[Federal Register Volume 72, Number 44 (Wednesday, March 7, 2007)]
[Rules and Regulations]
[Pages 10084-10086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3958]



41 CFR Part 102-35

[FMR Amendment 2007-01; FMR Case 2004-102-1; Docket 2007-001; Sequence 
RIN 3090-AH93

Federal Management Regulation; FMR Case 2004-102-1, Disposition 
of Personal Property

AGENCY: Office of Governmentwide Policy, General Services 
Administration (GSA).

ACTION: Final rule.


SUMMARY: The General Services Administration is amending the Federal 
Management Regulation (FMR) by revising coverage on personal property 
and moving it into subchapter B of the FMR. This final rule adds a new 
part to subchapter B of the FMR to provide an overview of the property 
disposal regulation and provide definitions for terms found in the FMR 

DATES: Effective Date: April 6, 2007.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Holcombe, Office of 
Governmentwide Policy, Personal Property Management Policy, at (202) 
501-3828, or e-mail at [email protected] for clarification of 
content. For information pertaining to status or publication schedules, 
contact the Regulatory Secretariat, Room 4035, GS Building, Washington, 
DC 20405, (202) 501-4755. Please cite FMR Amendment 2007-01, FMR Case 


A. Background

    A proposed rule was published in the Federal Register on September 
12, 2006 (71 FR 53646) soliciting comments on proposed changes to 41 
CFR part 102-35. The due date for comments was extended in a Federal 
Register proposed rule document on October 18, 2006 (71 FR 61445). 
Comments were received from three respondents relating to the sale of 
personal property. These comments do not directly address any 
provisions contained in this final rule, and will be held for 
consideration when the regulation covering the sale of Federal personal 
property assets, Federal Management Regulation (FMR) part 102-38, is 
released for comment. FMR part 102-38 is currently being reviewed 
within GSA for revisions.
    This final rule adds a new part, 102-35, to subchapter B of the FMR 
to provide an overview of the property disposal regulation and to 

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definitions for terms found in FMR parts 102-36 through 102-42 (41 CFR 
102-36 through 102-42). This part serves as a summary and overview of 
the policies relating to the disposal of Federal personal property and 
provides overall guidance for all methods of property disposal.
    This part emphasizes the use of excess property from other agencies 
as the first source of supply, and establishes the preference to 
transfer excess property to Federal agencies for their own use before 
transferring that property to agencies for use by non-Federal entities.

B. Executive Order 12866

    This regulation is excepted from the definition of ``regulation'' 
or ``rule'' under Section 3(d)(3) of Executive Order 12866, Regulatory 
Planning and Review, dated September 30, 1993 and, therefore, was not 
subject to review under Section 6(b) of that Executive Order.

C. Regulatory Flexibility Act

    This final rule is not required to be published in the Federal 
Register for notice and comment as per the exemption specified in 5 
U.S.C. 553(a)(2); therefore, the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., does not apply.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which require the approval of the Office of Management 
and Budget (OMB) under 44 U.S.C. 3501 et seq.

E. Small Business Regulatory Enforcement Fairness Act

    This final rule is exempt from Congressional review prescribed 
under 5 U.S.C. 801 since it relates solely to agency management and 

List of Subjects in 41 CFR Part 102-35

    Government employees, Personal property.

    Dated: February 7, 2007.
Lurita Doan,
Administrator of General Services.

For the reasons set forth in the preamble, GSA amends 41 CFR chapter 
102 as follows:

Chapter 102--Federal Management Regulation

1. Part 102-35 is added to subchapter B of chapter 102 to read as 


102-35.5 What is the scope of the General Services Administration's 
regulations on the disposal of personal property?
102-35.10 How are these regulations for the disposal of personal 
property organized?
102-35.15 What are the goals of GSA's personal property regulations?
102-35.20 What definitions apply to GSA's personal property 
102-35.25 What management reports must we provide?
102-35.30 What actions must I take or am I authorized to take 
regardless of the property disposition method?

    Authority: 40 U.S.C. 121(c).

Sec.  102-35.5  What is the scope of the General Services 
Administration's regulations on the disposal of personal property?

    The General Services Administration's personal property disposal 
regulations are contained in this part and in parts 102-36 through 102-
42 of this subchapter B as well as in parts 101-42 and 101-45 of the 
Federal Property Management Regulations (FPMR)(41 CFR parts 101-42 and 
101-45). With two exceptions, these regulations cover the disposal of 
personal property under the custody and control of executive agencies 
located in the United States, the U.S. Virgin Islands, American Samoa, 
Guam, Puerto Rico, the Northern Mariana Islands, the Federated States 
of Micronesia, the Marshall Islands, and Palau. The exceptions to this 
coverage are part 102-39 of this subchapter B, which applies to the 
replacement of all property owned by executive agencies worldwide using 
the exchange/sale authority, and Sec. Sec.  102-36.380 through 102-
36.400, which apply to the disposal of excess property located in 
countries and areas not listed in this subpart, i.e., foreign excess 
personal property. The legislative and judicial branches are encouraged 
to follow these provisions for property in their custody and control.

Sec.  102-35.10  How are these regulations for the disposal of personal 
property organized?

    The General Services Administration (GSA) has divided its 
regulations for the disposal of personal property into the following 
program areas:
    (a) Disposition of excess personal property (part 102-36 of this 
subchapter B).
    (b) Donation of surplus personal property (part 102-37 of this 
subchapter B).
    (c) Sale of surplus personal property (part 102-38 of this 
subchapter B).
    (d) Replacement of personal property pursuant to the exchange/sale 
authority (part 102-39 of this subchapter B).
    (e) Disposition of seized and forfeited, voluntarily abandoned, and 
unclaimed personal property (part 102-41 of this subchapter B).
    (f) Utilization, donation, and disposal of foreign gifts and 
decorations (part 102-42 of this subchapter B).
    (g) Utilization and disposal of hazardous materials and certain 
categories of property (part 101-42 of the Federal Property Management 
Regulations (FPMR), 41 CFR part 101-42).

Sec.  102-35.15  What are the goals of GSA's personal property 

    The goals of GSA's personal property regulations are to:
    (a) Improve the identification and reporting of excess personal 
    (b) Maximize the use of excess property as the first source of 
supply to minimize expenditures for the purchase of new property, when 
    Note to Sec.  102-35.15(b): If there are competing requests among 
Federal agencies for excess property, preference will be given to 
agencies where the transfer will avoid a new Federal procurement. A 
transfer to an agency where the agency will provide the property to a 
non-Federal entity for the non-Federal entity's use will be secondary 
to Federal use.
    (c) Achieve maximum public benefit from the use of Government 
property through the donation of surplus personal property to State and 
local public agencies and other eligible non-Federal recipients;
    (d) Obtain the optimum monetary return to the Government for 
surplus personal property sold and personal property sold under the 
exchange/sale authority; and
    (e) Reduce management and inventory costs by appropriate use of the 
abandonment/destruction authority to dispose of unneeded personal 
property that has no commercial value or for which the estimated cost 
of continued care and handling would exceed the estimated sales 
proceeds (see FMR Sec. Sec.  102-36.305 through 102-36.330).

Sec.  102-35.20  What definitions apply to GSA's personal property 

    The following are definitions of, or cross-references to, some key 
terms that apply to GSA's personal property regulations in the FMR (CFR 
Parts 102-36 through 102-42). Other personal property terms are defined 
in the sections or parts to which they primarily apply.
    Accountable Personal Property includes nonexpendable personal

[[Page 10086]]

property whose expected useful life is two years or longer and whose 
acquisition value, as determined by the agency, warrants tracking in 
the agency's property records, including capitalized and sensitive 
personal property.
    Accountability means the ability to account for personal property 
by providing a complete audit trail for property transactions from 
receipt to final disposition.
    Acquisition cost means the original purchase price of an item.
    Capitalized Personal Property includes property that is entered on 
the agency's general ledger records as a major investment or asset. An 
agency must determine its capitalization thresholds as discussed in 
Financial Accounting Standard Advisory Board (FASAB) Statement of 
Federal Financial Accounting Standards No. 6 Accounting for Property, 
Plant and Equipment, Chapter 1, paragraph 13.
    Control means the ongoing function of maintaining physical 
oversight and surveillance of personal property throughout its complete 
life cycle using various property management tools and techniques 
taking into account the environment in which the property is located 
and its vulnerability to theft, waste, fraud, or abuse.
    Excess personal property (see Sec.  102-36.40 of this subchapter 
    Exchange/sale (see Sec.  102-39.20 of this subchapter B).
    Executive agency (see Sec.  102-36.40 of this subchapter B).
    Federal agency (see Sec.  102-36.40 of this subchapter B).
    Foreign gifts and decorations (for the definition of relevant 
terms, see Sec.  102-42.10 of this subchapter B).
    Forfeited property (see Sec.  102-41.20 of this subchapter B).
    Inventory includes a formal listing of all accountable property 
items assigned to an agency, along with a formal process to verify the 
condition, location, and quantity of such items. This term may also be 
used as a verb to indicate the actions leading to the development of a 
listing. In this sense, an inventory must be conducted using an actual 
physical count, electronic means, and/or statistical methods.
    National property management officer means an official, designated 
in accordance with Sec.  102-36.45(b) of this subchapter B, who is 
responsible for ensuring effective acquisition, use, and disposal of 
excess property within your agency.
    Personal property (see Sec.  102-36.40 of this subchapter B).
    Property management means the system of acquiring, maintaining, 
using and disposing of the personal property of an organization or 
    Seized property means personal property that has been confiscated 
by a Federal agency, and whose care and handling will be the 
responsibility of that agency until final ownership is determined by 
the judicial process.
    Sensitive Personal Property includes all items, regardless of 
value, that require special control and accountability due to unusual 
rates of loss, theft or misuse, or due to national security or export 
control considerations. Such property includes weapons, ammunition, 
explosives, information technology equipment with memory capability, 
cameras, and communications equipment. These classifications do not 
preclude agencies from specifying additional personal property 
classifications to effectively manage their programs.
    Surplus personal property (see Sec.  102-37.25 of this subchapter 
    Utilization means the identification, reporting, and transfer of 
excess personal property among Federal agencies.

Sec.  102-35.25  What management reports must we provide?

    (a) There are three reports that must be provided. The report 
summarizing the property provided to non-Federal recipients and the 
report summarizing exchange/sale transactions (see Sec. Sec.  102-
36.295 and 102-39.75 respectively of this subchapter B) must be 
provided every year (negative reports are required). In addition, if 
you conduct negotiated sales of surplus personal property valued over 
$5,000 in any year, you must report this transaction in accordance with 
Sec.  102-38.115 (negative reports are not required for this report).
    (b) The General Services Administration (GSA) may request other 
reports as authorized by 40 U.S.C. 506(a)(1)(A).

Sec.  102-35.30  What actions must I take or am I authorized to take 
regardless of the property disposition method?

    Regardless of the disposition method used:
    (a) You must maintain property in a safe, secure, and cost-
effective manner until final disposition.
    (b) You have authority to use the abandonment/ destruction 
provisions at any stage of the disposal process (see Sec. Sec.  102-
36.305 through 102-36.330 and Sec.  102-38.70 of this subchapter B).
    (c) You must implement policies and procedures to remove sensitive 
or classified information from property prior to disposal. Agency-
affixed markings should be removed, if at all possible, prior to 
personal property permanently leaving your agency's control.
    (d) Government-owned personal property may only be used as 
authorized by your agency. Title to Government-owned personal property 
cannot be transferred to a non-Federal entity unless through official 
procedures specifically authorized by law.

[FR Doc. E7-3958 Filed 3-6-07; 8:45 am]