[Federal Register Volume 61, Number 154 (Thursday, August 8, 1996)]
[Rules and Regulations]
[Pages 41352-41355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20292]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-43 and 101-46

[FPMR Temp. Reg. H-28]
RIN 3090-AG01


Relocation of FIRMR Provisions Relating To GSA's Role in the 
Disposal of Excess and Exchange/Sale Information Technology (IT) 
Equipment

AGENCY: Office of Policy Planning and Evaluation, GSA.

ACTION: Temporary regulation.

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SUMMARY: This regulation redesignates certain provisions of the Federal 
Information Resources Management Regulation (FIRMR) to the Federal 
Property Management Regulation

[[Page 41353]]

(FPMR). The regulation also makes a few changes to existing parts of 
the FPMR to update old references to the FIRMR. This change is 
necessary because the Information Technology Management Reform Act of 
1996, effectively disestablishes the FIRMR. The referenced FIRMR 
provisions that apply to the transfer and disposal of excess IT 
equipment, will be maintained in the FPMR after August 7, 1996.

DATES: This rule is effective August 8, 1996. Comments are solicited 
and are due: October 7, 1996.
    Expiration Date: December 31, 1997.

ADDRESSES: Comments may be mailed to General Services Administration, 
Office of Policy, Planning and Evaluation, Strategic IT Analysis 
Division (MKS), 18th and F Streets, NW., Room 3224, Washington, DC 
20405.

FOR FURTHER INFORMATION CONTACT: R. Stewart Randall, GSA, Office of 
Policy, Planning and Evaluation, Strategic IT Analysis Division (MKS), 
18th and F Streets, NW., Room 3224, Washington, DC 20405, telephone 
FTS/Commercial (202) 501-3194 (v) or (202) 501-0657 (tdd), or Internet 
([email protected]).

SUPPLEMENTARY INFORMATION: (1) The President signed the National 
Defense Authorization Act (NDAA) For Fiscal Year 1996, Pub. L. 104-106, 
on February 10, 1996. Included in the NDAA was Division E, the 
Information Technology Management Reform Act of 1996. Section 5101 of 
the Act repeals section 111 of the Federal Property and Administrative 
Services Act of 1949, as amended (the Brooks Act) (40 U.S.C. 759). The 
Brooks Act was the authority for many of the provisions in GSA's 
Federal Information Resources Management Regulation; its repeal 
effectively results in the disestablishment of the FIRMR. Any FIRMR 
provisions not affected by the repeal of the Brooks Act, such as Part 
201-23--Disposition, concerned with the utilization of excess IT 
equipment, are being removed from the FIRMR and reestablished in the 
Federal Property Management Regulation or other documents, as 
appropriate.
    (2) Most of the provisions now contained in part 101-43 of the FPMR 
were moved almost verbatim from part 201-23 of the FIRMR except for 
changes in terminology, e.g., Federal information processing to 
information technology. Such change was needed to make the regulation 
consistent with relevant legislation. A few provisions were added to 
include essential information from FIRMR Bulletin C-2, which will be 
discontinued when the FIRMR is disestablished in August 1996. 
Additionally, a few changes were made to existing provisions of part of 
101-43 and to part 101-46 to correct or remove out of date references 
to FIRMR parts.
    (3) GSA has determined that this rule is not a significant rule for 
the purposes of Executive Order 12866 of September 30, 1993, because it 
is not likely to result in any of the impacts noted in Executive Order 
12866, affect the rights of specified individuals, or raise issues 
arising from the policies of the Administration. GSA has based all 
administrative decisions underlying this rule on adequate information 
concerning the need for and consequences of this rule; has determined 
that the potential benefits to society from this rule outweigh the 
potential costs; has maximized the net benefits; and has chosen the 
alternative approach involving the least net cost to society.

List of Subjects in 41 CFR Parts 101-43 and 101-46

    Archives and records, Computer technology, Information technology, 
Government procurement, Property management, Records management, and 
Telecommunications.

GENERAL SERVICES ADMINISTRATION
Washington, DC 20405

FEDERAL PROPERTY MANAGEMENT REGULATIONS TEMPORARY REGULATION H-28

TO: Heads of Federal agencies
SUBJECT: Relocation of FIRMR provisions relating to GSA's role in 
the disposal of excess and exchange/sale information technology (IT) 
equipment

    1. Purpose. This regulation moves certain provisions in 41 CFR 
part 201-23 of the Federal Information Resources Management 
Regulation (FIRMR) to 41 CFR Part 101-43.6 of the Federal Property 
Management Regulations (FPMR).
    2. Effective date. This regulation is effective on August 8, 
1996.
    3. Expiration date. This regulation expires on December 31, 
1997, unless sooner superseded or canceled.
    4. Background. The President signed the National Defense 
Authorization Act (NDAA) For Fiscal Year 1996, Pub. L. 104-106, on 
February 10, 1996. Included in the NDAA was Division E, the 
Information Technology Management Reform Act of 1996. Section 5101 
of the Act repeals section 111 of the Federal Property and 
Administrative Services Act of 1949, as amended (the Brooks Act) (40 
U.S.C. 759). The Brooks Act was the authority for many of the 
provisions in GSA's FIRMR; its repeal effectively results in the 
disestablishment of the FIRMR. Any FIRMR provisions not affected by 
the repeal of the Brooks Act, such as Part 201-23--Disposition, 
concerned with the disposal of excess IT equipment, are being 
removed from the FIRMR and reestablished in the FPMR or other 
documents, as appropriate. Most of the provisions now contained in 
part 101-43 of the FPMR were moved almost verbatim from part 201-23 
of the FIRMR except for changes in terms, i.e., Federal information 
processing to information technology. That change was needed to make 
the regulation consistent with relevant legislation. A few sentences 
were added to include essential information from FIRMR Bulletin C-2, 
which will be discontinued when the FIRMR is disestablished in 
August 1996. Additionally, changes were made to existing provisions 
of part 101-43 and to part 101-46 to correct or remove out of date 
FPMR references to FIRMR parts.
    5. Agency Comments. Comments concerning this regulation should 
be submitted to the General Services Administration, Office of 
Policy, Planning and Evaluation, Strategic IT Analysis Division 
(MKS), 18th and F Streets, NW., Room 3224, Washington, DC 20405, no 
later than October 7, 1996.
    6. Explanation of changes.

    For the reasons set forth in the preamble, 41 CFR Part 101 is 
amended as follows:

PART 101-43--UTILIZATION OF PERSONAL PROPERTY

    1. The authority citation for part 101-43 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c) and 1412.

    2. Section 101-43.000 is revised to read as follows:


Sec. 101-43.000  Scope of part.

    This part prescribes the policies and methods governing the 
economic and efficient utilization of personal property located within 
and outside the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, the Trust Territory of the Pacific 
Islands, and the Virgin Islands. Section 101-43.6 prescribes the 
specific policies and procedures governing the worldwide utilization of 
excess information technology resources. Additional guidelines 
regarding reutilization of hazardous materials are prescribed in part 
101-2.
    3. Subpart 101-43.6 is added to read as follows:

Subpart 101-43.6--Diposition of IT Excess Personal Property

101-43.600  Scope of subpart.
101-43.601  General.
101-43.602  Policies.
101-43.603  Procedures.

Subpart 101-43.6--Disposition of IT Excess Personal Property


Sec. 101-43.600  Scope of subpart.

    This subpart prescribes policies and procedures to be followed by 
agencies for disposing of Government-owned information technology (IT) 
equipment

[[Page 41354]]

and software that is no longer needed for the purpose for which it was 
acquired. Information technology means any equipment or interconnected 
system or subsystem of equipment, that is used in the automatic 
acquisition, storage, manipulation, management, movement, control, 
display, switching, interchange, transmission, or reception of data or 
information by an executive agency. The term includes computers, 
ancillary equipment, software, firmware and similar procedures, 
services (including support services), and related resources.


Sec. 101-43.601   General.

    (a) Government-owned IT equipment that is no longer needed for the 
purpose for which it was acquired is either--
    (1) Reassigned within the agency;
    (2) Declared excess to the agency's needs and made available for 
transfer to another agency;
    (3) Exchanged or sold as part of a transaction to acquire 
replacement IT equipment; or
    (4) Declared surplus and made available for donation.
    (b) IT software that is no longer needed for the purpose for which 
it was acquired is either--
    (1) Reassigned within the agency consistent with the limitations of 
any applicable license; or
    (2) Otherwise disposed of consistent with the limitations of any 
applicable license.


Sec. 101-43.602   Policies.

    Agencies shall--
    (a) Use IT equipment or IT software that is available for 
reassignment within the agency or by transfer from another agency when 
such use is the most advantageous alternative to satisfy the agency's 
requirements.
    (b) Make available for reassignment within the agency IT equipment 
that is not outdated and that is no longer needed for the purpose for 
which it was acquired.
    (c) Make available for interagency screening and transfer to 
another agency, excess IT equipment that is not outdated and has an 
original acquisition cost (OAC) per component of $1 million or more. 
Outdated IT equipment means any IT equipment over six years old, based 
on the initial commercial installation date of that model of equipment, 
and that is no longer in current production. Interagency transfer of IT 
equipment that is not outdated with an OAC per component of less than 
$1 million, is permitted if the holding agency learns of a potential 
user outside of the screening process. Agencies may interagency screen 
and transfer excess IT equipment without GSA approval.
    (d) Make available for surplus donation or subsequent sale, excess 
IT equipment not exchanged, sold, reassigned or transferred.
    (e) Consistent with the limitations of any applicable license--
    (1) Make available for reassignment within the agency IT software 
that is no longer needed for the purpose for which it was acquired;
    (2) Make available for interagency transfer, excess IT software not 
exchanged or sold, if the holding agency learns of a potential user 
outside of the screening process (GSA does not require interagency 
screening of IT software);
    (3) For excess IT software not reassigned, transferred, exchanged, 
or sold, either:
    (i) Return it to the licensor, or
    (ii) Destroy it after a duly authorized agency official determines 
in writing that destruction is the most cost-effective disposal 
approach.


Sec. 101-43.603   Procedures.

    (a) Each agency head shall designate an agency point of contact for 
managing the disposition of IT equipment and software. Each agency 
shall submit the name, address, and phone number of this individual to 
the General Services Administration/MKS, 18th & F Streets, NW., 
Washington, DC 20405. GSA will maintain a list of these coordinators on 
the IT Policy Home Page. The URL is http: //www.itpolicy.gsa.gov.
    (b) GSA will convene meetings with agency points of contacts 
periodically to discuss emerging issues relating to the disposition of 
excess IT resources.
    (c) Agencies shall--
    (1) Establish procedures for the reassignment of IT equipment and 
software within the agency; and
    (2) Obtain approval from the agency Chief Information Officer 
before reassigning outdated IT equipment.
    (d) Agencies shall offer excess IT equipment that is not outdated 
and has an OAC per component of $1 million or more to other Federal 
agencies by:
    (1) Notifying other excess IT coordinators of the availability of 
the IT equipment;
    (2) Fully and accurately describing the IT excess equipment by 
providing the following information:
    (i) Condition code as defined in 41 CFR 101-43.4801;
    (ii) Manufacturer's name;
    (iii) Equipment type and model;
    (iv) Description, including the supplier's nomenclature for the 
component;
    (v) List of elements removed from each component, if applicable;
    (vi) Description of available software, engineering drawings, 
manuals, etc; and
    (vii) Contractor-held equipment, if applicable.
    (3) Allowing agencies 15 days to assess their need for the excess 
IT equipment.
    (e) Agencies may conduct exchange/sale transactions of IT equipment 
and software not transferred to another agency without GSA approval. 
(Exchange/sale transactions for IT equipment may be initiated in 
parallel with interagency screening, but screening of exchange/sale 
transactions with an OAC per component of $1 million or more shall be 
completed prior to concluding an exchange/sale transaction.) When an 
agency determines that IT equipment will be replaced by exchanging or 
selling it, the agency shall follow the contracting policies and 
procedures in the Federal Acquisition Regulation (FAR) and the policies 
and procedures on exchange/sale contained in 41 CFR part 101-46. IT 
software transactions must be consistent with the limitations of any 
applicable license.
    (f) Agencies shall make available for surplus donation or 
subsequent sale, in accordance with 41 CFR parts 101-44 and 101-45, 
excess IT equipment not exchanged, sold, reassigned, or transferred.
    (g) Agencies shall apply the policies and procedures of this 
subpart 101-43.6 to IT equipment used by grantees and contractors when 
IT equipment is--
    (1) Acquired by the contractor or grantee under a contract or grant 
and the terms vest title in the Government or the Government is 
obligated or has the option to take over title;
    (2) Furnished to the grantee or contractor by the Government 
(Transfer of excess IT equipment to agency project grantees shall be 
conducted in accordance with 41 CFR 101-43.314.); or
    (3) Operated by the grantee or contractor as part of a Government-
owned or Government-controlled facility.
    (h) Agencies may request GSA to review another agency's decision to 
transfer excess IT equipment. Requests shall be sent to the General 
Services Administration/MKS, 18th & F Streets, NW., Washington, DC 
20405.


Sec. 101-43.4801   [Amended]

    4. Section 101-43.4801 is amended by removing paragraph (c) and 
redesignating existing paragraphs (d), (e) and (f) as paragraphs (c), 
(d) and (e), respectively.

[[Page 41355]]

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

    5. The authority citation for part 101-46 continues to read as 
follows:

    Authority: 40 U.S.C. 1412; Sec. 205(c), 63 Stat. 390; (40 U.S.C. 
486(c)).


Sec. 101-46.201-2   [Amended]

    6. Section 101-46.201-2 is amended in paragraph (a) by removing the 
last sentence.

    Dated: July 31, 1996.
David J. Barram,
Acting Administator of General Services.
[FR Doc. 96-20292 Filed 8-7-96; 8:45 am]
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