[Federal Register Volume 75, Number 134 (Wednesday, July 14, 2010)]
[Proposed Rules]
[Pages 40763-40765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-17176]



41 CFR Part 102-38

[FMR Case 2010-102-3; Docket 2010-0014; Sequence 1]
RIN 3090-AJ04

Federal Management Regulation; Sale of Personal Property

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

ACTION: Proposed rule.


SUMMARY: The General Services Administration is amending the Federal 
Management Regulation (FMR) by amending the 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 August 13, 2010 to be considered in the formulation of a final 

ADDRESSES: Submit comments identified by FMR case 2010-102-3 by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.gsa.gov/fmr. Click on FMR 
Proposed Rules, and the FMR case number to submit comments.
     E-mail: [email protected]. Include FMR case 2010-
102-3 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FMR case 2010-
102-3 in all correspondence related to this case. All comments received 
will be posted without change to http://www.gsa.gov/fmr, including any 
personal information provided. Click on FMR Public Comments.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4041, 
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 2010-102-3.


A. Background

    This proposed amendment to part 102-38 of the Federal Management 
Regulation (41 CFR part 102-38) updates policy pursuant to the transfer 
of the oversight of the Federal Asset Sales program from GSA's Office 
of Governmentwide Policy to GSA's Federal Acquisition Service. Due to 
this transfer, and the incorporation of these practices into the way 
the Government sells its property, references to the Executive Steering 
Committee, Planning Office and the eFAS acronym are proposed to be 
    This proposed amendment also--
    1. Adds the definition for contractor inventory and revises the 
definitions for Federal Asset Sales and Sales Center (section 102-
    2. Clarifies that contractor inventory may be disposed of by the 
contractor when required by the Federal contract (section 102-38.40);
    3. Clarifies the reporting requirement for negotiated sales 
(section 102-38.115(a));
    4. Removes reference to Standard Form (SF) 97A, as this form is no 
longer available from GSA. (Section 102.38.285.);
    5. Clarifies the policy on antitrust requirements (section 102-
38.325); and
    6. Makes minor edits, updates organizational designations, and 
makes non-substantive changes to improve the readability and ease of 
use of this policy.

[[Page 40764]]

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. Regulatory Flexibility Act

    This proposed rule is not required to be published in the Federal 
Register for comment. Therefore, the Regulatory Flexibility Act does 
not apply. However, this proposed rule is being published to provide 
transparency in the promulgation of Federal policies.

D. 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.

E. 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: May 17, 2010.
Kathleen M. Turco,

Associate Administrator, Office of Governmentwide Policy.
    For the reasons set forth in the preamble, GSA amends 41 CFR part 
102-38 as set forth below:


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

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

    2. Amend Sec.  102-38.15 by designating the existing paragraph as 
paragraph (a) and adding a new paragraph (b) to read as follows:

Sec.  102-38.15  Who must comply with these sales provisions?

* * * * *
    (b) Sales of contractor inventory are not required to follow policy 
regarding the Federal Asset Sales program contained in Subpart H of 
this part. However, such sales must follow the policy contained in 
Subparts A through G of this part in addition to the terms of the 
Federal contract.

Sec.  102-38.30  [Amended]

    3. Amend Sec.  102-38.30 in the second sentence by removing 
``(eFAS)'', ``initiative'', and ``milestones''.
    4. Amend Sec.  102-38.35 by--
    a. Adding the definition for ``Contractor Inventory'';
    b. Removing the definition for ``Federal Asset Sales (eFAS)'';
    c. Adding the definition for ``Federal Asset Sales'';
    d. Removing the definition for ``Federal Asset Sales Planning 
Office (eFAS Planning Office)'';
    e. Removing the definition for ``Migration Plan''; and
    f. Revising the definition for ``Sales Center (SC)''.
    The added and revised definitions read as follows:

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

* * * * *
    Contractor Inventory means--
    (1) Any property acquired by and in the possession of a contractor 
or subcontractor under a contract for which title is vested in the 
Government and which exceeds the amounts needed to complete full 
performance under the entire contract;
    (2) Any property that the Government is obligated or has the option 
to take over under any type of contract, e.g., as a result either of 
any changes in the specifications or plans thereunder or of the 
termination of the contract (or subcontract thereunder), before 
completion of the work, for the convenience or at the option of the 
Government; and
    (3) Government-furnished property that exceeds the amounts needed 
to complete full performance under the entire contract.
* * * * *
    Federal Asset Sales refers to the program which seeks to improve 
the way the Federal Government manages and sells its real and personal 
property assets. Under this program, only an agency designated as a 
Sales Center (SC) may sell Federal personal property, unless a waiver 
has been granted in accordance with Sec.  102-38.360.
* * * * *
    Sales Center (SC) means an agency that has been nominated, 
designated, and approved by GSA's Personal Property Management Policy 
Division (MTA) as an official sales solution for Federal property. The 
criteria for becoming an SC, the selection process, and the ongoing SC 
requirements for posting property for sale to the Federal Asset Sales 
portal and reporting sales activity and performance data were 
established in collaboration with agency working groups, and may be 
obtained from GSA, Personal Property Management Policy Division (MTA), 
1800 F Street, NW., Suite 1221, Washington, DC 20405. SCs may utilize 
(and should consider) private sector entities as well as Government 
activities and are expected to provide exemplary asset management 
solutions in one or more of the following areas: Online sales; off-line 
sales; and sales-related value added services. SCs will enter into 
agreements with holding agencies to sell property belonging to these 
holding agencies. A holding agency may employ the services of multiple 
SCs to maximize efficiencies.
* * * * *
    5. Revise Sec.  102-38.40 to read as follows:

Sec.  102-38.40  Who may sell personal property?

    (a) An executive agency may sell personal property (including on 
behalf of another agency when so requested) only if--
    (1) The agency is a designated SC; or
    (2) The agency has received a waiver from GSA's Personal Property 
Management Policy Division.
    (b) A contractor selling contractor inventory under terms of a 
Federal contract.
    (c) SCs or agencies selling under the authority of a waiver may 
elect to engage contractor support in the sales process.
    (d) Only a duly authorized agency official may execute the sale 
award documents and bind the United States.

Sec.  102-38.50  [Amended]

    6. Amend Sec.  102-38.50, paragraph (b)--
    a. In the first sentence by removing ``Property Management Division 
(FBP), 1800 F Street, NW., Washington, DC 20406'' and adding ``Office 
of Personal Property Management (QSC), 2200 Crystal Drive, Suite 706, 
Arlington, VA 22202'' in its place; and
    b. In the third sentence by removing ``MTP'' and adding ``(MTA)'' 
in its place; and adding ``, Suite 1221,'' after ``1800 F Street, 

Sec.  102-38.115  [Amended]

    7. Amend Sec.  102-38.115--
    a. In paragraph (a) by removing ``the General Services 
Administration (GSA)'' and adding ``your agency'' in its place; and
    b. In paragraph (b) by--
    1. Removing ``(MTP)'' and adding ``(MTA)'' in its place;
    2. Adding ``Suite 1221,'' after ``1800 F Street, NW.''; and

[[Page 40765]]

    3. Removing ``or manually (see Sec.  102.38-330)'' and adding ``to 
https://GSA.INL.gov/Property'' in its place.
    8. Amend Sec.  102-38.130 by adding a second sentence to read as 

Sec.  102-38.130  Must we publicly advertise sales of Federal personal 

    * * * Listing of available items for sale via internet (online) 
auctions for the general public constitutes ``public notice.''

Sec.  102.38-175  [Amended]

    9. Amend Sec.  102.38-175 by--
    a. Removing the phrase ``through subscription from the U.S. 
Government Printing Office, or'';
    b. Removing the phrase ``on the Internet''; and
    c. Removing ``http//epls.arnet.gov'' and adding ``https://www.epls.gov'' in its place.
    10. Amend Sec.  102.38-285 by revising paragraph (b) to read as 

Sec.  102.38-285  How do we transfer title from the Government to the 
buyer for personal property sold?

* * * * *
    (b) For sales of vehicles, you must issue to the purchaser a 
Standard Form (SF) 97, the United States Government Certificate to 
Obtain Title to a Vehicle, as evidence of transfer of title. For 
information on how to obtain this form, see Sec.  102-2.135 of this 

Sec.  102.38-295  [Amended]

    11. Amend Sec.  102.38-295 by removing from paragraph (a) 
``(including your share of the Governmentwide costs to support the eFAS 
Internet portal and Governmentwide reporting requirements)''.
    12. Revise Sec.  102-38.325 to read as follows:

Sec.  102-38.325  What are the requirements pertaining to antitrust 

    (a) When the sale of personal property has an estimated fair market 
value of $3 million or more, or the sale involves a patent, process, 
technique, or invention, you must post a notice in the sales offering 
advising potential buyers of the applicable antitrust laws contained in 
40 U.S.C. 559, whereby the Attorney General of the Department of 
Justice must review the proposed sale and determine, prior to the 
finalization of award, whether the disposal to a private interest would 
tend to create or maintain a situation inconsistent with antitrust 
    (b) When the sale closes, you will:
    (1) Notify the winning bidder advising them of their high bid and 
that you are awaiting clearance from the Attorney General before final 
    (2) Notify the Attorney General by providing the winning bid 
information, listed below, for his or her review and concurrence on 
    (i) Item name;
    (ii) Location of property;
    (iii) Method of sale;
    (iv) Location of sale, if different than location of property;
    (v) Date and time of sale close;
    (vi) Appraisal value;
    (vii) Reserve amount, if different than appraised value;
    (viii) Reference to the Sale Terms and Conditions; and
    (ix) Listing of bidders, addresses and telephone numbers, as well 
as winning bidder's bid information.
    (c) Once you are notified by the Attorney General, you will--
    (1) Notify the high bidder via contract award if the Attorney 
General determines that the sale does not violate any antitrust laws; 
    (2) Notify the high bidder and cancel potential award if the 
Attorney General determines that the sale violates any antitrust laws.
    13. Amend Sec.  102-38.330 introductory paragraph by removing 
``(MTP)'' and adding ``(MTA)'' in its place, and adding paragraph (c) 
to read as follows:

Sec.  102-38.330  Are there any reports that we must submit to the 
General Services Administration?

* * * * *
    (c) Beginning with FY 2010 reports, agencies will be required to 
report this information using the automated tool at https://gsa.inl.gov/property.
    14. Revise Sec.  102-38.335 to read as follows:

Sec.  102-38.335  Is there any additional personal property sales 
information that we must submit to the General Services Administration?

    Yes, all SCs, agencies selling property under a Federal Asset Sales 
program waiver, and agencies selling property under Sec. Sec.  102-
38.365 and 102-38.370 must report quarterly sales performance measures 
to the GSA Electronic Federal Asset Sales reporting tool at https://gsa.inl.gov/efas. In addition, GSA may require additional sales data 
and information on an ad-hoc basis.
    15. Revise Sec.  102-38.360 to read as follows:

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

    (a) Unless a waiver has been granted, an executive agency must sell 
its personal property assets through an agency designated by GSA as an 
SC. To select a sales solution, an executive agency must review the 
effectiveness of all sales solutions, and compare them to the 
effectiveness (e.g., cost, level of service, and value added services) 
of the SCs. Agencies should give full consideration to sales solutions 
utilizing private sector entities, including small businesses, that are 
more effective than the solutions provided by any approved SC. If the 
agency decides that there are more effective sales solutions than those 
offered by the SCs, the agency must request a waiver. Waivers will be 
approved upon presentation of a business case showing that complying 
with the prescribed requirements is either impracticable or 
inefficient. Waiver approval will be coordinated with GSA's Office of 
Travel, Transportation, and Asset Management. Contact the Personal 
Property Management Policy Division (MTA) (see address at Sec.  102-
38.115(b)) to obtain these procedures and forms.
    (b) An approved waiver only relieves the agency of the requirements 
specified in the waiver request and its approval. Waiver to the Federal 
Asset Sales program policies will not be permanent. See the definition 
of a ``Sales Center'' at Sec.  102-38.35 for an overview of how agency 
sales solutions become SCs.
    (c) An agency which receives a waiver from the Federal Asset Sales 
process must still comply with Subparts A through G of this part as if 
it were an SC.
    (d) An executive agency must comply with all Federal Asset Sales 
program processes promulgated by GSA, including those regarding the 
reporting of pre- and post-sales data.

Sec.  102-38.370  [Amended]

    16. Amend Sec.  102-38.370--
    a. In the heading by adding ``selected'' after ``its''; and
    b. In the last sentence by removing ``in accordance with eFAS ESC-
approved format and content.'' and adding ``using the reporting tool 
specified in Sec.  102-38.335.'' in its place.

[FR Doc. 2010-17176 Filed 7-13-10; 8:45 am]