[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Rules and Regulations]
[Pages 57233-57236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28542]



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 Rules and Regulations
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  Federal Register / Vol. 63, No. 207 / Tuesday, October 27, 1998 / 
Rules and Regulations  

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DEPARTMENT OF AGRICULTURE

7 CFR Chapter XXXII

RIN 0500-AA00


Office of Procurement and Property Management; Uniform Procedures 
for the Acquisition and Transfer of Excess Personal Property

AGENCY: Office of Procurement and Property Management.

ACTION: Final rule.

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

SUMMARY: The final rule sets forth uniform procedures for the 
acquisition and transfer of excess personal property to the 1890 Land 
Grant Institutions (including Tuskegee University), the 1994 Land Grant 
Institutions and the Hispanic-Serving Institutions in support of 
research, educational, technical, and scientific activities or for 
related programs as authorized by section 923 of the Federal 
Agriculture Improvement and Reform Act (FAIR) of 1996 (Pub. L. 104-
127), 7 U.S.C. 2206a.

EFFECTIVE DATE: November 27, 1998.

FOR FURTHER INFORMATION CONTACT: Kathy Fay on 202-720-9779.

SUPPLEMENTARY INFORMATION:
I. Background
II. Analysis of comments
III. Procedural Requirements
    A. Executive Order Nos. 12866 and 12988.
    B. Regulatory Flexibility Act.
    C. Paperwork Reduction Act.
    D. Small Business Regulatory Enforcement Fairness Act.
IV Electronic Access Addresses

I. Background

    The proposed rule was published in the Federal Register on January 
23, 1998 (63 FR 3481). Three comments were received.

II. Analysis of comments

    The General Services Administration (GSA) requested that 
Accountable Utilization Officer be changed to Area Utilization Officer. 
GSA was unclear if the Department of Agriculture (USDA) would sign the 
Standard Form 122, Transfer Order Excess Personal Property as the 
approving office and forward the document to GSA for final approval. 
USDA will sign the SF-122 as the approving office and forward the 
document to GSA for final approval. GSA asked we note that where there 
are competing Federal requests for excess property, GSA gives a higher 
priority to those requests where title will be retained by the Federal 
Government. Changes have been made to section 3200.4 to clarify the 
rule and incorporate the GSA recommended addition. GSA also expressed 
concern about USDA's plan to conduct compliance checks. USDA intends to 
conduct scheduled compliance reviews on an annual basis to ensure that 
the property is being used for intended purposes, and has added 
additional language to section 3200.9 to so state.
    The State of South Dakota, Federal Property Agency requested that 
we not transfer title of excess personal property to the 1890 Land 
Grant Institutions, (including Tuskegee University), 1994 Land Grant 
Institutions and Hispanic-Serving Institutions. The State of South 
Dakota, Federal Property Agency expressed concern that the transfer of 
title would prevent further return of the property to Federal surplus 
when no longer needed by an eligible institution. This would deprive 
other State, local and nonprofit agencies of potential future use of 
the property. USDA believes that transferring title of excess personal 
property to institutions for the most part located in economically 
disadvantaged rural and urban areas will improve research, educational, 
technical, and scientific activities and related programs and build 
capacity on the respective campuses. The State of South Dakota, Federal 
Property Agency is concerned about usable excess personal property 
being requested for purposes of cannibalization. The State of South 
Dakota, Federal Property Agency suggests excess personal property 
should be screened first for use of the property for its intended 
purpose. USDA notes that eligible institutions are required to submit a 
supporting statement with each excess personal property request to 
cannibalize. The supporting statement must justify clearly the 
cannibalization, and indicate that cannibalizing the requested property 
for secondary use has a greater benefit than utilization of the item in 
its existing form. USDA has added a new subsection to 3200.6 to 
prohibit stockpiling of excess personal property, and note that 
requests for cannibalization normally are subordinate to requests for 
complete items.
    The National Association of State Agencies for Surplus Property 
(NASASP) opposed the proposed rule out of concern that the transfer of 
title would have a negative effect on the amount of property available 
for the Federal surplus property donation program. USDA believes 
targeting institutions located for the most part in areas that are 
economically disadvantaged will improve their capacity in the areas of 
research, educational, technical, and scientific activities.
    With respect to concern regarding accountability for the property 
and improper use for cannibalization purposes, USDA notes that eligible 
institutions violating the provisions of this part may face suspension 
and debarment under 7 CFR part 3017.
    Additional, non-substantive stylistic changes also have been made.

III. Procedural Requirements

A. Executive Order Nos. 12866 and 12988

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB). The proposed rule has been 
reviewed under Executive Order 12988, Civil Justice Reform. The 
proposed rule meets the applicable standards in section 3 of Executive 
Order 12988.

B. Regulatory Flexibility Act

    The Department of Agriculture certifies that this rule will not 
have a significant economic impact on a substantial number of small 
entities as defined in the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq. This certification is based on the fact that the regulation 
imposes no new requirements on small entities, and that any impact on 
the reduction of surplus property due to the transfer of title will be 
minimal because most property

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returned to USDA by the institutions for surplus in the past has been 
unusable.

C. Paperwork Reduction

    The information collection and record keeping requirements to 
implement these procedures have been cleared by the Office of 
Management and Budget (OMB), under 0505-0019, in accordance with the 
Paperwork Reduction Act., 44 U.S.C. 3500 et seq.

D. Small Business Regulatory Enforcement Fairness Act

    This rule has been submitted to each House of Congress and the 
Comptroller General in accordance with the Small Business Regulatory 
Enforcement Fairness Act of 1996, 5 U.S.C. 801, et seq.

IV. Electronic Access Addresses.

    You may send electronic mail (E-mail) to [email protected] or 
contact us via fax at (202) 720-3747.

List of Subjects in 7 CFR Part 3200

    Excess Government property, Government property, Government 
property management.

    For the reasons set forth in the preamble, the Department of 
Agriculture establishes chapter XXXII of title 7 of the Code of Federal 
Regulations to read as follows:
CHAPTER XXXII--OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT, 
DEPARTMENT OF AGRICULTURE

Part 3200--Department of Agriculture guidelines for the acquisition 
and transfer of excess personal property.

3201--3299  [Reserved]

PART 3200--DEPARTMENT OF AGRICULTURE GUIDELINES FOR THE ACQUISITION 
AND TRANSFER OF EXCESS PERSONAL PROPERTY

Sec.
3200.1  Purpose.
3200.2  Eligibility.
3200.3  Definitions.
3200.4  Procedures.
3200.5  Dollar limitation.
3200.6  Restrictions.
3200.7  Title.
3200.8  Costs.
3200.9  Accountability and record keeping.
3200.10  Disposal.
3200.11  Liabilities and losses.

    Authority: 5 U.S.C. 301; 7 U.S.C. 2206a.


Sec. 3200.1  Purpose.

    This Part sets forth the procedures to be utilized by Department of 
Agriculture (USDA) in the acquisition and transfer of excess property 
to the 1890 Land Grant Institutions (including Tuskegee University), 
1994 Land Grant Institutions, and the Hispanic-Serving Institutions in 
support of research, educational, technical, and scientific activities 
or for related programs as authorized by 7 U.S.C. 2206a. Title to the 
personal property shall pass to the institution.


Sec. 3200.2  Eligibility.

    Institutions that are eligible to receive Federal excess personal 
property pursuant to the provisions of this part are the 1890 Land 
Grant Institutions (including Tuskegee University), 1994 Land Grant 
Institutions, and the Hispanic-Serving Institutions conducting 
research, educational, technical, and scientific activities or related 
programs.


Sec. 3200.3  Definitions.

    (a) 1890 Land grant institutions--any college or university 
eligible to receive funds under the Act of August 30, 1890 (7 U.S.C. 
321 et.seq.), including Tuskegee University.
    (b) 1994 Land grant institutions--any of the tribal colleges or 
universities as defined in section 532 of the Equity in Educational 
Land-Grant Status Act of 1994 (7 U.S.C. 301 note).
    (c) Hispanic-serving institutions--institutions of higher education 
as defined in section 316(b) of the Higher Education Act of 1965 (20 
U.S.C. 1059c (b)).
    (d) Property management officer--is an authorized USDA or 
institution official responsible for property management.
    (e) Screener--is an individual designated by an eligible 
institution and authorized by the General Services Administration (GSA) 
to visit property sites for the purpose of inspecting personal property 
intended for use by the institution.
    (f) Excess personal property--is any personal property under the 
control of a Federal agency that is no longer needed.
    (g) Cannibalization--is the dismantling of equipment for parts to 
repair or enhance other equipment.


Sec. 3200.4  Procedures.

    (a) To receive information concerning the availability of Federal 
excess personal property, an eligible institution's property management 
officer may contact their regional GSA, Area Utilization Officer. All 
property management officers of eligible institutions will be placed on 
the USDA mailing list for information on the availability of property. 
USDA excess property will first be screened by USDA agencies through 
the Departmental Excess Personal Property Coordinator (DEPPC) using the 
PMIS/PROP system.
    (b) Excess property selected by screeners of eligible institutions 
should be inspected whenever possible, or the holding agency should be 
contacted to verify the condition of the items, because interpretation 
of condition codes varies among Federal agencies.
    (c) If the condition of the item is acceptable, the institution 
should ``freeze'' (reserve) items by calling the appropriate GSA office 
or USDA Departmental Excess Personal Property Coordinator (DEPPC). 
Since GSA may have several ``freezes'' on a piece of equipment, it is 
critical that the paperwork be submitted as soon as possible. Further, 
while transfers of excess personal property normally will be approved 
by GSA on a first-come-first-serve basis, consideration will be given 
to such factors as national defense requirements, emergency needs, 
preclusion of new procurement, energy conservation, equitable 
distribution, and retention of title in the Government.
    (d) Eligible institutions may submit property requests by mail or 
fax on a Standard Form 122, ``Transfer Order Excess Personal 
Property,'' with a written justification statement (submitted by the 
recipient) explaining how the property will be used for research, 
educational, technical, or scientific activity or for related programs.
    (e) The SF-122 should be signed by the eligible institution's 
property management officer or authorized designee.
    (1) The following information should also be provided:
    (i) Date prepared.
    (ii) GSA/DEPPC address.
    (iii) Ordering Agency and address.
    (iv) Holding Agency and address.
    (v) Name and address of Institution.
    (vi) Location of property.
    (vii) Shipping instruction (including institution contact person 
and phone number).
    (viii) Complete description of property including original 
acquisition cost, serial number, condition code, and quantity.

    (2) This statement needs to be added following the property 
description but does not serve as a justification statement:
    The property requested hereon is certified to be used in support 
of research, educational, technical, and scientific activities or 
for related programs. This transfer is requested pursuant to the 
provisions of section 923 of Pub. L. 104-127 (7 U.S.C. 2206a).

    (f) The SF-122 should be forwarded to USDA for approval and 
signature by an authorized USDA official. As

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confirmation of approval, the eligible institution's property 
management officer will receive a stamped copy of the SF-122. If the 
request is disapproved, it will be returned to the property management 
officer of the eligible institution with an appropriate explanation. 
All USDA approved SF-122's will be forwarded to DEPPC or the 
appropriate GSA office for final approval.
    (g) Once the excess personal property is physically received, the 
institution is required to immediately return a copy of the SF-122 to 
USDA indicating receipt of requested items. Cancellations should also 
be reported to USDA.

    Note: USDA shall send an informational copy of all SF-122's 
transactions to GSA.


Sec. 3200.5  Dollar Limitation.

    There is no dollar limitation on excess personal property obtained 
under these procedures.


Sec. 3200.6  Restrictions.

    (a) The authorized USDA official will approve the transfer of 
excess personal property in the following groups for the 1890 Land 
Grant Institutions (including Tuskegee University), 1994 Land Grant 
Institutions and the Hispanic-Serving Institutions in support of 
research, educational, technical, and scientific activities or for 
related programs:

                   Eligible Federal Supply Code Groups
------------------------------------------------------------------------
              FSC group                              Name
------------------------------------------------------------------------
12..................................  Fire Control Equipment.
19..................................  Ships, Small Crafts, Pontoons, and
                                       Floating Docks.
22..................................  Railway Equipment.
23..................................  Vehicles, Motor Vehicles, Trailers
                                       and Cycles.
24..................................  Tractors.
26..................................  Tires and Tubes.
28..................................  Engines, Turbines and Components.
29..................................  Engine Accessories.
30..................................  Mechanical Power Transmission
                                       Equipment.
31..................................  Bearings.
32..................................  Woodworking Machinery and
                                       Equipment.
34..................................  Metal Working Machinery.
35..................................  Service and Trade Equipment.
36..................................  Special Industry Machinery.
37..................................  Agricultural Machinery and
                                       Equipment.
38..................................  Construction, Mining, Excavating,
                                       and Highway Maintenance
                                       Equipment.
39..................................  Material Handling Equipment.
40..................................  Rope, Cable, Chain, and Fittings.
41..................................  Refrigeration, Air Conditioning
                                       and Air Circulating Equipment.
42..................................  Fire Fighting, Rescue, and Safety
                                       Equipment.
43..................................  Pumps, Compressors.
44..................................  Furnace, Steam Plant, and Drying.
45..................................  Plumbing, Heating, and Sanitation
                                       Equipment; and Nuclear Reactors.
46..................................  Water Purification and Sewage
                                       Treatment Equipment.
47..................................  Pipe, Tubing, Hose, and Fittings.
49..................................  Maintenance and Repair Shop
                                       Equipment.
51..................................  Hand Tools.
52..................................  Measuring Tools.
53..................................  Hardware and Abrasives.
54..................................  Prefabricated Structures and
                                       Scaffolding.
55..................................  Lumber, Millwork, Plywood, and
                                       Veneer.
56..................................  Construction and Building
                                       Materials.
58..................................  Communication, Detection, and
                                       Coherent Radiation Equipment.
59..................................  Electrical and Electronic
                                       Equipment Components.
60..................................  Fiber Optics Materials,
                                       Components, Assemblies, and
                                       Accessories.
61..................................  Electric Wire, and Power and
                                       Distribution Equipment.
62..................................  Lighting Fixtures and Lamps.
63..................................  Alarm, Signal, and Security
                                       Detection Systems.
65..................................  Medical, Dental, and Veterinary
                                       Equipment and Supplies.
66..................................  Instruments and Laboratory
                                       Equipment.
67..................................  Photographic Equipment.
69..................................  Training Aids and Devices.
70..................................  General Purposes Automatic Data
                                       Processing Equipment (Including
                                       Firmware) Software, and Support
                                       Equipment.
71..................................  Furniture.
72..................................  Household and Commercial
                                       Furnishings and Appliances.
73..................................  Food Preparation and Serving
                                       Equipment.
74..................................  Office Machines, Text Processing
                                       Systems and Visible Record
                                       Equipment.
75..................................  Office Supplies and Devices.
76..................................  Books, Maps, and Other
                                       Publications.
77..................................  Musical Instruments, Phonographs,
                                       and Home-type Radios.
78..................................  Recreational and Athletic
                                       Equipment.
79..................................  Cleaning Equipment and Supplies.
80..................................  Brushes, Paints, Sealers, and
                                       Adhesives.
81..................................  Containers, Packaging and Packing
                                       Supplies.
83..................................  Textiles, Leather, Furs, Apparel
                                       and Shoe Findings, Tents, and
                                       Flags.
84..................................  Clothing, Individual Equipment and
                                       Insignia.
85..................................  Toiletries.
87..................................  Agricultural Supplies.
88..................................  Live Animals.
91..................................  Fuels, Lubricants, Oils and Waxes.
93..................................  Nonmetallic Fabricated Materials.
94..................................  Nonmetallic Crude Materials.
95..................................  Metal Bars, Sheets, and Shapes.
96..................................  Ores, Minerals and their Primary
                                       Products.
99..................................  Miscellaneous.
------------------------------------------------------------------------

    Note to paragraph (a): Requests for items in Federal Supply Code 
Groups other than those listed in this paragraph shall be referred 
to the Director of OPPM for consideration and approval.

    (b) Excess personal property may be transferred for the purpose of 
cannibalization, provided the eligible institution submits a supporting 
statement which clearly indicates that cannibalizing the requested 
property for secondary use has greater benefit than utilization of the 
item in its existing form.
    (c) Use of the procedures in this part for the purpose of 
stockpiling of excess personal property for future cannibalization is 
prohibited. Transfer requests for the purpose of cannibalization will 
be considered, but are normally subordinate to requests for complete 
items.


Sec. 3200.7  Title.

    Title to excess personal property obtained under Part 3200 will 
automatically pass to the 1890 Land Grant Institutions (including 
Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-
Serving Institutions once USDA receives the SF-122 indicating that the 
institution has received the property. Note: When competing Federal 
claims are made for particular items of excess personal property held 
by agencies other than USDA, with or without payment of reimbursement, 
GSA will give preference to the Federal agency that will retain title 
in the Government.


Sec. 3200.8  Costs.

    Excess personal property obtained under this part is provided free 
of charge. However, the institution must pay all costs associated with 
packaging and transportation. The institution

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should specify the method of shipment on the SF-122.


Sec. 3200.9  Accountability and record keeping.

    USDA requires that Federal excess personal property received by an 
eligible institution pursuant to this part shall be placed into use for 
a research, educational, technical, or scientific activity, or for a 
related purpose, within 1 year of receipt of the property, and used for 
such purpose for at least 1 year thereafter. The institution's property 
management officer must establish and maintain accountable records 
identifying the property's location, description, utilization and 
value. To ensure that the excess personal property is being used for 
its intended purpose under this part, compliance reviews will be 
conducted by an authorized representative of USDA. The review will 
include site visit inspections of the property and the accountability 
and record keeping systems.


Sec. 3200.10  Disposal.

    When the property is no longer needed by the institution, it may be 
used in support of other Federal projects or sold, and the proceeds 
used for research, educational, technical, and scientific activities, 
or for related programs of the recipient institution.


Sec. 3200.11  Liabilities and losses.

    USDA assumes no liability with respect to accidents, bodily injury, 
illness, or any other damages or loss related to excess personal 
property transferred under this part.

PARTS 3201-3299--[RESERVED]

W. R. Ashworth,
Director, Office of Procurement and Property Management.
[FR Doc. 98-28542 Filed 10-26-98; 8:45 am]
BILLING CODE 3410-PA-P