[Federal Register Volume 77, Number 88 (Monday, May 7, 2012)]
[Rules and Regulations]
[Pages 26660-26663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10745]


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DEPARTMENT OF AGRICULTURE

Office of Procurement and Property Management

7 CFR Part 3203

RIN 0599-AA13


Guidelines for the Transfer of Excess Computers or Other 
Technical Equipment Pursuant to Section 14220 of the 2008 Farm Bill

AGENCY: Office of Procurement and Property Management, USDA.

ACTION: Final rule.

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SUMMARY: The Office of Procurement and Property Management (OPPM) of 
the U.S. Department of Agriculture (USDA) is establishing and 
implementing procedures for the transfer of excess computers or other 
technical equipment for the purposes of distribution to a city, town, 
or local government entity in a rural area.

DATES: Effective Date: June 6, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. Michael R. Johnson, Office of 
Procurement and Property Management, USDA on (202) 720-9779 or by Email 
at [email protected].

SUPPLEMENTARY INFORMATION: 

A. Background

    A proposed rule was published in the Federal Register on May 16, 
2011 (76 FR 28188-28191, FR Doc No: 2011-11601) soliciting comments on 
the establishment of Guidelines for the Transfer of Excess Computers or 
Other Technical Equipment Pursuant to Section 14220 of the 2008 Farm 
Bill. The proposed rule would have established 7 CFR part 3201, but the 
final rule will be establishing part 3203. The proposed rule had a 
comment period of 60 days ending July 15, 2011. No comments were 
received through email, fax, mail, or hand delivery/courier. A total of 
12 comments were received through the Federal eRulemaking Portal. Of 
the comments received, two were sent as tests, nine were submitted to 
the wrong docket and subsequently moved to the correct docket, and one 
comment had multiple questions and comments that were put into one of 
three categories: (1) Comments on the Farm Bill itself, which will not 
be addressed; (2) Questions on personal property disposal which are 
covered by Federal Management Regulations, Agriculture Property 
Management Regulations and internal agency regulations and policies, 
and will not be addressed; and (3) A question that asked who is 
responsible and what happens to the equipment if the items are 
refurbished and the intended recipient changes its mind or cannot pay 
the cost (go to www.Regulations.gov to see entire comment). Two 
revisions have been made as a result of the comment referenced above: 
1. The word `designated' has been added before `organization' in 
sections 3203.6(c), 3203.7 and 3203.8; and 2. Additional language has 
been added to section 3203.4(e)(5) stating that the recipient needs to 
furnish a copy of the agreement between the recipient and its 
designated organization.

B. Executive Orders Number 12866 and 13563

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a non-significant regulatory 
action under section 3(f) of Executive Order 12866. Accordingly, the 
rule has not been reviewed by the Office of Management and Budget.
    This rule implements Section 14220 of the 2008 Farm Bill. It is 
expected that the benefits that accrue to cities, towns, and local 
government entities in rural areas from the receipt of excess USDA 
computers and technical equipment will exceed the costs to USDA in 
providing such equipment.

C. Regulatory Flexibility Act

    USDA certifies that this rule will not have a significant impact on 
a substantial number of small entities as defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq. The impact of this regulation 
will be primarily limited to rural towns and government entities. The 
Department estimates that 400 eligible entities will submit requests 
for donated equipment annually. As small businesses are not considered 
eligible entities under this regulation, the rule will not have a 
significant impact on the small business community or on a substantial 
number of small businesses. The Department invited comments on its 
estimates for the potential impact of this rule on small businesses and 
did not receive any comments.

D. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 through 3520), the information collection is currently approved 
under OMB control number 0505-0023.

E. Executive Order 12630

    This rule has been reviewed in accordance with Executive Order 
12630, Governmental Actions and Interference with Constitutionally 
Protected Property Rights, and does not contain policies that would 
have implications for these rights.

[[Page 26661]]

F. Executive Order 13132

    This rule has been reviewed in accordance with Executive Order 
13132, Federalism, and does not have sufficient federalism implications 
to warrant the preparation of a Federalism Assessment. Provisions of 
this rule will not have a substantial direct effect on States or their 
political subdivisions or on the distribution of power and 
responsibilities among the various government levels.

G. Unfunded Mandates Reform Act of 1995

    This rule contains no Federal mandates under the regulatory 
provisions of Title II of the Unfunded Mandates Reform Act of 1995 
(UMRA), and therefore a written statement is not required.

H. Executive Order 12372

    This rule has been reviewed in accordance with Executive Order 
12372, Intergovernmental review of Federal programs, and does not 
establish federal financial assistance or direct Federal development 
with State and local governments, and is therefore outside the scope of 
Executive Order 12372, which requires intergovernmental consultation 
with State and local officials.

I. Executive Order 13175

    This rule has been reviewed in accordance with Executive Order 
13175, Consultation and Coordination With Indian Tribal Governments, 
and does not have tribal implications or impose unfunded mandates with 
Indian tribes.

J. E-Government Act Compliance

    USDA is committed to compliance with the E-Government Act, which 
requires Government agencies, in general, to provide the public the 
option of submitting information or transacting business electronically 
to the maximum extent possible. This rule requires one letter from 
requestors that can be sent electronically to USDA. USDA will continue 
to seek other avenues to increase electronically submitted information.

List of Subjects in 7 CFR 3203

    Computers, Excess, Excess computers, Excess government property, 
Government property, Other technical equipment, Personal property, 
Technical equipment.

    For the reasons set forth in the preamble, the Department of 
Agriculture adds 7 CFR part 3203 to read as follows:

PART 3203--GUIDELINES FOR THE TRANSFER OF EXCESS COMPUTERS OR OTHER 
TECHNICAL EQUIPMENT PURSUANT TO SECTION 14220 OF THE 2008 FARM BILL

Sec.
3203.1 Purpose.
3203.2 Eligibility.
3203.3 Definitions.
3203.4 Procedures.
3203.5 Dollar limitation.
3203.6 Restrictions.
3203.7 Title.
3203.8 Costs.
3203.9 Accountability and recordkeeping.
3203.10 Disposal.
3203.11 Liabilities and losses.

    Authority:  7 U.S.C. 2206b.


Sec.  3203.1  Purpose.

    This part sets forth the procedures to be utilized by USDA when 
transferring excess USDA computers or other technical equipment to an 
organization for the purposes of distribution to a city, town, or local 
government entity in a rural area as authorized by 7 U.S.C. 2206b.


Sec.  3203.2  Eligibility.

    To be eligible under this part:
    (a) A city, town, or local government entity must be located in a 
rural area as defined in 7 U.S.C. 1991(a)(13)(A).
    (b) A designated organization must:
    (1) Have the documented capability to refurbish and distribute 
excess computers or other technical equipment;
    (2) Serve the interest of cities, towns, or local government 
entities in rural areas; and
    (3) Have been designated by an official of a city, town, or local 
government entity in a rural area to receive excess computers or other 
technical equipment under this part.


Sec.  3203.3  Definitions.

    Cannibalization means to remove serviceable parts from one item of 
equipment in order to install them on another item of equipment in 
order to repair or enhance its operability.
    City, town, or local government entity in a rural area as defined 
in 7 U.S.C. 1991(a)(13)(A) means any area other than:
    (1) A city or town that has a population of greater than 50,000 
inhabitants; and
    (2) Any urbanized area contiguous and adjacent to such a city or 
town described in paragraph (1) of this definition.
    Computers or other technical equipment means central processing 
units, laptops, desktops, computer mouses, keyboards, monitors, related 
peripheral tools (e.g., printers, modems, routers, servers, multimedia 
projectors, multifunctional devices, external hard drives) and fax 
machines. This term may also include computer software where the 
transfer of a license is permitted.
    Designated Organization means an organization that has been 
selected by an official of a city, town, or local government entity in 
a rural area to provide refurbishing services on donated computer and 
technical equipment.
    Excess means any property under the control of a USDA agency that 
is no longer required for that agency's or another USDA agency's needs, 
as determined by the agency head or designee.
    Property Management Officer (PMO) is an eligible recipient's 
designated point of contact, responsible for adherence to procedures 
described in this part.
    Recipient means a city, town, or local government entity located in 
a rural area as defined in 7 U.S.C. 1991(a)(13)(A) that may receive 
excess computers or other technical equipment under this part.
    Refurbish means to make `like new' by the process of major 
maintenance or minor repair of an item, either aesthetically or 
mechanically.


Sec.  3203.4  Procedures.

    (a) Each agency head will designate, in writing, an authorized 
official to approve transfers of excess computers or other technical 
equipment under this part consistent with the Department's policies on 
personal property management.
    (b) Excess computers or other technical equipment must first be 
internally screened to ensure it is not needed elsewhere in the 
Department.
    (c) To receive information concerning the availability of USDA 
excess computers or other technical equipment, an eligible recipient's 
PMO should contact any USDA office near to its location.
    (d) The USDA employee responsible for personal property, at the 
office contacted, will review the request for eligibility of the 
recipient and the availability of excess computers or other technical 
equipment. The USDA employee will inform the requestor of the outcome 
of the review (e.g. eligibility, the availability of excess computers 
or other technical equipment).
    (e) Eligible recipients will express their interest in receiving 
property under this part by submitting a request, on letterhead paper 
(electronic copy is

[[Page 26662]]

acceptable), to a USDA authorized official. All requests must originate 
from, and be signed by, a representative of an eligible recipient city, 
town, or local government entity. Requests must include:
    (1) Type of excess computers or other technical equipment requested 
(should include specifications);
    (2) Justification for eligibility (see Sec.  3203.2);
    (3) Contact information of the requestor;
    (4) Logistical information such as when and how the property will 
be picked up; and
    (5) Information on the recipient's designated organization (company 
name, contact person and phone number) that is designated to receive 
and refurbish the property for the eligible recipient along with a copy 
of the agreement between the recipient and its designated organization.
    (f) Excess computers or other technical equipment should be 
inspected before the property is transferred or the USDA agency should 
be contacted to verify the condition of the property.
    (g) If the condition of the property is acceptable, the recipient 
or its designated organization will coordinate with the USDA contact 
for transfer of the property. Since the USDA agency office may have 
several requests for property, it is critical that the recipient or its 
designated organization contact USDA as soon as possible. Property will 
usually be allocated on a first-come, first-served basis, taking into 
account fair and equitable distribution of excess computers or other 
technical equipment to all eligible recipients.
    (h) Transfers will be accomplished using the appropriate USDA 
property transfer form. The transfer form must contain the following 
statement: ``Property listed on this form is being transferred pursuant 
to the provisions in 7 CFR Part 3203.'' The form must be signed by an 
authorized official of the USDA agency and an official of the recipient 
organization.
    (i) A copy of the request that transferred the property must be 
attached to the transfer order and kept in the USDA agency's files.
    (j) When property is transferred to a designated organization, a 
copy of the completed transfer document will be sent to the eligible 
recipient government entity for its records. Eligible recipients are 
responsible for following up with the designated organization they have 
designated for the final receipt of the property.
    (k) In cases where an agency receives competing requests for excess 
computers or other technical equipment, to the extent permitted by law, 
the agency shall give full consideration to such factors as national 
defense requirements, emergency needs, energy conservation, preclusion 
of new procurement, fair and equitable distribution, transportation 
costs, and retention of title in the Government.
    (l) Prior to transferring any property pursuant to this Act, the 
transferring agency must remove data from the excess computers or other 
technical equipment (memory or any kind of data storage device) 
according to accepted sanitization procedures. To the maximum extent 
practicable, the transferring agency must remove data using a means 
that does not remove, disable, destroy, or otherwise render unusable 
the excess computers or other technical equipment or components. It is 
imperative that agencies take the necessary steps to ensure that no 
personal computer, server, external storage device, or related 
electronic component is transferred that might contain sensitive or 
confidential information. See Departmental Manual 3575-001, Security 
Controls in the System Life Cycle/System Development Life Cycle, for 
additional guidance.


Sec.  3203.5  Dollar limitation.

    There is no dollar limitation on excess computers or other 
technical equipment obtained under this part.


Sec.  3203.6  Restrictions.

    (a) Only an authorized USDA official may approve the transfer of 
excess computers or other technical equipment under this part.
    (b) Excess computers or other technical equipment may be 
transferred for the purpose of cannibalization, provided that the 
requestor submits a statement clearly indicating that cannibalization 
of the requested property will have greater benefit than utilization of 
the item in its existing form. Cannibalization is a secondary use of 
equipment and, therefore, these requests are considered subordinate to 
requests for primary use.
    (c) Designated organizations will only receive property for 
cannibalization when it has been specifically requested by the 
recipient and the cannibalized parts must only be used in computers or 
other technical equipment destined for eligible recipients.


Sec.  3203.7  Title.

    Title of ownership to excess computers or other technical equipment 
transferred under this part shall automatically pass to the recipient 
once the transferring agency and recipient or designated organization 
sign the transfer form indicating that the designated organization has 
received the property.


Sec.  3203.8  Costs.

    The designated organization must pay any costs associated with 
packaging and transportation of the property unless it has made other 
arrangements. The designated organization must remove property from the 
USDA agency's premises within 15 calendar days after being notified 
that the property is available for pickup, unless otherwise coordinated 
with the USDA agency. If the recipient decides prior to picking up or 
removing the property that it no longer wants the property, it must 
notify the USDA agency that approved the transfer request that the 
property is no longer needed.


Sec.  3203.9  Accountability and recordkeeping.

    (a) USDA requires all excess computers or other technical equipment 
received by an eligible recipient pursuant to this part be placed into 
use within one year of receipt of the property and used for at least 
one year thereafter. The recipient's PMO must maintain accountable 
records for such property during this time period.
    (b) GSA requires that all excess personal property given to non-
federal recipients be reported each fiscal year. USDA agencies that 
transfer property under this part must report the transfers in their 
annual reports to OPPM and include both the recipient and organization 
names. OPPM will review the reports for accuracy, as well as fair and 
equitable distribution of the excess computers or other technical 
equipment, before submitting to GSA.


Sec.  3203.10  Disposal.

    When property received under this part is no longer needed by the 
recipient, it must be disposed of in an environmentally sound manner 
that is not detrimental or dangerous to public health or safety and in 
accordance with all Federal, State and local laws.


Sec.  3203.11  Liabilities and losses.

    USDA assumes no liability with respect to accidents, bodily injury, 
illness, or any other damages or loss related to excess computers or 
other technical equipment transferred under this part. The recipient/
designated organization is advised to insure or otherwise protect 
itself and others as appropriate.


[[Page 26663]]


    Dated: April 27, 2012.
Lisa M. Wilusz,
Director.
[FR Doc. 2012-10745 Filed 5-4-12; 8:45 am]
BILLING CODE 3410-TX-P