[Federal Register Volume 63, Number 75 (Monday, April 20, 1998)]
[Rules and Regulations]
[Pages 19614-19650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9659]



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_______________________________________________________________________

Part III





Department of Energy





_______________________________________________________________________



41 CFR Chapter 109



Property Management Regulations; Final Rule

  Federal Register / Vol. 63, No. 75 / Monday, April 20, 1998 / Rules 
and Regulations  

[[Page 19614]]



DEPARTMENT OF ENERGY

41 CFR Ch. 109

RIN 1991-AA28


Property Management Regulations

AGENCY: Department of Energy.

ACTION: Final Rule.

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

SUMMARY: The Department of Energy (DOE) today publishes a final rule to 
reissue the Department of Energy Property Management Regulation (DOE-
PMR) in its entirety. This rule updates the DOE-PMR by deleting 
obsolete and unnecessary material and incorporating policy and 
procedure changes issued previously by the Department through Personal 
Property Letters and DOE-PMR Bulletins. This action provides DOE 
organizations and DOE contractors an up-to-date, single source for 
guidance on personal property management matters peculiar to the 
Department. Specific material that is incorporated, revised, or deleted 
from the DOE-PMR was summarized in the ``Section-by-Section Analysis'' 
which appeared in the Notice of Proposed Rulemaking published in the 
Federal Register on September 11, 1996. Revisions which resulted from 
comments received on the proposed rulemaking are summarized in Section 
II ``Comments on the Notice of Proposed Rulemaking.''

EFFECTIVE DATE: This final rule will be effective May 20, 1998.

FOR FURTHER INFORMATION CONTACT: Julia A. Harman, Office of Contract 
and Resource Management (HR-53), Office of Procurement and Assistance 
Management, Department of Energy, 1000 Independence Avenue, SW., 
Washington, DC 20585 (202) 586-1435.

SUPPLEMENTARY INFORMATION:

I. Background
II. Comments on the Notice of Proposed Rulemaking
III. Procedural Requirements
    A. Review Under Executive Order 12866
    B. Review Under Executive Order 12988
    C. Review Under the Regulatory Flexibility Act
    D. Review Under the Paperwork Reduction Act
    E. Review Under Executive Order 12612
    F. Review Under the National Environmental Policy Act
    G. Review Under Small Business Regulatory Enforcement Fairness 
Act of 1996
    H. Review Under the Unfunded Mandates Reform Act of 1995

I. Background

    The DOE-PMR, published at 41 CFR Ch. 109, has not been updated to 
reflect interim changes in Departmental personal property management 
policy and procedures since 1984. These interim changes, issued through 
Personal Property Letters and DOE-PMR Bulletins, were made to comply 
with Executive Orders, statutory requirements, and commitments made to 
Congress regarding weaknesses identified in the Department's personal 
property management practices.
    The updating of the DOE-PMR completes phase I of the Department's 
two-phased commitment to bring about significant reform of its personal 
property management regulations. The phase I objective was to produce 
an up-to-date baseline document for use in the reform effort. Having 
done that, the phase II effort will concentrate on (a) significantly 
reducing and simplifying the personal property regulations in 
accordance with Executive Order 12988. Phase II is scheduled to be 
completed in calendar year 1998.

II. Comments on the Notice of Proposed Rulemaking

    A Notice of Proposed Rulemaking was published in the Federal 
Register on September 11, 1996 (61 FR 48006). Interested parties were 
invited to participate in this rulemaking by submitting comments. The 
public comment period closed on November 12, 1996, a period of 60 days. 
During this period, comments were received from one DOE contractor and 
one DOE subcontractor employee commenting as a private citizen. The DOE 
contractor's comments focused on the Math and Science Equipment Gift 
Program covered in Subpart 109-50.2. The contractor recommended that:
    1. The following authorities rest with the Head of the Contracting 
Activity (HCA), or designee, in lieu of DOE Headquarters: (1) Adding to 
the list of eligible equipment at Sec. 109-50.203; and (2) making gifts 
exceeding $25,000 cumulative book value to any one institution at 
Sec. 109-50.205. We disagree with both recommendations because the 
Executive Agencies that own the equipment are responsible for defining 
and regulating which specific equipment is eligible. In order to insure 
that all aspects of the equipment gift program (including equipment 
eligibility determinations and gift making authorizations) are applied 
uniformly throughout the Department, these authorities need to be 
maintained at the Headquarters level.
    2. The limitations in Sec. 109-50.205 be modified to significantly 
raise or eliminate the requirement to obtain DOE Headquarters 
authorization to make gifts exceeding $25,000 cumulative book value to 
any one institution. We disagree with the recommendation for several 
reasons. First of all, the distribution of equipment should be made to 
those schools with the greatest needs. The threshold is designed to 
encourage a fair and equitable distribution of equipment among those 
schools. Secondly, without such a threshold some schools would tend to 
benefit greatly at the expense of others. We do not believe that to be 
the intent of the gift program. Thirdly, since the threshold is based 
on book or depreciated value, a significant amount of equipment can be 
distributed under the $25,000 threshold. Finally, feedback on the 
equipment gift program to date does not indicate that the threshold is 
an impediment to meeting the program objectives.
    3. Equipment in disposal condition codes 2 (unused-fair) and 5 
(used-fair) be made eligible under the program. We disagree with the 
recommendation because equipment must be made available to schools at 
the lowest possible cost. To that end, the Department should only 
provide equipment that can be used ``as is'' for an extended period of 
time. The transfer of equipment in fair (i.e., marginal) condition 
would burden schools with immediate or near term costs for servicing, 
repair, and possible disposal of the equipment. While the 
recommendation is well meaning, we view it as counter to the spirit and 
intent of the program.
    4. Section 109-50.205 be rewritten to remove apparent 
contradictions and clarify the hierarchy of distribution to and 
eligibility of potential recipients. We agree with the recommendation 
and have rewritten the section to clarify the procedure that was 
originally established in a July 17, 1995 DOE Headquarters memorandum 
that established the equipment gift program.
    5. The requirement to forward a copy of each Equipment Gift 
Agreement to DOE Headquarters be eliminated or changed to the Head of 
the Contracting Activity or designee. We disagree with the 
recommendation because the Equipment Gift Agreements are used by DOE 
Headquarters (a) to monitor the success of and make adjustments to the 
program and (b) as source documents for preparing a report provided by 
the Department to the General Services Administration (GSA). The 
comments submitted by the DOE subcontractor employee who commented as a 
private citizen involved financial accounting issues. Although the 
comments were submitted under the rulemaking, the solutions are outside 
the scope of the DOE-PMR. The comments were forwarded to the DOE Office 
of Financial Policy for consideration as

[[Page 19615]]

proposed changes to DOE accounting directives. DOE field offices were 
also invited to submit comments, primarily for consideration under 
phase II of the Department's regulatory reform effort. Among the 
comments received were several regarding Executive Order 12999, which 
replaces Executive Order 12821. Executive Order 12999 will be 
implemented upon approval of the Department's implementation plan. 
However, a number of the comments were accepted for immediate 
implementation because they addressed areas affected by Presidential 
directive, recent Federal Property Management Regulation changes issued 
by GSA, or minor editorial and technical errors. The revisions made as 
a result of these comments are as follows:
    1. The word ``capital'' in the term ``capital equipment,'' used 
extensively in part 1 of this regulation and defined in Sec. 109-1.100-
50, is removed to eliminate the confusion created by the use of the 
same term, with different meaning, by the Department's financial 
accounting organization. This change was formalized in a Departmental 
memorandum issued on August 29, 1996.
    2. The acronyms CPPSR and HR in Sec. 109-1.100-51 are deleted 
because neither acronym is used in the text.
    3. Deviation requests in Sec. 109-1.110-50 involving aviation 
related matters are forwarded by the on-site DOE Aviation Management 
Officer, in lieu of the Organizational Property Management Officer, to 
the DOE Senior Aviation Management Official.
    4. Loans in Sec. 109-1.5102 are approved by the on-site property 
administrator when the OPMO is not located at the contractor facility.
    5. Identification marking of property in Sec. 109-1.5105 is 
expanded to allow the use of ``U.S. DOE'' as an alternative marking 
when there is not enough room to mark it as ``U.S. Government 
Property.''
    6. The applicability of the policy and guidance in subpart 109-1.53 
is limited to three categories of high risk personal property because 
other Departmental systems and procedures already provide the required 
controls for the remaining six categories.
    7. The physical inventory requirement for sensitive items in 
Sec. 109-1.5109 is modified to reflect changes that were authorized in 
Personal Property Letter 970-2 issued on February 23, 1996.
    8. By a Presidential Memorandum dated February 10, 1993 Agency 
Heads were instructed to ``refrain from authorizing the use of 
Government vehicles for * * * deputies for daily home-to-work 
transportation.'' Accordingly, the authority for the Deputy Secretary 
contained in Sec. 109-6.403(b) is eliminated.
    9. Section 109-27.000-50 is deleted because the information in the 
section is redundant.
    10. The stores inventory turnover ratio in Sec. 109-27.5002 is 
corrected to show the proper comparative factors.
    11. The subpart 27.51 dealing with precious metals management is 
updated to reflect the establishment of the Business Center for 
Precious Metals Sales and Recovery.
    12. The periodic EHFFP program reviews in Sec. 109-28.5005 are 
conducted by the on-site property administrator when the OPMO is not 
located at the contractor facility.
    13. Part 109-37 dealing with aviation administration is reserved 
pending a complete revision of Departmental policies and procedures.
    14. Definition of special purpose vehicles in Sec. 109-38.001 is 
updated to include all terrain vehicles.
    15. Section 109-38.106 is deleted as a result of Federal Property 
Management Regulation changes published in FPMR Amendment G-111, dated 
October 28, 1996.
    16. Section 109-43.307-52(c) is moved to Sec. 109-42.1102-8(a) and 
updated to include a reference to the Defense Demilitarization Manual 
because it deals with United States Munitions List items subject to 
demilitarization.
    17. Sections 109-43.4701(a) and 109-44.4701(a) and Secs. 109-
45.1002-2, 109-45.4701, and 109-46.305 are removed as a result of a 
FPMR change, published as FPMR Amendment H-196, dated June 24, 1997, 
that eliminated several annual reports required by GSA.
    18. Section 109-46.201(c) is updated to reflect a FPMR change, 
published as FPMR Amendment H-195, dated June 23, 1997, that reduced 
the number of Federal Supply Classification Groups on the exchange/sale 
authority exclusion list.
    19. Section 109-50.106 is updated to delete references to the use 
of ADPE tapes and printed catalogs. Both are no longer in use.
    Aside from these minor editorial and technical error corrections, 
there were no significant revisions to the rulemaking based on the 
submitted comments.
    20. Subpart 109-50.3 is withdrawn and held in reserve pending 
resolution of outstanding issues related to economic development.

III. Procedural Requirements

A. Review Under Executive Order 12866

    This regulatory action has been determined not to be a 
``significant regulatory action'' under Executive Order 12866, 
``Regulatory Planning and Review,'' (58 FR 51735, October 4, 1993). 
Accordingly, this action was not subject to review, under that 
Executive Order, by the Office of Information and Regulatory Affairs of 
the Office of Management and Budget (OMB).

B. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Executive agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. With regard to the review 
required by section 3(a), section 3(b) of Executive Order 12988 
specifically requires that Executive agencies make every reasonable 
effort to ensure that the regulation: (1) Clearly specifies the 
preemptive effect, if any; (2) clearly specifies any effect on existing 
Federal law or regulation; (3) provides a clear legal standard for 
affected conduct while promoting simplification and burden reduction; 
(4) specifies the retroactive effect, if any; (5) adequately defines 
key terms; and (6) addresses other important issues affecting clarity 
and general draftsmanship under any guidelines issued by the Attorney 
General. Section 3(c) of Executive Order 12988 requires Executive 
agencies to review regulations in light of applicable standards in 
section 3(a) and section 3(b) to determine whether they are met or it 
is unreasonable to meet one or more of them. DOE has completed the 
required review and determined that, to the extent permitted by law, 
the regulations meet the relevant standards of Executive Order 12988.

C. Review Under the Regulatory Flexibility Act

    The rule was reviewed under the Regulatory Flexibility Act of 1980, 
Pub. L. 96-354, which requires preparation of an initial regulatory 
flexibility analysis for any rule that is likely to have a significant 
economic impact on a substantial number of small entities. In the 
background section of the rule, DOE noted that the rule was the first

[[Page 19616]]

phase of a two-phased approach to (1) streamline the personal property 
management process and (2) reduce constraints, prescriptive 
requirements, and administrative processes on DOE internal operations 
and large contractors who manage and operate DOE facilities. Based on 
this review, DOE certified that this rule will not have a significant 
economic impact on a substantial number of small entities and, 
therefore, no regulatory flexibility analysis had been prepared. DOE 
did not receive any comments on this certification.

D. Review Under the Paperwork Reduction Act

    No new information collection or record keeping requirements are 
imposed by this rule. Accordingly, no OMB clearance is required under 
the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.).

E. Review Under Executive Order 12612

    Executive Order 12612, entitled ``Federalism,'' 52 FR 41685 
(October 30, 1987), requires that regulations, rules, legislation, and 
any other policy actions be reviewed for any substantial direct effects 
on States, on the relationship between the Federal Government and the 
States, or in the distribution of power and responsibilities among 
various levels of government. If there are sufficient substantial 
direct effects, then the Executive Order requires preparation of a 
federalism assessment to be used in all decisions involved in 
promulgating and implementing a policy action. DOE has determined that 
this rule will not have a substantial direct effect on the 
institutional interests or traditional functions of States.

F. Review Under the National Environmental Policy Act

    Pursuant to the Council on Environmental Quality Regulations (40 
CFR parts 1500-1508), the Department has established guidelines for its 
compliance with the provisions of the National Environmental Policy Act 
(NEPA) of 1969 (42 U.S.C. 4321, et seq.). Pursuant to Appendix A of 
subpart D of 10 CFR part 1021, National Environmental Policy Act 
Implementing Procedures (Categorical Exclusion A6), DOE has determined 
that this rule is categorically excluded from the need to prepare an 
environmental impact statement or environmental assessment.

G. Review Under Small Business Regulatory Enforcement Fairness Act of 
1996

    As required by 5 U.S.C. 801, DOE will report to Congress 
promulgation of the rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 804(3).

H. Review Under the Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally 
requires a Federal agency to perform a detailed assessment of costs and 
benefits of any rule imposing a Federal mandate with costs to State, 
local or tribal governments, or to the private sector, of $100 million 
or more. This rulemaking only affects DOE and private sector entities, 
and the impact is less than $100 million.

List of Subjects in 41 CFR Chapter 109

    Government property management.

    Issued in Washington, DC, on March 31, 1998.
Richard H. Hopf,
Deputy Assistant Secretary for Procurement and Assistance Management.

    For the reasons set out in the preamble, Chapter 109 of Title 41 of 
the Code of Federal Regulations is revised as set forth below:

CHAPTER 109--DEPARTMENT OF ENERGY PROPERTY MANAGEMENT REGULATIONS

SUBCHAPTER A--GENERAL

Part
109-1  Introduction
109-6  Miscellaneous regulations

SUBCHAPTER B--[RESERVED]

SUBCHAPTER C--[RESERVED]

SUBCHAPTER D--[RESERVED]

SUBCHAPTER E--SUPPLY AND PROCUREMENT

109-25  General
109-26  Procurement sources and program
109-27  Inventory management
109-28  Storage and distribution
109-30  Federal catalog system

SUBCHAPTER F--[RESERVED]

SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES

109-37  [RESERVED]
109-38  Motor equipment management
109-39  Interagency fleet management systems

SUBCHAPTER H--UTILIZATION AND DISPOSAL

109-42  Utilization and disposal of hazardous materials and certain 
categories of property
109-43  Utilization of personal property
109-44  Donation of personal property
109-45  Sale, abandonment, or destruction of personal property
109-46  Utilization and disposal of personal property pursuant to 
exchange/sale authority
109-48  Utilization, donation, or disposal of abandoned and 
forfeited personal property
109-50  Special DOE disposal authorities

SUBCHAPTER A--GENERAL

PART 109-1--INTRODUCTION

Subpart 109-1.1--Regulation System

Sec.
109-1.100-50  Scope of subpart.
109-1.100-51  Definitions and acronyms.
109-1.101  Federal Property Management Regulations System.
109-1.101-50  DOE-PMR System.
109.1.102  Federal Property Management Regulations.
109-1.102-50  DOE-PMRs.
109-1.103  FPMR temporary regulations.
109-1.103-50  DOE-PMR temporary policies and bulletins.
109-1.104  Publication and distribution of FPMR.
109-1.104-50  Publication and distribution of DOE-PMR.
109-1.106  Applicability of FPMR.
109-1.106-50  Applicability of FPMR and DOE-PMR.
109-1.107  Agency consultation regarding FPMR.
109-1.107-50  Consultation regarding DOE-PMR.
109-1.108  Agency implementation and supplementation of FPMR.
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  Personal property management program objectives.

Subpart 109-1.51--Personal Property Management Standards and Practices

109-1.5100  Scope of subpart.
109-1.5101  Official use of personal property.
109-1.5102  Maximum use of personal property.
109-1.5103  Loan of personal property.
109-1.5104  Borrowing of personal property.
109-1.5105  Identification marking of personal property.
109-1.5106  Segregation of personal property.
109-1.5107  Physical protection of personal property.
109-1.5108  Personal property records requirements.
109-1.5108-1  Equipment.
109-1.5108-2  Sensitive items.
109-1.5108-3  Stores inventories.
109-1.5108-4  Precious metals.
109-1.5108-5  Administratively controlled items.
109-1.5109  Control of sensitive items.
109-1.5110  Physical inventories of personal property.
109-1.5111  Retirement of property.
109-1.5112  Loss, damage, or destruction of personal property in 
possession of DOE direct operations.
109-1.5113  Loss, damage, or destruction of personal property in 
possession of designated contractors.

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109-1.5114  Use of non-Government-owned property.
109-1.5148  Personal property management reports.

Subpart 109-1.52--Personal Property Management Program for Designated 
Contractors

109-1.5200  Scope of subpart.
109-1.5201  Policy.
109-1.5202  Establishment of a personal property holdings baseline.
109-1.5203  Management of subcontractor-held personal property.
109-1.5204  Review and approval of a designated contractor's 
personal property management system.
109-1.5205  Personal property management system changes.

Subpart 109-1.53--Management of High Risk Personal Property

109-1.5300  Scope of subpart.
109-1.5301  Applicability.
109-1.5302  Policies.
109-1.5303  Procedures.
109-1.5304  Deviations.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

SUBCHAPTER A--GENERAL

PART 109-1--INTRODUCTION

Subpart 109-1.1--Regulation System


Sec. 109-1.100-50  Scope of subpart.

    This subpart sets forth the Department of Energy (DOE) Property 
Management Regulations (DOE-PMR) which establish uniform DOE property 
management policies, regulations, and procedures that implement and 
supplement the Federal Property Management Regulations. Property 
management statutory authorities that are unique to the Department 
(e.g., section 161g of the Atomic Energy Act of 1954 (42 U.S.C. 
2201(g)) and section 3155 of the National Defense Authorization Act for 
Fiscal Year 1994 (42 U.S.C. 72741)) are not addressed in these 
regulations.


Sec. 109-1.100-51  Definitions and acronyms.

    (a) Definitions. As used in this chapter, the terms personal 
property and property are synonymous. In addition, the following 
definitions apply:
    Administratively controlled items means personal property 
controlled at the discretion of individual DOE offices, but for which 
there is no DOE requirement to maintain formal records.
    Automatic data processing equipment means, as used in this part and 
to the extent that such equipment is used to process export controlled 
information or unclassified controlled nuclear information, any 
equipment or interconnected system or subsystems of equipment that is 
used in the automatic acquisition, storage, manipulation, management, 
movement, control, display, switching, interchange, transmission, or 
reception of data or information.
    Designated contractors means those on-site DOE contractors to which 
the DOE-PMR is made applicable when included as a contractual 
requirement. The contractors to which these regulations may be made 
applicable include management and operating (M&O) contractors, 
environmental restoration and management contractors, and other major 
prime contractors located at DOE sites.
    Direct operations means operations conducted by DOE personnel.
    Disposal means the process of reutilizing, transferring, donating, 
selling, abandoning, destroying, or other disposition of Government-
owned personal property.
    Dual-Use List means nuclear-related material, equipment, and 
related technology as described in the International Atomic Energy 
Agency Information Circular (INFCIRC) 254 Part 2.
    Equipment means any item of personal property having a unit 
acquisition cost of $5,000 or more and having the potential for 
maintaining its integrity (i.e., not expendable due to use) as an item.
    Especially designed or prepared property means equipment and 
material designed or prepared especially for use in the nuclear fuel 
cycle and described in the Nuclear Suppliers Group Trigger List 
(INFCIRC 254 Part 1).
    Export controlled information means unclassified U.S. Government 
information under DOE cognizance that, if proposed for export by the 
private sector, would require a U.S. Department of Commerce or U.S. 
Department of State validated license, or a DOE authorization for 
export, and which, if given uncontrolled release, could reasonably be 
expected to adversely affect U.S. national security or nuclear 
nonproliferation objectives.
    Export controlled property means property the export of which is 
subject to licensing by the U.S. Department of Commerce, the U.S. 
Department of State, the U.S. Nuclear Regulatory Commission, or 
authorized by the U.S. Department of Energy.
    Hazardous property means any personal property, including scrap or 
waste but excluding property involving a radiological hazard, that is 
ignitable, corrosive, reactive, or toxic because of its quantity, 
concentration, or physical, chemical, or infectious characteristics, or 
that is deemed a hazardous material, chemical substance or mixture, or 
hazardous waste under the Hazardous Material Transportation Act, the 
Resource Conservation and Recovery Act, or the Toxic Substances Control 
Act. Such property may be in solid, liquid, semi-liquid, or contained 
gas form and may cause or significantly contribute to an increase in 
mortality or illness, or pose present or potential hazard to human 
health or the environment when improperly used, treated, stored, 
transported, disposed of, or mismanaged.
    Heads of field organizations means the heads of any Departmental 
office located outside the Washington, D.C. metropolitan area. In 
addition, the Federal Energy Regulatory Commission, and the Office of 
Headquarters Procurement Operations, shall be considered a field 
organization for purposes of these regulations.
    High risk personal property means property that, because of its 
potential impact on public health and safety, the environment, national 
security interests, or proliferation concerns, must be controlled, and 
disposed of in other than the routine manner. The categories of high 
risk property are automatic data processing equipment, especially 
designed or prepared property, export controlled information, export 
controlled property, hazardous property, nuclear weapon components or 
weapon-like components, proliferation sensitive property, radioactive 
property, special nuclear material, and unclassified controlled nuclear 
information.
    Munitions list means articles, services, and related technical data 
designated as defense articles and defense services by the Arms Export 
Control Act of 1968, as amended.
    Nuclear weapon component or weapon-like component means parts of 
whole war reserve nuclear weapon systems, joint test assemblies, 
trainers, or test devices, including associated testing, maintenance, 
and handling equipment; or items that simulate such parts.
    Personal property means property of any kind, except for real 
estate and interests therein (such as easements and rights-of-way), and 
permanent fixtures which are Government-owned, chartered, rented, or 
leased from commercial sources by and in the custody of DOE or its 
designated contractors; source, byproduct, special nuclear materials, 
and atomic weapons as defined in section 11 of the Atomic Energy Act of 
1954 (42 U.S.C. 2014), as amended; and petroleum in the Strategic 
Petroleum Reserve and the Naval Petroleum Reserves.

[[Page 19618]]

    Personal property management means the development, implementation, 
and administration of policies, standards, programs, practices and 
procedures for effective and economical acquisition, receipt, storage, 
issue, use, control, physical protection, care and maintenance, 
determination of requirements, maintenance of related operating 
records, and disposal of personal property (exclusive of the property 
accounting records).
    Proliferation-sensitive property means nuclear-related or dual-use 
equipment, material, or technology as described in the Nuclear 
Suppliers Group Trigger List and Dual-Use List, or equipment, material 
or technology used in the research, design, development, testing, or 
production of nuclear or other weapons.
    Radioactive property means any item or material that is 
contaminated with radioactivity and which emits ionizing radiation in 
excess of background radiation as measured by appropriate 
instrumentation.
    Sensitive items means those items of personal property 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, portable power tools, portable computers, and portable 
communications equipment.
    Special nuclear material means plutonium, uranium 233, uranium 
enriched in the isotope 233 or 235, any other materials which the 
Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 
1954, as amended, determines to be special nuclear material, or any 
material artificially enriched by any of the foregoing, but does not 
include source material.
    Trigger List means nuclear material, equipment, and related 
technology as described in the INFCIRC 254, Part 1.
    Unclassified controlled nuclear information means U.S. Government 
information pertaining to atomic energy defense activities as defined 
in section 148 of the Atomic Energy Act. Such information can relate to 
aspects of nuclear weapons design, development, testing, physical 
security, production, or utilization facilities.
    (b) Acronyms. As used in this chapter, the following acronyms 
apply:

ADPE: Automatic Data Processing Equipment
CFR: Code of Federal Regulations
CSC: Customer Supply Center
DEAR: Department of Energy Acquisition Regulation
DOD: Department of Defense
DOE: Department of Energy
DOE-PMR: Department of Energy Property Management Regulations
DPMO: Departmental Property Management Officer
ECCN: Export Control Classification Number
ECI: Export Controlled Information
EHFFP: Equipment Held For Future Projects
EOQ: Economic Order Quantity
ERLE: Energy-Related Laboratory Equipment
FAR: Federal Acquisition Regulation
FPMR: Federal Property Management Regulations
FSC: Federal Supply Classification
FSCG: Federal Supply Classification Group
GAO: General Accounting Office
GSA: General Services Administration
GVWR: Gross Vehicle Weight Rating
INFCIRC: International Atomic Energy Agency Information Circular
IFMS: Interagency Fleet Management System
M&O: Management and Operating
MCTL: Military Critical Technologies List
OCRM: Office of Contract and Resource Management
OPMO: Organizational Property Management Officer
OPSEC: Operations Security
PPL: Personal Property Letter
REAPS: Reportable Excess Automated Property System
SNM: Special Nuclear Material
UCNI: Unclassified Controlled Nuclear Information
U.S.C.: United States Code


Sec. 109-1.101  Federal Property Management Regulations System.


Sec. 109-1.101-50  DOE-PMR System.

    The DOE-PMR system described in this subpart is established to 
provide uniform personal property management policies, standards, and 
practices within the Department.


Sec. 109-1.102  Federal Property Management Regulations.


Sec. 109-1.102-50  DOE-PMRs.

    The DOE-PMRs (41 CFR Ch. 109) implements and supplements the FPMR 
(41 CFR Ch. 101) issued by the General Services Administration (GSA), 
Public Laws, Executive Orders, Office of Management and Budget 
directives, and other agency issuances affecting the Department's 
personal property management program.


Sec. 109-1.103  FPMR temporary regulations.


Sec. 109-1.103-50  DOE-PMR temporary policies and bulletins

    (a) Subject to applicable procedural requirements in 41 U.S.C. 
418b, 42 U.S.C 7191 and 5 U.S.C 553, Personal Property Letters are 
authorized for publication of temporary policies that should not be 
codified in the Code of Federal Regulations (CFR).
    (b) DOE-PMR Bulletins are used to disseminate information 
concerning personal property management matters not affecting policy or 
to clarify instructions in actions required by the FPMR or DOE-PMR.


Sec. 109-1.104  Publication and distribution of FPMR.


Sec. 109-1.104-50  Publication and distribution of DOE-PMR.

    The DOE-PMR will be published in the Federal Register and will 
appear in the CFR as Chapter 109 of Title 41, Public Contracts and 
Property Management. Loose leaf publications of the DOE-PMR will be 
distributed to DOE offices.


Sec. 109-1.106  Applicability of FPMR.


Sec. 109-1.106-50  Applicability of FPMR and DOE-PMR.

    (a) The FPMR and DOE-PMR apply to all direct operations.
    (b) The DOE-PMR does not apply to facilities and activities 
conducted under Executive Order 12344 and Pub. L. 98-525.
    (c) Unless otherwise provided in the appropriate part or subpart, 
the FPMR and DOE-PMR apply to designated contractors.
    (d) The Procurement Executive or head of a contracting activity may 
designate contractors other than designated contractors to which the 
FPMR and DOE-PMR apply.
    (e) The FPMR and DOE-PMR shall be used by contracting officers in 
the administration of applicable contracts, and in the review, 
approval, or appraisal of such contractor operations.
    (f) Regulations for the management of Government property in the 
possession of other DOE contractors are contained in the Federal 
Acquisition Regulation (FAR), 48 CFR part 45, and in the DOE 
Acquisition Regulation (DEAR), 48 CFR part 945.
    (g) Regulations for the management of personal property held by 
financial assistance recipients are contained in the DOE Financial 
Assistance Rules (10 CFR part 600) and DOE Order 534.1, Accounting.


Sec. 109-1.107  Agency consultation regarding FPMR.


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 includes basic and significant Departmental 
personal property management policies and standards which implement, 
supplement, or deviate from the FPMR.

[[Page 19619]]

In the absence of any DOE-PMR issuance, the basic FPMR material shall 
govern.
    (b) The DOE-PMR shall be consistent with 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;
    (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. 109-1.110-50  Deviation procedures.

    (a) Each request for deviation shall contain the following:
    (1) A statement of the deviation desired, including identification 
of the specific paragraph number(s) of the DOE-PMR;
    (2) The reason why the deviation is considered necessary or would 
be in the best interest of the Government;
    (3) If applicable, the name of the contractor and identification of 
the contractor affected;
    (4) A statement as to whether the deviation has been requested 
previously and, if so, circumstances of the previous request;
    (5) A description of the intended effect of the deviation;
    (6) A statement of the period of time for which the deviation is 
needed; and
    (7) Any pertinent background information which will contribute to a 
full understanding of the desired deviation.
    (b)(1) Requests for deviations from applicable portions of the FPMR 
and DOE-PMR (except aviation related portions) shall be forwarded with 
supporting documentation by the Organizational Property Management 
Officer (OPMO) to the Departmental Property Management Officer (DPMO).
    (2) Requests for deviations from aviation related portions of the 
FPMR and DOE-PMR concerning aviation operations shall be forwarded by 
the OPMO or on-site DOE Aviation Management Officer with supporting 
documentation to the DOE Senior Aviation Management Official.
    (c) The Deputy Assistant Secretary for Procurement and Assistance 
Management is authorized to grant deviations to the DOE-PMR.
    (d) Requests for deviations from the FPMR will be coordinated with 
GSA by the DPMO.

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 efficient personal property 
management program in DOE.


Sec. 109-1.5001  Policy.

    It is DOE policy that a program for the management of personal 
property shall be established and maintained to meet program needs 
efficiently and in accordance with applicable Federal statutes and 
regulations.


Sec. 109-1.5002  Personal property management program objectives.

    The objectives of the DOE personal property management program are 
to provide:
    (a) A system for efficiently managing personal property in the 
custody or possession of DOE organizations and designated contractors; 
and
    (b) Uniform principles, policies, and standards for efficient 
management of personal property that are sufficiently broad in scope 
and flexible in nature to facilitate adaptation to local needs and 
various kinds of operations.

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 personal property. The standards and 
practices that apply to equipment shall be based on the unit 
acquisition cost threshold specified in the definition of equipment 
contained in section Sec. 109-1.100-51 of this part. No other 
acquisition cost threshold shall apply.


Sec. 109-1.5101  Official use of personal property.

    Personal 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 as 
authorized by law;
    (b) As otherwise authorized by law and approved by the Director, 
Office of Administrative Services; heads of field organizations for 
their respective organizations; or a contracting officer for 
contractor-held property.


Sec. 109-1.5102  Maximum use of personal property.

    Personal property management practices shall assure the best 
possible use of personal property. Supplies and equipment shall be 
generally limited to those items essential for carrying out the 
programs of DOE efficiently.


Sec. 109-1.5103  Loan of personal property.

    (a) Personal property which is not excess and would otherwise be 
out of service for temporary periods may be loaned to other DOE offices 
and contractors, other Federal agencies, and to others for official 
purposes. The loan request shall be in writing, stating the purpose of 
the loan and period of time required. The loan shall be executed on DOE 
Form 4420.2, Personal Property Loan Agreement or computer generated 
equivalent when approved in writing by the OPMO or on-site DOE property 
administrator. When approved, a memorandum transmitting the loan 
agreement shall be prepared identifying the loan period, delivery time, 
method of payment and transportation, and point of delivery and return, 
to ensure proper control and protect DOE's interest. The loan period 
shall not exceed one year, but may be renewed in one year increments. 
Second renewals of loan agreements shall be reviewed and justified at a 
level of management at least two levels above that of the individual 
making the determination to loan the property. Third renewals shall be 
approved by the head of the field organization or designee.
    (b) Requests for loans to foreign Governments and other foreign 
organizations shall be submitted to the Deputy Assistant Secretary for 
International Energy Policy, Trade and Investment for approval, with a 
copy to the cognizant Headquarters program office.


Sec. 109-1.5104  Borrowing of personal property.

    (a) DOE organizations and designated contractors are encouraged to 
borrow personal property within DOE to further DOE programs. Property 
classified as Equipment Held For Future Projects (EHFFP) or as In 
Standby should be reviewed by those receiving availability inquiries 
for short-term use (one year or less). Borrowing of Government personal 
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 terms of the transaction.
    (b) In determining whether it is practical and economical to borrow 
personal property, consideration shall

[[Page 19620]]

be given to suitability, condition, value, extent and nature of use, 
extent of availability, portability, cost of transportation, and other 
similar factors.
    (c) Adequate records and controls shall be established and 
maintained for borrowed property to ensure its proper control and 
prompt return to the lender.


Sec. 109-1.5105  Identification marking of personal property.

    (a) Personal property shall be marked ``U.S. Government property'' 
(if marking space is limited, property may be marked ``U.S. DOE'') 
subject to the criteria below. The markings shall be securely affixed 
to the property, legible, and conspicuous. Examples of appropriate 
marking media are bar code labels, decals, and stamping.
    (1) Equipment and sensitive items shall be marked ``U.S. Government 
property'' and numbered for control purposes.
    (2) Administratively controlled property and other personal 
property susceptible to unauthorized personal use should be marked 
``U.S. Government property'' and numbered for control purposes.
    (b) Personal property which by its nature cannot be marked, such as 
stores items, metal stock, etc., is exempted from this requirement.
    (c) To the extent practicable and economical, markings shall be 
removed prior to disposal outside of DOE, or, if removal is 
impractical, additional permanent markings must be added to indicate 
such disposal.


Sec. 109-1.5106  Segregation of personal property.

    Ordinarily, contractor-owned personal property shall be segregated 
from Government personal property. Commingling of Government and 
contractor-owned personal 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 Government property).


Sec. 109-1.5107  Physical protection of personal property.

    Controls such as property pass systems, memorandum records, regular 
or intermittent gate checks, and/or perimeter fencing shall be 
established as appropriate to prevent loss, theft, or unauthorized 
removal of property from the premises on which such personal property 
is located.


Sec. 109-1.5108  Personal property records requirements.

    The contractor's property control records shall provide the 
following basic information for every accountable item of Government 
personal property in the contractor's possession and any other data 
elements required by specific contract provisions:
    (a) Contract number or equivalent code designation.
    (b) Asset type.
    (c) Description of item (name, serial number, national stock number 
(if available)).
    (d) Property control number (Government ownership identity).
    (e) Unit acquisition cost (including delivery and installation 
cost, when appropriate, and unit of measure).
    (f) Acquisition document reference and date.
    (g) Manufacturer's name, model and serial number.
    (h) Quantity received, fabricated, issued or on hand.
    (i) Location (physical area)
    (j) Custodian name and organization code.
    (k) Use status (active, storage, excess, etc.)
    (l) High risk designation.
    (m) Disposition document reference and date.


Sec. 109-1.5108-1  Equipment.

    An individual property record will be developed and maintained for 
each item of equipment.


Sec. 109-1.5108-2  Sensitive items.

    Individual item records will be maintained for each sensitive item. 
Minimum dollar value thresholds for controlling sensitive items, if 
used, will be determined by the OPMO for each DOE organization in 
consultation with appropriate management officials. This threshold may 
be applied organization-wide or by individual contractors or location. 
Identification of types of property meeting the DOE-PMR definition of 
sensitive property should be the primary determinant of sensitive 
category, with dollar thresholds, if any, considered as a guideline 
only. Sensitive items which are also equipment will be controlled as 
both sensitive items and equipment.


Sec. 109-1.5108-3  Stores inventories.

    Perpetual inventory records are to be maintained for stores 
inventory items.


Sec. 109-1.5108-4  Precious metals.

    Perpetual inventory records are to be maintained for precious 
metals.


Sec. 109-1.5108-5  Administratively controlled items.

    No formal property management records are required to be maintained 
for this category of personal property, which includes such items as 
those controlled for calibration or maintenance purposes, contaminated 
property, tool crib items, and equipment pool items. Various control 
records can be employed to help safeguard this property against waste 
and abuse, including purchase vs. use information, tool crib check-
outs, loss and theft reports, calibration records, disposal records, 
and other similar records. Control techniques would include physical 
security, custodial responsibility, identification/marking, or other 
locally established control techniques.


Sec. 109-1.5109  Control of sensitive items.

    (a) A list of types of personal property considered to be sensitive 
shall be developed and maintained by each DOE activity/site, taking 
into consideration value, costs of administration, need for control, 
and other factors that management determines should apply.
    (b) Items of equipment which are also designated as sensitive items 
will be controlled as sensitive items and as equipment.
    (c) Written procedures shall be established for control of 
sensitive items and shall address:
    (1) Approval of purchase requisitions or issue documents at an 
appropriate supervisory level;
    (2) Establishment of controls in the central receiving and 
warehousing department, such as extraordinary physical protection, 
handling, and maintenance of a current listing of sensitive items;
    (3) Establishment and maintenance of appropriate records;
    (4) Requirement 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 efficient 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;
    (iii) Requirement for prompt reporting and investigation of loss, 
damage or destruction; and
    (iv) Requirement for promptly reporting changes in custody.
    (7) Requirement for periodic physical inventories (see Sec. 109-
1.5110 of this part).

[[Page 19621]]

    (8) Requirement for an employee transfer or termination check-out 
procedure and examination and adjustment of records;
    (9) Reminder of prohibition of use for other than official purposes 
and penalties for misuse;
    (10) A clear statement of the extent of responsibility for 
financial accountability depending upon contractor policy; and
    (11) Other procedures which have demonstrated efficient physical 
and administrative control over sensitive items.


Sec. 109-1.5110  Physical inventories of personal property.

    (a) Physical inventories of those categories of personal property 
as specified in paragraph (f) of this section shall be conducted at all 
DOE and designated contractor locations.
    (b) Physical inventories shall be performed by the use of personnel 
other than custodians of the property. Where staffing restraints or 
other considerations apply, the inventory may be performed by the 
custodian with verification by a second party.
    (c) Detailed procedures for the taking of physical inventories 
shall be developed for each DOE office and designated contractor. The 
OPMO shall review and approve the DOE office and contractor procedures.
    (d) The conduct of a physical inventory will be observed, or 
follow-on audits made, by independent representatives, e.g., finance, 
audit, or property personnel, to the extent deemed necessary to assure 
that approved procedures are being followed and results are accurate. 
These observations or audits shall be documented and the documentation 
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 of personal property 
shall be as follows:
    (1) Equipment--biennial.
    (2) Sensitive items--annual (see paragraph 109-1.5110(l) of this 
section).
    (3) Stores inventories--annual.
    (4) Precious metals--annual.
    (5) Administratively controlled items--There is no formal 
Department requirement for the performance of physical inventories of 
this property. However, OPMOs should determine such requirements based 
on management needs.
    (g) Physical inventories shall be performed at intervals more 
frequently than required when 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) Physical inventories of equipment may be conducted by the 
``inventory by exception'' method. The system and procedures for taking 
physical inventories by this method must be fully documented and 
approved in writing by the OPMO.
    (i) The results of physical inventories shall be reconciled with 
the property records, and with applicable financial control accounts.
    (j) The results of physical inventories shall be reported to the 
OPMO within 30 days after the reconciliation required above.
    (k) Physical inventories of equipment and stores inventories may be 
conducted using statistical sampling methods in lieu of the normal 
wall-to-wall method. The sampling methods employed must be 
statistically valid and approved in writing by the OPMO. If use of the 
statistical methods of physical inventory does not produce acceptable 
results, the wall-to-wall method shall be used to complete the 
inventories.
    (l) Physical inventories of sensitive items (excluding arms, 
ammunition, and military property) having an acquisition cost of $2,000 
or less may also be conducted using statistical sampling methods. 
However if statistical sampling methods are used, a wall-to-wall 
inventory is required no less frequently than every three years and at 
contract completion (unless there is a follow-on contract with the same 
contractor).


Sec. 109-1.5111  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 the wear, loss, theft, destruction, abandonment, or damage. 
The retirement work order shall be signed by the responsible official 
initiating the report and reviewed and approved by an official at least 
one supervisory level above the official initiating the report.


Sec. 109-1.5112  Loss, damage, or destruction of personal property in 
possession of DOE direct operations.

    DOE offices shall establish procedures to provide for the 
reporting, documentation, and investigation of instances of loss, 
damage, or destruction of personal property including:
    (a) Notification to appropriate DOE organizations and law 
enforcement offices;
    (b) Determination of cause or origin;
    (c) Liability and responsibility for repair or replacement; and
    (d) Actions taken to prevent further loss, damage, or destruction, 
and to prevent repetition of similar incidents.


Sec. 109-1.5113  Loss, damage, or destruction of personal property in 
possession of designated contractors.

    (a) Designated contractors shall report any loss, damage, or 
destruction of personal property in its possession or control, 
including property in the possession or control of subcontractors, to 
the property administrator as soon as it becomes known.
    (b) When physical inventories, consumption analyses, or other 
actions disclose consumption of property considered unreasonable by the 
property administrator; or loss, damage, or destruction of personal 
property not previously reported by the contractor, the property 
administrator shall require the contractor to investigate the incidents 
and submit written reports.
    (c) Reports of physical inventory results and identified 
discrepancies shall be submitted to the property administrator within 
90 days of completion of physical inventories. An acceptable percentage 
of shrinkage for stores inventories shall be determined by the property 
administrator on a location-by-location basis, based on type and cost 
of materials, historical data, and other site-specific factors. This 
determination shall be in writing and be supported by appropriate 
documentation.
    (d) The contractor's report referenced above shall contain factual 
data as to the circumstances surrounding the loss, damage, destruction 
or excessive consumption, including:
    (1) The contractor's name and contract number;
    (2) A description of the property;
    (3) Cost of the property, and cost of repairs in instances of 
damage (in event actual cost is not known, use reasonable estimate);
    (4) The date, time (if pertinent), and cause or origin; and
    (5) Actions taken by the contractor to prevent further loss, 
damage, destruction, or unreasonable consumption, and to prevent 
repetition of similar incidents.
    (e) The property administrator shall ensure that the corrective 
actions taken by the contractor under paragraph (d)(5) of this section 
satisfactorily address system weaknesses.
    (f) The contracting officer shall make a determination of 
contractor liability

[[Page 19622]]

with a copy of the determination furnished to the contractor and the 
property administrator. Costs may be assessed against a contractor for 
physical inventory discrepancies or other instances of loss of 
Government property within the terms of the contract. Credit should 
only be applied if specific items reported as lost can be uniquely 
identified. General physical inventory write-ons are not to be used as 
a credit.
    (g) If part of a designated contractor's personal property 
management system is found to be unsatisfactory, the property 
administrator shall increase surveillance of that part to prevent, to 
the extent possible, any loss, damage, destruction or unreasonable 
consumption of personal property. The property administrator shall give 
special attention to reasonably assuring that any loss, damage, 
destruction or unreasonable consumption occurring during a period when 
a contractor's personal property management system is not approved is 
identified before approval or reinstatement of approval.


Sec. 109-1.5114  Use of non-Government-owned property.

    Non-Government-owned personal property shall not be installed in, 
affixed to, or otherwise made a part of any Government-owned personal 
property when such action will adversely affect the operation or 
condition of the Government property.


Sec. 109-1.5148  Personal property management reports.

    Reports to be submitted to the DPMO are listed in Table 1:

                                                     Table 1                                                    
----------------------------------------------------------------------------------------------------------------
            Report title              Due at DOE headquarters           References                 Form No.     
----------------------------------------------------------------------------------------------------------------
(1) Report of Exempted Motor          On request.............  FPMR 101-38.204-4, DOE-PMR    Letter.            
 Vehicles.                                                      109-38.204-4.                                   
(2) Agency Report of Motor Vehicle    Oct. 31................  FPMR 101-38.903, DOE-PMR 109- SF 82.             
 Data.                                                          38.903.                                         
(3) Excess Personal Property          Nov. 15................  FPMR 101-43.4701(c), DOE-PMR  Letter.            
 Furnished to Non-Federal Recipients.                           109-43.4701(c).                                 
(4) Negotiated Sales................  Nov. 15................  FPMR 101-45.4702, DOE-PMR     Letter.            
                                                                109-45.4702.                                    
----------------------------------------------------------------------------------------------------------------

Subpart 109-1.52--Personal Property Management Program for 
Designated Contractors


Sec. 109-1.5200  Scope of subpart.

    This subpart prescribes policy and responsibilities for the 
establishment, maintenance, and appraisal of designated contractors' 
programs for the management of personal property.


Sec. 109-1.5201  Policy.

    (a) Designated contractors shall establish, implement, and maintain 
a system that provides for an efficient personal property management 
program. The system shall be consistent with the terms of the contract; 
prescribed policies, procedures, regulations, statutes, and 
instructions; and directions from the contracting officer.
    (b) Designated contractors' personal property management systems 
shall not be considered acceptable until reviewed and approved in 
writing by the cognizant DOE contracting office in accordance with 
Sec. 109-1.5205 of this subpart.
    (c) Designated contractors shall maintain their personal property 
management systems in writing. Revisions to the systems shall be 
approved in writing by the cognizant DOE contracting office in 
accordance with Sec. 109-1.5205 of this subpart.
    (d) Designated contractors shall include their personal property 
management system in their management surveillance or internal review 
program in order to identify weaknesses and functions requiring 
corrective action.
    (e) Designated contractors are responsible and accountable for all 
Government personal property in the possession of subcontractors, and 
shall include appropriate provisions in their subcontracts and property 
management systems to assure that subcontractors establish and maintain 
efficient systems for the management of Government personal property in 
their possession in accordance with Sec. 109-1.5204 of this subpart.


Sec. 109-1.5202  Establishment of a personal property holdings 
baseline.

    (a) If the contractor is a new designated contractor, the 
contractor may accept the previous contractor's personal property 
records as a baseline or may perform a complete physical inventory of 
all personal property. This physical inventory is to be performed 
within the time period specified by the contracting officer or the 
contract, but no later than one year after the execution date of the 
contract. If the physical inventory is not accomplished within the 
allotted time frame, the previous contractor's records will be 
considered as the baseline.
    (b) If any required physical inventories have not been accomplished 
within the time periods prescribed in Sec. 109-1.5110(f) of this part, 
the new contractor shall either perform such physical inventories 
within 120 days of contract renegotiation, or accept the existing 
property records as the baseline.


Sec. 109-1.5203  Management of subcontractor-held personal property.

    Designated contractors shall require those subcontractors provided 
Government-owned personal property to establish and maintain a system 
for the management of such property. As a minimum, a subcontractor's 
personal property management system shall provide for the following:
    (a) Adequate records.
    (b) Controls over acquisitions.
    (c) Identification as Government-owned personal property.
    (d) Physical inventories.
    (e) Proper care, maintenance, and protection.
    (f) Controls over personal property requiring special handling 
(i.e., nuclear-related, proliferation-sensitive, hazardous, or 
contaminated property).
    (g) Reporting, redistribution, and disposal of excess and surplus 
personal property.
    (h) Accounting for personal property that is lost, damaged, 
destroyed, stolen, abandoned, or worn out.
    (i) Periodic reports, including physical inventory results and 
total acquisition cost of Government property.
    (j) An internal surveillance program, including periodic reviews, 
to ensure that personal property is being managed in accordance with 
established procedures.


Sec. 109-1.5204  Review and approval of a designated contractor's 
personal property management system.

    (a) An initial review of a designated contractor's personal 
property management system shall be performed

[[Page 19623]]

by the property administrator within one year after the execution date 
of the contract, except for contract extensions or renewals or when an 
existing contractor has been awarded a follow-on contract. The purpose 
of the review is to determine whether the contractor's system provides 
adequate protection, maintenance, utilization, and disposition of 
personal property, and reasonable assurance that the Department's 
personal property is safeguarded against waste, loss, unauthorized use, 
or misappropriation, in accordance with applicable statutes, 
regulations, contract terms and conditions, programmatic needs, and 
good business practices. If circumstances preclude completion of the 
initial review within the ``within one year'' initial review 
requirement, the property administrator shall request a deviation from 
the requirement in accordance with the provisions of Sec. 109-1.110-50 
of this part.
    (b) If a designated contractor is the successor to a previous 
designated contractor and the contract award was based in part on the 
contractor's proposal to overhaul the existing personal property 
management system(s), the ``within one year'' initial review 
requirement may be extended based on:
    (1) The scope of the overhaul; and
    (2) An analysis of the cost to implement the overhaul within a year 
versus a proposed extended period.
    (c) When an existing contract has been extended or renewed, or the 
designated contractor has been awarded a follow-on contract, an initial 
review of the contractor's personal property management system is not 
required. In such cases, the established appraisal schedule will 
continue to be followed as prescribed in paragraph (d) of this section.
    (d) At a minimum of every three years after the date of approval of 
a designated contractor's property management system, the OPMO shall 
make an appraisal of the personal property management operation of the 
contractor. The purpose of the appraisal is to determine if the 
contractor is managing personal property in accordance with its 
previously approved system and procedures, and to establish whether 
such procedures are efficient. The appraisal may be based on a formal 
comprehensive appraisal or a series of formal appraisals of the 
functional segments of the contractor's operation.
    (e) A designated contractor's property management system shall be 
approved, conditionally approved, or disapproved in writing by the head 
of the field organization with advice of the contracting officer, 
property administrator, OPMO, legal counsel, DPMO, and appropriate 
program officials. Approval authority may be redelegated to the 
contracting officer or contracting officer's designee. Conditional 
approval and disapproval authority cannot be redelegated. When a system 
is conditionally approved or disapproved, the property administrator or 
contracting officer shall advise the contractor, in writing, of 
deficiencies that need to be corrected, and a time schedule established 
for completion of corrective actions.
    (f) Appropriate follow-up will be made by the property 
administrator to ensure that corrective actions have been initiated and 
completed.
    (g) When a determination has been made by the property 
administrator that all major system deficiencies identified in the 
review or appraisal have been corrected, the head of the field 
organization shall withdraw the conditional approval or disapproval, 
and approve the system with the concurrence of the OPMO. The approval 
shall be in writing and addressed to appropriate contractor management.
    (h) The property administrator shall maintain a copy of all 
designated contractor personal property management system appraisals 
and approvals in such manner as to be readily available to 
investigative and external review teams.


Sec. 109-1.5205  Personal property management system changes.

    Any proposed significant change to a designated contractor's 
approved personal property management system shall be reviewed by the 
property administrator at the earliest possible time. Such changes 
should then be approved in writing on an interim basis, or disapproved 
in writing, by the property administrator as appropriate.

Subpart 109-1.53--Management of High Risk Personal Property


Sec. 109-1.5300  Scope of subpart.

    (a) This subpart provides identification, accounting, control, and 
disposal policy guidance for the following categories of high risk 
personal property: especially designed or prepared property, export 
controlled property, nuclear weapon components or weapon-like 
components, and proliferation sensitive property. The guidance is 
intended to ensure that the disposition of these categories of high 
risk personal property does not adversely affect the national security 
or nuclear nonproliferation objectives of the United States.
    (b) The other categories of high risk personal property are 
controlled by other life cycle management programs and procedures 
monitored by other Departmental elements.


Sec. 109-1.5301  Applicability.

    This subpart is applicable to all DOE organizations which purchase, 
manage or dispose of Government personal property, or contract for the 
management of Government facilities, programs, or related services, 
which may directly or indirectly require the purchase, management, or 
disposal of Government-owned personal property. Using the high risk 
personal property control requirements in this subpart as guidance, 
heads of field organizations or OPMOs shall assure that designated 
contractors and financial assistance recipients are responsible for 
developing a cost effective high risk property management system, 
covering all operational responsibilities enumerated in this subpart.


Sec. 109-1.5302  Policies.

    (a) It is the responsibility of DOE organizations and designated 
contractors to manage and control Government-owned high risk personal 
property in an efficient manner. High risk personal property will be 
managed throughout its life cycle so as to protect public and DOE 
personnel safety and to advance the national security and the nuclear 
nonproliferation objectives of the U.S. Government.
    (b) The disposition of high risk property is subject to special 
considerations. Items of high risk property may present significant 
risks to the national security and nuclear nonproliferation objectives 
of the Government which must be evaluated. Organizations will identify 
high risk property and control its disposition to eliminate or mitigate 
such risks. In no case shall property be transferred or disposed unless 
it receives a high risk assessment and is handled accordingly.


Sec. 109-1.5303  Procedures.

    (a) Identification, marking and control. To ensure the appropriate 
treatment of property at its disposal and to prevent inadvertent, 
uncontrolled release of high risk property, property should be assessed 
and evaluated as high risk property as early in its life cycle as 
practical.
    (1) Newly acquired high risk personal property shall be identified 
and tracked during the acquisition process and marked upon receipt.
    (2) All personal property shall be reviewed for high risk 
identification, marking, and database entry during

[[Page 19624]]

regularly scheduled physical inventories, unless access to the property 
is difficult or impractical because the property is a component of a 
larger assembly, a complex operating system, or an older facility. The 
review of this property will be completed, prior to disposition, when 
replacing components or when operating systems and facilities are 
decommissioned and dismantling.
    (3) High risk personal property which by its nature cannot be 
marked, such as stores items and metal stock, is exempt from this 
requirement. However, personal property management programs should 
contain documentation on the characterization of this property as high 
risk.
    (b) Disposition of high risk property.
    (1) Prior to disposition, all personal property, materials or data 
will be assessed to determine:
    (i) Whether it should be characterized as high risk and
    (ii) What actions are necessary to ensure compliance with 
applicable national security or nonproliferation controls.
    (2) The DOE or designated contractor property management 
organization may not process high risk personal property into a 
reutilization/disposal program without performing the reviews 
prescribed by the local high risk property management system. The 
reviews must be properly documented, and all appropriate certifications 
and clearances received, in accordance with the approved site or 
facility personal property management program.
    (3) The disposition (including demilitarization of items on the 
Munitions List) and handling of high risk personal property are subject 
to applicable provisions of Subchapter H of the FPMR, subchapter H of 
this chapter, and the DOE Guidelines on Export Control and 
Nonproliferation.
    (4) Documentation. All applicable documentation, including records 
concerning the property's categorization as high risk, shall be 
included as part of the property transfer. The documentation shall be 
included with all transfers within, or external to, DOE.
    (5) Unless an alternative disposition option appears to be in the 
best interest of the Government, surplus Trigger List components, 
equipment, and materials and nuclear weapon components shall either be 
sold for scrap after being rendered useless for their originally 
intended purpose or destroyed, with the destruction verified and 
documented. Requests for approval of an alternative disposition may be 
made through the cognizant Assistant Secretary to the Director of the 
Office of Nonproliferation and National Security.
    (6) Export Restriction Notice. The following Export Restriction 
Notice, or approved equivalent notice, shall be included in all 
transfers, sales, or other offerings:

Export Restriction Notice

    The use, disposition, export and reexport of this property are 
subject to all applicable U.S. laws and regulations, including the 
Atomic Energy Act of 1954, as amended; the Arms Export Control Act 
(22 U.S.C. 2751 et seq.); the Export Administration Act of 1979 (560 
U.S.C. Append 2401 et seq.); Assistance to Foreign Atomic Energy 
Activities (10 CFR part 810); Export and Import of Nuclear Equipment 
and Material (10 CFR part 110); International Traffic in Arms 
Regulations (22 CFR parts 120 et seq.); Export Administration 
Regulations (15 CFR part 730 et seq.); Foreign Assets Control 
Regulations (31 CFR parts 500 et seq.); and the Espionage Act (37 
U.S.C. 791 et seq.) which among other things, prohibit:
    a. The making of false statements and concealment of any 
material information regarding the use or disposition, export or 
reexport of the property; and
    b. Any use or disposition, export or reexport of the property 
which is not authorized in accordance with the provisions of this 
agreement.


Sec. 109-1.5304  Deviations.

    (a) Life cycle control determinations. When the HFO approves a 
contractor program containing controls, other than life cycle control 
consistent with this subpart, the decision shall be justified in 
writing and a copy sent to the Deputy Assistant Secretary for 
Procurement and Assistance Management. A HFO's decision not to provide 
life-cycle control should take into account:
    (1) The nature and extent of high risk property typically purchased 
or otherwise brought to a DOE or designated contractor facility or 
site;
    (2) The projected stability of DOE and designated contractor 
operations; and
    (3) The degree of confidence in the property control measures 
available at disposition.
    (b) Certain transfers, sales, or other offerings of high risk 
personal property may require special conditions or specific 
restrictions as determined necessary by the property custodian or 
cognizant program office.
    (c) Requests for deviations from the requirements of this subpart 
may be made through the cognizant HFO to the Deputy Assistant Secretary 
for Procurement and Assistance Management.

PART 109-6--MISCELLANEOUS REGULATIONS

Subpart 109-6.4--Official Use of Government Passenger Carriers Between 
Residence and Place of Employment
Sec.
109-6.400  Scope and applicability.
109-6.400-50  Instructions to DOE passenger carrier operators.
109-6.402  Policy.
109-6.450  Statutory provisions.

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

Subpart 109-6.4--Official Use of Government Passenger Carriers 
Between Residence and Place of Employment


Sec. 109-6.400  Scope and applicability.

    (a) With the exception of Sec. 109-6.400-50, the provisions of this 
subpart and 41 CFR 101-6.4 do not apply to designated contractors. 
Official use provisions applicable to these contractors are contained 
in Sec. 109-38.3 of this chapter.
    (b) When an employee on temporary duty is authorized to travel by 
Government motor vehicle, and in the interest of the Government, is 
scheduled to depart before the beginning of regular working hours, or 
if there will be a significant savings in time, a Government motor 
vehicle may be issued at the close of the preceding working day. 
Similarly, when scheduled to return after the close of working hours, 
the motor vehicle may be returned the next regular working day. This 
use of a Government motor vehicle is not regarded as prohibited by 31 
U.S.C. 1344 (25 Comp. Gen. 844).


Sec. 109-6.400-50  Instructions to DOE passenger carrier operators.

    DOE offices shall ensure that DOE employees operating Government 
motor vehicles are informed concerning:
    (a) The statutory requirement that Government motor vehicles shall 
be used only for official purposes;
    (b) Personal responsibility for safe driving and operation of 
Government motor vehicles, and for compliance with Federal, state, and 
local laws and regulations, and all accident reporting requirements;
    (c) The need to possess a valid state, District of Columbia, or 
commonwealth operator's license or permit for the type of vehicle to be 
operated and some form of agency identification;
    (d) The penalties for unauthorized use of Government motor 
vehicles;
    (e) The prohibition against providing transportation to strangers 
or hitchhikers;
    (f) The proper care, control and use of Government credit cards;

[[Page 19625]]

    (g) Mandatory use of seat belts by each employee operating or 
riding in a Government motor vehicle;
    (h) The prohibition against the use of tobacco products in GSA-
Interagency Fleet Management System (IFMS) motor vehicles;
    (i) Any other duties and responsibilities assigned to operators 
with regard to the use, care, operation, and maintenance of Government 
motor vehicles;
    (j) The potential income tax liability when they use a Government 
motor vehicle for transportation between residence and place of 
employment; and
    (k) Protection for DOE employees under the Federal Tort Claims Act 
when acting within the scope of their employment.


Sec. 109-6.402  Policy.

    (a) It is DOE policy that Government motor vehicles operated by DOE 
employees are to be used only for official Government purposes or for 
incidental purposes as prescribed in this section. Official use does 
not include use of vehicles between residence and place of employment 
unless provided for in accordance with paragraph (b) of this section. 
The Director, Office of Administrative Services and heads of field 
organizations for their respective organizations shall establish 
appropriate controls to ensure that the use of a Government motor 
vehicle for transportation between an employee's residence and place of 
employment is in accordance with the provisions of 41 CFR 101-6.4 and 
this subpart.
    (b) The use of Government motor vehicles between an employee's 
residence and place of employment (home-to-work) is limited to:
    (1) The Secretary of Energy; and
    (2) Those persons engaged in field work as determined by the 
Secretary of Energy in accordance with 41 CFR 101-6.403(b).
    (c) It is DOE policy that space in a Government motor vehicle used 
for home-to-work transportation may be shared with a spouse, relative, 
or friend in accordance with the restrictions contained in 41 CFR 101-
6.402(f).
    (d) A Departmental official who is authorized home-to-work 
transportation is permitted to use Government-owned or leased motor 
vehicles for non-official purposes incidental to the official use of 
the vehicle, provided that the incremental cost (e.g., driver time and 
mileage) of such use is de minimis or such costs are outweighed by 
other considerations, such as the efficient use of the official's time.


Sec. 109-6.450  Statutory provisions.

    (a) In accordance with 31 U.S.C. 1349(b), any officer or employee 
of the Government who willfully uses or authorizes the use of a 
Government passenger motor vehicle 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.
    (b) Under the provisions of 18 U.S.C. 641, any person who knowingly 
misuses any Government property (including Government motor vehicles) 
may be subject to criminal prosecution and, upon conviction, to fines 
or imprisonment.

SUBCHAPTER E--SUPPLY AND PROCUREMENT

PART 109-25--GENERAL

Subpart 109-25.1--General Policies

Sec.
109-25.100  Use of Government personal property and nonpersonal 
services.
109-25.103  Promotional materials, trading stamps, or bonus goods.
109-25.103-1  General.
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.

Subpart 109-25.3--Use Standards

109-25.302  Office furniture, furnishings, and equipment.
109-25.350  Furnishing of Government clothing and individual 
equipment.

Subpart 109-25.4--Replacement Standards

109-25.401  General.
109-25.401-50  Replacement approvals.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

Subpart 109-25.1--General Policies


Sec. 109-25.100  Use of Government personal property and nonpersonal 
services.

    The Director, Office of Administrative Services and heads of field 
organizations shall ensure to restrict the use of Government property/
services to officially designated activities.


Sec. 109-25.103  Promotional materials, trading stamps, or bonus goods.


Sec. 109-25.103-1  General.

    DOE offices and designated contractors shall establish procedures 
for the receipt and disposition of promotional materials, trading 
stamps, or bonus goods consistent with the provisions of 41 CFR 101-
25.103.


Sec. 109-25.104  Acquisition of office furniture and office machines.

    DOE offices and designated contractors shall make the determination 
as to whether requirements can be met through the utilization of DOE 
owned furniture and office machines.


Sec. 109-25.109  Laboratory and research equipment.

    The provisions of 41 CFR 101-25.109 and this section apply to 
laboratory and research equipment in the possession of DOE field 
organizations and designated contractors.


Sec. 109-25.109-1  Identification of idle equipment.

    (a) At a minimum, management walk-throughs shall be conducted to 
provide for coverage of all operating and storage areas at least once 
every two years to identify idle and unneeded personal property. The 
submission to the head of the laboratory or facility of a report of 
walk-throughs conducted shall be at the discretion of the laboratory or 
facility management. However, DOE field organizations may require 
designated contractors to submit a report of walk-throughs to the 
OPMOs. Equipment identified as idle and unneeded shall be redeployed, 
reassigned, placed in equipment pools, or excessed, as appropriate. All 
walk-throughs shall be documented to include, at a minimum, the 
identity of the participants, areas covered, findings, recommendations, 
corrective action plans, and results achieved. The documentation shall 
be made available for review by appropriate contractor management, DOE 
offices, and audit teams.
    (b) Members of management walk-through inspection teams should be 
coordinated with the property administrator and the OPMO.
    (c) OPMOs shall periodically review walk-through procedures and 
practices of DOE offices and designated contractors to determine their 
effectiveness.


Sec. 109-25.109-2  Equipment pools.

    (a)-(c) [Reserved]
    (d) The report on the use and effectiveness of equipment pools 
shall be submitted to the head of the DOE office at the discretion of 
that official. However, documentation of evaluations of pools shall be 
maintained and made available for review by appropriate contractor 
management, DOE offices, and audit teams.
    (e) Heads of field organizations shall require periodic independent 
reviews of equipment pool operations.

[[Page 19626]]

Subpart 109-25.3--Use Standards


Sec. 109-25.302  Office furniture, furnishings, and equipment.

    The Director, Office of Administrative Services, heads of field 
organizations, and designated contractors shall establish criteria for 
the use of office furniture, furnishings, and equipment.


Sec. 109-25.350  Furnishing of Government clothing and individual 
equipment.

    (a) Government-owned clothing and individual equipment may be 
furnished to employees:
    (1) For protection from physical injury or occupational disease; or
    (2) When employees could not reasonably be required to furnish them 
as a part of the personal clothing and equipment needed to perform the 
regular duties of the position to which they are assigned or for which 
services were engaged.
    (b) This section does not apply to uniforms or uniform allowances 
under the Federal Employees Uniform Allowance Act of 1954, as amended.

Subpart 109-25.4--Replacement Standards


Sec. 109-25.401  General.


Sec. 109-25.401-50  Replacement approvals.

    The Director, Office of Administrative Services and heads of field 
organizations are authorized to approve replacement of office machines, 
furniture, and materials handling equipment.

PART 109-26--PROCUREMENT SOURCES AND PROGRAM

Subpart 109-26.2--Federal Requisitioning System

Sec.
109-26.203  Activity address codes.

Subpart 109-26.5--GSA Procurement Programs

109-26.501  Purchase of new motor vehicles.
109-26.501-1  General.
109-26.501-4  Submission of orders.
109-26.501-50  Authority and allocations for the acquisition of 
passenger motor vehicles.
109-26.501-51  Used vehicles.
109-26.501-52  Justification for purchase.
109-26.501-53  Acquisitions by transfer.
109-26.501-54  Communications equipment.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

Subpart 109-26.2--Federal Requisitioning System


Sec. 109-26.203  Activity address codes.

    (a) DOE field organizations designated by OCMA are responsible for 
processing routine activity code related transactions for specified 
groupings of field organizations. Each field organization in a 
specified grouping will forward their activity address code related 
transactions to the grouping's lead organization for processing. Each 
lead organization shall designate a point of contact who will:
    (1) Verify the need, purpose, and validity of each transaction; and
    (2) Be the specified grouping's authorized point of contact for 
dealing directly with GSA.
    (b) OCMA is responsible for:
    (1) All policy matters related to the issuance and control of 
activity address codes within DOE; and
    (2) Furnishing the identity of the lead field organization points 
of contact to GSA.

Subpart 109-26.5--GSA Procurement Programs


Sec. 109-26.501  Purchase of new motor vehicles.


Sec. 109-26.501-1  General.

    (a) [Reserved].
    (b) Motor vehicles may be purchased directly rather than through 
GSA when a waiver has been granted by GSA. The waiver request should be 
submitted directly to GSA and a copy forwarded to the DPMO. However, 
where GSA refuses to grant a waiver and it is believed that procurement 
through GSA would adversely affect or otherwise impair a program, the 
DPMO may, upon written request of the head of the DOE field 
organization, grant the authority for direct purchase of general 
purpose motor vehicles. Upon receipt of written authorization from the 
DPMO, the head of the field organization may authorize direct purchase 
of special purpose vehicles. The purchase price for passenger motor 
vehicles shall not exceed any statutory limitation in effect at the 
time the purchase is made.


Sec. 109-26.501-4  Submission of orders.

    An original and two copies of requisitions for passenger motor 
vehicles and law enforcement motor vehicles shall be forwarded with 
justification for purchase to the DPMO, for approval and submission to 
GSA. Requisitions for all other types of motor vehicles shall be 
submitted directly to GSA.


Sec. 109-26.501-50  Authority and allocations for the acquisition of 
passenger motor vehicles.

    (a) Authority for the acquisition of passenger motor vehicles is 
contained in the Department's annual appropriation act.
    (b) DOE offices shall include in their budget submissions the 
number of passenger motor vehicles to be purchased during the fiscal 
year. The procurements will be identified as either additions to the 
motor vehicle fleet or replacement vehicles. A copy of the motor 
vehicle portion of the submission should be submitted to the DPMO.
    (c) To assure that DOE does not exceed the number of passenger 
motor vehicles authorized to be acquired in any fiscal year, the Deputy 
Assistant Secretary for Procurement and Assistance Management or 
designee shall allocate to and inform the field organizations in 
writing of the number of passenger motor vehicles which may be acquired 
under each appropriation. These allocations and the statutory cost 
limitations imposed on these motor vehicles shall not be exceeded.
    (d) The motor vehicle fleet manager shall provide written 
certification to the OPMO that disposition action has been taken on 
replaced passenger motor vehicles. Such certification shall be provided 
no later than 30 days after the disposition of the vehicle. Replaced 
passenger motor vehicles shall not be retained in service after receipt 
of the replacement vehicle.


Sec. 109-26.501-51  Used vehicles.

    Normally, DOE does not purchase or authorize contractors to 
purchase used motor vehicles. However, the Director, Office of 
Administrative Services and heads of field organizations may authorize 
the purchase of used motor vehicles where justified by special 
circumstances, e.g., when new motor vehicles are in short supply; motor 
vehicles are to be used for experimental or test purposes; or motor 
vehicles are acquired from exchange/sale. The statutory passenger motor 
vehicle allocation requirements shall apply to any purchase of used 
passenger motor vehicles except in the case of motor vehicles to be 
used exclusively for experimental or test purposes.


Sec. 109-26.501-52  Justification for purchase.

    (a) Requisitions for additions to the passenger motor vehicle fleet 
must contain adequate written justification of need. Such 
justifications shall be prepared by the motor vehicle fleet manager and 
approved by the OPMO, and should include:
    (1) A statement as to why the present fleet size is inadequate to 
support requirements;
    (2) Efforts made to achieve maximum use of on-hand motor vehicles 
through

[[Page 19627]]

pool arrangements, shuttle buses, and taxicabs;
    (3) The programmatic requirement for the motor vehicles and the 
impact on the program/project if the requisitions are not filled;
    (4) The established DOE or local utilization objectives used to 
evaluate the utilization of passenger motor vehicles and whether the 
objectives have been approved by the OPMO; and
    (5) The date of the last utilization review and the number of 
passenger motor vehicles which did not meet the established utilization 
objectives and the anticipated mileage to be achieved by the new motor 
vehicles.
    (b) Requisitions for replacement passenger motor vehicles should 
include a statement that utilization, pools, shuttle buses and taxicabs 
have been considered by the motor vehicle fleet manager and the OPMO. 
Specific information on the identification, age and mileage of the 
motor vehicles should be included. When a passenger motor vehicle being 
replaced does not meet Federal replacement standards, a description of 
the condition of the vehicle should also be provided.


Sec. 109-26.501-53  Acquisitions by transfer.

    (a) The acquisition of passenger motor vehicles by transfer from 
another Government agency or DOE organization shall be within the 
allocations prescribed in Sec. 109-26.501-50 of this subpart.
    (b) Passenger motor vehicles may be acquired by transfer provided 
they are:
    (1) Considered as an addition to the motor vehicle fleet of the 
receiving office;
    (2) Acquired for replacement purposes and an equal number of 
replaced motor vehicles are reported for disposal within 30 days;
    (3) For temporary emergency needs exceeding three months and 
approved in writing by the DPMO; or
    (4) For temporary emergency needs of three months or less in lieu 
of commercial rentals. These transfers will not count toward the 
allocation.


Sec. 109-26.501-54  Communications equipment.

    Communications equipment considered to be essential for the 
accomplishment of security and safety responsibilities is exempt from 
the requirements of 41 CFR 101-26.501. The Fleet Manager shall approve 
the installation of communications equipment in motor vehicles.

PART 109-27--INVENTORY MANAGEMENT

Sec.
109-27.000-50  Definitions.

Subpart 109-27.1--Stock Replenishment

109-27.102  Economic order quantity principle.
109-27.102-1  Applicability.
109-27.102-50  Systems contracting.
109-27.102-51  Policy.
109-27.102-52  Implementation.

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  Objectives.
109-27.5002  Stores inventory turnover ratio.
109-27.5003  Stock control.
109-27.5004  Sub-stores.
109-27.5005  Shop, bench, cupboard or site stock.
109-27.5006  Stores catalogs.
109-27.5007  Physical inventories.
109-27.5007-1  Procedures.
109-27.5007-2  Inventory adjustments.
109-27.5008  Control of drug substances and potable alcohol.
109-27.5009  Control of hypodermic needles and syringes.
109-27.5010  Containers returnable to vendors.
109-27.5011  Identification marking of metals and metal products.
109-27.5011-1  General.
109-27.5011-2  Exception.

Subpart 109-27.51--Management of Precious Metals

109-27.5100  Scope of subpart.
109-27.5101  Definition.
109-27.5102  Policy.
109-27.5103  Precious Metals Control Officer.
109-27.5104  Practices and procedures.
109-27.5104-1  Acquisitions.
109-27.5104-2  Physical protection and storage.
109-27.5104-3  Perpetual inventory records.
109-27.5104-4  Physical inventories.
109-27.5104-5  Control and issue of stock.
109-27.5104-6  Control by using organization.
109-27.5105  Management reviews and audits.
109-27.5106  Precious metals pool.
109-27.5106-1  Purpose.
109-27.5106-2  Withdrawals.
109-27.5106-3  Returns.
109-27.5106-4  Withdrawals/returns forecasts.
109-27.5106-5  Assistance.
109-27.5107  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).

PART 109-27--INVENTORY MANAGEMENT


Sec. 109-27.000-50  Definitions.

    As used in this part the following definitions apply:
    Inventories mean stocks of stores, construction, supplies, and 
parts used in support of DOE programs.
    Inventory management means the efficient 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.
    Stock record means a device for collecting, storing, and providing 
historical data on recurring transactions for each line item of 
inventory.
    Sub-store means 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.
    Systems contracting means a materials management purchasing 
technique for the purchase of general, common-use, and repetitive 
supply items in a particular product family. An example is office 
supplies, purchased from a commercial vendor, that are needed for 
immediate use instead of purchasing in bulk for future use, storing in 
warehouses, and issuing to customers by use of a requisitioning system. 
Systems contracting and just-in-time contracting are synonymous.

Subpart 109-27.1--Stock Replenishment


Sec. 109-27.102   Economic order quantity principle.


Sec. 109-27.102-1   Applicability.

    Replenishment of inventories of stock items having recurring 
demands will be by use of the economic order quantity (EOQ) principle. 
However, when considered more suitable, designated contractors may use 
other generally accepted approaches to EOQ.

[[Page 19628]]

Sec. 109-27.102-50   Systems contracting.

    Systems contracting may be used instead of or along with EOQ once a 
determination is made that such a system is feasible and cost 
effective, and that adequate controls are in place to ensure proper 
use.


Sec. 109-27.102-51   Policy.

    Systems contracting for supply operations is a proven cost-
effective approach to meeting procurement needs and may be implemented 
in DOE offices and designated contractors wherever significant cost 
savings to the Government will result. Impacts on local suppliers and 
small and disadvantaged business concerns should be considered in the 
overall business strategy.


Sec. 109-27.102-52   Implementation.

    (a) DOE OPMOs shall establish required property management controls 
relative to the implementation of systems contracting.
    (b) DOE offices and designated contractors operating a materials 
management function who have not performed an initial feasibility study 
for the implementation of systems contracting shall perform such a 
study for selected commodity groups. The study may be accomplished over 
a period of time, until all commodity groups have been considered. The 
study should address functional requirements, activity levels of 
commodity groups and individual items, and potential impacts on local 
suppliers and small and disadvantaged businesses. An industrial 
relations analysis on existing labor relations and union contracts may 
also be necessary.
    (c) As required in the DEAR, DOE offices and designated contractors 
are required to consider the use of GSA supply sources when 
economically advantageous to the Government. These sources must be 
considered in the conduct of the feasibility study.
    (d) DOE contracting offices shall evaluate the initial cost benefit 
studies performed by contractors to verify the savings and other 
benefits of systems contracting, and shall approve its implementation. 
In those instances where a cost benefit study has previously been 
performed, the DOE contracting office shall ensure that those studies 
have been evaluated and the approval to proceed with systems 
contracting has been provided to the contractor in writing.
    (e) DOE offices shall periodically reevaluate systems contracting 
operations conducted by their office and designated contractors to 
ensure that required property management controls are being followed.

Subpart 109-27.2--Management of Shelf-Life Materials


Sec. 109-27.202   Applicability.

    When considered more suitable, designated contractors may use other 
generally accepted approaches to the management of shelf-life 
materials.

Subpart 109-27.3--Maximizing Use of Inventories


Sec. 109-27.302   Applicability.

    When considered more suitable, designated 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

    When considered more suitable, designated contractors may use other 
generally accepted approaches to determine which items should be 
eliminated from inventory.

Subpart 109-27.50--Inventory Management Policies, Procedures, and 
Guidelines


Sec. 109-27.5001  Objectives.

    Necessary inventories shall be established and maintained at 
reasonable levels, consistent with DOE requirements, applicable laws 
and regulations, and the following objectives:
    (a) The maintenance of adequate stock levels through accurate 
analyses of quantities to determine requirements and stock 
replenishments so that only minimal obsolescence losses will be 
encountered while ensuring adequate inventory levels to meet program 
schedules;
    (b) The protection of materials against misuse, theft, and 
misappropriation;
    (c) The maintenance of an efficient operation; and
    (d) The standardization of inventories to the greatest extent 
practicable.


Sec. 109-27.5002  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 (dollar value of 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. It is recognized, however, that extenuating operating 
circumstances may preclude the achievement of such objectives.


Sec. 109-27.5003  Stock control.

    (a) 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.
    (b) Personal property under stock control for greater than 90 days 
shall be maintained in stock record accounts.


Sec. 109-27.5004  Sub-stores.

    (a) Sub-stores shall be established when necessary to expedite 
delivery of 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. 109-27.5005  Shop, bench, cupboard or site stock.

    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 at time of issue from controlled stores. 
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.


Sec. 109-27.5006  Stores catalogs.

    A stores catalog for customer use that lists items available from 
stock 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.


Sec. 109-27.5007  Physical inventories.


Sec. 109-27.5007-1  Procedures.

    The following procedures shall be established for taking physical 
inventory of stocks subjected to quantity

[[Page 19629]]

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. 109-27.5007-2  Inventory adjustments.

    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 level 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 report 
approval. Adjustment reports shall be retained on file for inspection 
and review.


Sec. 109-27.5008  Control of drug substances and potable alcohol.

    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 maintained on quantities of one quart and above.


Sec. 109-27.5009  Control of hypodermic needles and syringes.

    Effective procedures and practices shall provide for the management 
and physical security of hypodermic needles and syringes to prevent 
illegal use. Controls shall include supervisory approval for issue, 
storage in locked repositories, and the rendering of the items useless 
prior to disposal.


Sec. 109-27.5010  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. 109-27.5011  Identification marking of metals and metal products.


Sec. 109-27.5011-1  General.

    Metals and metal products shall be identified and 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 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 suppliers when circumstances warrant.


Sec. 109-27.5011-2  Exception.

    Exceptions 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.

Subpart 109-27.51--Management of Precious Metals


Sec. 109-27.5100  Scope of subpart.

    This subpart provides policies, principles, and guidelines to be 
used in the management of purchased and recovered precious metals used 
to meet research, development, production, and other programmatic 
needs.


Sec. 109-27.5101  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. 109-27.5102  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. 109-27.5103  Precious Metals Control Officer.

    Each DOE organization and contractor holding precious metals shall 
designate in writing a 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 Departmental requirements.
    (b) Maintaining 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) Performing periodic unannounced inspections of a custodian's 
precious metals inventory and records.
    (g) Conducting an annual review of precious metals holdings to 
determine excess quantities.
    (h) Preparing and submitting to the Business Center for Precious 
Metals Sales and Recovery the annual forecast of anticipated 
withdrawals from, and returns to, the DOE precious metals pool.
    (i) Conducting a program for the recovery of silver from used hypo 
solution and scrap film in accordance with 41 CFR 101-45.10 and 
Sec. 109-45.10 of this chapter.
    (j) Preparing and submitting of the annual report on recovery of 
silver from used hypo solution and scrap film as required by Sec. 109-
45.1002-2 of this chapter.
    (k) Developing and issuing current authorization lists of persons 
authorized by management to withdraw precious metals from stockrooms.


Sec. 109-27.5104  Practices and procedures.


Sec. 109-27.5104-1  Acquisitions.

    DOE organizations and contractors shall contact the Business Center 
for Precious Metals Sales and Recovery to determine the availability of 
precious metals prior to acquisition on the open market.


Sec. 109-27.5104-2  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 designated custodian and an alternate. When there 
is a change in custodian or alternate having access to the repository, 
the combination shall be changed immediately.


Sec. 109-27.5104-3  Perpetual inventory records.

    Perpetual inventory records shall be maintained as specified in 
Chapter V of DOE Order 534.1, Accounting.


Sec. 109-27.5104-4  Physical inventories.

    (a) Physical inventories shall be conducted annually 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

[[Page 19630]]

scales. The inventoried weight and form shall be recorded on the 
physical inventory sheets by metal content and percent of metal. Metals 
in use in an experimental process or contaminated metals, neither of 
which can 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 
metals shall be required from the custodian and approved one level 
above 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. 109-27.5104-5  Control and issue of stock.

    Precious 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 efficient 
support to programs.
    (b) The name and organization number of each individual authorized 
to withdraw precious metals, and the type and kind of metals, shall be 
prominently maintained in the stockroom. This authorization shall be 
issued by the Precious Metals Control Officer or his designee and 
updated annually. Issues of metals will be made only to authorized 
persons.
    (c) Accurate records of all receipts, issues, returns, and 
disposals shall be 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. 109-27.5104-6  Control by using organization.

    (a) After receipt, the using organization shall provide necessary 
controls for precious metals. Materials shall be stored in a non-
combustible, combination locked repository at all times except for 
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 Departmental 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. 109-27.5105  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 
the quantity is in excess of program 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.


Sec. 109-27.5106  Precious metals pool.


Sec. 109-27.5106-1  Purpose.

    The purpose of the precious metals pool is to recycle, at a minimum 
cost to pool participants, DOE-owned precious metals within the 
Department and to dispose of DOE-owned precious metals that are excess 
to DOE needs. However, if the pool is unable to accept any potential 
precious metal return, the using activity will dispose of the precious 
metals through the disposal process specified in subchapter H of the 
FPMR and this regulation.


Sec. 109-27.5106-2  Withdrawals.

    Pure metals, parts, fabricated products, catalysts, or solutions, 
are generally available and the Business Center for Precious Metals 
Sales and Recovery can provide assistance in supplying such 
requirements. Metals can be shipped to any facility to fulfill 
fabrication requirements.


Sec. 109-27.5106-3  Returns.

    All excess precious metals must be returned to the precious metals 
pool except as noted in Sec. 109-27.5106-1 of this subpart. The pool is 
entirely dependent on metal returns; therefore, metal inventories 
should be maintained on an as-needed basis, and any excess metals must 
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. 109-27.5106-4  Withdrawals/returns forecasts.

    The Business Center for Precious Metals Sales and Recovery will 
request annually from each DOE field organization its long-range 
forecast of anticipated withdrawals from the pool and returns to the 
pool.


Sec. 109-27.5106-5  Assistance.

    The Business Center for Precious Metals Sales and Recovery operates 
the precious metals pool. DOE organizations and contractors may obtain 
specific information regarding the operation of the precious metals 
pool (operating contractor's name, address, and telephone number; 
processing charges; etc.) by contacting the Chief, Property Management 
Branch, Oak Ridge Operations Office.


Sec. 109-27.5107  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. 109-45.1003 of this chapter.

PART 109-28--STORAGE AND DISTRIBUTION

Sec.
109-28.000-50  Policy.
109-28.000-51  Storage guidelines.

Subpart 109-28.3--Customer Supply Centers

109-28.306  Customer supply center (CSC) accounts and related 
controls.
109-28.306-3  Limitations on use.
109-28.306-5  Safeguards.

Subpart 109-28.50--Management of Equipment Held for Future Projects

109-28.5000  Scope of subpart.
109-28.5001  Definition.
109-28.5002  Objective.
109-28.5003  Records.
109-28.5004  Justification and review procedures.
109-28.5005  EHFFP program review.
109-28.5006  Utilization.

Subpart 109-28.51--Management of Spare Equipment

109-28.5100  Scope of subpart.
109-28.5101  Definition.
109-28.5102  Exclusions.
109-28.5103  Management policy.


[[Page 19631]]


    Authority: 42 U.S.C. 7254.


Sec. 109-28.000-50  Policy.

    DOE offices and designated contractors shall:
    (a) Establish storage space and warehousing services for the 
receipt, storage, issue, safekeeping and protection of Government 
property;
    (b) Provide storage space and warehousing services in the most 
efficient manner consistent with program requirements; and
    (c) Operate warehouses in accordance with generally accepted 
industrial management practices and principles.


Sec. 109-28.000-51  Storage guidelines.

    (a) Indoor storage areas should be arranged to obtain proper stock 
protection and maximum utilization of space within established floor 
load capacities.
    (b) 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.
    (c) Storage areas shall be prominently posted to clearly indicate 
that the property stored therein is U.S. Government property, with 
entrance to such areas restricted to authorized personnel only.
    (d) Property in storage must be protected from fire, theft, 
deterioration, or destruction. In addition certain items require 
protection from dampness, heat, freezing, or extreme temperature 
changes. Other items must be stored away from light and odors, 
protected from vermin infestation, or stored separately because of 
their hazardous characteristics.
    (e) Hazardous or contaminated property, including property having a 
history of use in an area where exposure to contaminated property may 
have occurred, shall not be commingled with non-contaminated property, 
but stored separately in accordance with instructions from the 
environmental, safety, and health officials.
    (f) Unless inappropriate or impractical until declared excess, 
nuclear-related and proliferation-sensitive property shall be 
identified as such by use of a certification tag signed by an 
authorized program official (designated in writing with signature cards 
on file in the personal property management office). Such personal 
property shall not be commingled with other personal property, but 
stored separately in accordance with instructions from the cognizant 
program office.

Subpart 109-28.3--Customer Supply Centers


Sec. 109-28.306  Customer supply center (CSC) accounts and related 
controls.


Sec. 109-28.306-3  Limitations on use.

    DOE offices and designated contractors shall establish internal 
controls for ensuring that the use of CSC accounts is limited to the 
purchase of items for official Government use.


Sec. 109-28.306-5  Safeguards.

    DOE offices and designated contractors shall establish internal 
controls for ensuring that the customer access codes assigned for their 
accounts are properly protected.

Subpart 109-28.50--Management of Equipment Held for Future Projects


Sec. 109-28.5000  Scope of subpart.

    This subpart provides policies, principles, and guidelines to be 
used in the management of equipment held for future projects (EHFFP).


Sec. 109-28.5001  Definition.

    Equipment held for future projects means items being retained, 
based on approved justifications, for a known future use, or for a 
potential use in planned projects.


Sec. 109-28.5002  Objective.

    The objective of the EHFFP 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 where economically justifiable for retention, considering 
cost of maintenance, replacement, obsolescence, storage, deterioration, 
or future availability; made available for use by others; and promptly 
excessed when no longer needed.


Sec. 109-28.5003  Records.

    Records of all EHFFP shall be maintained by the holding 
organization, including 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. 109-28.5004  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 the initial classification EHFFP shall be 
reviewed by management at a level above that of the individual making 
the initial determination.
    (c) Retention of equipment as EHFFP must be rejustified annually to 
ensure that original justifications remain valid. The rejustifications 
will contain sufficient detail to support retention.
    (d) When equipment is retained as EHFFP for longer than one year, 
the annual rejustification shall be reviewed at a level of management 
at least two levels above that of the individual making the 
determination to retain the EHFFP. Equipment retained as EHFFP for 
longer than three years should be approved by the head of the DOE field 
organization.


Sec. 109-28.5005  EHFFP program review.

    OPMOs or on-site DOE property administrators shall conduct periodic 
reviews to ensure that the EHFFP program is being conducted in 
accordance with established procedures and this subpart. Included in 
the review will be proper determinations of property as EHFFP, the 
validity of justifications for retaining EHFFP, and the inclusion of 
EHFFP in management walk-throughs as prescribed in Sec. 109-25.109-1 of 
this chapter.


Sec. 109-28.5006  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.

Subpart 109-28.51--Management of Spare Equipment


Sec. 109-28.5100  Scope of subpart.

    This subpart provides policy guidance to be used in the management 
of spare equipment.


Sec. 109-28.5101  Definition.

    Spare equipment means items held as replacement spares for 
equipment in current use in DOE programs.


Sec. 109-28.5102  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.

[[Page 19632]]

    (b) Equipment items properly classified as stores inventory.


Sec. 109-28.5103  Management policy.

    (a) Procedures shall require the maintenance of records for spare 
equipment, cross-referenced to the location in the facility and the 
engineering drawing number. The purpose for retention shall be in the 
records.
    (b) Reviews shall be made based on technical evaluations of the 
continued need for the equipment. The reviews should be held 
biennially. In addition, 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 for the 
identification and reporting of unneeded spare equipment as excess 
property.

PART 109-30--FEDERAL CATALOG SYSTEM

Sec.
109-30.001-50  Applicability.

    Authority: 42 U.S.C. 7254.


Sec. 109-30.001-50  Applicability.

    The provisions of 41 CFR part 101-30 do not apply to designated 
contractors.

SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES

PART 109-37--[RESERVED]

PART 109-38--MOTOR EQUIPMENT MANAGEMENT

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--Fuel Efficient Motor Vehicles

109-38.104  Fuel efficient passenger automobiles and light trucks.
109-38.105  Agency purchase and lease of motor vehicles.
109-38.106  Leasing of motor vehicles.

Subpart 109-38.2--Registration, Identification, and Exemptions

109-38.200  General requirements.
109-38.201  Registration and inspection.
109-38.201-50  Registration in foreign countries.
109-38.202  Tags.
109-38.202-2  Outside the District of Columbia.
109-38.202-3  Records.
109-38.202-50  Security.
109-38.203  Agency identification.
109-38.204  Exemptions.
109-38.204-1  Unlimited exemptions.
109-38.204-3  Requests for exempted motor vehicles in the District 
of Columbia.
109-38.204-4  Report of exempted motor vehicles.
109-38.204-50  Records of exempted motor vehicles.

Subpart 109-38.3--Official Use of Government Motor Vehicles

109-38.300  Scope.
109-38.301  Authorized use.
109-38.301-1  Contractors' use.
109-38.301-1.50  Authorization for transportation between residence 
and place of employment.
109-38.301-1.51  Emergency use.
109-38.301-1.52  Maintenance of records.
109-38.301-1.53  Responsibilities of motor vehicle operators.

Subpart 109-38.4--Use and Replacement Standards

109-38.401  Use standards.
109-38.401-2  Use of self-service pumps.
109-38.402  Replacement standards.
109-38.402-50  Prompt disposal of replaced motor vehicles.
109-38.403  Responsibility for damages.
109-38.403-1  Policy.
109-38.403-2  Responsibility.
109-38.403-3  Exceptions.

Subpart 109-38.5--Scheduled Maintenance

109-38.502  Guidelines.
109-38.502-50  DOE guidelines.

Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles

109-38.701  Transfer of title for Government-owned motor vehicles.
109-38.701-50  Authority to sign Standard Form 97, The United States 
Government Certificate to Obtain Title to a Vehicle.

Subpart 109-38.8--Standard Form 149, U.S. Government National Credit 
Card

109-38.800  General.
109-38.801  Obtaining SF 149, U.S. Government National Credit Card.

Subpart 109-38.9--Federal Motor Vehicle Fleet Report

109-38.902  Records.
109-38.903  Reporting of data.
109-38.903-50  Reporting DOE motor vehicle data.

Subpart 109-38.51--Utilization of Motor Equipment

109-38.5100  Scope of subpart.
109-38.5101  Policy.
109-38.5102  Utilization controls and practices.
109-38.5103  Motor vehicle utilization standards.
109-38.5104  Other motor equipment utilization standards.
109-38.5105  Motor vehicle local use objectives.
109-38.5106  Application of motor vehicle use goals.

Subpart 109-38.52--Watercraft

109-38.5200  Scope of subpart.
109-38.5201  Definition.
109-38.5202  Watercraft operations.
109-38.5203  Watercraft identification and numbers.

    Authority: 42 U.S.C. 7254.

Sec. 109-38.000  Sec. Scope of part.


109-38.000-50  Policy.

    Motor vehicles and watercraft shall be acquired, maintained, and 
utilized in support of DOE programs in the minimum quantity required 
and in the most efficient 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.

    Experimental vehicles means vehicles 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 unless required as part of a testing/evaluation 
program, and they are not subject to statutory price limitations or 
authorization limitations.
    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, and watercraft.
    Motor vehicle means any equipment, self-propelled or drawn by 
mechanical power, designed to be operated principally on highways in 
the transportation of property or passengers.
    Special purpose vehicles means vehicles which are used or designed 
for specialized functions. These vehicles include, but are not limited 
to: Trailers, semi-trailers, other types of trailing equipment; trucks 
with permanently mounted equipment (such as aerial ladders); 
construction and other types of equipment set forth in Federal Supply 
Classification Group (FSCG) 38; material handling equipment set forth 
in FSCG 39; and fire fighting equipment set forth in FSCG 42. For 
reporting purposes within DOE, motorcycles, motor scooters and all 
terrain vehicles will also be reported as special purpose vehicles.

Subpart 109-38.1--Fuel Efficient Motor Vehicles


Sec. 109-38.104  Fuel efficient passenger automobiles and light trucks.

    (a) [Reserved]
    (b) All requests to purchase passenger automobiles larger than 
class IA, IB, or

[[Page 19633]]

II (small, subcompact, or compact) shall be forwarded with 
justification to the DPMO for approval and certification for compliance 
with the fuel economy objectives listed in 41 CFR 101-38.104.
    (b)(1)-(b)(4) [Reserved]
    (5) Requests to exempt certain light trucks from the fleet average 
fuel economy calculations shall be forwarded with justification to the 
DPMO for approval.


Sec. 109-38.105  Agency purchase and lease of motor vehicles.

    (a) DOE activities shall submit a copy of all motor vehicle leases 
and purchases not procured through the GSA Automotive Commodity Center 
to GSA.
    (b)-(c) [Reserved]
    (d) DOE activities desiring to renew a commercial lease shall 
submit the requirement in writing to the DPMO for approval prior to 
submission by field offices to GSA.
    (e) DOE activities shall submit a copy of all lease agreements to 
GSA.

Subpart 109-38.2--Registration, Identification, and Exemptions


Sec. 109-38.200  General requirements.

    (a)-(e) [Reserved]
    (f) Requests made pursuant to 41 CFR 101-38.200(f) for exemption 
from the requirement for displaying U.S. Government tags and other 
identification on motor vehicles, except for those vehicles exempted in 
accordance with Sec. 109-38.204-1 of this subpart, shall be submitted 
through normal administrative channels to the DPMO for approval. Each 
approved exemption must be renewed annually, and the DPMO shall be 
notified promptly when the need for a previously authorized exemption 
no longer exists. Copies of certifications and cancellation notices 
required to be furnished to GSA pursuant to 41 CFR 101-38.200(f) will 
be transmitted to GSA by the DPMO.
    (g) Requests for temporary removal and substitution of Government 
markings shall be submitted with justification to the DPMO for review 
and approval. Copies of the determination and justification required to 
be furnished to GSA will be transmitted to GSA by the DPMO.


Sec. 109-38.201  Registration and inspection.


Sec. 109-38.201-50  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. The person responsible for 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.


Sec. 109-38.202  Tags.


Sec. 109-38.202-2  Outside the District of Columbia.

    The Director of Administrative Services and heads of field 
organizations shall make the determination concerning the use of tags 
outside the District of Columbia.


Sec. 109-38.202-3  Records.

    (a) The DPMO 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 DOE direct operation and designated contractor shall 
maintain a current record of individual assignments of license tags to 
the motor vehicles under their jurisdiction.


Sec. 109-38.202-50  Security.

    Unissued license tags shall be stored in a locked drawer, cabinet, 
or storage area with restricted access to prevent possible fraud or 
misuse. Tags which are damaged or unusable will be safeguarded until 
destroyed.


Sec. 109-38.203  Agency identification.

    Standard DOE motor vehicle window decals (DOE Form 1530.1), and 
door decals to be used only on vehicles without windows (DOE Form 
1530.2), are available from the Office of Administrative Services, 
Logistics Management Division, Headquarters, using DOE Form 4250.2, 
``Requisition for Supplies, Equipment or Services'', or as directed by 
that office.


Sec. 109-38.204  Exemptions.


Sec. 109-38.204-1  Unlimited exemptions.

    (a)-(f) [Reserved]
    (g) The Director, Office of Administrative Services and heads of 
field organizations for their respective organizations may approve 
exemptions from the requirement for the display of U.S. Government 
license tags and other official identification for motor vehicles used 
for security or investigative purposes.


Sec. 109-38.204-3  Requests for exempted motor vehicles in the District 
of Columbia.

    The Director, Office of Administrative Services is designated to 
approve requests for regular District of Columbia license tags, and 
furnishes annually the name and specimen signature of each 
representative authorized to approve such requests to the District of 
Columbia Department of Transportation.


Sec. 109-38.204-4  Report of exempted motor vehicles.

    DOE offices shall provide upon request the necessary information to 
the DPMO to enable that office to submit a report of exempted vehicles.


Sec. 109-38.204-50  Records of exempted motor vehicles.

    The Director, Office of Administrative Services and heads of field 
organizations shall maintain records of motor vehicles exempted from 
displaying U.S. Government license tags and other identification. The 
records shall contain a listing, by type, of each exempted motor 
vehicle operated during the previous fiscal year, giving information 
for each motor vehicle on hand at the beginning of the year and each of 
those newly authorized during the year, including:
    (a) Name and title of authorizing official (including any 
authorization by Headquarters and GSA);
    (b) Date exemption was authorized;
    (c) Justification for exemption and limitation on use of the 
exempted motor vehicle;
    (d) Date of discontinuance for any exemption discontinued during 
the year; and
    (e) Probable duration of exemptions for motor vehicles continuing 
in use.

Subpart 109-38.3--Official Use of Government Motor Vehicles


Sec. 109-38.300  Scope.

    This subpart prescribes the requirements governing the use of 
Government motor vehicles for official purposes by designated 
contractors.


Sec. 109-38.301  Authorized use.

    The use of Government motor vehicles by officers and employees of 
the Government is governed by the provisions of 41 CFR 101-6.4 and 
section 109-6.4 of this chapter.


Sec. 109-38.301-1  Contractors' use.

    Heads of field organizations shall ensure that provisions of the 
FPMR concerning contractor use of Government motor vehicles are 
complied with by their designated contractors.


Sec. 109-38.301-1.50  Authorization for transportation between 
residence and place of employment.

    (a) Government motor vehicles shall not be used for transportation 
between residence and place of employment by

[[Page 19634]]

designated contractor personnel except under extenuating circumstances 
specifically provided for under the terms of the contract. Examples of 
circumstances eligible for prior approval of home-to-work motor vehicle 
use which would be appropriate to include in the terms of the contract 
include: use related to safety or security operations, use related to 
compelling operational considerations, and use determined as cost 
effective to DOE's interest. Under no circumstances shall the comfort 
and convenience, or managerial position, of contractor employees be 
considered justification for authorization of use.
    (b) The use of Government motor vehicles for transportation between 
residence and place of employment (including sporadic use) by 
designated contractor personnel shall be approved in writing by the 
Head of the field organization or designee, with delegation no lower 
than the Assistant Manager for Administration at the Operations Offices 
or the equivalent position at other DOE contracting activities provided 
that the individual is a warranted contracting officer. The 
contractor's request for approval shall include the name and title of 
the employee, the reason for the use, and the expected duration of the 
use. Each authorization is limited to one year, but can be extended for 
an unlimited number of additional one-year periods.


Sec. 109-38.301-1.51  Emergency use.

    (a) Procedures for authorization of designated contractor use of 
Government motor vehicles in emergencies, including unscheduled 
overtime situations at remote sites where prior approval is not 
possible, shall be included in a contractor's approved property 
management procedures. The procedures shall include examples of 
emergency situations warranting such use. Records detailing instances 
of emergency use shall be maintained and review of all such emergency 
or overtime use must be certified through established audit procedures 
on at least an annual basis by the OPMO.
    (b) 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. Such use shall be documented and 
the documentation retained for three years.


Sec. 109-38.301-1.52  Maintenance of records.

    Designated contractors shall maintain logs or other records on the 
use of a Government motor vehicle for transportation between an 
employee's residence and place of employment. As a minimum, these logs 
shall indicate the employee's name, date of use, time of departure and 
arrival, miles driven, and names of other passengers. Cognizant finance 
offices shall be provided with applicable data on employees who utilize 
Government motor vehicles for such transportation for purposes of the 
Deficit Reduction Act of 1984 concerning the taxation of fringe 
benefits.


Sec. 109-38.301-1.53  Responsibilities of motor vehicle operators.

    Designated contractors shall assure that their employees are aware 
of their responsibilities, identical to those listed in Sec. 109-6.400-
50 of this chapter for DOE employees, concerning the use and operation 
of Government motor vehicles.

Subpart 109-38.4--Use and Replacement Standards


Sec. 109-38.401  Use standards.


Sec. 109-38.401-2  Use of self-service pumps.

    It is DOE policy that motor vehicle operators shall use self-
service pumps in accordance with the provisions of 41 CFR 101-38.401-2.


Sec. 109-38.402  Replacement standards.

    (a) [Reserved]
    (b) Motor vehicles may be replaced without regard to the 
replacement standards in 41 CFR 101-38.402 only after certification by 
the Director of Administrative Services or the Head of the field 
organization for their respective organizations that a motor vehicle is 
beyond economical repair due to accident damage or wear caused by 
abnormal operating conditions.


Sec. 109-38.402-50  Prompt disposal of replaced motor vehicles.

    A replaced motor vehicle shall be removed from service and disposed 
of prior to or as soon as practicable after delivery of the replacement 
motor vehicle to avoid concurrent operation of both motor vehicles.


Sec. 109-38.403  Responsibility for damages.


Sec. 109-38.403-1  Policy.

    The policy for assigning responsibility for vehicle damage is to 
recover from users the costs for damages which would adversely affect 
the vehicle's resale.


Sec. 109-38.403-2  Responsibility.

    The designated contractor will charge the using organization all 
costs resulting from damage, including vandalism, theft and parking lot 
damage to a DOE vehicle which occurs during the period that the vehicle 
is assigned to an employee of that organization. The charges recovered 
by the designated maintenance operation will be used to repair the 
vehicle. Other examples for which organizations will be charged are as 
follows:
    (a) Damage caused by misuse or abuse inconsistent with normal 
operation and local conditions; or
    (b) Repair costs which are incurred as a result of user's failure 
to obtain required preventative maintenance; or
    (c) Unauthorized purchases or repairs, including credit card 
misuse, provided there is a clear, flagrant, and documented pattern of 
such occurrences.


Sec. 109-38.403-3  Exceptions.

    Exceptions to Sec. 109-38.403-2 of this subpart are as follows:
    (a) As the result of the negligent or willful act of a party other 
than the organization or it's employee, and the responsible party can 
be determined; or
    (b) As a result of mechanical failure and the employee was not 
otherwise negligent. Proof of the failure must be provided; or
    (c) As a result of normal wear comparable to similar vehicles.

Subpart 109-38.5--Scheduled Maintenance


Sec. 109-38.502  Guidelines.


Sec. 109-38.502-50  DOE guidelines.

    (a) Whenever practicable and cost effective, commercial service 
facilities shall be utilized for the maintenance of motor vehicles.
    (b) Individual vehicle maintenance records shall be kept to provide 
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 the motor equipment fleet manager. To exceed repair 
limitations, approval of the motor equipment fleet manager is required.
    (d) Warranties.
    (1) Motor vehicles under manufacturer's warranty shall be repaired 
under the terms of the warranty.
    (2) When motor vehicles are maintained in Government repair 
facilities in isolated locations that are distant from franchised 
dealer facilities, or when it is not practical to return the vehicles 
to a dealer, a billback agreement shall be sought from manufacturers to 
permit warranty work to be performed on a reimbursable basis.

[[Page 19635]]

Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles


Sec. 109-38.701  Transfer of title for Government-owned motor vehicles.


Sec. 109-38.701-50  Authority to sign Standard Form 97, The United 
States Government Certificate to Obtain Title to a Vehicle.

    The Standard Form (SF) 97 shall be signed by an appropriate 
contracting officer. The Director, Office of Administrative Services 
and heads of field organizations for their respective organizations may 
delegate the authority to sign SF 97 to responsible DOE personnel under 
their jurisdiction.

Subpart 109-38.8--Standard Form 149, U.S. Government National 
Credit Card


Sec. 109-38.800  General.

    (a)--(c) [Reserved]
    (d) The Director, Office of Administrative Services and heads of 
field organizations for their respective organizations shall be 
responsible for establishing procedures to provide for the 
administrative control of fleet credit cards. Administrative control 
shall include, as a minimum:
    (1) A reconciliation of on-hand credit cards with the inventory 
list provided by GSA,
    (2) Providing motor vehicle operators with appropriate instructions 
regarding the use and protection of credit cards against theft and 
misuse,
    (3) The taking of reasonable precautions in the event an SF 149 or 
SF 149A is lost or stolen to minimize the opportunity of purchases 
being made by unauthorized persons, including notification to the 
paying office of the loss or theft,
    (4) Validation of credit card charges to ensure they are for 
official use only items, and
    (5) Being on the alert for any unauthorized bills.


Sec. 109-38.801  Obtaining SF 149, U.S. Government National Credit 
Card.

    DOE offices electing to use national credit cards shall request the 
assignment of billing address code numbers from the DPMO. Following the 
assignment, DOE organizations shall submit orders for issuance of 
national credit cards in accordance with the instructions provided by 
GSA.

Subpart 109-38.9--Federal Motor Vehicle Fleet Report


Sec. 109-38.902  Records.

    The Director, Office of Administrative Services and OPMOs for their 
respective organizations shall establish adequate records for 
accounting and reporting purposes.


Sec. 109-38.903  Reporting of data.


Sec. 109-38.903-50  Reporting DOE motor vehicle data.

    (a) DOE offices and designated contractors operating DOE-owned or 
commercially-leased motor vehicles shall prepare the following reports 
using SF 82, Agency Report of Motor Vehicle Data or DOE approved 
equivalent, for the entire fleet including security vehicles.
    (1) DOE Report of Motor Vehicle Data.
    (2) DOE Report of Truck Data.
    (b) Designated contractors shall submit the reports to the DOE 
contracting office for review and approval. DOE offices shall submit 
reports, including designated contractor reports, to the DPMO by 
November 15 of each year.
    (c) Copies of the report forms may be obtained by contacting the 
DPMO.
    (d) Personal computer generated reports are acceptable provided 
that the standard report format is followed.

Subpart 109-38.51--Utilization of Motor Equipment


Sec. 109-38.5100  Scope of subpart.

    This subpart prescribes policies and procedures concerning the 
utilization of motor equipment.


Sec. 109-38.5101  Policy.

    It is DOE policy to keep the number of motor vehicles and other 
motor equipment at the minimum needed to satisfy programmatic 
requirements. To attain this goal, controls and practices shall be 
established which will achieve the most practical and economical 
utilization of motor equipment. These controls and practices apply to 
all DOE-owned and commercially leased motor equipment and to GSA 
Interagency Fleet Management System motor vehicles.


Sec. 109-38.5102  Utilization controls and practices.

    Controls and practices to be used by DOE organizations and 
designated contractors for achieving maximum economical utilization of 
motor equipment shall include, but not be limited to:
    (a) The maximum use of motor equipment pools, taxicabs, shuttle 
buses, or other common service arrangements;
    (b) The minimum, practicable assignment of motor equipment to 
individuals, groups, or specific organizational components;
    (c) The maintenance of individual motor equipment use records, such 
as trip tickets or vehicle logs, or hours of use, as appropriate, 
showing sufficiently detailed information to evaluate appropriateness 
of assignment and adequacy of use being made. If one-time use of a 
motor vehicle is involved, such as assignments from motor pools, the 
individual's trip records must, as a minimum, identify the motor 
vehicle and show the name of the operator, dates, destination, time of 
departure and return, and mileage;
    (d) The rotation of motor vehicles between high and low mileage 
assignments where practicable to maintain the fleet in the best overall 
replacement age and mileage balance and operating economy;
    (e) The charging, if considered feasible, to the user organization 
for the cost of operating and maintaining motor vehicles assigned to 
groups or organizational components. These charge-back costs should 
include all direct and indirect costs of the motor vehicle fleet 
operation as determined by the field organization and contractor 
finance and accounting functions;
    (f) The use of dual-purpose motor vehicles capable of hauling both 
personnel and light cargo whenever appropriate to avoid the need for 
two motor vehicles when one can serve both purposes. However, truck-
type or van vehicles shall not be acquired for passenger use merely to 
avoid statutory limitations on the number of passenger motor vehicles 
which may be acquired;
    (g) The use of motor scooters and motorcycles in place of higher 
cost motor vehicles 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; and
    (h) The use of electric vehicles 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. 109-38.5103  Motor vehicle utilization standards.

    (a) The following average utilization standards are established for 
DOE as objectives for those motor vehicles operated generally for those 
purposes for which acquired:
    (1) Sedans and station wagons, general purpose use--12,000 miles 
per year.
    (2) Light trucks (4 x 2's) and general purpose vehicles, one ton 
and under

[[Page 19636]]

(less than 12,500 GVWR)--10,000 miles per year.
    (3) Medium trucks and general purpose vehicles, 1\1/2\ ton through 
2\1/2\ ton (12,500 to 23,999 GVWR)--7,500 miles per year.
    (4) Heavy trucks and general purpose vehicles, three ton and over 
(24,000 GVWR and over)--7,500 miles per year.
    (5) Truck tractors--10,000 miles per year.
    (6) All-wheel-drive vehicles--7,500 miles per year.
    (7) Other motor vehicles--No utilization standards are established 
for other trucks, ambulances, buses, law enforcement motor vehicles, 
and special purpose vehicles. The use of these motor vehicles shall be 
reviewed at least annually by the motor equipment fleet manager and 
action shall be taken and documented to verify that the motor vehicles 
are required to meet programmatic, health, safety, or security 
requirements.
    (b) When operating circumstances prevent the above motor vehicle 
utilization standards from being met, local use objectives must be 
established and met as prescribed in Sec. 109-38.5105 of this subpart.


Sec. 109-38.5104  Other motor equipment utilization standards.

    No utilization standards are established for motor equipment other 
than motor vehicles. Each DOE office should establish through an 
agreement between the fleet manager and the OPMO utilization criteria 
for other motor equipment including heavy mobile equipment and review, 
adjust, and approve such criteria annually. Utilization of various 
classifications of other motor equipment can be measured through 
various statistics including miles, hours of use, number of trips, and 
fuel consumption. A utilization review of other motor equipment shall 
be performed at least annually by the motor equipment fleet manager to 
justify retainment or disposition of excess equipment not needed to 
fulfill Departmental, programmatic, health, safety, or security 
requirements.


Sec. 109-38.5105  Motor vehicle local use objectives.

    (a) Individual motor vehicle utilization cannot always be measured 
or evaluated strictly on the basis of miles operated or against any 
Department-wide mileage standard. For example, light trucks 
specifically fitted for use by a plumber, welder, etc., in the 
performance of daily work assignments, would have uniquely tailored use 
objectives, different from those set forth for a truck used for general 
purposes. Accordingly, efficient local use objectives, which represent 
practical units of measurement for motor vehicle utilization and for 
planning and evaluating future motor vehicle requirements, must be 
established and documented by the Organizational Motor Equipment Fleet 
Manager. The objectives should take into consideration past 
performance, future requirements, geographical disbursement, and 
special operating requirements.
    (b) These objectives shall be reviewed and adjusted as appropriate, 
but not less often than annually, by the motor equipment fleet manager. 
The reviews shall be documented. The Organizational Motor Equipment 
Fleet Manager is responsible for reviewing and approving in writing all 
proposed local use objectives.


Sec. 109-38.5106  Application of motor vehicle use goals.

    (a) At least annually, the motor equipment fleet manager will 
review motor vehicle utilization statistics and all motor vehicles 
failing to meet the applicable DOE utilization standard or local use 
objective must be identified.
    (b) Prompt action must be initiated to:
    (1) Reassign the underutilized motor vehicles;
    (2) Dispose of the underutilized motor vehicles; or
    (3) Obtain a special justification from users documenting their 
continued requirement for the motor vehicle and any proposed actions to 
improve utilization. Any requirement for underutilized motor vehicles 
which the motor equipment fleet manager proposes to continue in its 
assignment, must be submitted in writing to the Organizational Motor 
Equipment Fleet Manager for approval.
    (c) Both Department-wide standards and local use objectives should 
be applied in such a manner that their application does not stimulate 
motor vehicle use for the purpose of meeting the objective. The 
ultimate standard against which motor vehicle use must be measured is 
that the minimum number of motor vehicles will be retained to satisfy 
program requirements.

Subpart 109-38.52--Watercraft


Sec. 109-38.5200  Scope of subpart.

    This subpart establishes basic policies and procedures that apply 
to the management of watercraft operated by DOE organizations and 
designated contractors. The head of each Departmental organization 
operating watercraft shall issue such supplemental instructions as may 
be needed to ensure the efficient use and management of watercraft.


Sec. 109-38.5201  Definition.

    As used in this subpart the following definition applies:
    Watercraft means any vessel used to transport persons or material 
on water.


Sec. 109-38.5202  Watercraft operations.

    (a) No person may operate a watercraft on a waterway until skill of 
operation and basic watercraft knowledge have been demonstrated.
    (b) Operators of watercraft shall check the vessel to ensure that 
necessary equipment required by laws applicable to the area of 
operation are present, properly stowed, and in proper working order.
    (c) Operators shall comply with all applicable Federal, state, and 
local laws pertaining to the operation of watercraft.
    (d) Operators shall not use watercraft or carry passengers except 
in the performance of official Departmental assignments.


Sec. 109-38.5203  Watercraft identification and numbers.

    Watercraft in the custody of DOE or designated contractors shall 
display identifying numbers, whether issued by the U.S. Coast Guard, 
State, or local field organization, in accordance with applicable 
requirements.

PART 109-39--INTERAGENCY FLEET MANAGEMENT SYSTEMS

Subpart 109-39.1--Establishment, Modification, and Discontinuance of 
Interagency Fleet Management Systems

Sec.
109-39.101  Notice of intention to begin a study.
109-39.101-1  Agency cooperation.
109-39.103  Agency appeals.
109-39.105  Discontinuance or curtailment of service.
109-39.105-2  Agency requests to withdraw participation.
109-39.106  Unlimited exemptions.
109-39.107  Limited exemptions.

Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
System Vehicles

109-39.300  General.
109-39.301  Utilization guidelines.

    Authority: 42 U.S.C. 7254.

[[Page 19637]]

Subpart 109-39.1--Establishment, Modification, and Discontinuance 
of Interagency Fleet Management Systems


Sec. 109-39.101  Notice of intention to begin a study.


Sec. 109-39.101-1  Agency cooperation.

    The Director, Office of Administrative Services and heads of field 
organizations for their respective organizations shall designate 
representatives to coordinate with GSA concerning the establishment of 
a GSA fleet management system to serve their organization.


Sec. 109-39.103  Agency appeals.

    The Director, Office of Administrative Services and heads of field 
organizations for their respective organizations may appeal, or request 
exemption from, a determination made by GSA concerning the 
establishment of a fleet management system. A copy of the appeal or 
request shall be forwarded to the DPMO.


Sec. 109-39.105  Discontinuance or curtailment of service.


Sec. 109-39.105-2  Agency requests to withdraw participation.

    Should circumstances arise that would tend to justify 
discontinuance or curtailment of participation by a DOE organization of 
a given interagency fleet management system, the participating 
organization should forward complete details to the DPMO for 
consideration and possible referral to the Administrator of General 
Services.


Sec. 109-39.106  Unlimited exemptions.

    The Director, Office of Administrative Services and heads of field 
organizations for their respective organizations shall make the 
determination that an unlimited exemption from inclusion of a motor 
vehicle in a fleet management system is warranted. A copy of the 
determination shall be forwarded to GSA and to the DPMO.


Sec. 109-39.107  Limited exemptions.

    The Director, Office of Administrative Services and heads of field 
organizations for their respective organizations shall seek limited 
exemptions from the fleet management system.

Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
System Vehicles


Sec. 109-39.300  General.

    (a)-(c) [Reserved]
    (d) Motor equipment fleet managers shall ensure that operators and 
passengers in GSA Interagency Fleet Management System (IFMS) motor 
vehicles are aware of the prohibition against the use of tobacco 
products in these vehicles.


Sec. 109-39.301  Utilization guidelines.

    DOE activities utilizing GSA IFMS motor vehicles will receive and 
review vehicle utilization statistics in order to determine if miles 
traveled justify vehicle inventory levels. Activities should retain 
justification for the retention of vehicles not meeting DOE utilization 
guidelines or established local use objectives, as appropriate. Those 
vehicles not justified for retention shall be returned to the issuing 
GSA interagency fleet management center.

PART 109-40--TRANSPORTATION AND TRAFFIC MANAGEMENT

Subpart 109-40.1--General Provisions

Sec.
109-40.000  Scope of part.
109-40.000-50  Applicability to contractors.
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.

Subpart 109-40.1--General Provision


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 
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 460.2, 
Departmental Materials Transportation and Packaging Management, except 
to the extent such departure is prohibited by statute or executive 
order.


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 services. 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.

[[Page 19638]]

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.


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 in accordance 
with the provisions of section 5(a) of the International Air 
Transportation Fair Competition 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 services 
by these carriers is available.


Sec. 109-40.105  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 accomplish 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 DOE-wide basis and are applicable, 
generally, to DOE shipments. The HQ DOE Manager, Transportation 
Operations and Traffic, will distribute information on such agreements 
to field offices as it becomes available.


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 practical 
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 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.


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.


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 the carrier 
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 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, rates 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).

[[Page 19639]]

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 within 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 consignee are to be reimbursed by the 
Government, pursuant to cost-reimbursable contract number (insert 
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.


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 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 HQ DOE 
Manager, Transportation Operations and Traffic.


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 DOE shall include the following 
statement 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 language in paragraph (a) of this section 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 the account of the 
Government.
    (c) Where practicable, commercial bills of lading shall provide for 
consignment of a shipment to 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.

    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).


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, 
radioactive materials, 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 Regulation, 49 CFR, 
parts 100-189.

Subpart 109-40.51--Price-Anderson Coverage 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

[[Page 19640]]

cost-type contractor, shall be provided to the HQ DOE Manager, 
Transportation Operations and Traffic.

SUBCHAPTER H--UTILIZATION AND DISPOSAL

PART 109-42--UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND 
CERTAIN CATEGORIES OF PROPERTY

Subpart 109-42.11--Special Types of Hazardous Material and Certain 
Categories of Property

Sec.
109-42.1100.50  Scope of subpart.
109-42.1100.51  Policy.
109-42.1102-8  United States Munitions List items which require 
demilitarization.
109-42.1102-51  Suspect personal property.
109-42.1102-52  Low level contaminated personal property.

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

Subpart 109-42.11--Special Types of Hazardous Material and Certain 
Categories of Property


Sec. 109-42.1100.50   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.


Sec. 109-42.1100.51   Policy.

    When the holding organization determines it is appropriate to 
dispose of contaminated personal property, it shall be disposed of by 
DOE in accordance with appropriate Federal regulations governing 
radiation/chemical exposure and environmental contamination. In special 
cases where Federal regulations do not exist or apply, appropriate 
state and local regulations shall be followed.


Sec. 109-42.1102-8   United States Munitions List items which require 
demilitarization.

    Heads of field organizations shall determine demilitarization 
requirements regarding combat material and military personal property 
using DoD 4160.21-M-1, Defense Demilitarization Manual as a guide.


Sec. 109-42.1102-51   Suspect personal property.

    (a) Excess personal property (including scrap) having a history of 
use in an area where radioactive or chemical contamination 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) With due consideration to the economic factors involved, every 
effort shall be made to reduce the level of contamination of excess or 
surplus personal property to the lowest practicable level. Contaminated 
personal property that exceeds applicable contamination standards shall 
not be utilized or disposed outside DOE.
    (c) If contamination is suspected and the property is of such size, 
construction, or location as to make testing for contamination 
impossible, the property shall not be utilized or disposed outside of 
DOE.


Sec. 109-42.1102-52  Low level contaminated personal property.

    If monitoring of suspect personal property indicates that 
contamination does not exceed applicable standards, it may be utilized 
and disposed of in the same manner as uncontaminated personal property, 
provided the guidance in Sec. 109-45.5005-1(a) of this chapter 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 (49 CFR parts 171-
179) for shipment of radioactive personal property. In addition, when 
any contaminated personal property is screened within DOE, reported to 
GSA, or otherwise disposed of, the kind and degree of contamination 
must be plainly indicated on all pertinent documents.

PART 109-43--UTILIZATION OF PERSONAL PROPERTY

Sec.
109-43.001  Definition.

Subpart 109-43.1--General Provisions

109-43.101  Agency utilization reviews.
109-43.103  Agency utilization officials.

Subpart 109-43.3--Utilization of Excess

109-43.302  Agency responsibility.
109-43.302-50  Utilization by designated contractors.
109-43.304  Reporting requirements.
109-43.304-1  Reporting.
109-43.304-1.50  DOE reutilization screening.
109-43.304-1.51  Transfers within DOE.
109-43.304-2  Form and distribution of reports.
109-43.304-4  Property at installations due to be discontinued.
109-43.305  Property not required to be formally reported.
109-43.305-50  Nuclear-related and proliferation-sensitive personal 
property.
109-43.307  Items requiring special handling.
109-43.307-2  Hazardous materials.
109-43.307-2.50  Monitoring of hazardous personal property.
109-43.307-2.51  Holding hazardous personal property.
109-43.307-3  Conditional gifts for defense purposes.
109-43.307-4  Conditional gifts to reduce the public debt.
109-43.307-50  Export controlled personal property.
109-43.307-51  Classified personal property.
109-43.307-52  Nuclear-related or proliferation-sensitive personal 
property.
109-43.307-53  Automatic Data Processing Equipment (ADPE).
109-43.307-54  Unsafe personal property.
109-43.312  Use of excess personal property on cost-reimbursement 
contracts.
109-43.313  Use of excess personal property on cooperative 
agreements.
109-43.314  Use of excess personal property on grants.
109-43.315  Certification of non-Federal agency screeners.

Subpart 109-43.5--Utilization of Foreign Excess Personal Property

109-43.502  Holding agency responsibilities.

Subpart 109-43.47--Reports

109-43.4701  Performance reports.

Subpart 109-43.50--Utilization of Personal Property Held for Facilities 
in Standby

109-43.5000  Scope of subpart.
Sec. 109-43.5001  Definition.
109-43.5002  Reviews to determine need for retaining items.

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


109-43.001  Definition.

    DOE screening period means the period of time that reportable 
excess personal property is screened throughout DOE for reutilization 
purposes and, for selected items, through the Used Energy-Related 
Laboratory Equipment (ERLE) Grant Program.

Subpart 109-43.1--General Provisions


Sec. 109-43.101  Agency utilization reviews.

    DOE offices and designated contractors are responsible for 
continuously surveying property under their control to assure maximum 
use, and shall promptly identify property that is excess to their needs 
and make it available for use elsewhere.


Sec. 109-43.103  Agency utilization officials.

    The DPMO is designated as the DOE National Utilization Officer.

Subpart 109-43.3--Utilization of Excess


Sec. 109-43.302  Agency responsibility.


Sec. 109-43.302-50  Utilization by designated contractors.

    Heads of field organizations may authorize designated contractors 
to

[[Page 19641]]

perform the functions pertaining to the utilization of excess personal 
property normally performed by a Federal agency, provided the 
designated contractors have written policies and procedures.


Sec. 109-43.304  Reporting requirements.


Sec. 109-43.304-1  Reporting.


Sec. 109-43.304-1.50  DOE reutilization screening.

    (a) Prior to reporting excess personal property to GSA, reportable 
personal property shall be screened for reutilization within DOE 
through the Reportable Excess Automated Property System (REAPS) for a 
30-day period. REAPS also provides for a 15-day expedited screening 
period for certain categories of personal property for economic 
development and to satisfy urgent conditions.
    (b) An additional 30-day screening period shall be allocated for 
items eligible for screening by educational institutions through ERLE.
    (c) Items in FSCG 66 (Instruments and Laboratory Equipment), 70 
(General Purpose Information Processing Equipment (including 
firmware)), and 99 (Miscellaneous) are reportable when the unit 
acquisition cost is $1,000 or more.
    (d) In exceptional or unusual cases when time is critical, 
screening of excess property may be accomplished by telegram or 
facsimile with due consideration given to the additional costs 
involved. Examples of situations when this method of screening would be 
used are when there is a requirement for quick disposal actions due to 
unplanned contract terminations or facilities closing; to alleviate the 
paying of storage costs; when storage space is critical; to process 
exchange/sale transactions; property dangerous to public health and 
safety; property determined to be classified or otherwise sensitive for 
reasons of national security (when classified communications facilities 
are used); or for hazardous materials which may not be disposed of 
outside of the Department.
    (e) Concurrent DOE and Federal agency screening generally shall not 
be conducted.


Sec. 109-43.304-1.51  Transfers within DOE.

    Transfers within DOE generally shall be effected by completion of a 
SF-122, Transfer Order Excess Personal Property. Except for those 
designated contractors authorized by the DOE contracting office to 
execute transfer orders, transfers to DOE contractors must be approved 
by the cognizant DOE property administrator for the contractor 
receiving the property.


Sec. 109-43.304-2  Form and distribution of reports.

    Reportable property will be electronically reported by REAPS 
directly to GSA following internal DOE and ERLE screening.


Sec. 109-43.304-4  Property at installations due to be discontinued.

    When closing installations, DOE offices shall work with the 
appropriate GSA regional offices to develop site utilization and 
disposal programs:
    (a) In developing a disposal program, property shall be determined 
to be excess to DOE needs before reporting it to GSA.
    (b) If a deviation from DOE policy or procedures is required, prior 
written approval of the Deputy Assistant Secretary for Procurement and 
Assistance Management shall be obtained.
    (c) When deviation from existing GSA regulations is involved, 
approval by the appropriate GSA regional office will be sufficient to 
validate the disposition. A copy of the GSA approval should be 
forwarded for information to the DPMO.


Sec. 109-43.305  Property not required to be formally reported.

    (a) [Reserved]
    (b) 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) are not reportable and shall not be 
formally screened within DOE or reported to GSA.


Sec. 109-43.305-50  Nuclear-related and proliferation-sensitive 
personal property.

    Nuclear-related and proliferation-sensitive property is not 
reportable and shall not be formally screened within DOE or reported to 
GSA.


Sec. 109-43.307  Items requiring special handling.


Sec. 109-43.307-2  Hazardous materials.


Sec. 109-43.307-2.50  Monitoring of hazardous personal property.

    To provide assurance that hazardous personal property is not being 
inadvertently released from the site by transfer or sale to the public, 
all hazardous or suspected hazardous personal property shall be checked 
for contamination by environmental, safety, and health officials. 
Contamination-free personal property will be tagged with a 
certification tag authorizing release for transfer or sale. 
Contaminated personal property will be referred back to the program 
office for appropriate action.


Sec. 109-43.307-2.51  Holding hazardous personal property.

    Excess or surplus hazardous personal property shall not be 
commingled with non-hazardous personal property while waiting 
disposition action.


Sec. 109-43.307-3  Conditional gifts for defense purposes.

    The Director, Office of Administrative Services and heads of field 
organizations shall take appropriate action as required when 
conditional gifts are offered.


Sec. 109-43.307-4  Conditional gifts to reduce the public debt.

    The Director, Office of Administrative Services and heads of field 
organizations shall take appropriate action as required when 
conditional gifts are offered.


Sec. 109-43.307-50  Export controlled personal property.

    (a) When personal property that is subject to export controls is 
being exported directly by DOE (e.g., a transfer of nuclear equipment 
or materials as part of a program of cooperation with another country), 
DOE or the DOE contractor must obtain the necessary export license.
    (b) When personal property subject to export controls is 
transferred under work-for-others agreements, co-operative agreements, 
or technical programs, the recipients will be informed in writing that:
    (1) The property is subject to export controls;
    (2) They are responsible for obtaining export licenses or 
authorizations prior to transferring or moving the property to another 
country; and
    (3) They are required to pass on export control guidance if they 
transfer the property to another domestic or foreign recipient.


Sec. 109-43.307-51  Classified personal 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, as determined by the cognizant program 
office, prior to any disposition action. The cognizant program office 
shall certify that appropriate action has been taken to declassify the 
personal property as required. Declassification shall be accomplished 
in a manner which will preserve, so far as practicable, any civilian 
utility or commercial value of the personal property.

[[Page 19642]]

Sec. 109-43.307-52  Nuclear-related or proliferation-sensitive personal 
property.

    (a) Recognizing that property disposal officials will not have the 
technical knowledge to identify nuclear-related and proliferation-
sensitive personal property, all such personal property shall be 
physically tagged with a certification signed by an authorized program 
official at time of determination by the program office of the personal 
property as excess. Such an authorized official should be designated in 
writing with signature cards on file in the property office.
    (b) Nuclear-related and proliferation-sensitive personal property 
which is excess to DOE needs shall be stripped of all characteristics 
which cause it to be nuclear-related or proliferation-sensitive 
personal property, as determined by the cognizant program office, prior 
to disposal. The cognizant program office shall certify that 
appropriate actions have been taken to strip the personal property as 
required, or shall provide the property disposal office with adequate 
instructions for stripping the items. Such action shall be accomplished 
in a manner which will preserve, so far as practicable, any civilian 
utility or commercial value of the personal property.


Sec. 109-43.307-53  Automatic data processing equipment (ADPE).

    All ADPE shall be sanitized before being transferred into excess to 
ensure that all data, information, and software has been removed from 
the equipment. Designated computer support personnel must indicate that 
the equipment has been sanitized by attaching a certification tag to 
the item. Sanitized ADPE will be utilized and disposed in accordance 
with the provisions of the FPMR.


Sec. 109-43.307-54  Unsafe personal property.

    Personal property that is considered defective or unsafe must be 
mutilated prior to shipment for disposal.


Sec. 109-43.312  Use of excess personal property on cost-reimbursement 
contracts.

    (a) [Reserved]
    (b) It is DOE policy for designated contractors to use Government 
excess personal property to the maximum extent possible to reduce 
contract costs. However, the determination required in 41 CFR 101-
43.312(b) does not apply to such contracts, and a DOE official is not 
required to execute transfer orders for authorized designated 
contractors. The procedures prescribed in 41 CFR 101-43.309-5 for 
execution of transfer orders apply.


Sec. 109-43.313  Use of excess personal property on cooperative 
agreements.

    (a)--(c) [Reserved].
    (d) Heads of field organizations shall ensure that required records 
are maintained in a current status.


Sec. 109-43.314  Use of excess personal property on grants.

    (a)-(e) [Reserved]
    (f) Heads of field organizations shall ensure that the records 
required by 41 CFR 101-43.314(f) are maintained.


Sec. 109-43.315  Certification of non-Federal agency screeners.

    (a)-(c) [Reserved]
    (d) 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. 109-43.502  Holding agency responsibilities.

    (a) [Reserved]
    (b) Property which remains excess after utilization screening 
within the general foreign geographical area where the property is 
located shall be reported to the accountable field office or 
Headquarters program organization for consideration for return to the 
United States for further DOE or other Federal utilization. The 
decision to return property will be based on such factors as 
acquisition cost, residual value, condition, usefulness, and cost of 
transportation.

Subpart 109-43.47--Reports


Sec. 109-43.4701  Performance reports.

    (a) and (b) [Reserved]
    (c) The annual report of personal property furnished (e.g., 
transfers, gifts, loans, leases, license agreements, and sales) to non-
Federal recipients, including elementary and secondary schools, is 
furnished to GSA by the DPMO. Feeder reports, using the format 
illustrated below, shall be submitted to the DPMO by November 15 of 
each year.
    (1) Field office feeder reports shall include the following:
    (i) Data for all excess personal property obtained from other 
Federal agencies and furnished to any DOE offsite or designated 
contractor or financial assistance recipient;
    (ii) Data for all DOE personal property no longer needed by a DOE 
direct operation and subsequently furnished to any DOE offsite or 
designated contractor or financial assistance recipient.
    (iii) Data for all personal property furnished to elementary and 
secondary schools and non-profit organizations under initiatives to 
support science and mathematics education.
    (2) Field office feeder reports shall not include data for 
contractor inventory which is declared excess and subsequently 
redistributed through REAPS (or other means within DOE) to other DOE 
contractors or designated contractors' subcontractors.
    (3) The feeder report from the Office of Science Education 
Programs, using the following format, will include data for all 
personal property furnished to non-federal recipients and institutions 
of higher learning under the ERLE Grant Program.

----------------------------------------------------------------------------------------------------------------
                                                                    Original cost of       Digit federal supply 
    Name and address of recipient         Recipient's status            property           classification group 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

Subpart 109-43.50--Utilization of Personal Property Held for 
Facilities in Standby


Sec. 109-43.5000  Scope of subpart.

    This subpart supplements 41 CFR 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. 109-43.5001  Definition.

    Facility in standby means a complete plant or section of a plant, 
which is neither in service or declared excess.


Sec. 109-43.5002  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 start-up 
criteria; periodic reviews (no less than biennially) to determine need 
for continued retention of property; and special reviews when a change 
in start-up time is made or when circumstances warrant. Such procedures 
should recognize that:
    (a) 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 on-site or be disposed of as excess.

[[Page 19643]]

PART 109-44--DONATION OF PERSONAL PROPERTY

Subpart 109-44.7--Donations of Property to Public Bodies

Sec.
109-44.701  Findings justifying donation to public bodies.
109-44.702  Donations to public bodies.
109-44.702-3  Hazardous materials.

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

Subpart 109-44.7--Donations of Property to Public Bodies


Sec. 109-44.701  Findings justifying donation to public bodies.

    The Director, Office of Administrative Services and heads of field 
organizations shall appoint officials to make required findings and 
reviews.


Sec. 109-44.702  Donations to public bodies.


Sec. 109-44.702-3  Hazardous materials.

    The Director, Office of Administrative Services and heads of field 
organizations shall be responsible for the safeguards, notifications, 
and certifications required by 41 CFR part 101-42 and part 109-42 of 
this chapter, as well as compliance with all other requirements 
therein.

PART 109-45--SALE, ABANDONMENT, OR DESTRUCTION OF PERSONAL PROPERTY

Subpart 109-45.1--General

Sec.
109-45.105  Exclusions and exemptions.
109-45.105-3  Exemptions.

Subpart 109-45.3--Sale of Personal Property

109-45.300-50  Sales by designated contractors.
109-45.301-51  Export/import clause.
109-45.302  Sale to Government employees.
109-45.302-50  Sales to DOE employees and designated contractor 
employees.
109-45.303  Reporting property for sale.
109-45.303-3  Delivery.
109-45.304  Sales methods and procedures.
109-45.304-2  Negotiated sales and negotiated sales at fixed prices.
109-45.304-2.50  Negotiated sales and negotiated sales at fixed 
prices by designated contractors.
109-45.304-6  Reviewing authority.
109-45.304-50  Processing bids and awarding of contracts.
109-45.304-51  Documentation.
109-45.309  Special classes of property.
109-45.309-2.50  Hazardous property.
109-45.309-51  Export controlled property.
109-45.309-52  Classified property.
109-45.309-53  Nuclear-related or proliferation-sensitive property.
109-45.309-54  Automatic Data Processing Equipment (ADPE).
109-45.310  Antitrust laws.
109-45.317  Noncollusive bids and proposals.

Subpart 109-45.6--Debarred, Suspended, and Ineligible Contractors

109-45.601  Policy.
109-45.602  Listing debarred or suspended contractors.

Subpart 109-45.9--Abandonment or Destruction of Personal Property

109-45.901  Authority to abandon or destroy.
109-45.902  Findings justifying abandonment or destruction.
109-45.902-2  Abandonment or destruction without notice.

Subpart 109-45.10--Recovery of Precious Metals

109-45.1002  Agency responsibilities.
109-45.1002-3  Precious metals recovery program monitor.
109-45.1003  Recovery of silver from precious metals bearing 
materials.
109-45.1004  Recovery and use of precious metals through the DOD 
Precious Metals Recovery Program.

Subpart 109-45.47--Reports

109-45.4702  Negotiated sales reports.

Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
Contaminated Personal Property

109-45.5005  Disposal.
109-45.5005-1  General.

Subpart 109-45.51--Disposal of Excess and Surplus 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  Disposal.
109-45.5104-1  General.
109-45.5104-2  Methods of disposal.
109-45.5105  Reports.

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

Subpart 109-45.1--General


Sec. 109-45.105  Exclusions and exemptions.


Sec. 109-45.105-3  Exemptions.

    GSA, by letter dated May 28, 1965, exempted contractor inventory 
held by DOE designated contractors from the GSA conducted sales 
provisions of 41 CFR 101-45.

Subpart 109-45.3--Sale of Personal Property


Sec. 109-45.300-50  Sales by designated contractors.

    Sales of surplus contractor inventory will be conducted by 
designated contractors when heads of field organizations determine that 
it is in the best interest of the Government. OPMOs and appropriate 
program officials shall perform sufficient oversight over these sales 
to ensure that personal property requiring special handling or program 
office certification is sold in accordance with regulatory 
requirements.


Sec. 109-45.301-51  Export/import clause.

    The following clause shall be included in all sales invitations for 
bid:

    Personal property purchased from the U.S. Government may or may 
not be authorized for export/import from/into the country where the 
personal property is located. If export/import is allowed, the 
purchaser is solely responsible for obtaining required clearances or 
approvals. The purchaser also is required to pass on DOE's export 
control guidance if the property is resold or otherwise disposed.


Sec. 109-45.302  Sale to Government employees.


Sec. 109-45.302-50  Sales to DOE employees and designated contractor 
employees.

    (a) DOE employees and employees of designated contractors shall be 
given the same opportunity to acquire Government personal property as 
is given to the general public, provided the employees warrant in 
writing prior to award that they have not either directly or 
indirectly:
    (1) Obtained information not otherwise available to the general 
public regarding usage, condition, quality, or value of the personal 
property, or
    (2) Participated in:
    (i) The determination to dispose of the personal property;
    (ii) The preparation of the personal property for sale; and
    (iii) Determining the method of sale.
    (b) Excess or otherwise unusable special, fitted clothing and other 
articles of personal property, acquired for the exclusive use of an 
individual employee, may be sold to the employee for the best price 
obtainable when the property is no longer required by the holding 
organization or the employee is terminated.


Sec. 109-45.303  Reporting property for sale.


Sec. 109-45.303-3  Delivery.

    (a)-(b) [Reserved].
    (c) Guidelines for signature authorization and control of blank 
copies of Standard Form 97, United States Government Certificate to 
Obtain Title to a Vehicle are contained in subpart 109-38.7 of this 
chapter.


Sec. 109-45.304  Sales methods and procedures.


Sec. 109-45.304-2  Negotiated sales and negotiated sales at fixed 
prices.

    (a)(1) [Reserved].
    (2) The head of each field organization shall designate a 
responsible person to approve

[[Page 19644]]

negotiated sales by DOE direct operations.
    (3) Requests for prior approval of negotiated sales by DOE direct 
operations shall be submitted with justification to the OPMO for review 
and forwarding to GSA for approval.
    (b) [Reserved]


Sec. 109-45.304-2.50  Negotiated sales and negotiated sales at fixed 
prices by designated contractors.

    (a) Negotiated sales by designated contractors of surplus 
contractor inventory may be made when the DOE contracting officer 
determines and documents prior to the sale that the use of this method 
of sale is justified on the basis of the circumstances enumerated 
below, provided that the Government's interests are adequately 
protected. These sales shall be at prices which are fair and reasonable 
and not less than the proceeds which could reasonably be expected to be 
obtained if the personal property was offered for competitive sale. 
Specific conditions justifying negotiated sales include:
    (1) No acceptable bids have been received as a result of 
competitive bidding under a suitable advertised sale;
    (2) Personal 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 a state, territory, possession, 
political subdivision thereof, or tax-supported agency therein, and the 
estimated fair market value of the personal property and other 
satisfactory terms of disposal are obtained by negotiation;
    (4) The specialized nature and limited use potential of the 
personal property would create negligible bidder interest;
    (5) Removal of the personal 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) When determined to be in the best interests of the Government, 
heads of field organizations may authorize fixed-price sales of surplus 
contractor inventory by designated contractors provided:
    (1) The fair market value of the item to be sold does not exceed 
$15,000;
    (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 methods were employed and the prices have been 
approved by a reviewing authority designated by the head of the field 
organization; and
    (4) The warranty prescribed in Sec. 109-45.302-50(a) of this 
subpart is obtained when sales are made to employees.


Sec. 109-45.304-6  Reviewing authority.

    The reviewing authority may consist of one or more persons 
designated by the head of the field organization.


Sec. 109-45.304-50  Processing bids and awarding of contracts.

    The procedures established in 48 CFR 14.4 and 48 CFR 914.4 shall be 
made applicable to the execution, receipt, safeguarding, opening, 
abstraction, 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.


Sec. 109-45.304-51  Documentation.

    Files pertaining to surplus property sales shall contain copies of 
all documents necessary to provide a complete record of the sales 
transactions and shall include the following as appropriate:
    (a) A copy of the request/invitation for bids if a written request/ 
invitation for bids is employed. A list of items or lots sold, 
indicating acquisition cost, upset price and sales price indicated.
    (b) A copy of the advertising literature distributed to prospective 
bidders.
    (c) A list of prospective bidders solicited.
    (d) An abstract of bids received.
    (e) Copies of bids received, including Standard Form 119, 
Contractor's Statement of Contingent or Other Fees, together with other 
relevant information.
    (f) A statement concerning the basis for determination that 
proceeds constitute a reasonable return for property sold.
    (g) When appropriate, full and adequate justification for not 
advertising the sale when the fair market value of property sold in 
this manner in any one case exceeds $1,000.
    (h) A justification concerning any award made to other than the 
high bidder.
    (i) The approval of the reviewing authority when required.
    (j) A copy of the notice of award.
    (k) All related correspondence.
    (l) In the case of auction or spot bid sales, the following 
additional information should be included:
    (1) A summary listing of the advertising used (e.g., newspapers, 
radio, television, and public postings).
    (2) The names of the prospective bidders who attended the sale.
    (3) A copy of any pertinent contract for auctioneering services and 
related documents.
    (4) A reference to files containing record of deposits and 
payments.


Sec. 109-45.309  Special classes of property.


Sec. 109-45.309-2.50  Hazardous property.

    Hazardous property shall be made available for sale only after the 
review and certification requirements of Sec. 109-43.307-2.50 of this 
subpart have been met.


Sec. 109-45.309-51  Export controlled property.

    Export controlled property shall be made available for sale only 
after the export license requirements of Sec. 109-43.307-50 of this 
subpart have been met.


Sec. 109-45.309-52  Classified property.

    Classified property shall be made available for sale only after the 
declassification requirements of Sec. 109-43.307-51 of this subpart 
have been met.


Sec. 109-45.309-53  Nuclear-related or proliferation sensitive 
property.

    Nuclear-related or proliferation-sensitive property shall be made 
available for sale only after the stripping and certification 
requirements of Sec. 109-43.307-52 of this subpart have been met.


Sec. 109-45.309-54  Automatic Data Processing Equipment (ADPE).

    ADPE shall be made available for sale only after the sanitizing and 
certification requirements of Sec. 109-43.307-53 of this subpart have 
been met.


Sec. 109-45.310  Antitrust laws.

    DOE offices shall submit to the Deputy Assistant Secretary for 
Procurement and Assistance Management any request for a proposed sale 
of a patent, process, technique, or invention, regardless of cost; or 
of surplus personal property with a fair market value of $3,000,000 or 
more.


Sec. 109-45.317  Noncollusive bids and proposals.

    (a) [Reserved]
    (b) The head of the field organization shall make the determination 
required in 41 CFR 101-45.317(b). This authority cannot be redelegated.

Subpart 109-45.6--Debarred, Suspended, and Ineligible Contractors


Sec. 109-45.601  Policy.

    (a)-(b) [Reserved]
    (c) The Director, Office of Administrative Services and heads of

[[Page 19645]]

field organization shall make the compelling reason determination when 
entering into a contract for the purchase of surplus Government 
personal property by a debarred or suspended contractor.
    (d) The Deputy Assistant Secretary for Procurement and Assistance 
Management shall make the determination for simultaneously debarring 
and suspending a contractor from the purchase of surplus Federal 
personal property and the award of sales contracts.


Sec. 109-45.602  Listing debarred or suspended contractors.

    (a) [Reserved]
    (b) The Director, Office of Administrative Services and heads of 
field organizations shall establish procedures to ensure that listed 
contractors are not awarded contracts.

Subpart 109-45.9--Abandonment or Destruction of Personal Property


Sec. 109-45.901  Authority to abandon or destroy.

    Personal property in the possession of DOE offices or designated 
contractors may be abandoned or destroyed provided that a written 
determination has been made by the OPMO that property has no commercial 
value or the estimated cost of its continued care and handling would 
exceed the estimated proceeds from its sale.


Sec. 109-45.902  Findings justifying abandonment or destruction.


Sec. 109-45.902-2  Abandonment or destruction without notice.

    The head of the field organization shall designate an official to 
make the findings justifying abandonment or destruction without public 
notice of personal property. The OPMO shall review and coordinate on 
the findings.

Subpart 109-45.10--Recovery of Precious Metals


Sec. 109-45.1002  Agency responsibilities.

    The Director, Office of Administrative Services and heads of field 
organizations are responsible for establishing a program for the 
recovery of precious metals.


Sec. 109-45.1002-3  Precious metals recovery program monitor.

    The DPMO shall be the precious metals recovery program monitor.


Sec. 109-45.1003  Recovery of silver from precious metals bearing 
materials.

    The Director, Office of Administrative Services and heads of field 
organizations are responsible for the establishment and maintenance of 
a program for silver recovery from used hypo solution and scrap film.


Sec. 109-45.1004  Recovery and use of precious metals through the DOD 
Precious Metals Recovery Program.

    DOE operates its own precious metals pool and therefore does not 
participate in the DOD Precious Metals Recovery Program. See Sec. 109-
27.5106 of this chapter for guidance on operation of the DOE precious 
metals pool.

Subpart 109-45.47--Reports


Sec. 109-45.4702  Negotiated sales reports.

    The report of negotiated sales shall be submitted by DOE offices to 
the DPMO by November 15 of each year for furnishing to GSA.

Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
Contaminated Personal Property


Sec. 109-45.5005  Disposal.


Sec. 109-45.5005-1  General.

    (a) Nuclear-related, proliferation-sensitive, low level 
contaminated property, and classified personal property shall not be 
transferred, sold, exchanged, leased, donated, abandoned, or destroyed 
without approval of the cognizant program office. Disposal of this 
personal property is subject to the restrictions contained in 
applicable sections of part 109-42 and Secs. 109-43.307-50, 109-43.307-
51, and 109-43.307-52 of this chapter, and applicable sections of 41 
CFR part 101-42.
    (b) Personal property that is considered defective or unsafe must 
be mutilated prior to shipment for disposal.

Subpart 109-45.51--Disposal of Excess and Surplus 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 40 USC 471, Federal Property and 
Administrative Services Act of 1949, as amended. Title IV of the Act 
entitled ``Foreign Excess Property'' provides that, except where 
commitments exist under previous agreements, all excess personal 
property located in foreign areas shall be disposed of by the owning 
agency, and directs that the head of the agency conform to the foreign 
policy of the United States in making such disposals.


Sec. 109-45.5102  General.

    Disposal of Government-owned personal property in the custody of 
DOE organizations or its contractors in foreign areas 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:
    Foreign means outside the United States, Puerto Rico, American 
Samoa, Guam, the Trust Territory of the Pacific Islands, and the Virgin 
Islands.
    Foreign service post means the local diplomatic or consular post in 
the area where the excess personal property is located.


Sec. 109-45.5104  Disposal.


Sec. 109-45.5104-1  General.

    Foreign excess personal property which is not required for transfer 
within DOE or to other U.S. Government agencies, except for the 
personal property identified in Sec. 109-45.5005-1(a) of this part, 
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 personal 
property may also be donated, abandoned, or destroyed under the 
conditions specified in Sec. 109-45.5105-2(c) of this subpart. Most 
foreign governments have indicated to the U.S. 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 issues. 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, DC. If the issue is to be presented to the State 
Department in Washington, DC, it shall be referred through appropriate 
administrative channels to the Deputy Assistant Secretary for 
Procurement and Assistance Management for review, coordination, and 
handling.

[[Page 19646]]

Sec. 109-45.5104-2  Methods of disposal.

    (a) Sales of foreign surplus personal property shall be conducted 
in accordance with the following guidelines:
    (1) Generally, all sales of foreign surplus personal 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 personal 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 (in 
the case of any agricultural commodity, food, cotton, or woolen goods), 
or the U.S. Secretary of Commerce (in the case of any other property), 
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 personal 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 personal 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 receipts prior to 
the release of the personal 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 personal property, including small arms 
and machine guns; artillery and projectiles; ammunition, bombs, 
torpedoes, rockets and guided missiles; fire control equipment and 
range finders; tanks and ordnance vehicles; chemical and biological 
agents, propellants 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 included in the 
United States Munitions List, 22 CFR 121.01, and is subject to disposal 
restrictions. 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 personal property which has a total 
acquisition cost of $250,000 or more, plans for such sale shall be 
reported to the DPMO with ample time to allow consideration of possible 
foreign policy issues and advice thereon from the State Department (see 
section 109-45.5106(a) of this subpart). All proposed sales, regardless 
of the total acquisition cost of the personal property involved, which 
the head of the DOE foreign office believes might have a significant 
economic or political impact in a particular area, shall be discussed 
with the foreign service post.
    (b) While there is authority for exchange or lease of foreign 
surplus personal 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) of this subpart.
    (c)(1) Foreign excess or surplus personal property (including 
salvage and scrap) may be donated, abandoned, or destroyed provided:
    (i) The property has no commercial value or the estimated cost of 
its care and handling would exceed the estimated proceeds from its 
sale; and
    (ii) A written finding to that effect is made and approved by the 
Deputy Assistant Secretary for International Energy Policy, Trade and 
Investment.
    (2) No personal 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.
    (3) Foreign excess personal 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 these means and approval by the Deputy 
Assistant Secretary for International Energy Policy, Trade and 
Investment is required.
    (4) 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.


Sec. 109-45.5105  Reports.

    (a) Proposed sales of foreign surplus personal property having an 
acquisition cost of $250,000 or more shall be reported to the DPMO and 
should include all pertinent data, including the following:
    (1) The description of personal property to be sold, including:
    (i) Identification of personal property (description should be in 
terms understandable to persons not expert in technical nomenclature). 
Personal property covered by the U.S. Munitions List and regulations 
pertaining thereto (as published in 22 CFR 121.01) should be clearly 
identified;
    (ii) Quantity;
    (iii) Condition; and
    (iv) Acquisition cost.
    (2) The proposed method of sale (e.g., sealed 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 the proposed 
sale).
    (4) Any restrictions on use of personal property to be sold (such 
as resale of property, disposal as scrap, demilitarization, etc.).
    (5) Any special terms or conditions of sale.
    (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 DOE Order 534.1, 
Accounting.

PART 109-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT 
TO EXCHANGE/SALE AUTHORITY

Sec.
109-46.000  Scope of part.
109-46.000-50  Applicability.

Subpart 109-46.2--Authorization

109-46.202  Restrictions and limitations.
109-46.203  Special authorizations.

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


Sec. 109-46.000  Scope of part.


Sec. 109-46.000-50  Applicability.

    (a) Except as set forth in paragraphs (a)(1)-(a)(5), the 
requirements of FPMR Part 101-46 and this part are not

[[Page 19647]]

applicable to designated contractors. Designated contractors shall 
comply with the following FPMR requirements:
    (1) 101-46.200
    (2) 101-46.201-1
    (3) 101-46.202(b)(2), (3), (4), (5), (6), and (7)
    (4) 101-46.202(c)(1), (2), (4), (5), (6), (7), (10), (11), and (12)
    (5) 101-46.202(d)
    (b) Items in the following Federal Supply Classification Groups 
(FSCG) are not eligible for processing under the exchange/sale 
provision. Requests for waivers must be processed through the DPMO to 
GSA.

Description

FSCG
10  Weapons
11  Nuclear ordnance
12  Fire control equipment
14  Guided missiles
15  Aircraft and airframe structural components (except FSC Class 
1560, Airframe structural components)
20  Ship and marine equipment
22  Railway equipment
41  Firefighting, rescue, and safety equipment

Subpart 109-46.2--Authorization


Sec. 109-46.202  Restrictions and limitations.

    (a), (b), (c)(1)-(c)(9) [Reserved]
    (c)(10) The Director, Office of Administrative Services and heads 
of field organizations for their respective organizations shall 
designate an official to make the certification that a continuing valid 
requirement exists for excess personal property acquired and placed in 
official use for less than one year but no longer required and is to be 
disposed of under the exchange/sale provisions.
    (c)(11) [Reserved]
    (c)(12) Heads of field organizations shall make the determination 
concerning demilitarization of combat material.


Sec. 109-46.203  Special authorizations.

    (a) [Reserved]
    (b) The Director, Office of Administrative Services and heads of 
field organizations for their respective organizations shall designate 
an official to make the certification concerning the exchange of 
historic items for historical preservation or display.

PART 109-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND 
FORFEITED PERSONAL PROPERTY

Sec.
109-48.000  Scope of part.
109-48.000-50  Applicability.

Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
Property

109-48.101  Forfeited or voluntarily abandoned property.
109-48.101-6  Transfer to other Federal agencies.

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


Sec. 109-48.000  Scope of part.


Sec. 109-48.000-50  Applicability.

    This part is applicable to contractor operations where the 
abandoned or forfeited personal property is found on premises owned or 
leased by the Government that are managed and operated by designated 
contractors.

Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
Property


Sec. 109-48.101  Forfeited or voluntarily abandoned property.


Sec. 109-48.101-6  Transfer to other Federal agencies.

    (a)-(e) [Reserved]
    (d) Transfer orders for forfeited or voluntarily abandoned 
distilled spirits, wine, and malt beverages for medicinal, scientific, 
or mechanical purposes or any other official purposes for which 
appropriated funds may be expended by a Government agency shall be 
forwarded through normal administrative channels for signature by the 
DPMO and for subsequent forwarding to GSA for release.
    (f) Transfer orders for reportable forfeited drug paraphernalia 
shall be forwarded through normal administrative channels for signature 
by the DPMO and for subsequent forwarding to GSA for approval.

PART 109-50--SPECIAL DOE DISPOSAL AUTHORITIES

Sec.
109-50.000  Scope of part.
109-50.001  Applicability.

Subpart 109-50.1--Used Energy-Related Laboratory Equipment Grant 
Program

109-50.100  Scope of subpart.
109-50.101  Applicability.
109-50.102  General.
109-50.103  Definitions.
109-50.104  Equipment which may be granted.
109-50.105  Equipment which may not be granted.
109-50.106  Procedure.
109-50.107  Reporting.

Subpart 109-50.2--Math and Science Equipment Gift Program

109-50.200  Scope of subpart.
109-50.201  Applicability.
109-50.202  Definitions.
109-50.203  Eligible equipment.
109-50.204  Limitations.
109-50.205  Procedure.
109-50.206  Reporting.

Subpart 109-50.3--[Reserved]

Subpart 109-50.4--Programmatic Disposal to Contractors of DOE Property 
in a Mixed Facility

109-50.400  Scope of subpart.
109-50.401  Definitions.
109-50.402  Submission of proposals.
109-50.403  Need to establish DOE program benefit.

Subpart 109-50.48--Exhibits

109-50.4800  Scope of subpart.
109-50.4801  Equipment Gift Agreement.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254); sec. 31, Atomic Energy Act, as amended; Energy Reorganization 
Act of 1974, secs. 103 and 107; Title III, Department of Energy 
Organization Act; E.O. 12999; sec. 3710(i), Stevenson-Wydler 
Technology Innovation Act, as amended (15 U.S.C. 3710(i)); Pub. L. 
101-510, Department of Energy Science Education Enhancement Act; 
Pub. L. 102-245, American Technologies Preeminence Act of 1991 (15 
U.S.C. 3701); Office of Energy Research Financial Assistance 
Regulations (10 CFR part 605).


Sec. 109-50.000  Scope of part.

    This part provides guidance on the policies, practices, and 
procedures for the disposal of DOE property under special legislative 
authorities.


Sec. 109-50.001  Applicability.

    The provisions of this part apply to direct DOE operations and to 
designated contractors only when specifically provided for in the 
appropriate subpart.

Subpart 109-50.1--Used Energy-Related Laboratory Equipment Grant 
Program


Sec. 109-50.100  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. 109-50.101  Applicability.

    This subpart is applicable to DOE offices and designated 
contractors.


Sec. 109-50.102  General.

    DOE, to encourage research and development in the field of energy, 
awards grants of excess energy-related laboratory equipment to eligible 
institutions for use in energy-oriented educational programs. Under the 
Used Energy-Related Laboratory Equipment (ERLE) Grant Program, grants 
of used energy-related equipment excess to the requirements of DOE 
offices and designated contractors may be made to eligible institutions 
prior to reporting the equipment to GSA for reutilization screening.

[[Page 19648]]

Sec. 109-50.103  Definitions.

    As used in this subpart the following definitions apply: Book value 
means acquisition cost less depreciation. DOE Financial Assistance 
Rules (10 CFR part 600) means the DOE regulation which establishes a 
uniform administrative system for application, award, and 
administration of assistance awards, including grants and cooperative 
agreements.
    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 
education programs.
    Energy-oriented education program means one that deals partially or 
entirely in energy or energy-related topics.


Sec. 109-50.104  Equipment which may be granted.

    Generally, equipment items classified in FSCG 66, Instruments and 
Laboratory Equipment, are eligible for granting under this program. 
Other selected items designated by the Office of Laboratory Policy and 
Infrastructure Management and approved by the DPMO, are made available 
under the program.


Sec. 109-50.105  Equipment which may not be granted.

    Equipment which will not be granted include:
    (a) Any equipment determined to be required by DOE direct 
operations or DOE designated contractors; or
    (b) General supplies, such as Bunsen burners, hoods, work benches; 
office equipment and supplies; furniture; drafting supplies; 
refrigerators; tools; presses; lathes; furnaces; hydraulic and 
mechanical jacks; cranes; and hoists.


Sec. 109-50.106  Procedure.

    (a) After DOE utilization screening through REAPS, items eligible 
for ERLE grants are extracted from the REAPS system and provided to the 
Office of Energy Research by electronic means.
    (b) The Office of Energy Research provides this information to 
prospective grantees through an automated system.
    (c) The following periods have been established during which time 
equipment will remain available to this program prior to reporting it 
to GSA for reutilization by other Federal agencies:
    (1) Thirty days from the date DOE utilization screening is 
completed to permit suitable time for eligible institutions to review 
and earmark the desired equipment.
    (2) An additional thirty 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.
    (d) Upon approval of the proposal, a grant will be issued to the 
institution upon completion.
    (e) A copy of the completed grant, shall be used to transfer title 
and drop accountability of the granted equipment from the financial 
records.
    (f) The cost of care and handling of personal 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. 109-50.107  Reporting.

    (a) Gifts made under this program shall be included in the annual 
report of property transferred to non-Federal recipients, as required 
by 41 CFR 101-43.4701(c) and 109-43.4701(c).
    (b) A copy of each equipment agreement shall be forwarded to the 
Director, Office of Laboratory Policy and Infrastructure Management.

Subpart 109-50.2--Math and Science Equipment Gift Program


Sec. 109-50.200  Scope of subpart.

    This subpart provides guidance on providing gifts of excess and/or 
surplus education related and Federal research equipment to elementary 
and secondary educational institutions or nonprofit organizations for 
the purpose of improving math and science curricula or conducting of 
technical and scientific education and research activities.


Sec. 109-50.201  Applicability.

    The provisions of this subpart are applicable to DOE offices and 
designated contractors.


Sec. 109-50.202  Definitions.

    As used in this subpart the following definitions apply:
    DOE Field Organizations means the DOE Federal management 
activities, including Operations Offices, Field Offices, Area Offices, 
Site Offices, Energy Technology Centers, and Project Offices staffed by 
Federal employees.
    Education-related and Federal research equipment includes but is 
not limited to DOE-owned property in FSCG 34, 36, 41, 52, 60, 61, 66, 
67, 70, and 74 (See 41 CFR 101-43.4801(d)), and other related 
equipment, which is deemed appropriate for use in improving math and 
science curricula or activities for elementary and secondary school 
education, or for the conduct of technical and scientific education and 
research activities.
    Eligible recipient means local elementary and secondary schools and 
nonprofit organizations.
    Elementary and secondary schools means individual public or private 
educational institutions encompassing kindergarten through twelfth 
grade, as well as public school districts.
    Facilities under DOE Field Organization cognizance means national 
laboratories, production plants, and project sites managed and operated 
by DOE contractors or subcontractors.


Sec. 109-50.203  Eligible Equipment.

    (a) Education-related and research equipment will include, but is 
not limited to the following FSCGs:

FSCG and Description

34 Metalworking Machinery.
36 Special Industry Machinery.
41 Refrigeration, Air Conditioning and Air Circulating Equipment.
52 Measuring Tools
60 Fiber Optics Materials, Components, Assemblies and Accessories.
61 Electric Wire, and Power and Distribution Equipment.
66 Instruments and Laboratory Equipment.
67 Photographic Equipment.
70 General Purpose Automatic Data Processing Equipment (Including 
Firmware), Software, Supplies and Support Equipment
74 Office Machines, Text Processing Systems and Visible Record 
Equipment.

    (b) Other related equipment may be provided if deemed appropriate 
and approved by the Director, Office of Laboratory Policy and 
Infrastructure Management.


Sec. 109-50.204  Limitations.

    (a) Excess and/or surplus education-related and Federal research 
equipment at DOE Field Organizations and cognizant facilities is 
eligible for transfer as a gift under this program. However, safety, 
environmental, and health matters must be considered.
    (b) Title to the equipment will transfer upon the recipient's 
written acknowledgement of receipt.
    (c) The Director, Office of Laboratory Policy and Infrastructure 
Management may authorize gifts of excess and/or surplus education-
related and Federal research equipment by signature on the appropriate 
gift instrument where the book value of an item of equipment exceeds 
$25,000 or the cumulative book value of the gifts under this program to 
any one institution exceeds $25,000.

[[Page 19649]]

HCA or designee may authorize gifts of excess and/or surplus education-
related and Federal research equipment of lesser individual and 
cumulative book value by signature on the appropriate gift instrument. 
Delegations by the HCA to authorize gifts of excess and/or surplus 
education related and Federal research equipment shall be in writing to 
a specific individual, for a specified period of time, and for a 
specified (or unlimited) level of authority.
    (d) Gifts shall be serviceable and in working order. Disposal 
Condition Codes 1 and 4, as defined in 41 CFR 101-43.4801(e), meet this 
criteria. Serviceability of equipment should be verified before the 
gift is made to the eligible recipient.


Sec. 109-50.205  Procedure.

    (a) The DOE facility will set aside an appropriate amount of excess 
and/or surplus education-related and Federal research equipment for 
transfer under this program.
    (b) A list of available education-related and Federal research 
equipment will be prepared and distributed to eligible recipients and 
the chief State School Board Officer.
    (c) Precollege institutions with partnership arrangements with the 
DOE or its facilities (e.g., an adopted school) may receive gifts of 
equipment in support of the partnership.
    (d) Precollege institutions not in a partnership with DOE may 
receive equipment at the recommendation of the chief State School Board 
Officer. The Chief State School Board Officer will determine which 
schools within the state will receive which equipment. Consideration 
for placement of the equipment should be based on:
    (1) The elementary or secondary schools determined to have the 
greatest need; or
    (2) Recipients of federally funded math and science projects where 
the equipment would further enhance the progress of the project.
    (e) Eligible recipients will have 30 days to select and freeze, on 
a first come, first serve basis, the items desired and submit a request 
for selected items stating:
    (1) Why the gift is needed; and
    (2) How the gift will be used to improve math and science curricula 
or in the conduct of technical and scientific education and research 
activities.
    (f) The cost of shipping should be minimal and not more than the 
actual equipment value.
    (g) An Equipment Gift Agreement will be prepared and used to 
provide the gift to eligible recipients. The gift agreement will be in 
the format provided in section 109-50.4801 of this subchapter. The 
agreement shall be numbered for control purposes, and signed by the 
Director, Office of Laboratory Policy and Infrastructure Management or 
the HCA or designee, as appropriate, and an appropriate official 
representing the eligible recipient.


Sec. 109-50.206  Reporting.

    (a) Gifts made under this program shall be included in the annual 
report of property transferred to non-Federal recipients, as required 
by 41 CFR 101-43.4701(c) and Sec. 109-43.4701(c) of this chapter.
    (b) A copy of each equipment agreement shall be forwarded to the 
Director, Office of Laboratory Policy and Infrastructure Management.

Subpart 109-50.3--[Reserved]

Subpart 109-50.4--Programmatic Disposal to Contractors of DOE 
Property in a Mixed Facility


Sec. 109-50.400  Scope of subpart.

    This subpart contains policy 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;
    Contractor means the operator of the mixed facility.
    DOE property means DOE-owned personal property located in a mixed 
facility.
    Mixed facility means 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  Submission of proposals.

    Proposals involving programmatic disposals of DOE personal property 
located in mixed facilities to contractors operating that facility 
shall be forwarded through the appropriate program organization to the 
DPMO, for review and processing for approval. Each such request 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 description, condition, acquisition cost, and present use 
of the DOE personal property involved.
    (c) The programmatic benefits which could accrue 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 personal property (preferably by 
independent appraisers); and
    (e) The proposed terms and conditions of disposal including:
    (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  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 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 entry into the field.

Subpart 109-50.48--Exhibits


Sec. 109-50.4800  Scope of subpart.

    This subpart exhibits information referenced in the text of part 
109-50 of this chapter that is not suitable for inclusion elsewhere in 
that part.


Sec. 109-50.4801  Equipment Gift Agreement.

    (a) The following Equipment Gift Agreement format will be used to 
provide gifts of excess and/or surplus equipment to eligible recipients 
under the Math and Science Equipment Gift Program (see subpart 109-50.2 
of this chapter).

EQUIPMENT GIFT AGREEMENT

----------------------------------------------------------------------
(Reference Number)

Between The U.S. Department of Energy and

----------------------------------------------------------------------
(Name of Eligible Recipient)

I. Purpose

    The Department of Energy shall provide as a gift, excess and/or 
surplus education-related and Federal research equipment to (Name of 
Eligible Recipient), hereafter referred to as the Recipient, for the 
purpose

[[Page 19650]]

of improving the Recipient's math and science education curricula or 
for the Recipient's conduct of technical and scientific education 
and research activities.

II. Authority

    Federal agencies have been directed, to the maximum extent 
permitted by law, to give highest preference to elementary and 
secondary schools in the transfer or donation of education-related 
Federal equipment, at the lowest cost permitted by law. Furthermore, 
subsection 11(i) of the Stevenson Wydler Technology Innovation Act 
of 1980, as amended (15 U.S.C. 3710 (i)), authorizes the Director of 
a laboratory, or the head of any Federal agency or department to 
give excess research equipment to an educational institution or 
nonprofit organization for the conduct of technical and scientific 
education and research activities.

III. Agreement

    A. The Department of Energy agrees to provide the equipment 
identified in the attached equipment gift list, as a gift for the 
purpose of improving the Recipient's math and science curricula or 
for the Recipient's conduct of technical and scientific education 
and research activities.
    B. Title to the education-related and Federal research 
equipment, provided as a gift under this agreement, shall vest with 
the Recipient upon the Recipient's written acknowledgement of 
receipt of the equipment. The acknowledgement shall be provided to 
(Name of the DOE signatory) at (address).
    C. The Recipient will be responsible for any repair and 
modification costs to any equipment received under this gift.
    D. The Recipient hereby releases and agrees to hold the 
Government, the Department of Energy, or any person acting on behalf 
of the Department of Energy harmless, to the extent allowable by 
State law, for any and all liability of every kind and nature 
whatsoever resulting from the receipt, shipping, installation, 
operation, handling, use, and maintenance of the education-related 
and Federal Research equipment provided as a gift under this 
agreement.
    E. The Recipient agrees to use the gift provided herein for the 
primary purpose of improving the math and science curricula or for 
the conduct of technical and scientific education and research 
activities.
    F. The Recipient agrees to provide for the return of the 
equipment if such equipment, while still usable, has not been placed 
in use for its intended purpose within one year after receipt from 
the Department of Energy.

----------------------------------------------------------------------
(U.S. Department of Energy Office)

----------------------------------------------------------------------
(Name and Address of Recipient)

----------------------------------------------------------------------
(Signature of HCA or Designee)

----------------------------------------------------------------------
(Signature of Official)

----------------------------------------------------------------------
(Typed Name)

----------------------------------------------------------------------
(Typed Name)

----------------------------------------------------------------------
(Typed Title)

----------------------------------------------------------------------
(Typed Title)

----------------------------------------------------------------------
(Date)

(Date)

    (b) The list of gifts that accompanies the Equipment Gift 
Agreement shall contain the Gift Agreement reference number, name of 
the eligible recipient, and the name of the DOE office. In addition, 
the following information shall be provided for each line item 
provided as a gift: DOE ID number, description (name, manufacturer, 
model number, serial number, etc.), FSC code, quantity, location, 
acquisition date, and acquisition cost.

[FR Doc. 98-9659 Filed 4-17-98; 8:45 am]
BILLING CODE 6450-01-P