[Federal Register Volume 59, Number 192 (Wednesday, October 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24568]


[[Page Unknown]]

[Federal Register: October 5, 1994]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-45 and 101-46

[FPMR Amendment H-190]
RIN 3090-AF40

Sale of Government Personal Property

AGENCY: Federal Supply Service, GSA.

ACTION: Final rule.

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SUMMARY: This regulation changes FPMR Subchapter H to authorize Heads 
of Federal agencies to determine who will sell the agency's personal 
property and to reduce the length of the regulations. These changes 
delete the requirement that agencies must report property to GSA for 
sale and reduce the regulations, where feasible.

EFFECTIVE DATE: October 5, 1994.

FOR FURTHER INFORMATION CONTACT:
Lester D. Gray, Jr., Director, Property Management Division, 703-305-
7240.

SUPPLEMENTARY INFORMATION: The General Services Administration (GSA) 
has determined that this rule is not a significant rule for the 
purposes of Executive Order 12866.

Regulatory Flexibility Act

    This rule is not required to be published in the Federal Register 
for notice and comment. Therefore, the Regulatory Flexibility Act does 
not apply.

List of Subjects in 41 CFR Parts 101-45 and 101-46

    Government property management, Reporting requirements, Surplus 
Government property, Exchange/sale authority.

    For the reasons set forth in the preamble, 41 CFR Parts 101-45 and 
101-46 are amended as follows:

 

PART 101-45--SALE, ABANDONMENT, OR DESTRUCTION OF PERSONAL 
PROPERTY

    1. The authority citation for Part 101-45 continues to read as 
follows:

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c); 
Secs. 101-45.400 through 101-45.405 also issued under sec. 307, 49 
Stat. 880; 40 U.S.C. 3041.


Sec. 101-45.00  [Removed]


Sec. 101-45.002  [Redesignated as Sec. 101-45.001]

    2. Section 101-45.001 is removed and Sec. 101-45.002 is 
redesignated as Sec. 101-45.001.
    3. Sections 101-45.001-1 through 101-45.001-7 are removed.

Subpart 101-45.1--General

    4. Sections 101-45.103-1 and 101-45.103-2 are revised to read as 
follows:


Sec. 101-45.103-1  Conduct of Sales.

    Heads of Federal agencies, or their designees, are responsible for 
determining whether their agencies will (a) report their personal 
property to the General Services Administration (GSA) for sale for a 
fee for services rendered or (b) conduct or contract for the sale of 
their own property. If agencies elect to sell their own property, a 
designation indicating such shall be entered on their reports of excess 
personal property to prevent GSA from automatically programming the 
property for sale.


Sec. 101-45.103-2  Holding Agency Sales.

    All provisions of Parts 101-45 and 101-46 shall be followed in 
conducting sales of Government-owned personal property. Agency internal 
procedures shall be issued to ensure compliance and uniformity and to 
protect the integrity of the sales process.
    5. Sections 101-45.103-3 and 101-45.103-4 are added to read as 
follows:


Sec. 101-45.103-3  Sales by GSA.

    (a) For property reported to GSA for disposal, the following basic 
services will be provided at reimbursable rates established by GSA on 
an annual basis.
    (1) Auction and spot bid sales. The following services are covered 
under the basic rate:
    (i) Property cataloging;
    (ii) Maintenance of mailing list;
    (iii) Printing and distribution of announcement to bidders on 
mailing list;
    (iv) Normal media advertising (one newspaper or equivalent);
    (v) Registration of bidders;
    (vi) Auctioneer;
    (vii) Onsite contracting officer;
    (viii) Award document preparation;
    (ix) Onsite collection of proceeds;
    (x) Follow-on collection of late payments;
    (xi) Security service;
    (xii) Deposit of proceeds;
    (xiii) Distribution of proceeds;
    (xiv) Financial and property line item accountability; and
    (xv) Contract administration.
    (2) Sealed bid sales. The following services are covered under the 
basic rate:
    (i) Property cataloging;
    (ii) Maintenance of mailing list;
    (iii) Printing/distribution of invitation for bids to bidders on 
mailing list;
    (iv) Bid opening;
    (v) Contract awards;
    (vi) Preparation of award documents;
    (vii) Financial and property line item accountability; and
    (viii) Contract administration;
    (b) GSA will deduct service charges from the proceeds of sale.
    (c) For sales proceeds that are reimbursable to the holding agency, 
net proceeds (sales proceeds less GSA's direct, and indirect costs) 
will be distributed to the agency via the on-line payment and 
accounting control (OPAC) system.
    (d) A portion of the proceeds from the sale of nonreimbursable 
surplus property will also be retained by GSA to cover its direct and 
indirect costs. The net proceeds will be deposited to miscellaneous 
receipts of the Treasury.
    (e) Rates for accessorial services, including transportation, 
storage, maintenance, and reconditioning of property prior to sale, 
will vary according to local market conditions and will be published in 
GSA regional bulletins available from the servicing GSA region.
    (f) Agencies may be consulted to assist GSA in the determination of 
the best method of sale and their requirements for accessorial 
services.
    (g) Property for which the sales contract is terminated for default 
will be resold at no cost to the holding agency. Property for which the 
sales contract is terminated for cause, e.g., misdescription of the 
property, will be resold at the holding agency's cost if the cause is 
attributable to the holding agency.


Sec. 101-45.103-4  Sales Conducted at Holding Agency Facilities.

    If GSA sells property from holding agency facilities, holding 
agencies shall be responsible for the following:
    (a) Providing the appropriate GSA regional office with information 
necessary for effective sale of property and the accounting data for 
appropriate application of gross proceeds;
    (b) Transporting property to a consolidated sales site when agreed 
to by the holding agency and GSA;
    (c) Providing for the inspection of property by prospective 
bidders;
    (d) Providing facilities for the conduct of sales and the essential 
administrative, clerical, or labor assistance when requested by GSA; 
and
    (e) Assisting in the physical lotting of property to be sold at 
agency facilities.
    5. Section 101-45.105-3 is revised to read as follows:


Sec. 101-45.105-3  Exemptions.

    Exemptions from the provisions of this Part 101-45 may be obtained 
by an agency head who believes that authority with respect to the 
programs covered by section 602(d) of the Act would be impaired or 
adversely affected by this part. Exemptions may be requested, in 
writing, from the Administrator of General Services.

Subpart 101-45.3--Sale of Personal Property


Sec. 101-45.301  [Removed and Reserved]

    6. Section 101-45.301 is removed and reserved.
    7. Section 101-45.303 is amended by revising the introductory 
paragraph to read as follows:


Sec. 101-45.303  Reporting Property for Sale.

    If holding agencies elect to have GSA sell their property, it shall 
be reported to the appropriate GSA regional office for the region in 
which the property is physically located in the manner outlined below:
* * * * *


Sec. 101-45.304-3  [Removed and Reserved]

    8. Section 101-45.304-3 is removed and reserved.
    9. Section 101-45.304-6 is revised to read as follows:


Sec. 101-45.304-6  Reviewing Authority.

    (a) A ``reviewing authority'' is a local, regional, or departmental 
board of review of an executive agency. Under subpart 101-45.9, 
reviewing authority also includes an applicable State board of review 
of a State agency for surplus property.
    (b) Approval by reviewing authority of the agency effecting the 
sale shall be required for each proposed award when the contract value 
(actual or estimated fair market value) for property other than scrap 
exceeds the dollar thresholds listed below by method of sale:
    (1) Negotiated sale of surplus property--$15,000 or more;
    (2) Negotiated sale at fixed price of surplus or exchange/sale 
property--$25,000 or more; and
    (3) Competitive bid sale--$100,000 or more.
    10. Section 101-45.304-7 is amended by removing subparagraph (a)(4) 
and revising paragraph (c) to read as follows:


Sec. 101-45.304-7  Advertising.

* * * * *
    (c) The appropriate GSA regional office shall be provided, at the 
time of public distribution, a copy of each invitation for bids or 
other form of offering involving contractor inventory, whether being 
sold by the contractor for the Government or by a Government activity 
authorized to conduct sales.
    11. Section 101-45.304-8 is amended by revising the introductory 
paragraph and paragraph (a) to read as follows:


Sec. 101-45.304-8  Forms Prescribed.

    Standard Forms 114, 114A, 114B, 114C, 114C-1, 114C-2, 114C-3, 114C-
4, 114D, 114E, and 114F (illustrated at Secs. 1010-45.4901-114 through 
101-45.4901-114F) shall be used, where appropriate, in sales of 
personal property except that Standard Form 114C is not applicable to 
those sales involving any strategic metals, minerals, and ores which 
have been determined surplus pursuant to the Act. These forms will be 
stocked by GSA as cut sheets only. Authority for the use of such forms 
in styles other than cut sheets may be granted when requests for such 
deviation are submitted in accordance with Sec. 101-26.302.
    (a) Deviation. To ensure inclusion of appropriate terms, 
conditions, clauses, etc., in Government sales contracts, no deviation 
shall be made from the Standard Form 114 series, and no special 
conditions of sales shall be included that are inconsistent with the 
provisions contained therein, unless approval is obtained from the 
Commissioner, Federal Supply Service (F) (mailing address: General 
Services Administration, Washington, DC 20406).
* * * * *

Subpart 101-45.47--Reports

    12. Section 101-45.4701 is revised to read as follows:


Sec. 101-45.4701  Performance Reports.

    An annual report of the sale or other disposition of surplus 
personal property shall be submitted in duplicate to GSA within 90 
calendar days after the close of each fiscal year, using Standard Form 
121, Annual Report of Utilization and Disposal of Excess and Surplus 
Personal Property. Agencies shall attach a list to the Standard Form 
121 showing by Federal Supply Group the following:
    (a) Line items sold;
    (b) Acquisition cost;
    (c) Proceeds; and
    (d) Cost of conducting sales.

PART 101-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT 
TO EXCHANGE/SALE AUTHORITY

    13. The authority citation for Part 101-46 continues to read as 
follows:

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


Sec. 101-46.001  [Removed]


Sec. 101-46.002  [Redesignated as Sec. 101-46.001]


Sec. 101-46.003  [Removed]


Sec. 101-46.004  [Removed]


Sec. 101-46.005  [Removed]

    14. Sections 101-46.001 through 101-46.001-5 are removed and 
Sec. 101-46.002 is redesignated as Sec. 101-46.001.

Subpart 101-46.2--Authorization

    15. Section 101-46.202 is amended by revising paragraph (b)(1)(iii) 
to read as follows:


Sec. 101-46.202  Restrictions and Limitations.

* * * * *
    (b) * * *
    (1) * * *
    (iii) The acquired item and the replaced item both fall within a 
single Federal Supply Group except for those items listed in paragraph 
(a) of this section which are not eligible for handling under the 
provisions of this part.

Subpart 101-46.3--Exchange/Sale Procedures

    16. Section 101-46.300 is revised to read as follows:


Sec. 101-46.300  Scope of Subpart.

    This part prescribes the policies and methods governing the actual 
exchange or sale of property which qualifies in accordance with this 
part. This property will be handled in the same manner as surplus 
property under Part 101-45, but identified as replacement property 
subject to the same exemptions and exceptions on reporting as otherwise 
would be applicable to surplus personal property.
    17. Section 101-46.305 is revised to read as follows:


Sec. 101-46.305  Reports.

    (a) Within 90 calendar days after the close of each fiscal year, 
executive agencies shall submit a summary report in letter form on the 
transactions made under this part during the fiscal year except for 
transactions involving books and periodicals as follows:
    (1) A list by Federal Supply Group of property sold under this part 
showing in columns:
    (i) Line items sold;
    (ii) Acquisition cost;
    (iii) Proceeds; and
    (iv) Cost of sales.
    (2) A list by Federal Supply Group of property exchanged under this 
part showing in columns:
    (i) Line items exchanged;
    (ii) Acquisition cost; and
    (iii) Exchange allowance.
    (3) Total acquisition cost of property acquired from any source 
other than new procurement which was subsequently exchanged or sold 
after being placed in official use for less than 1 year pursuant to 
Sec. 101-46.202(c)(10) and for historical items exchanged pursuant to 
Sec. 101-46.203(b) shall be listed separately by two-digit Federal 
supply classification groups.
    (4) These data shall also be separated into two categories by 
geographic location as follows:
    (i) The States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana 
Islands, American Samoa, Guam, the Trust Territory of the Pacific 
Islands, and the Virgin Islands; and
    (ii) All other areas of the world.
    (b) The summaries shall not include any property that was initially 
designated for exchange/sale but which was transferred for further 
Federal utilization or was subsequently redesignated as excess or 
surplus property.
    (c) Reports shall be addressed to the General Services 
Administration, Office of Transportation and Property Management (FB), 
Washington, DC 20406.
    (d) The report required by this regulation has been assigned 
interagency report control number 1528-GSA-AN in accordance with FIRMR 
201-45.6 (41 CFR 201-45.6).
    (e) If an agency makes no transactions under this part during a 
fiscal year, the agency must submit a report stating that no 
transactions occurred.

    Dated: September 26, 1994.
Roger W. Johnson,
Administrator of General Services.
[FR Doc. 94-24568 Filed 10-4-94; 8:45 am]
BILLING CODE 6820-24-M