[Federal Register Volume 72, Number 63 (Tuesday, April 3, 2007)]
[Proposed Rules]
[Pages 15854-15857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6068]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 102-38

[FMR Case 2007-102-2; Docket FMR-2007-0001, Sequence 1]
RIN 3090-AI33


Federal Management Regulation; FMR Case 2007-102-2, Sale of 
Personal Property--Federal Asset Sales (FAS) Sales Centers

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

ACTION: Proposed rule.

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SUMMARY: The General Services Administration is amending the Federal 
Management Regulation (FMR) by adding provisions for the sale of 
personal property through Federal Asset Sales (FAS) Sales Centers.

DATES: Interested parties should submit comments in writing on or 
before May

[[Page 15855]]

3, 2007 to be considered in the formulation of a final rule.

ADDRESSES: Submit comments identified by FMR case 2007-102-2 by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Search for any document by first selecting the proper document types 
and selecting ``General Services Administration'' as the agency of 
choice. At the ``Keyword'' prompt, type in the FMR case number (for 
example, FMR Case 2007-102-2) and click on the ``Submit'' button. You 
may also search for any document by clicking on the ``Advanced search/
document search'' tab at the top of the screen, selecting from the 
agency field ``General Services Administration,'' and typing the FMR 
case number in the keyword field. Select the ``Submit'' button.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW., Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FMR case 2007-
102-2 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal information provided.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC, 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Robert Holcombe, Office of Governmentwide Policy, 
Personal Property Management Policy, at (202) 501-3828, or e-mail at 
[email protected]. Please cite FMR case 2007-102-2.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed amendment to part 102-38 of the Federal Management 
Regulation (41 CFR part 102-38) would provide new policy to implement 
the Federal Asset Sales (FAS) e-Government initiative. The goals of 
this initiative are to:
     Maximize the value that the Federal Government receives 
from selling its real and personal property assets by maximizing the 
visibility of the assets to prospective buyers. This regulation only 
addresses the sale of personal property.
     Effect transparency in the sales process so that agencies 
are aware of the costs and performance of their sales alternatives, 
prospective buyers are aware of the conditions of the items offered for 
sale, and information on Federal sales activities and results are 
easily available to the public.
     Collect and report Governmentwide data on the volume, 
proceeds, cost, and other performance characteristics of Federal 
property sales.
    This part discusses the requirement for agencies to sell their 
property through designated Sales Centers (SCs). The definitions of 
terms related to the FAS initiative are provided in this part, along 
with the policy related to how agencies must implement this initiative.
    Changes are also being made to this part to strengthen the terms 
and conditions of sale to specifically include requirements to dispose 
of assets in accordance with Federal, State, and local laws and 
regulations (section 102-38.75).

B. Executive Order 12866

    It has been determined that this proposed rule is not a significant 
regulatory action for the purposes of Executive Order 12866.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FMR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq.

D. Small Business Regulatory Enforcement Fairness Act

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

List of Subjects in 41 CFR Part 102-38

    Government property management, Surplus Government property.

    Dated: January 25, 2007.
Kevin Messner,
Acting Associate Administrator.
    For the reasons set forth in the preamble, GSA amends 41 CFR part 
102-38 as set forth below:

PART 102-38--SALE OF PERSONAL PROPERTY

    1. The authority citation for part 102-38 continues to read as 
follows:

    Authority:  40 U.S.C 545 and 40 U.S.C. 121(c).


Sec.  102-38.25  [Amended]

    2. Amend Sec.  102-38.25 by removing ``holding'' and adding ``Sales 
Center'' in its place.
    3. Amend Sec.  102-38.30 by revising the heading to read as 
follows:


Sec.  102-38.30  How does an executive agency request a deviation from 
the provisions of this part?

* * * * *
    4. Amend Sec.  102-38.35 by adding the definitions ``Federal Asset 
Sales (FAS)'', ``Holding Agency'', ``Migration Plan'', and ``Sales 
Center (SC)'' to read as follows:


Sec.  102-38.35  What definitions apply to this part?

* * * * *
    Federal Asset Sales (FAS) refers to the e-Government initiative to 
improve the way the Federal Government manages and sells its real and 
personal property assets. Under this initiative, only an agency 
designated as a Sales Center (SC) may sell Federal property. The FAS 
program is governed by the FAS Executive Steering Committee (ESC), with 
GSA as the managing partner agency.
    Holding Agency refers to the agency in possession of personal 
property eligible for sale under this Part.
* * * * *
    Migration Plan refers to the document a holding agency prepares to 
summarize its choice of SC and its plan for migrating agency sales to 
the SC(s). The format for this document is determined by the FAS ESC.
* * * * *
    Sales Center (SC) means an agency that has been designated as an 
official sales agent for Federal property. The criteria for becoming an 
SC, the selection process, and the ongoing SC requirements for posting 
property for sale to the FAS portal and reporting sales activity and 
performance data are established by the FAS ESC and can be obtained 
from the FAS Program Management Office at GSA. SCs are expected to 
provide exemplary asset management solutions in one or more of the 
following areas: on-line sales; off-line sales; and sales-related value 
added services. SCs will enter into agreements with holding agencies to 
sell property belonging to these agencies.
* * * * *
    5. Revise Sec.  102-38.40 to read as follows:


Sec.  102-38.40  Who may sell personal property?

    An executive agency may sell personal property (including on behalf 
of another agency when so requested) only if it is a designated Sales 
Center (SC). An SC may engage contractor support to sell personal 
property. Only a duly authorized agency official may execute the sale 
award documents and bind the United States.

[[Page 15856]]

    6. Amend Sec. 102-38.50 by revising the heading and introductory 
paragraph to read as follows:


Sec.  102-38.50  What must we do when an executive agency suspects 
violations of 40 U.S.C. 559, fraud, bribery, or criminal collusion in 
connection with the disposal of personal property?

    If an executive agency suspects violations of 40 U.S.C. 559, fraud, 
bribery, or criminal collusion in connection with the disposal of 
personal property, the agency must--
* * * * *
    7. Revise Sec.  102-38.60 to read as follows:


Sec.  102-38.60  Who is responsible for the costs of care and handling 
of the personal property before it is sold?

    The holding agency is responsible for the care and handling costs 
of the personal property until it is removed by the buyer, the buyer's 
designee, or an SC. The holding agency may request the SC to perform 
care and handling services in accordance with their agreement. When 
specified in the terms and conditions of sale, the SC may charge costs 
for storage when the buyer is delinquent in removing the property. The 
amount so charged may only be retained by the agency performing the 
care and handling in accordance with Sec.  102-38.295.


Sec.  102-38.65  [Amended]

    8. Amend Sec.  102-38.65 in the heading, by removing ``we are'' and 
adding ``we or the holding agency is'' in its place; and in the second 
sentence by adding ``or the holding agency'' after ``you''.


Sec.  102-38.70  [Amended]

    9. Amend Sec.  102-38.70 in the heading, by removing ``we'' and 
adding ``the holding agency'' in its place; and in paragraph (a), by 
removing ``you'' and adding ``the holding agency'' in its place.
    10. Amend Sec.  102-38.75 by revising the introductory text to 
paragraph (a), and paragraph (a)(12) to read as follows:


Sec.  102-38.75  How may we sell personal property?

    (a) You will sell personal property upon such terms and conditions 
as the head of your agency or designee deems proper to promote the 
fairness, openness, and timeliness necessary for the sale to be 
conducted in a manner most advantageous to the Government. When you are 
selling property on behalf of another agency, you must consult with the 
holding agency to determine any special or unique sales terms and 
conditions. You must also document the required terms and conditions of 
each sale, including, but not limited to, the following terms and 
conditions, as applicable:
* * * * *
    (12) Requirements to comply with applicable laws and regulations. 
Part 101-42 of this subchapter contains useful guidance addressing many 
of these requirements. You should also contact your agency's Office of 
General Counsel or Environmental Office to identify applicable Federal, 
State, or local environmental laws and regulations.
* * * * *
    11. Revise Sec.  102-38.120 to read as follows:


Sec.  102-38.120  When may we conduct negotiated sales of personal 
property at fixed prices (fixed price sale)?

    You may conduct negotiated sales of personal property at fixed 
prices (fixed price sale) under this section when:
    (a) The items are authorized to be sold at fixed price by the GSA 
Office of Travel, Transportation, and Asset Management (MT) in GSA 
Bulletin FMR B-10 (located at www.gsa.gov/fmrbulletin). You may also 
contact MT at the address listed in Sec.  102-38.115 to determine which 
items are on this list of authorized items;
    (b) The head of your agency, or designee, determines in writing 
that such sales serve the best interest of the Government. When you are 
selling property on behalf of a holding agency, you must consult with 
the holding agency in determining whether a fixed price sale meets this 
criterion; and
    (c) You must publicize such sales to the extent consistent with the 
value and nature of the property involved, and the prices established 
must reflect the estimated fair market value of the property. Property 
is sold on a first-come, first-served basis. You or the holding agency 
may also establish additional terms and conditions that must be met by 
the successful purchaser in accordance with Sec.  102-38.75.
    12. Revise Sec.  102-38.295 to read as follows:


Sec.  102-38.295  May we retain sales proceeds?

    (a) You may retain that portion of the sales proceeds, in 
accordance with your agreement with the holding agency, equal to your 
direct costs and reasonably related indirect costs (including your 
share of the Governmentwide costs to support the FAS Internet portal 
and Governmentwide reporting requirements) incurred in selling personal 
property.
    (b) A holding agency may retain that portion of the sales proceeds 
equal to its costs of care and handling directly related to the sale of 
personal property by the SC (e.g., shipment to the SC, storage pending 
sale, and inspection by prospective buyers).
    (c) After accounting for amounts retained under paragraphs (a) and 
(b), a holding agency may retain the balance of proceeds from the sale 
of its agency's personal property when--
    (1) It has the statutory authority to retain all proceeds from 
sales of personal property;
    (2) The property sold was acquired with non-appropriated funds as 
defined in Sec.  102-36.40 of this subchapter B;
    (3) The property sold was surplus Government property that was in 
the custody of a contractor or subcontractor, and the contract or 
subcontract provisions authorize the proceeds of sale to be credited to 
the price or cost of the contract or subcontract;
    (4) The property was sold to obtain replacement property under the 
exchange/sale authority pursuant to part 102-39 of this subchapter B; 
or
    (5) The property sold was related to waste prevention and recycling 
programs, under the authority of Section 607 of Public Law 107-67 
(Omnibus Consolidated and Emergency Supplemental Appropriations Act, 
1999, Public Law 107-67, 115 Stat. 514). Consult your General Counsel 
or Chief Financial Officer for guidance on use of this authority.
    13. Revise the section heading to Sec.  102-38.300 to read as 
follows:


Sec.  102-38.300  What happens to sales proceeds that neither we nor 
the holding agency are authorized to retain, or that are unused?

* * * * *
    14. Add Subpart H, consisting of Sec.  102-38.360 to read as 
follows:

Subpart H--Implementation of the Federal Asset Sales Program


Sec.  102-38.360  What must an executive agency do to implement the 
Federal Asset Sales (FAS) program?

    An executive agency must:
    (a) Complete a migration plan which outlines the agency's action 
and timetable to begin using or become a SC. The migration plan must 
include the deadline to have all agency personal property sales 
conducted by an SC no later than [date six months after publication of 
the final rule in the Federal Register].
    (b) Migrate all agency sales processes to your selected SC(s) no 
later than [date six months after publication of the final rule in the 
Federal Register]. Content

[[Page 15857]]

and format of item data reported to the SC for sale must be in 
conformance with standards developed by the FAS ESC.
    (c) Provide all post-sale data and metrics to the FAS Planning 
Office in care of GSA MT using format and process developed by the FAS 
ESC no later than [date six months after publication of the final rule 
in the Federal Register].
[FR Doc. E7-6068 Filed 4-2-07; 8:45 am]
BILLING CODE 6820-14-S