[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Proposed Rules]
[Pages 9679-9682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03484]



41 CFR Parts 101-25 and 102-32

[FPMR Case 2014-101-1; FMR Case 2014-102-2; Docket No. 2014-0016; 
Sequence No. 1]
RIN 3090-AJ50

Federal Property Management Regulations/Federal Management 
Regulation; Supply and Procurement

AGENCY: Office of Government-wide Policy (OGP), General Services 
Administration (GSA).

ACTION: Proposed rule.


SUMMARY: GSA is proposing to amend the Federal Property Management 
Regulations (FPMR) and the Federal Management Regulation (FMR) by 
migrating regulations regarding the supply and procurement of 
Government personal property management from the FPMR to the FMR. The 
FPMR will contain a cross-reference to direct readers to the coverage 
in the FMR. This proposed rule also eliminates material that is not 
regulatory in nature, is overly prescriptive, outdated, addressed in 
other policy, or no longer appropriate for today's Government business 
environment. This case is included in GSA's retrospective review of 
existing regulations under Executive Order 13563. Additional 
information is available at www.gsa.gov/improvingregulations.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addresses shown below on or before 
April 27, 2015 to be considered in the formation of a final rule.

ADDRESSES: Submit comments in response to FPMR Case 2014-101-1/FMR Case 
2014-102-2 by any of the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking Portal by searching for ``FPMR 
Case 2014-101- 1/FMR Case 2014-102-2,'' and selecting the link that 
corresponds with ``FPMR Case 2014-101-1/FMR Case 2014-102-2.'' Follow 
the instructions provided at the ``Comment Now'' screen. Please include 
your name, company name (if any), and ``FPMR Case 2014-101-1/FMR Case 
2014-102-2'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405.
    Instructions: Please submit comments only and cite FPMR Case 2014-
101- 1/FMR Case 2014-102-2, on all correspondence related to this case. 
All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business 
confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Robert Holcombe, Office of Government-wide Policy, Office of Asset 
and Transportation Management (MA), at 202-501-3828. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat (MVCB) at 202-501-4755. Please cite FPMR Case 2014-101-1/
FMR Case 2014-102-2.


A. Background

    GSA is proposing to amend the FPMR by revising regulations 
regarding Government personal property management policies in FPMR 101-
25 (41 CFR part 101-25), and by moving these policies to part 102-32 of 
the FMR (41 CFR part 102-32). GSA anticipates migrating the remaining 
parts of FPMR, Subchapter E, to succeeding subparts of FMR part 102-32. 
This revision is part of GSA's effort to improve its external 
directives system by reducing the number of regulations and rewriting 
them in plain language. This proposed rule removes material that is not 
regulatory in nature (such as internal GSA operating procedures), is 
overly prescriptive, outdated, addressed in other policy, or no longer 
appropriate for today's Government business environment.

B. Substantive Changes

    The following table provides a crosswalk from FPMR part 101-25 
(left column) to FMR part 102-32 (right column). This table identifies 
where the policy provisions of FPMR part 101-25 will be migrated to in 
the FMR, and explains significant changes or deletions.

Title 41: Public contracts and property    FMR part 102-32--supply and
    management part 101-25-- general               procurement
Sec.   101-25.000 Scope of subchapter..  Revised and added to section
Sec.   101-25.001 Scope of part........  Deleted as not necessary.
Sec.   101-25.100 Use of Government      Revised in sections 102-32.20
 personal property and nonpersonal        and 102-32.25.
Sec.   101-25.101 Criteria for           Revised in section 102-32.35.
 determining method of supply.            Definition of ``use point''
                                          removed and replaced with
                                          general terminology.
Sec.   101-25.102 Exchange or sale of    Deleted because this topic is
 personal property for replacement        addressed in FMR part 102-39.
Sec.   101-25.103 Promotional            Deleted. Items addressed in
 materials, trading stamps, or bonus      this Subpart are treated the
 goods.                                   same as other personal
                                          property and disposed of
Sec.   101-25.104 Acquisition of office  Deleted as being too
 furniture and office machines.           prescriptive; refer to the
                                          Federal Acquisition Regulation
                                          (FAR) for general policies on
                                          acquisition. The prohibition
                                          against acquiring unnecessary
                                          items is retained in section
Sec.   101-25.105 [Reserved]...........  Deleted.
Sec.   101-25.106 Servicing of office    Deleted as being too
 machines.                                prescriptive.
Sec.   101-25.107 Guidelines for         Policy summarized in section
 requisitioning and proper use of         102-32.45.
 consumable or low cost items.
Sec.   101-25.108 Multiyear              Deleted, refer to the FAR for
 subscriptions for publications.          requirements determination and
                                          structuring a procurement.

[[Page 9680]]

Sec.   101-25.109 Laboratory and         Policy summarized in section
 research equipment.                      102-32.40 and generalized to
                                          include all types of
                                          facilities and activities, not
                                          just laboratories and research
Sec.   101-25.110 Tire identification/   Deleted. Federal motor vehicle
 registration program.                    policy is found in FMR part
Sec.   101-25.111 Environmental impact   Deleted because this section
 policy.                                  simply explains that
                                          environmental policies and
                                          practices are part of GSA's
Sec.   101-25.112 Energy conservation    Deleted because conservation
 policy.                                  and efficiency is contained in
                                          other Federal law and policy
                                          addressing the procurement,
                                          management, and disposal of
                                          personal property and
                                          nonpersonal services. For
                                          example, see the Energy Policy
                                          Act (EPACT) laws and related
                                          Executive Orders (E.O.) (e.g.,
                                          E.O. 13423 and E.O. 13514).
Sec.   101-25.113 [Reserved]...........  Deleted.
Sec.   101-25.114 Supply management      Necessary policy summarized in
 surveys and assistance.                  section 102-32.50.
Subpart 101-25.2 Interagency Purchase    Deleted. This policy is
 Assignments.                             provided in FAR Subpart 17.5;
                                          Interagency Acquisitions.
Subpart 101-25.3 Use Standards.........  Necessary policy summarized in
                                          section 102-32.55; overly-
                                          prescriptive policy is
Subpart 101-25.4 Replacement Standards.  Necessary policy summarized in
                                          section 102-32.55; overly-
                                          prescriptive policy is
Subpart 101-25.5 Purchase or Lease       Deleted as unnecessary.
Subparts 101-25.6 through 101-25.49      Deleted ``reserved'' sections.

C. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 of September 30, 1993 (``Regulatory 
Planning and Review''), and 13563 of January 18, 2011 (``Improving 
Regulation and Regulatory Review''), 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. E.O. 13563 
emphasizes the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This proposed rule is not a significant regulatory action, and 
therefore, is not subject to review under Section 6(b) of E.O. 12866. 
This proposed rule is not a major rule under 5 U.S.C. 804.

D. Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. This proposed rule is 
also exempt from the Administrative Procedure Act per 5 U.S.C. 
553(a)(2) because it applies to agency management or personnel or to 
public property.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this proposed 
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.

F. 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 or personnel 
and does not substantially affect the rights or obligations of non-
agency parties.

List of Subjects in Parts 101-25 and 102-32

    Public contracts, Management of property.

    Dated: February 6, 2015.
Christine J. Harada,
Associate Administrator, Office of Government-wide Policy.

    For the reasons set forth in the preamble, GSA proposes to amend 41 
CFR chapters 101 and 102 as follows:



1. Revise the authority citation for part 101-25 to read as follows:

    Authority:  40 U.S.C. 121(c) and 40 U.S.C. 506(a).

2. Revise Sec.  101-25 to read as follows:

Sec.  101-25  Cross-reference to the Federal Management Regulation 
(FMR) (41 CFR parts 102-1 through 102-220).

    For information on the supply and procurement of personal property 
previously contained in this part, see FMR part 102-32 (41 CFR part 



3. Add part 102-32 to subchapter B of chapter 102 to read as follows:


102-32.5 What is the purpose of this part?
102-32.10 How does this part use ``I,'' ``me,'' and ``you''?
102-32.15 How does this part apply to my agency?
102-32.20 What definitions apply to this part?
102-32.25 How may I use Government personal property and services?
102-32.30 How must I acquire personal property?
102-32.35 How do I determine the best method of supply?
102-32.40 What processes are available to effectively manage agency 
personal property assets?
102-32.45 How do I manage low-value Federal personal property?
102-32.50 What are supply management surveys?
102-32.55 What are Use and Replacement Standards?

    Authority:  40 U.S.C. 121(c) and 40 U.S.C. 506(a).

Sec.  102-32.5  What is the purpose of this part?

    This part provides policy for the effective and efficient supply 
and procurement of personal property items necessary to support the 
programs of the Federal Government, as well as the use of Federal 
personal property assets to preserve agency funds and contribute to the 
accomplishment of agency missions.

[[Page 9681]]

Sec.  102-32.10  How does this part use ``I,'' ``me,'' and ``you''?

    This part uses ``I,'' ``me,'' and ``you'' to refer to executive 
agency personnel. When referring to the organization, the term 
``agency'' is used.

Sec.  102-32.15  How does this part apply to my agency?

    All executive agencies and personnel, including the Department of 
Defense, must follow the policies in this part unless specifically 
exempted by separate statute or regulation.

Sec.  102-32.20  What definitions apply to this part?

    The following definitions apply to this part:
    Equipment Pool means the collection, at a central point, of 
equipment under control for short term issue to individuals or 
    Method of supply means the process for an agency to obtain those 
items of personal property needed to fulfill the agency's mission.
    Nonpersonal services, as defined at 40 U.S.C. 472 means such 
contractual services, other than personal and professional services, 
under which the personnel rendering the services are not subject, 
either by the contract's terms or by the manner of its administration, 
to the supervision and control usually prevailing in relationships 
between the Government and its employees.
    Voluntary Consensus Standards means standards developed or adopted 
by bodies (which are domestic or international organizations which 
plan, develop, establish, or coordinate standards using agreed-upon 
procedures), and which include provisions requiring that owners of 
relevant intellectual property agree to make intellectual property 
available on a non-discriminatory, royalty-free or reasonable royalty 
basis to all interested parties (see OMB Circular A-119 at http://www.whitehouse.gov/omb/circulars_a119/).

Sec.  102-32.25  How may I use Government personal property and 

    Except in emergencies, Government personal property and nonpersonal 
services shall be used only for those purposes for which they were 
obtained or for other officially designated agency purposes. Emergency 
conditions are those threatening loss of life and property. This 
includes property and services on interagency loan as well as property 
leased by agencies.

Sec.  102-32.30  How must I acquire personal property?

    Personal property (as defined in FMR 102-36.40), must be acquired 
only to fulfill an official purpose, and be acquired so as to minimize 
the cost and maximize the utility to the Federal Government, reasonably 
considering alternative items and acquisition methods in accordance 
with the Federal Acquisition Regulation (FAR), 48 CFR 1.000, et seq., 
or other applicable law. Each executive agency shall determine whether 
using currently owned items can meet the requirements of the agency 
prior to the acquisition of new items. Each executive agency shall 
also, to the extent practicable, use excess personal property from 
other agencies before acquiring new items.

Sec.  102-32.35  How do I determine the best method of supply?

    When acquiring supplies, you must determine and utilize the method 
of supply that is most advantageous to the Federal Government. You must 
consider the costs and benefits of the various supply methods and all 
orders must be within the planned requirements for use. General supply 
methods include, but are not limited to supply through:
    (a) Storage and issue--where an item can be most advantageously 
supplied through storage and issued accordingly;
    (b) Consolidated purchase for direct delivery to storage or 
redistribution locations--where an item can be most advantageously 
supplied through consolidated purchase for direct delivery;
    (c) Indefinite quantity requirement contracts--where an item can be 
most advantageously supplied through indefinite quantity requirement 
contracts covering specific periods and providing for delivery (see FAR 
Subpart 16.5)); and
    (d) Local purchase--where the local purchase is within applicable 
limitation established by the agency head and will produce the greatest 
economy to the Government.

Sec.  102-32.40  What processes are available to effectively manage 
agency personal property assets?

    You should establish any necessary policies, procedures, and 
controls to effectively manage your agency's personal property, so that 
you can determine whether your agency's requirements can be met by 
using existing personal property, instead of procuring similar 
equipment. Agencies should consider:
    (a) Identifying idle and unnecessary assets. You should conduct 
inspection tours of agency facilities on a scheduled basis, annually, 
if feasible, but no less than every 3 years, for the purpose of 
identifying idle and unnecessary assets; and
    (b) Establishing equipment pools. You should establish equipment 
pools to minimize the investment in commonly-used assets typically used 
by many employees within a geographic area.

Sec.  102-32.45  How do I manage low-value Federal personal property?

    Your agency must determine the threshold for which property is 
considered accountable. Low-value personal property is any asset valued 
at less than this accountability threshold. Low-value personal property 
is ``expendable'' and may be handled by:
    (a) Restricting approval of requisitions for replenishment of 
storeroom stocks to officials at a responsible supervisory level to 
ensure that supply requirements are justified based on need and 
    (b) Establishing adequate safeguards and controls to ensure that 
expendable supplies are used for official use only; and
    (c) Giving special attention and care to those consumable or low 
cost items when issues are excessive compared to normal program needs.

Sec.  102-32.50  What are supply management surveys?

    Under the provisions of 40 U.S.C. 506, GSA may perform surveys of 
Government property and property management practices of executive 
agencies. These surveys will be conducted in connection with regular 
studies of agency supply management practices or when providing 
assistance in the development of agency property accounting systems. As 
appropriate, GSA will provide written reports of findings and 
recommendations to agency heads.

Sec.  102-32.55  What are Use and Replacement Standards?

    Use and Replacement Standards are procedures designed to maximize 
the effectiveness of asset inventories and to reduce costs. Agencies 
are encouraged to implement agency-specific procedures for personal 
property assets when appropriate.
    (a) Use Standards limit the amount and type of property held by the 
organization to the minimum requirements necessary for the efficient 
functioning of the organization. An example of a Government-wide Use 
Standard methodology is described in FMR Bulletin B-30, relating to the 
management of motor vehicle assets. (Bulletins may be found at 
www.gsa.gov/bulletins). Considering the methodology in this Bulletin 
for the management of other assets will guide the agency to a more 
cost-effective operation.

[[Page 9682]]

    (b) Replacement Standards guide agencies to consider an effective 
replacement strategy for Government personal property items. For 
example, an agency may designate a type of item to be replaced every 
three years, based upon the expected trends of reliability, maintenance 
costs, and usefulness as the item ages. However, actual replacement 
decisions should also consider the condition of the item.
    (c) Agencies should consider voluntary consensus standards, 
industry standards, and Federal best-practices in developing Use and 
Replacement Standards. Factors to consider when choosing standards to 
use are outlined in OMB Circular A-119, ``Federal Participation in the 
Development and Use of Voluntary Consensus Standards and in Conformity 
Assessment Activities.'' Voluntary consensus standards must be used in 
lieu of Government-unique standards unless such use would be 
inconsistent with applicable law or regulation, or be otherwise 

[FR Doc. 2015-03484 Filed 2-23-15; 8:45 am]