    (c) Ensuring bureau compliance with the personal property management 
requirements of the FPMR and JPMR.
    (d) Designating items of controlled personal property within the 
bureau.
    (e) Ensuring records of controlled personal property are created and 
maintained by personnel other than property custodians.



Sec. 128-1.5006-3   Department employees.

    Each employee of the Department who has use of, supervises the use 
of, or has control over Government property is responsible for that 
property. This responsibility may take either or both of the following 
forms:
    (a) Supervisory responsibility, in which an officer-in-charge, and 
administrative officer, or a supervisor is obligated to establish and 
enforce necessary administrative and security measures to ensure proper 
preservation and use of all Government property under his jurisdiction.
    (b) Personal responsibility, in which each employee of the 
Department is obligated to properly care for, handle, use, and protect 
Government property issued to or assigned for the employee's use at or 
away from the office or station.



Sec. 128-1.5007  Reproduction of departmental and bureau seals.

    (a) Requests for permission to reproduce the Departmental seal for 
commercial, educational, ornamental or other purposes by other 
government agencies or private entities shall be referred to the 
Assistant Attorney General for Administration for decision.
    (b) Requests for permission to reproduce the seals of the Federal 
Bureau of Investigation, the Bureau of Prisons, the Federal Prison 
Industries, the Immigration and Naturalization Service, the Board of 
Parole, the Drug Enforcement Administration, and the United States 
Marshals Service for such purposes by other government agencies or 
private entities shall be referred to the head of the respective 
Departmental organization for decision.
    (c) The decision whether to grant such a request shall be made on a 
case-by-case basis, with consideration of any relevant factors, which 
may include the benefit or cost to the government of granting the 
request; the unintended appearance of endorsement or authentication by 
the Department; the potential for misuse; the effect upon Departmental 
security; the reputability of the use; the extent of control by the 
Department over the ultimate use; and the extent of control by the 
Department over distribution of any products or publications bearing a 
Departmental seal.

[45 FR 55727, Aug. 21, 1980]



                Subpart 128-1.80--Seismic Safety Program

    Authority: 42 U.S.C. 7701 et seq., E.O. 12699 (3 CFR, 1990 Comp., p. 
269).

    Source: 58 FR 42876, Aug. 12, 1993; 59 FR 33439, June 29, 1994, 
unless otherwise noted.



Sec. 128-1.8000  Scope.

    This subpart establishes a Seismic Safety Program for the Department 
of Justice and sets forth the policies and procedures for obtaining 
compliance with Executive Order 12699 (Executive Order), ``Seismic 
Safety of Federal and Federally Assisted or Regulated New Building 
Construction.''

[[Page 281]]



Sec. 128-1.8001  Background.

    The Earthquake Hazards Reduction Act of 1977 (Act), 42 U.S.C. 7701, 
et seq., as amended, directs the Federal government to establish and 
maintain an effective earthquake hazards reduction program to reduce the 
risks to life and property from future earthquakes. Executive Order 
12699 implements certain provisions of the Act by requiring Federal 
agencies responsible for the design and construction of new buildings to 
develop and implement a seismic safety program. The regulations in this 
subpart implement the Executive Order, and apply to buildings designed 
and constructed under the responsibility of the Department of Justice. 
These regulations do not apply to buildings used by the Department and 
obtained, through purchase or lease, by the General Services 
Administration or other Federal agencies.



Sec. 128-1.8002  Definitions of terms.

    (a) Construction documents--Detailed plans and specifications for 
the construction of a building.
    (b) Building--Any structure, fully or partially enclosed, used or 
intended for sheltering persons or property.
    (c) New building--A building, or an addition to an existing 
building, for which development of construction documents was initiated 
after January 5, 1990.
    (d) Leased building--A new building constructed expressly for lease 
by the Department of Justice, and for which the Department contracted 
with the lessor or owner to develop construction documents to meet the 
specifications of the Department.
    (e) Purchased building--A new building constructed expressly for 
purchase by the Department, and for which the Department contracted with 
the owner/developer to develop construction documents meeting the 
specifications of the Department.
    (f) Assisted or regulated building--A new building designed and 
constructed with funding assistance from the Department through Federal 
grants or loans, or guarantees of financing, through loan or mortgage 
insurance programs.
    (g) Covered building--a new building owned, leased, purchased, or 
assisted or regulated by the Department of Justice.



Sec. 128-1.8003  Objective.

    The Department shall comply with Executive Order 12699 for the 
purpose of reducing the risks to lives of occupants of new buildings 
owned by the Department, leased for Department uses, or purchased and 
constructed with assistance from the Department, and to other persons 
who would be affected by the failure of such buildings in earthquakes; 
improving the capability of essential new Department buildings to 
function during or after an earthquake; and protecting public 
investments in all covered buildings; all in a cost-effective manner.



Sec. 128-1.8004  Seismic Safety Coordinators.

    (a) The Justice Management Division shall designate an individual 
with technical training, engineering experience and a seismic background 
as the Department of Justice Seismic Safety Coordinator who shall 
provide overall guidance for the implementation of the Seismic Safety 
Program for the Department. The Department Seismic Safety Coordinator 
shall, at a minimum:
    (1) Monitor the execution and results of the efforts of the 
Department to upgrade the seismic safety of the Department's new 
construction activities;
    (2) Implement seismic safety program changes, as required;
    (3) Act as a point-of-contact for the Department in maintaining 
necessary records, and consolidate data pertaining to the seismic safety 
activities in the Department;
    (4) Monitor and record the cost, construction and other consequences 
attributable to compliance with the Executive Order;
    (5) Notify each Component Seismic Coordinator about what information 
he must maintain under the Seismic Safety Program and what reports he 
must prepare;
    (6) Prepare and forward for submission all reports, as required by 
law and regulation;

[[Page 282]]

    (7) Manage the Seismic Safety Program for all components of the 
Department, with the exception of the components listed in paragraph (b) 
of this section.
    (b) The Component Head for the Bureau of Prisons, the Drug 
Enforcement Administration, the Federal Bureau of Investigation, the 
Immigration and Naturalization Service, and the United States Marshals 
Service, shall designate a Component Seismic Safety Coordinator for his/
her respective component. Each of these Component Seismic Safety 
Coordinators shall manage and implement the seismic safety policies and 
activities within the component. The Component Seismic Safety 
Coordinators shall, at a minimum:
    (1) Provide guidance to component employees who undertake building 
activity;
    (2) Maintain and provide data about the Seismic Safety Program, as 
requested by the Department Seismic Safety Coordinator;
    (3) Monitor and record the cost, construction and other consequences 
attributable to compliance with the Executive Order; and
    (4) Submit an annual Seismic Safety Program status report as 
directed by the Department Seismic Safety Coordinator.



Sec. 128-1.8005  Seismic safety standards.

    (a) To meet the building and construction requirements of this 
subpart, the Department, except as noted, adopts as its seismic safety 
standards the seismic safety levels set forth in the model building 
codes that the Interagency Committee on Seismic Safety in Construction 
(ICSSC) recognizes and recommends as appropriate for implementing the 
Executive Order. The ICSSC, as of the date of this rule, recognizes and 
recommends:
    (1) The 1991 International Conference of Building Officials (ICBO) 
Uniform Building Code (UBC);
    (2) The 1992 Supplement to the Building Officials and Code 
Administrators International (BOCA) National Building Code (NBC); and
    (3) The 1992 Amendments to the Southern Building Code Congress 
(SBCC) Standard Building Code (SBC).
    (b) The seismic design and construction of a covered building shall 
conform to the model code applicable in the locality where the building 
is constructed, unless:
    (1) The building code for the locality provides a higher level of 
seismic safety than provided by the appropriate model code, in which 
case the local code shall be utilized as the standard; or
    (2) The locality does not have seismic safety building requirements, 
in which case the ICSSC model building code appropriate for that 
geographic area shall be utilized as the standard.



Sec. 128-1.8006  Seismic Safety Program requirements.

    The Department Seismic Safety Coordinator and each Component Seismic 
Safety Coordinator shall ensure that an individual familiar with seismic 
design provisions of the Seismic Safety Standards (appropriate 
standards), or a professional, licensed engineer shall conduct the 
reviews required under this section, as appropriate.
    (a) New building projects--Construction documents initiated after 
August 12, 1993, and which apply to new construction projects, shall 
comply with the appropriate standards and shall be reviewed for 
compliance. Once the reviewer determines that the documents comply, the 
reviewer shall affix his/her signature and seal (if a licensed engineer) 
to the approved documents and provide a statement certifying compliance 
with the appropriate standards.
    (b) Existing building projects.--For new buildings with construction 
documents that were initiated prior to August 12, 1993, the documents 
shall be reviewed to determine whether they comply with the appropriate 
standards. If the reviewer determines that the documents comply with the 
standard, the reviewer shall affix his/her signature and seal (if a 
licensed engineer) to the approved documents and provide a statement 
certifying compliance with the appropriate standards. If the reviewer 
determines that seismic deficiencies exist, the appropriate Component 
Head shall ensure completion of one of the following:
    (1) For a new building project for which a contract for construction 
has

[[Page 283]]

not been awarded, the construction documents shall be revised to 
incorporate the appropriate standards. The revised construction 
documents shall then be reviewed for compliance. Once the reviewer 
determines that the documents comply with the standard, the reviewer 
shall affix his/her signature and seal (if a licensed engineer) to the 
approved documents and provide a statement certifying compliance with 
the Department standards.
    (2) For a new building under construction, or for which construction 
has been completed, a corrective action plan shall be devised to bring 
the building into compliance with the appropriate standards. The plan 
shall then be reviewed for compliance. Once the reviewer determines that 
the plan complies with the standard, the reviewer shall affix his/her 
signature and seal (if a licensed engineer) to the approved documents 
and provide a statement certifying compliance with the Department 
standards. The Component Head shall ensure implementation of the 
approved plan.
    (3) For an addition to an existing building, the review shall 
account for, in addition to the requirements provided in paragraphs (b) 
(1) or (2) of this section, as appropriate, any effect the addition will 
have on the seismic resistance of the existing portion of the structure. 
If the reviewer determines that the addition will decrease the level of 
seismic resistance of the existing building, the appropriate Component 
Head shall develop a plan of corrective action to restore the seismic 
integrity of the existing structure. Once the plan of corrective action 
has been accomplished, the reviewer shall verify that the current level 
of seismic resistance of the existing building at least equals the 
seismic resistance level of the building before the addition.
    (c) The Department Seismic Safety Coordinator and each Component 
Seismic Safety Coordinator shall ensure that statements verifying 
compliance made under this subpart have been completed and retained by 
the appropriate contracting officer when the Department contracted for 
design or design review services, or by an individual designated by the 
Component Head where the Department has not contracted for either design 
or design review.



Sec. 128-1.8007  Reporting.

    The Department shall file reports on the execution of the Executive 
Order as required under the Order, and as required by the Federal 
Emergency Management Agency.



Sec. 128-1.8008  Exemptions.

    The Executive Order exempts from the regulations in this subpart 
only those categories of buildings exempted by the ``National Earthquake 
Hazards Reduction Program Recommended Provisions for the Development of 
Seismic Regulations for New Buildings.'' The Department Seismic Safety 
Coordinator shall maintain the latest version of this document.



Sec. 128-1.8009  Review of Seismic Safety Program.

    The Department shall review and, as necessary, revise the Seismic 
Safety Program once every three years from August 12, 1993.



Sec. 128-1.8010  Judicial review.

    Nothing in this subpart is intended to create any right or benefit, 
substantive or procedural, enforceable at law by a party against the 
Department of Justice, its Seismic Safety Coordinators, its officers, or 
any employee of the Department.



PART 128-18--ACQUISITION OF REAL PROPERTY--Table of Contents






   Subpart 128-18.50--Uniform Relocation Assistance and Real Property 
         Acquisition for Federal and Federally Assisted Programs

    Authority: Sec. 213, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, Title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).

[[Page 284]]



Sec. 128-18.5001-1  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (Title IV 
of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) are set forth 
in 49 CFR part 25.

[52 FR 48025, Dec. 17, 1987]



PART 128-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND FORFEITED PERSONAL PROPERTY--Table of Contents




Sec.
128-48.001  Definitions.
128-48.001-5  Forfeited property.
128-48.001-50  Administrative or summary process.

   Subpart 128-48.1--Utilization of Abandoned and Forfeited Personal 
                                Property

128-48.102-1  Vesting of title in the United States.
128-48.102-4  Proceeds.
128-48.150  Determination of type of property.

 Subpart 128-48.3--Disposal of Abandoned and Forfeited Personal Property

128-48.305-1  Abandoned or other unclaimed property.

   Subpart 128-48.50--Proper Claims for Abandoned or Other Unclaimed 
                            Personal Property

128-48.500  Scope of subpart.
128-48.501  Definitions.
128-48.501-1  Determining official.
128-48.501-2  Claimant.
128-48.501-3  Owner.
128-48.501-4  Person.
128-48.502  Procedures relating to claims.
128-48.503  General procedures.

    Authority: 41 CFR 128-1.105.

    Source: 43 FR 3279, Jan. 24, 1978, unless otherwise noted.
Sec. 128-48.001  Definitions.



Sec. 128-48.001-5  Forfeited property.

    Personal property acquired by a bureau, either by administrative 
process or by order of a court of competent jurisdiction pursuant to any 
law of the United States.



Sec. 128-48.001-50  Administrative or summary process.

    Forfeiture is achieved by direction of the seizing bureau in lieu of 
the courts. The phrase shall be interpreted to mean by administrative 
process.



   Subpart 128-48.1--Utilization of Abandoned and Forfeited Personal 
                                Property



Sec. 128-48.102-1  Vesting of title in the United States.

    (a) Abandoned or other unclaimed property, subject to the provisions 
of section 203(m) of the Federal Property and Administrative Services 
Act of 1949, as amended (40 U.S.C. 484(m)), shall remain in the custody 
of and be the responsibility of the bureau finding such property.
    (b) If the owner of such property is known, the owner shall be 
notified within 20 days of finding such property by certified mail at 
the owner's address of record that the property may be claimed by the 
owner or his designee and that if the property is not claimed within 30 
days from the date the letter of notification is postmarked, the title 
of the property will vest in the United States.
    (c) If the owner of such property is not known and the estimated 
value of the property exceeds $100, the bureau shall post notice within 
20 days of finding such property, which contains the following 
information:
    (1) A description of the property including model or serial numbers, 
if known.
    (2) A statement of the location where the property was found and the 
office that has custody of it.
    (3) A statement that any person desiring to claim the property must 
file with the bureau within 30 days from the date of first publication a 
claim for said property.
    (4) A complete mailing address is to be provided as a point of 
contact within the bureau for any person to obtain additional 
information concerning the property or the procedures involved in filing 
a claim.


[[Page 285]]


Notice must be published once a week for at least three successive 
weeks. Sound judgment and discretion must be used in selecting the 
publication medium. Advertisements should be placed in a publication of 
general circulation within the judicial district where the property was 
found.
    (d) Property, as described in paragraphs (b) and (c) of this 
section, shall be held for a period of 30 days from the date of the 
first publication of notice. Upon the expiration of this 30-day period, 
title to such property vests in the United States, except that title 
reverts to the owner where a proper claim is filed within three years 
from the date of vesting of title in the United States, but if the 
property has been in official use, transferred for official use, or sold 
at the time the proper claim is approved, title shall not revert back to 
the former owner. The former owner shall instead obtain reimbursement in 
accordance with 41 CFR 101-48.102-4 or 101-48.305-1.
    (e) If the owner of such property is unknown and the estimated value 
of the property is $100 or less, no notice is required, and the property 
shall be held for a period of 30 days from the date of finding the 
property. Upon expiration of this 30-day period, title to such property 
vests in the United States.



Sec. 128-48.102-4  Proceeds.

    (a) Records of abandoned or other unclaimed property will be 
maintained in such a manner as to permit identification of the property 
with the original owner, if known, when such property is put into 
official use or transferred for official use by the finding bureau. 
Records will be maintained until the three-year period for filing claims 
has elapsed to enable the bureau to determine the amount of 
reimbursement due to a former owner who has filed a proper claim for 
abandoned or other unclaimed property.
    (b) Reimbursement for official use by the finding bureau or transfer 
for official use of abandoned or other unclaimed property that has been 
placed in a special fund by the bureau for more than three years shall 
be deposited in the Treasury of the United States as miscellaneous 
receipts, or in such other bureau accounts as provided by law.



Sec. 128-48.150  Determination of type of property.

    If a bureau is unable to determine whether the personal property in 
its custody is abandoned or voluntarily abandoned, the bureau shall 
contact the regional office of the General Services Administration for 
the region in which the property is located for such a determination.



 Subpart 128-48.3--Disposal of Abandoned and Forfeited Personal Property



Sec. 128-48.305-1  Abandoned or other unclaimed property.

    Proceeds from the sale of abandoned or other unclaimed property that 
have been placed in a special fund by a bureau for more than three years 
shall be deposited in the Treasury of the United States as miscellaneous 
receipts, or in such other bureau accounts as provided by law.



   Subpart 128-48.50--Proper Claims for Abandoned or Other Unclaimed 
                            Personal Property



Sec. 128-48.500  Scope of subpart.

    This subpart sets forth the policies in regard to proper claims for 
abandoned or other unclaimed property.



Sec. 128-48.501  Definitions.



Sec. 128-48.501-1  Determining official.

    The official who has the authority to grant or deny the claim for 
the abandoned or other unclaimed property.



Sec. 128-48.501-2  Claimant.

    The person who submitted the claim for the abandoned or other 
unclaimed property.



Sec. 128-48.501-3  Owner.

    The person who has primary and direct title to property (see 28 CFR 
9.2(e)).

[[Page 286]]



Sec. 128-48.501-4  Person.

    An individual, partnership, corporation, joint venture, or other 
entity capable of owning property (see 28 CFR 9.2(f)).



Sec. 128-48.502  Procedures relating to claims.

    (a) Upon receipt of a claim, an investigation shall be conducted to 
determine the merits of the claim, and the investigation's report shall 
be submitted to the determining official.
    (b) The determining official shall be designated by the head of a 
bureau.
    (c) Upon receipt of a claim and the report thereon by the 
determining official, he shall make a ruling based upon the claim and 
the investigation's report.
    (d) Notice of the granting or denial of a claim for abandoned or 
other unclaimed property shall be mailed to the claimant or his 
attorney. If the claim is granted, the conditions of relief and the 
procedures to be followed to obtain the relief shall be set forth. If 
the claim is denied, the claimant shall be advised of the reason for 
such denial.
    (e) A request for reconsideration of the claim may be submitted 
within 10 days from the date of the letter denying the claim. Such 
request shall be addressed to the head of the bureau and shall be based 
on evidence recently developed or not previously considered.



Sec. 128-48.503  General procedures.

    (a) Claims shall be sworn and shall include the following 
information in clear and concise terms:
    (1) A complete description of the property including serial numbers, 
if any.
    (2) The interest of the claimant in the property, as owner, 
mortgagee, or otherwise, to be supported by bills of sale, contracts, 
mortgages, or other satisfactory documentary evidence.
    (3) The facts and circumstances, to be established by satisfactory 
proof, relied upon by the claimant to justify the granting of the claim.
    (b) If the claim is filed before title has vested in the United 
States, the determining official shall not grant the claim for the 
abandoned or other unclaimed property unless the claimant establishes a 
valid, good faith interest in the property.
    (c) If the claim is filed after title has vested in the United 
States, the determining official shall not grant the claim for abandoned 
or other unclaimed property unless the claimant:
    (1) Establishes that he would have a valid, good faith interest in 
the property had not title vested in the United States; and
    (2) Establishes that he had no actual or constructive notice, prior 
to the vesting of title in the United States, that the property was in 
the custody of a bureau and that title, after the appropriate time 
period, would vest in the United States. A claimant shall be presumed to 
have constructive notice upon publication in a suitable medium 
concerning the property unless he was in such circumstances as to 
prevent him from knowing of the status of the property or having the 
opportunity to see the notice.



PART 128-50--SEIZED PERSONAL PROPERTY--Table of Contents




Sec.
128-50.000  Scope of part.
128-50.001  Definitions.
128-50.001-1  Seized personal property.

     Subpart 128-50.1--Storage and Care of Seized Personal Property

128-50.100  Storage and care.
128-50.101  Inventory records.
128-50.102  Periodic reviews.
128-50.103  Investigation of any discrepancy.

    Authority: 41 CFR 128-1.105.

    Source: 43 FR 3279, Jan. 24, 1978, unless otherwise noted.



Sec. 128-50.000  Scope of part.

    This part prescribes the policies for the storage and care of seized 
personal property; the preparation and maintenance of inventory records 
of its seized personal property; the conducting of periodic internal 
reviews; and the investigation of any discrepancy between the inventory 
records and the actual amount of its seized personal property.

[[Page 287]]

Sec. 128-50.001  Definitions.



Sec. 128-50.001-1  Seized personal property.

    Personal property for which the Government does not have title but 
which the Government has obtained custody or control of in accordance 
with 15 U.S.C. 1177; 18 U.S.C. 924(d), 1955(d), 2513, 3611, 3612, 3615; 
19 U.S.C. 1595a; 21 U.S.C. 881; 22 U.S.C. 401; Fed. R. Crim. P. 41(b); 
28 CFR 0.86, 0.89, 0.111(j), 3.5, 3.6, 8.1, 8.2, 9a.1, 9a.2; or other 
statutory authority.



     Subpart 128-50.1--Storage and Care of Seized Personal Property



Sec. 128-50.100  Storage and care.

    (a) Each bureau shall be responsible for providing that its seized 
personal property storage facilities meet the safeguarding standards 
applicable to the type of property being stored.
    (b) Each bureau shall be responsible for performing care on its 
seized personal property to prevent the unnecessary deterioration of 
such property. In particular, a bureau preparing a seized vehicle for 
storage should be at a minimum;
    (1) Protect the cooling system from freezing;
    (2) Protect the battery by assuring it is properly watered;
    (3) Protect the tires by inflating to correct pressure;
    (4) Remove all articles found in the vehicle's interior (for 
example, easily removable radios, tape players, and speakers) and all 
exterior accessories (for example, wheel covers) that are subject to 
pilferage and properly store them; and
    (5) Shut all windows and lock all doors and compartments that have 
locks.



Sec. 128-50.101  Inventory records.

    Each bureau shall be responsible for establishing and maintaining 
inventory records of its seized personal property to ensure that:
    (a) The date the property was seized is recorded;
    (b) All of the property associated with a case is recorded together 
under the case name and number;
    (c) The location of storage of the property is recorded;
    (d) A well documented chain of custody is kept; and
    (e) All information in the inventory records is accurate and 
current.



Sec. 128-50.102  Periodic reviews.

    Each bureau shall be responsible for performing an independent 
accountability review at least once a year to ensure compliance with 
this subpart and with the bureau's procedures for the handling, storage, 
and disposal of its seized personal property. In particular, a bureau 
conducting a review shall verify that the inventory records are 
accurate, current, and are being kept in accordance with established 
inventory procedures.



Sec. 128-50.103  Investigation of any discrepancy.

    (a) Upon discovery of any discrepancy between the inventory records 
and the bureau's actual amount of seized personal property, a board of 
survey shall conduct an investigation in accordance with 41 CFR 128-
51.1.
    (b) If the discrepancy cannot be eliminated and involves a shortage, 
the bureau shall notify the U.S. attorney in charge of the litigation 
involving the missing property of the shortage as soon as possible.
    (c) If the discrepancy cannot be eliminated and involves an overage, 
the bureau shall determine if the property has any evidentiary value. If 
the property does have evidentiary value, the property shall be properly 
stored and inventoried. If the property does not have any evidentiary 
value, the bureau shall determine whether the property is forfeitable to 
the United States, voluntarily abandoned, or abandoned. Proper 
proceedings shall be commenced as soon as possible to vest title of the 
forfeitable property in the United States. The voluntarily abandoned and 
abandoned property shall be kept in custody in accordance with 41 CFR 
101-48 and any applicable Justice property management regulations.

[[Page 289]]



      Subtitle D--Other Provisions Relating to Property Management

                               [Reserved]
[[Page 291]]



                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Redesignation Table
  List of CFR Sections Affected



[[Page 293]]



                    Table of CFR Titles and Chapters




                      (Revised as of June 20, 1997)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)

[[Page 294]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)

[[Page 295]]

       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
      XIII  Northeast Dairy Compact Commission (Parts 1300--1399)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)

[[Page 296]]

      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)

[[Page 297]]

         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)

[[Page 298]]

        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)

[[Page 299]]

        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)

[[Page 300]]

       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)

[[Page 301]]

         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)

[[Page 302]]

     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)

[[Page 303]]

      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)

[[Page 304]]

      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)

[[Page 305]]

            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)

[[Page 306]]

        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)

[[Page 307]]

         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

[[Page 308]]

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 309]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of June 20, 1997)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 310]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51

[[Page 311]]

  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I

[[Page 312]]

  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302

[[Page 313]]

  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III

[[Page 314]]

  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV

[[Page 315]]

Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Dairy Compact Commission                7, XIII
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
   Fellowships
[[Page 316]]

Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I

[[Page 317]]

  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 319]]

                                     

                                     



                           Redesignation Table




                           Redesignation Table                          
------------------------------------------------------------------------
                Old section                          New section        
------------------------------------------------------------------------
         Subpart 101-50.1--General            Subpart 105-68.1--General 
                                                                        
------------------------------------------------------------------------
101-50.100................................  105-68.100                  
101-50.105................................  105-68.105                  
101-50.110................................  105-68.110                  
101-50.115................................  105-68.115                  
                                                                        
------------------------------------------------------------------------
    Subpart 101-50.2--Effect of Action       Subpart 105-68.2--Effect of
                                                        Action          
                                                                        
------------------------------------------------------------------------
101-50.200................................  105-68.200                  
101-50.205................................  105-68.205                  
101-50.210................................  105-68.210                  
101-50.215................................  105-68.215                  
101-50.220................................  105-68.220                  
101-50.225................................  105-68.225                  
                                                                        
------------------------------------------------------------------------
        Subpart 101-50.3--Debarment          Subpart 105-68.3--Debarment
                                                                        
------------------------------------------------------------------------
101-50.300................................  105-68.300                  
101-50.305................................  105-68.305                  
101-50.310................................  105-68.310                  
101-50.315................................  105-68.315                  
101-50.320................................  105-68.320                  
101-50.325................................  105-68.325                  
                                                                        
------------------------------------------------------------------------
       Subpart 101-50.4--Suspension         Subpart 105-68.4--Suspension
                                                                        
------------------------------------------------------------------------
101-50.400................................  105-68.400                  
101-50.405................................  105-68.405                  
101-50.410................................  105-68.410                  
101-50.415................................  105-68.415                  
101-50.420................................  105-68.420                  
101-50.425................................  105-68.425                  
                                                                        
------------------------------------------------------------------------
Subpart 101-50.5--Responsibilities of GSA,       Subpart 105-68.5--     
          Agency and Participants              Responsibilities of GSA, 
                                               Agency and Participants  
                                                                        
------------------------------------------------------------------------
101-50.500................................  105-68.500                  
101-50.505................................  105-68.505                  
101-50.510................................  105-68.510                  
101-50.515................................  105-68.515                  
101-50.520................................  105-68.520                  
101-50.525................................  105-68.525                  
------------------------------------------------------------------------


[[Page 321]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972 and 1973-1985,'' published in seven 
separate volumes.

                                  1986

41 CFR
                                                                   51 FR
                                                                    Page
Chapter 105
105-51  Added.................................................7017, 7022
105-51.501  Amended.................................................7017
105-51.505  (a) amended.............................................7017
105-51.601  (a) amended.............................................7017
105-53.118  (e) and (f) revised....................................23229
105-53.120  Revised................................................23229
105-53.130-6  Removed..............................................23229
105-53.134  Revised................................................23229
105-53.136  Removed................................................23229
105-53.139  Revised................................................23230
105-53.140  Added..................................................23230
105-53.141  Added..................................................23230
105-53.142  Added..................................................23230
105-53.143  Revised................................................23230
105-53.145  Heading, (a), and (b) revised..........................23230
105-53.147  (b) revised............................................23230
105-53.150  Revised................................................23230
105-53.151  Revised................................................23231
105-67  Added......................................................13500
Chapter 114
114-38.000  Removed................................................15328
114-38.001--114-38.001-50  (Subpart 114-38.0)  Removed.............15328
114-38.100--114-38.102-1  (Subpart 114-38.1)  Removed..............15328
114-38.301--114-38.305-3  (Subpart 114-38.3)  Removed..............15328
114-38.402  (Subpart 114-38.4)  Removed............................15328
114-38.605--114-38.607  (Subpart 114-38.6)  Removed................15328
114-38.701  (Subpart 114-38.7)  Removed............................15328
114-38.901--114-38.908  (Subpart 114-38.9)  Removed................15328
114-38.1002--114-38.1003  (Subpart 114-38.10)  Removed.............15328
114-38.1200--114-38.1202  (Subpart 114-38.12)  Removed.............15328
114-38.5000--114-38.5006  (Subpart 114-38.50)  Removed.............15328
114-38.5100--114-38.5105  (Subpart 114-38.51)  Removed.............15328
114-38.5201--114-38.5203  (Subpart 114-38.52)  Removed.............15328
114-38.5400--114-38.5402  (Subpart 114-38.54)  Removed.............15328
114-39  Removed....................................................15328
114-50.100--114-50.112  (Subpart 114-50.1)  Removed.................7019
114-50.200--114-50.201  (Subpart 114-50.2)  Removed.................7019
114-50.301--114-50.362  (Subpart 114-50.3)  Revised...........7018, 7022
114-50.307  Amended.................................................7019
114-50.311  (a) and (b) amended.....................................7019
114-50.315  (b) and (e) amended.....................................7019
114-50.321  Amended.................................................7019
114-50.351  Amended.................................................7019
114-50.355  (a) amended.............................................7019
114-50.361  (a) and (b) amended.....................................7019
114-50.362  Introductory text and (d) amended.......................7019

[[Page 322]]

114-50.400--114-50.408  (Subpart 114-50.4)  Removed.................7019
114-50.500--114-50.502  (Subpart 114-50.5)  Removed.................7019
114-50.600--114-50.603  (Subpart 114-50.6)  Removed.................7019
114-50.700--114-50.705  (Subpart 114-50.7)  Removed.................7019
114-50.800--114-50.804  (Subpart 114-50.8)  Removed.................7019
114-50.900--114-50.906  (Subpart 114-50.9)  Removed.................7019
114-50.1000--114-50.1011  (Subpart 114-50.10)  Removed..............7019
114-50.1100--114-50.1101-1  (Subpart 114-50.11)  Removed............7019
114-50.1200--114-50.1202  (Subpart 114-50.12)  Removed..............7019
114-50.1300--114-50.1306  (Subpart 114-50.13)  Removed..............7019
114-50  Appendix A amended..........................................7019
    Appendix A corrected...........................................23539
114-52  Revised....................................................44471
114-60.000--114-60.003  Removed....................................26388
114-60.100--114-60.106  (Subpart 114-60.1)  Removed................26388
114-60.200--114-60.203  (Subpart 114-60.2)  Removed................26388
114-60.300--114-60.303  (Subpart 114-60.3)  Removed................26388
114-60.400--114-60.406  (Subpart 114-60.4)  Removed................26388
114-60.500--114-60.501  (Subpart 114-60.5)  Removed................26388
114-60.600--114-60.605-1  (Subpart 114-60.6)  Removed..............26388
114-60.700--114-60.705  (Subpart 114-60.7)  Removed................26388
114-60.800--114-60.804  (Subpart 114-60.8)  Removed................26388
114-60.900--114-60.905  (Subpart 114-60.9)  Removed................26388
114-60  Appendixes A and B  removed................................26388
Chapter 128
128-18  Revised...............................................7019, 7022
128-18.5001-7  Amended..............................................7019
128-18.5002-1  (a) and (b) amended..................................7019
128-18.5002-5  (b) and (e) amended..................................7019
128-18.5003-1  Amended..............................................7019
128-18.5005-2  (b) amended..........................................7020
128-18.5005-3  (b) amended..........................................7020
128-18.5006-1  Amended........................................7019, 7020
128-18.5006-5  (a) amended..........................................7020
128-18.5007-1  (a) and (b) amended..................................7020
128-18.5007-2  Introductory text and (d) amended....................7020
128-18  Appendix A amended..........................................7020

                                  1987

41 CFR
                                                                   52 FR
                                                                    Page
Chapter 105
105-51  Authority citation revised.................................48023
    Revised; eff. 4-2-89...........................................48024
105-51.001  Heading revised; (a) and (b) redesignated as (a) (1) 
        and (2); introductory text designated as new (a) 
        introductory text; new (a) heading and (b) added...........48023
105-53.118  (c), (e), (j), and (m) revised.........................23657
105-53.120  Revised................................................23657
105-53.134  Revised................................................23657
105-53.135  Revised................................................23657
105-53.137  Revised................................................23657
105-53.143  (b) revised............................................23657
105-53.147  (b) revised............................................23658
105-53.151  Amended................................................23658
105-55.003  (a) revised............................................46468
105-55.007  (a) and (d) revised....................................46468
105-70  Added......................................................45188
Chapter 114
114-50  Authority citation revised.................................48024
    Revised; eff. 4-2-89...........................................48025
114-50.301  Heading revised; (a) and (b) redesignated as (a) (1) 
        and (2); introductory text designated as new (a) 
        introductory text; new (a) heading and (b) added...........48024
Chapter 128
128-18.5001--128-18.5007-2 (Subpart 128-18.50)  Authority citation 
        revised....................................................48025
128-18.5001-1 (Subpart 128-18.50)  Revised; eff. 4-2-89............48025
128.18-5001-1  Heading revised; (a) and (b) redesignated as (a) 
        (1) and (2); introductory text designated as new (a) 
        introductory text; new (a) heading and (b) added...........48025

[[Page 323]]

                                  1988

41 CFR
                                                                   53 FR
                                                                    Page
Chapter 105
105-53.118  (b), (j), and (m) revised..............................23761
105-53.120  Revised................................................23761
105-53.130-2  Revised..............................................23761
105-53.132  (a) and (b) revised....................................23761
105-53.134  Revised................................................23761
105-53.135  Revised................................................23761
105-53.139  (a) revised............................................23762
105-53.140  Revised................................................23762
105-53.144  (b) revised............................................23762
105-53.150  Revised................................................23762
105-53.151  No. 1 revised..........................................23762
105-54  Revised....................................................40224
105-56  Added......................................................31864
105-60  Revised.....................................................1479
Chapter 114
114-51.102  Revised..................................................741
114-51.103  Removed..................................................741
114-51.104--114-51.104-3  Removed....................................741

                                  1989

41 CFR
                                                                   54 FR
                                                                    Page
Chapter 105
105-51  Regulation at 52 FR 48023 confirmed; see regulation 
        codified at 49 CFR 24.......................................8912
105-53.112  Revised................................................26741
105-53.120  Revised................................................26741
105-53.134  Revised................................................26741
105-53.135  Removed................................................26741
105-53.136  Added..................................................26742
105-53.139  (a) revised............................................26742
105-53.140  Revised................................................26742
105-53.144  Revised................................................26742
105-53.150  Revised................................................26742
105-53.151  Amended................................................26742
105-68  Redesignated from 101-50 and heading and authority 
        citation revised; interim...................................4962
    Technical correction............................................6363
    Redesignation table corrected..................................18506
105-68.110  (b) amended; interim....................................4962
105-68.305  (c) (3) and (4) amended; (c)(5) added; interim....4950, 4962
105-68.315  (b) amended; interim....................................4962
105-68.320  (a) revised; interim..............................4950, 4962
105-60.600--105-68.630 (Subpart F 105-68.6)  Added; interim.........4962
105-68  Appendix C added; interim.............................4951, 4962
Chapter 114
114-50  Regulation at 52 FR 48024 confirmed; see regulation 
        codified at 49 CFR 24.......................................8912
Chapter 128
128-18  Regulation at 52 FR 48025 confirmed; see regulation 
        codified at 49 CFR 24.......................................8912

                                  1990

41 CFR
                                                                   55 FR
                                                                    Page
Chapter 105
105-1.110  Revised..................................................1673
105-68.110  Regulation at 54 FR 4962 confirmed.....................21699
105-68.305  Regulation at 54 FR 4950, 4962 confirmed...............21699
105-68.315  Regulation at 54 FR 4962 confirmed.....................21699
105-68.320  Regulation at 54 FR 4950, 4962 confirmed...............21699
105-68.600--105.68-635 (Subpart F)  Regulation at 54 FR 4950, 4962 
        revised; eff. in part 7-24-90.......................21688, 21701
    Subpart Heading corrected......................................26442
105-68  Appendix C Regulation at 54 FR 4950, 4962 revised...21690, 21701
105-69  Added; interim........................................6737, 6753

                                  1991

41 CFR
                                                                   56 FR
                                                                    Page
Chapter 105
105-8  Added........................................................9871
105-68.305  (c)(5) amended.........................................29438
105-68.310  Amended................................................29438
105-68.320  (a)(1) and (2) amended.................................29438
105-68.325  (b)(3) amended.........................................29438
105-68.410  (b) amended............................................29438
105-68.505  (d) amended............................................29439
105-68.510  (a) and (b)(2) amended.................................29439
105-68.610  Amended................................................29438
105-68  Appendix A amended.........................................29439

[[Page 324]]

Chapter 132
Chapter 132  Established; interim..................................13286
132-47  Added; interim.............................................13286

                                  1992

                       (No regulations published)

                                  1993

41 CFR
                                                                   58 FR
                                                                    Page
Chapter 105
105-71  Added......................................................43270
Chapter 128
128-1.8000--128-1.8010  (Subpart 128-1.8)  Added...................42876

                                  1994

41 CFR
                                                                   59 FR
                                                                    Page
Chapter 105
105-57  Added.......................................................1277
105-72  Added......................................................47268
Chapter 128
128-1.8000--128-1.8010  (Subpart 128-1.8)  Corrected...............33439

                                  1995

41 CFR
                                                                   60 FR
                                                                    Page
Chapter 105
105-68.100  Revised; eff. 8-25-95...........................33040, 33059
105-68.105  Amended; eff. 8-25-95...........................33041, 33059
105-68.110  (c) revised; eff. 8-25-95.......................33041, 33059
105-68.200  Revised; eff. 8-25-95...........................33041, 33059
105-68.215  Revised; eff. 8-25-95...........................33041, 33059
105-68.220  Revised; eff. 8-25-95...........................33041, 33059
105-68.225  Revised; eff. 8-25-95...........................33041, 33059
105-68  Appendixes A and B revised; eff. 8-25-95............33042, 33059
105-71.136  (d), (g), (h) and (i) revised...................19639, 19644
Chapter 114
114-1  Removed.....................................................39864
114-3  Removed.....................................................39864
114-19  Removed....................................................39864
114-25  Removed....................................................39864
114-26  Removed....................................................39864
114-27  Removed....................................................39864
114-28  Removed....................................................39864
114-30  Removed....................................................39864
114-38  Removed....................................................39864
114-40  Removed....................................................39864
114-41  Removed....................................................39864
114-42  Removed....................................................39864
114-43  Removed....................................................39864
114-44  Removed....................................................39864
114-45  Removed....................................................39864
114-46  Removed....................................................39864
114-47  Removed....................................................39864
114-50  Removed....................................................39864
114-51  Heading revised.............................................3555
114-51.100--114-51.102 (Subpart 114-51.1)  Heading revised..........3555
114-51.100  Revised.................................................3555
114-51.101  Removed.................................................3555
114-51.102  Removed.................................................3555
114-51.100 (Subpart 114-51.1)  Appendix I removed..................39864
114-51.200--114-51.203 (Subpart 114-51.2)  Removed..................3555
114-51.300--114-51.303 (Subpart 114-51.3)  Removed..................3555
114-52  Removed.....................................................3555
114-60  Removed....................................................39865
Chapter 132
Chapter  132 Removed; interim......................................57939

                                  1996

41 CFR
                                                                   61 FR
                                                                    Page
Chapter 105
105-70.003  (a)(1)(iv) and (b)(1)(ii) amended......................67235
105-735  Revised...................................................56403

                                  1997

  (No regulations published from January 1, 1997 through July 1, 1997)