[Federal Register Volume 80, Number 212 (Tuesday, November 3, 2015)]
[Rules and Regulations]
[Pages 68158-68233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27397]



[[Page 68157]]

Vol. 80

Tuesday,

No. 212

November 3, 2015

Part V





Department of Defense





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32 CFR Part 273





 Defense Materiel Disposition; Final Rule

  Federal Register / Vol. 80 , No. 212 / Tuesday, November 3, 2015 / 
Rules and Regulations  

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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 273

[Docket ID: DOD-2013-OS-0145]
RIN 0790-AJ11


Defense Materiel Disposition

AGENCY: Under Secretary of Defense for Acquisition, Technology, and 
Logistics, DoD.

ACTION: Final rule.

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SUMMARY: This final rule prescribes uniform procedures for the 
disposition of DoD personal property and establishes the sequence of 
processes for disposition of personal property of the DoD Components. 
Subpart A implements the statutory authority and regulations under 
which DoD personal property disposal takes place, as well as the scope 
and applicability for the program; defines the responsibilities of 
personnel and agencies involved in the Defense Materiel Disposition 
Program; provides procedures for disposal of excess property and scrap; 
and provides procedures for property donations, loans, and exchanges. 
Subpart B implements policy for reutilization, transfer, excess 
property screening, and issue of surplus property and foreign excess 
personal property (FEPP), scrap released by qualified recycling 
programs (QRPs), and non-QRP scrap; and provides guidance for removing 
excess material through security assistance programs and foreign 
military sales (FMS).

DATES: Effective December 3, 2015.

FOR FURTHER INFORMATION CONTACT: Randal Kendrick, 571-372-5202.

SUPPLEMENTARY INFORMATION:

I. Executive Summary

A. Purpose of the Regulatory Action

1. The Need for the Regulatory Action and How the Action Will Meet That 
Need
    The purpose of this regulatory action is to define responsibilities 
of personnel and agencies involved in the Defense Materiel Disposition 
Program, and provide procedures for disposal of excess property and 
scrap, property donations, loans, and exchanges. It provides 
responsibilities and procedures about disposal guidance and procedures; 
and reutilization, transfer, and sale of property for defense materiel 
disposition. This regulatory action is important because of the 
drawdown of forces from the wars in Iraq and Afghanistan which resulted 
in surplus property (including hazardous property as defined in this 
rule) for which the proper disposition must be determined. This 
includes materials that could be considered hazardous waste under 
Resource Conservation and Recovery Act requirements in 42 U.S.C. 6901 
et seq. upon being discarded.
2. Succinct Statement of Legal Authority for the Regulatory Action
    Given the authority in:
     10 U.S.C. 2194, 2208, 2572, 2576, 2576a, and 2576b, the 
Secretary of Defense may:
    [cir] Make surplus property available for donation to eligible 
recipients; donate, lend, or exchange without expense to the United 
States books, manuscripts, works of art, historical artifacts, 
drawings, plans, models and condemned or obsolete combat materiel that 
are not needed by the Military Services.
    [cir] Sell or donate designated items to State and local law 
enforcement, firefighting, homeland security, and emergency management 
agencies.
     10 U.S.C. 2557, the Secretary of Defense may provide non-
lethal DoD excess personal property for humanitarian purposes.
     10 U.S.C. 2577, the Secretary of Defense may operate 
recycling programs at military installations and sell recyclable 
materials.
     10 U.S.C. 4683, the Secretary of the Army may loan to 
recognized veterans' organizations (or local units of national 
veterans' organizations recognized by the U.S. Department of Veterans 
Affairs) obsolete or condemned rifles or cartridge belts for use by 
that unit for ceremonial purposes.
     10 U.S.C. 7306, the Secretary of the Navy, with approval 
of Congress, may donate to eligible recipients any vessel stricken from 
the Naval Vessel Register or any captured vessel for use as a museum or 
memorial for public display.
     10 U.S.C. 7545, the Secretary of the Navy may donate or 
loan captured, condemned, or obsolete ordnance materiel, books, 
manuscripts, works of art, drawings, plans, models, trophies and flags, 
and other condemned or obsolete materiel, as well as materiel of 
historical interest.
     15 U.S.C. 3710(i), the Secretary of Defense may transfer 
(donate) laboratory (e.g., scientific, research) equipment that is 
excess to the needs of that laboratory to public and private schools 
and nonprofit institutions in the U.S. zone of interior (ZI).
     22 U.S.C. 2151, 2321b, 2321j, 2751, and 2778 et seq., the 
Secretary of Defense with the approval of the Secretary of State, may 
transfer excess defense articles to eligible recipients.
     40 U.S.C. subtitle I and sections 101, 541 et seq., and 
701, the Secretary of Defense may efficiently and economically dispose 
of excess property.
     42 U.S.C. 3015 and 3020, the Secretary of Defense may 
donate surplus property to State and local government agencies, or 
nonprofit organizations or institutions that receive federal funding to 
conduct programs for older individuals.
     42 U.S.C. Chapter 68, the Secretary of Defense may provide 
federal assistance to States, local governments, and relief 
organizations for emergency or major disaster assistance purposes.

B. Summary of the Major Provisions of the Regulatory Action in Question

    This rule provides general guidelines and procedures for property 
disposition; provides guidance for budgeting for the disposal of 
excess, surplus, and foreign excess personal property (FEPP) property 
with updates via program budget decisions; ensures cost-effective 
disposal of precious metals bearing scrap and end items for the 
replenishment of valuable resources through the DoD Precious Metals 
Recovery Program (PMRP); outlines DoD screening methods for disposing 
of materiel; and describes procedures relating to foreign military 
sales.

C. Costs and Benefits

    This rule benefits DoD by reducing the amount of excess property in 
inventory which provides savings to the Department from the associated 
costs of handling, transporting, and storing property. In FY 2014, DOD 
redistributed excess property with an acquisition value of $3.2 billion 
through reutilization by other components of DoD and special programs 
specified by legislative approval (such as foreign military sales, law 
enforcement agencies and fire fighters), transfer to other federal 
agencies, and donation to state approved organizations. In addition, in 
FY 2014, DoD returned $104 million to the U.S. Treasury through the 
sale of eligible excess property. The rule also provides environmental 
benefits through ensuring the disposition of property in accordance 
with environmental laws such as recycling materials where possible. The 
rule costs DoD $405M for 90 field offices and 1,500 people in DLA 
Disposition services worldwide to dispose of excess property and manage 
surplus useable property transfers, sales, and donations. The cost to 
cut, shred, and demilitarize

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materiel is offset by the sales and recycling of the residue.

II. Retrospective Review

    This rule is part of DoD's retrospective plan, completed in August 
2011, under Executive Order 13563, ``Improving Regulation and 
Regulatory Review.'' DoD's full plan and updates can be accessed at: 
http://www.regulations.gov/#!docketDetail;dct=FR+PR+N+O+SR;rpp=10;po=0;D=DOD-2011-OS-0036.

III. Comments and Responses

    On December 29, 2014, the Department of Defense published an 
interim final rule titled ``Defense Materiel Disposition'' (79 FR 
78144-78218). The 60-day public-comment period expired on February 27, 
2015. Two public comments were received. One of the comments expressed 
praise and support for the Defense Materiel Disposition program. The 
second comment expressed concern about the provision of excess 
Department of Defense property to law enforcement agencies.
    Response: The congressionally authorized 1033 program provides 
property that is excess to the needs of the Department of Defense for 
use by agencies in law enforcement, counter-drug, and counter-terrorism 
activities. It enables first responders and others to ensure the 
public's safety and to save lives.
    The Department is co-chairing the Law Enforcement Equipment Working 
Group established by executive order on January 16, 2015. The purpose 
of the working group is to identify agency actions that can improve 
Federal support for the acquisition of controlled equipment by law 
enforcement agencies (LEAs), including by providing LEAs with 
controlled equipment that is appropriate to the needs of their 
community; ensuring that LEAs are properly trained to employ the 
controlled equipment they acquire; ensuring that LEAs adopt 
organizational and operational practices and standards that prevent the 
misuse or abuse of controlled equipment; and ensuring LEA compliance 
with civil rights requirements resulting from receipt of Federal 
financial assistance.
    The Department is prepared to make any changes to the program as a 
result of changes to the authorizing statute or based on 
recommendations made by the working group and approved by the 
President.
    After the 60-day public comment period for the interim final rule, 
minor administrative edits were made to provide clarity or delete 
unnecessary, confusing language in the regulatory text. In Sec.  273.3 
and Sec.  273.12 the definitions for hazardous waste and qualified 
recycling programs were modified; the web link in Sec.  273.6(a)(3) was 
corrected; language in Sec.  273.7(b)(5)(ii) was deleted; language in 
Sec.  273.6(f)(4), Sec.  273.6(f)(6), Sec.  273.10(b)(1), Sec.  
273.10(b)(3) and Sec.  273.15(a)(3)(i)-(iii), was modified; and the 
language in Sec.  273.14(b)(3) and (4) was added.

IV. Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    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, distribute 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 ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).

Sec. 202, Pub. L. 104-4, ``Unfunded Mandates Reform Act''

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
(Pub. L. 104-4) requires agencies assess anticipated costs and benefits 
before issuing any rule whose mandates require spending in any 1 year 
of $100 million in 1995 dollars, updated annually for inflation. In 
2014, that threshold is approximately $141 million. This final rule 
will not mandate any requirements for State, local, or tribal 
governments, nor will it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. 601)

    The Department of Defense certifies that this final rule is not 
subject to the Regulatory Flexibility Act (5 U.S.C. 601) because it 
would not, if promulgated, have a significant economic impact on a 
substantial number of small entities. Therefore, the Regulatory 
Flexibility Act, as amended, does not require us to prepare a 
regulatory flexibility analysis.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    Sections 273.15(a)(6)(i)(E)(2) and 273.15(a)(6)(i)(D) of this final 
rule contain information collection requirements. As required by the 
Paperwork Reduction Act (44 U.S.C. Chapter 35), DoD has submitted an 
information clearance package to the Office of Management and Budget 
for review. In response to DoD's invitation in the Interim Final Rule 
to comment on any potential paperwork burden associated with this rule, 
no comments were received.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on State 
and local governments, preempts State law, or otherwise has Federalism 
implications. This final rule will not have a substantial effect on 
State and local governments.

List of Subjects in 32 CFR Part 273

    Defense materiel, Military arms sales, Waste treatment and 
disposal.

    Accordingly, the interim rule adding 32 CFR part 273 which was 
published at 79 FR 78144, December 29, 2014, is adopted as a final rule 
with the following changes. Part 273 is revised to read as follows:

PART 273--DEFENSE MATERIEL DISPOSITION

Subpart A--Disposal Guidance and Procedures
Sec.
273.1 Purpose.
273.2 Applicability.
273.3 Definitions.
273.4 Policy.
273.5 Responsibilities.
273.6 Procedures.
273.7 Excess DoD property and scrap disposal processing.
273.8 Donations, loans, and exchanges.
273.9 Through-life traceability of uniquely identified items.
Subpart B--Reutilization, Transfer, and Sale of Property
273.10 Purpose.
273.11 Applicability.
273.12 Definitions.
273.13 Policy.
273.14 Responsibilities.
273.15 Procedures.

    Authority:  10 U.S.C. 2194, 2208, 2557, 2572, 2576, 2576a, 
2576b, 2577, 4683, 7306, 7545; 15 U.S.C. 3710(i); 22 U.S.C. 2151, 
2321b, 2321j, 2751, and 2778 et seq.; 40 U.S.C. subtitle I and 
sections 101, 541 et seq.,

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and 701; 42 U.S.C. 3015 and 3020; and 42 U.S.C. Chapter 68.

Subpart A--Disposal Guidance and Procedures


Sec.  273.1  Purpose.

    (a) This part is composed of several subparts, each containing its 
own purpose. In accordance with the authority in DoD Directive 5134.12, 
``Assistant Secretary of Defense for Logistics and Materiel Readiness 
(ASD(L&MR))'' (available at http://www.dtic.mil/whs/directives/corres/pdf/513412p.pdf); DoD Instruction 4140.01, ``Supply Chain Materiel 
Management Policy'' (available at http://www.dtic.mil/whs/directives/corres/pdf/414001p.pdf); and DoD Instruction 4160.28, ``DoD 
Demilitarization (DEMIL) Program'' (available at http://www.dtic.mil/whs/directives/corres/pdf/416028p.pdf), this part:
    (1) Prescribes uniform procedures for the disposition of DoD 
personal property.
    (2) Establishes the sequence of processes for disposition of 
personal property of the DoD Components.
    (b) This subpart:
    (1) Implements the statutory authority and regulations under which 
DoD personal property disposal takes place, as well as the scope and 
applicability for the program.
    (2) Defines the responsibilities of personnel and agencies involved 
in the Defense Materiel Disposition Program.
    (3) Provides procedures for disposal of excess property and scrap.
    (4) Provides procedures for property donations, loans, and 
exchanges.


Sec.  273.2  Applicability.

    (a) This subpart applies to the Office of the Secretary of Defense, 
the Military Departments, the Office of the Chairman of the Joint 
Chiefs of Staff and the Joint Staff, the Combatant Commands, the Office 
of the Inspector General of the Department of Defense, the Defense 
Agencies, the DoD Field Activities, and all other organizational 
entities within the DoD (referred to collectively in this subpart as 
the ``DoD Components'').
    (b) If a procedural conflict exists, these references take 
precedence:
    (1) 41 CFR chapters 101 and 102 (also known as the Federal Property 
Management Regulations and Federal Management Regulation (FPMR and 
FMR)).
    (2) 40 U.S.C. subtitle I, also known as the Federal Property and 
Administrative Services Act.


Sec.  273.3  Definitions.

    Unless otherwise noted, these terms and their definitions are for 
the purpose of this subpart.
    Abandonment and destruction (A/D). A method for handling property 
that:
    (1) Is abandoned and a diligent effort to determine the owner is 
unsuccessful.
    (2) Is uneconomical to repair or the estimated costs of the 
continued care and handling of the property exceeds the estimated 
proceeds of sale.
    (3) Has an estimated cost of disposal by A/D that is less than the 
net sales cost.
    Accountability. The obligation imposed by law, lawful order, or 
regulation, accepted by a person for keeping accurate records to ensure 
control of property, documents, or funds, with or without possession of 
the property. The person who is accountable is concerned with control 
while the person who has possession is responsible for custody, care, 
and safekeeping.
    Acquisition cost. The amount paid for property, including 
transportation costs, net any trade and cash discounts. Also see 
standard price.
    Ammunition. Generic term related mainly to articles of military 
application consisting of all kinds of bombs, grenades, rockets, mines, 
projectiles, and other similar devices or contrivances.
    Automatic identification technology (AIT). A suite of technologies 
enabling the automatic capture of data, thereby enhancing the ability 
to identify, track, document, and control assets (e.g. materiel), 
deploying and redeploying forces, equipment, personnel, and sustainment 
cargo. AIT encompasses a variety of data storage or carrier 
technologies, such as linear bar codes, two-dimensional symbols (PDF417 
and Data Matrix), magnetic strips, integrated circuit cards, optical 
laser discs (optical memory cards or compact discs), satellite tracking 
transponders, and radio frequency identification tags used for marking 
or ``tagging'' individual items, equipment, air pallets, or containers. 
Known commercially as automatic identification data capture.
    Batchlot. The physical grouping of individual receipts of low-
dollar-value property. The physical grouping consolidates multiple 
disposal turn-in documents (DTIDs) under a single cover DTID. The 
objective of batchlotting is to reduce the time and costs related to 
physical handling and administrative processes required for receiving 
items individually. The cover DTID establishes accountability in the 
accountable record and individual line items lose their identity.
    Bid. A response to an offer to sell that, if accepted, would bind 
the bidder to the terms and conditions of the contract (including the 
bid price).
    Bidder. Any entity that is responding to or has responded to an 
offer to sell.
    Care and handling. Includes packing, storing, handling, and 
conserving excess, surplus, and foreign excess property. In the case of 
property that is dangerous to public health, safety, or the 
environment, this includes destroying or rendering such property 
harmless.
    Commercial off the shelf (COTS) software. Software that is 
available through lease or purchase in the commercial market. Included 
in COTS are the operating system software that runs on the information 
technology equipment and other significant software purchased with a 
license that supports system or customer requirements.
    Commerce control list (CCL) items (formerly known as strategic list 
item). Commodities, software, and technology subject to export controls 
in accordance with Export Administration Regulations (EAR) in 15 CFR 
parts 730 through 774. The EAR contains the CCL and is administered by 
the Bureau of Industry and Security, Department of Commerce (DOC).
    Component. An item that is useful only when used in conjunction 
with an end item. Components are also commonly referred to as 
assemblies. For purposes of this definition an assembly and a component 
are the same. There are two types of components: Major components and 
minor components. A major component includes any assembled element 
which forms a portion of an end item without which the end item is 
inoperable. For example, for an automobile, components will include the 
engine, transmission, and battery. If you do not have all those items, 
the automobile will not function, or function as effectively. A minor 
component includes any assembled element of a major component. 
Components consist of parts. References in the CCL to components 
include both major components and minor components.
    Container. Any portable device in which a materiel is stored, 
transported, disposed of, or otherwise handled, including those whose 
last content was a hazardous or an acutely hazardous material, waste, 
or substance.
    Continental United States (CONUS). Territory, including the 
adjacent territorial waters, located within the North American 
continent between Canada and Mexico (comprises 48 States and the 
District of Columbia).

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    Controlled substances. (1) Any narcotic, depressant, stimulant, or 
hallucinogenic drug or any other drug or other substance or immediate 
precursor included in 21 U.S.C. 801. Exempted chemical preparations and 
mixtures and excluded substances are listed in 21 CFR part 1308.
    (2) Any other drug or substance that the United States Attorney 
General determines to be subject to control in accordance with 21 CFR 
part 1308.
    (3) Any other drug or substance that, by international treaty, 
convention, or protocol, is to be controlled by the United States.
    Counterfeit. A counterfeit part is one whose identity has been 
deliberately altered, misrepresented, or is offered as an unauthorized 
product substitution.
    Defective property. An item, part, or component that does not meet 
military, Federal, or commercial specifications as required by military 
procurement contracts because of unserviceability, finite life, or 
product quality deficiency and is determined to be unsafe for use. 
Defective property may be dangerous to public health or safety by 
virtue of latent defects. These defects are identified by technical 
inspection methods; or condemned by maintenance or other authorized 
activities as a result of destructive and nondestructive test methods 
such as magnetic particle, liquid penetrant, or radiographic testing, 
which reveal defects not apparent from normal visual inspection 
methods.
    Defense Logistics Agency Disposition Services Automated Information 
System (DAISY). An automated property accounting management data system 
designed to process property through the necessary disposal steps and 
account for excess, surplus, and foreign excess personal property 
(FEPP) from receipt to final disposal.
    Demilitarization. The act of eliminating the functional 
capabilities and inherent military design features from DoD personal 
property. Methods and degree range from removal and destruction of 
critical features to total destruction by cutting, crushing, shredding, 
melting, burning, etc. DEMIL is required to prevent property from being 
used for its originally intended purpose and to prevent the release of 
inherent design information that could be used against the United 
States. DEMIL applies to material in both serviceable and unserviceable 
condition.
    Disposal. End-of-life tasks or actions for residual materials 
resulting from demilitarization or disposition operations.
    Disposition. The process of reusing, recycling, converting, 
redistributing, transferring, donating, selling, demilitarizing, 
treating, destroying, or fulfilling other end of life tasks or actions 
for DoD property. Does not include real (real estate) property.
    Defense Logistics Agency (DLA) Disposition Services. The 
organization provides DoD with worldwide reuse, recycling and disposal 
solutions that focus on efficiency, cost avoidance and compliance.
    DLA Disposition Services site. The DLA Disposition Services office 
that has accountability for and control over disposable property. May 
be managed in part by a commercial contractor. The term is applicable 
whether the disposal facility is on a commercial site or a Government 
installation and applies to both Government and contractor employees 
performing the disposal mission.
    DoD Activity Address Code (DoDAAC). A 6-digit code assigned by the 
Defense Automatic Addressing Service to provide a standardized address 
code system for identifying activities and for use in transmission of 
supply and logistics information that supports the movement of 
property.
    DoD Item Unique Identification (IUID) Registry. The DoD data 
repository that receives input from both industry and Government 
sources and provides storage of, and access to, data that identifies 
and describes tangible Government personal property.
    Donation. The act of providing surplus personal property at no 
charge to a qualified donation recipient, as allocated by the General 
Services Administration (GSA).
    Donation recipient. Any of the following entities that receive 
federal surplus personal property through State agencies for surplus 
property (SASP):
    (1) A Service educational activity (SEA).
    (2) A public agency that uses surplus personal property to carry 
out or promote one or more public purposes. (Public airports are an 
exception and are only considered donation recipients when they elect 
to receive surplus property through a SASP, but not when they elect to 
receive surplus property through the Federal Aviation Administration 
(FAA).)
    (3) An eligible nonprofit tax-exempt educational or public health 
institution (including a provider of assistance to homeless or 
impoverished families or individuals).
    (4) A State or local government agency, or a nonprofit organization 
or institution, that receives funds appropriated for a program for 
older individuals.
    Educational institution. An approved, accredited, or licensed 
public or nonprofit institution or facility, entity, or organization 
conducting educational programs, including research for any such 
programs, such as a childcare center, school, college, university, 
school for the mentally handicapped, school for the physically 
handicapped, or an educational radio or television station.
    Excess personal property.
    (1) Domestic excess. Government personal property that the United 
States and its territories and possessions, applicable to areas covered 
by GSA (i.e., the 50 States, District of Columbia, Puerto Rico, 
American Samoa, Guam, Northern Mariana Islands, the Federated States of 
Micronesia, the Marshall Islands, Palau, and the U.S. Virgin Islands), 
consider excess to the needs and mission requirements of the United 
States.
    (2) DoD Component excess. Items of DoD Component owned property 
that are not required for their needs and the discharge of their 
responsibilities as determined by the head of the Service or Agency.
    (3) Foreign excess personal property (FEPP). U.S.-owned excess 
personal property that is located outside the zone of interior (ZI). 
This property becomes surplus and is eligible for donation and sale as 
described in Sec.  273.7.
    Exchange. Replace personal property by trade or trade-in with the 
supplier of the replacement property. To exchange non-excess, non-
surplus personal property and apply the exchange allowance or proceeds 
of sale in whole or in part payment for the acquisition of similar 
property. For example, the replacement of a historical artifact with 
another historical artifact by trade; or to exchange an item of 
historical property or goods for services based on the fair market 
value of the artifact.
    Federal civilian agency (FCA). Any non-defense executive agency 
(e.g. DoS, Department of Homeland Security) or any establishment in the 
legislative or judicial branch of the U.S. Government (USG) (except the 
Senate, the House of Representatives, and the Architect of the Capitol 
and any activities under his or her direction).
    FEPP. See excess personal property.
    Firearm. Any weapon (including a starter gun) that will or is 
designed to or may readily be converted to expel a projectile by the 
action of an explosive; the frame or receiver of any such weapon; any 
firearm muffler or firearm silencer; or any destructive device. The 
term does not include an antique firearm.

[[Page 68162]]

    Flight safety critical air parts (FSCAP). Any aircraft part, 
assembly, or installation containing a critical characteristic whose 
failure, malfunction, or absence could cause a catastrophic failure 
resulting in loss or serious damage to the aircraft or an uncommanded 
engine shutdown, resulting in an unsafe condition.
    Foreign purchased property. Property paid for by foreign countries, 
but where ownership is retained by the United States.
    Friendly foreign government. For purposes of trade security 
controls (TSC), governments of countries other than those designated as 
restricted parties.
    Generating activity (``generator''). The activity that declares 
personal property excess to its needs, e.g. DoD installations, 
activities, contractors, or FCAs.
    Government-furnished material (GFM). Property provided by the U.S. 
Government for the purpose of being incorporated into or attached to a 
deliverable end item or that will be consumed or expended in performing 
a contract. Government-furnished materiel includes assemblies, 
components, parts, raw and process material, and small tools and 
supplies that may be consumed in normal use in performing a contract. 
Government-furnished materiel does not include material provided to 
contractors on a cash-sale basis nor does it include military property, 
which are government-owned components, contractor acquired property (as 
specified in the contract), government furnished equipment, or major 
end items being repaired by commercial contractors for return to the 
government.
    GSAXcess[supreg]. A totally web-enabled platform that eligible 
customers use to access functions of GSAXcess[supreg] for reporting, 
searching, and selecting property. This includes the entry site for the 
Federal Excess Personal Property Utilization Program and the Federal 
Surplus Personal Property Donation Program operated by the GSA.
    Historical artifact. Items (including books, manuscripts, works of 
art, drawings, plans, and models) identified by a museum director or 
curator as significant to the history of that department, acquired from 
approved sources, and suitable for display in a military museum. 
Generally, such determinations are based on the item's association with 
an important person, event, or place; because of traditional 
association with an important person, event, or place; because of 
traditional association with a military organization; or because it is 
a representative example of military equipment or represents a 
significant technological contribution to military science or 
equipment.
    Hazardous material (HM). (1) In the United States, any material 
that is capable of posing an unreasonable risk to health, safety, and 
property during transportation. All HM appears in the HM Table at 49 
CFR 172.101.
    (2) Overseas, HM is defined in the applicable final governing 
standards or overseas environmental baseline guidance document, or host 
nation laws and regulations.
    Hazardous property (HP). (1) A composite term used to describe DoD 
excess property, surplus property, and FEPP, which may be hazardous to 
human health, human safety, or the environment. Various Federal, State, 
and local safety and environmental laws regulate the use and disposal 
of hazardous property.
    (2) In more technical terms, HP includes property having one or 
more of the following characteristics:
    (i) Has a flashpoint below 200 degrees Fahrenheit (93 degrees 
Celsius) closed cup, or is subject to spontaneous heating or is subject 
to polymerization with release of large amounts of energy when handled, 
stored, and shipped without adequate control.
    (ii) Has a threshold limit value equal to or below 1,000 parts per 
million (ppm) for gases and vapors, below 500 milligram per cubic meter 
(mg/m\3\) for fumes, and equal to or less than 30 million particles per 
cubic foot (mppcf) or 10 mg/m\3\ for dusts (less than or equal to 2.0 
fibers/cc greater than 5 micrometers in length for fibrous materials).
    (iii) Causes 50 percent fatalities to test animals when a single 
oral dose is administered in doses of less than 500 mg per kilogram of 
test animal weight.
    (iv) Is a flammable solid as defined in 49 CFR 173.124, or is an 
oxidizer as defined in 49 CFR 173.127, or is a strong oxidizing or 
reducing agent with a half cell potential in acid solution of greater 
than +1.0 volt as specified in Latimer's table on the oxidation-
reduction potential.
    (v) Causes first-degree burns to skin in short-time exposure, or is 
systematically toxic by skin contact.
    (vi) May produce dust, gases, fumes, vapors, mists, or smoke with 
one or more of the above characteristics in the course of normal 
operations.
    (vii) Produces sensitizing or irritating effects.
    (viii) Is radioactive.
    (ix) Has special characteristics which, in the opinion of the 
manufacturer, could cause harm to personnel if used or stored 
improperly.
    (x) Is hazardous in accordance with Occupational Health and Safety 
Administration, 29 CFR part 1910.
    (xi) Is hazardous in accordance with 29 CFR part 1910.
    (xii) Is regulated by the EPA in accordance with 40 CFR parts 260 
through 280.
    Hazardous waste (HW). An item that is regulated pursuant to 42 
U.S.C. 6901 or by State regulation as an HW. HW is defined federally at 
40 CFR part 261. Overseas, HW is defined in the applicable final 
governing standards or overseas environmental baseline guidance 
document, or host nation laws and regulations.
    Holding agency. The Federal agency that is accountable for, and 
generally has possession of, the property involved.
    Hold harmless. A promise to pay any costs or claims which may 
result from an agreement.
    Information technology. Any equipment or interconnected system or 
subsystem of equipment that is used in the automatic acquisition, 
storage, manipulation, management, movement, control, display, 
switching, interchange, transmission or reception of data or 
information by the DoD Component. Includes computers, ancillary 
equipment, software, firmware, and similar procedures, services 
(including support services), and related sources. Does not include any 
equipment that is acquired by a Federal contractor incidental to a 
Federal contract. Equipment is ``used'' by a DoD Component if the 
equipment is used by the DoD Component directly or is used by a 
contractor under a contract with the DoD Component that:
    (1) Requires the use of such equipment.
    (2) Requires the use to a significant extent of such equipment in 
the performance of a service or the furnishing of a product.
    Installation. A military facility together with its buildings, 
building equipment, and subsidiary facilities such as piers, spurs, 
access roads, and beacons.
    International organizations. For TSC purposes, this term includes: 
Columbo Plan Council for Technical Cooperation in South and Southeast 
Asia; European Atomic Energy Community; Indus Basin Development; 
International Atomic Energy; International Red Cross; NATO; 
Organization of American States; Pan American Health Organization; 
United Nations; UN Children's Fund; UN Development Program; UN 
Educational, Scientific, and Cultural Organization; UN High 
Commissioner for Refugees Programs; UN Relief and Works Agency

[[Page 68163]]

for Palestine Refugees in the Near East; World Health Organization; and 
other international organizations approved by a U.S. diplomatic 
mission.
    Interrogation. A communication between two or more ICPs, other DoD 
activities, and U.S. Government agencies to determine the current 
availability of an item or suitable substitute for a needed item before 
procurement or repair.
    Interservice. Action by one Military Department or Defense Agency 
ICP to provide materiel and directly related services to another 
Military Department or Defense Agency ICP (either on a recurring or 
nonrecurring basis).
    Inventory adjustments. Changes made in inventory quantities and 
values resulting from inventory recounts and validations.
    Inventory control point (ICP). An organizational unit or activity 
within the DoD supply system that is assigned the primary 
responsibility for the materiel management of a group of items either 
for a particular Military Department or for the DoD as a whole. In 
addition to materiel manager functions, an ICP may perform other 
logistics functions in support of a particular Military Department or 
for a particular end item (e.g., centralized computation of retail 
requirements levels and engineering tasks associated with weapon system 
components).
    Item unique identification (IUID). A system of establishing 
globally widespread unique identifiers on items of supply within the 
DoD, which serves to distinguish a discrete entity or relationship from 
other like and unlike entities or relationships. AIT is used to capture 
and communicate IUID information.
    Line item. A single line entry on a reporting form or sale document 
that indicates a quantity of property located at any one activity 
having the same description, condition code, and unit cost.
    Line item value (for reporting and other accounting and approval 
purposes). Quantity of a line item multiplied by the standard price.
    Marketing. The function of directing the flow of surplus and FEPP 
to the buyer, encompassing all related aspects of merchandising, market 
research, sale promotion, advertising, publicity, and selling.
    Material potentially presenting an explosive hazard (MPPEH). 
Material owned or controlled by the Department of Defense that, prior 
to determination of its explosives safety status, potentially contains 
explosives or munitions (e.g., munitions containers and packaging 
material; munitions debris remaining after munitions use, 
demilitarization, or disposal; and range-related debris) or potentially 
contains a high enough concentration of explosives that the material 
presents an explosive hazard (e.g., equipment, drainage systems, 
holding tanks, piping, or ventilation ducts that were associated with 
munitions production, demilitarization, or disposal operations). 
Excluded from MPPEH are munitions within the DoD-established munitions 
management system and other items that may present explosion hazards 
(e.g., gasoline cans and compressed gas cylinders) that are not 
munitions and are not intended for use as munitions.
    Metalworking machinery. A category of plant equipment consisting of 
power driven nonportable machines in Federal Supply Classification Code 
(four digits) (FSC) 3411 through 3419 and 3441 through 3449, which are 
used or capable of use in the manufacture of supplies or equipment, or 
in the performance of services, or for any administrative or general 
plant purpose.
    Munitions list items (MLI). Any item contained on the U.S. 
Munitions List (USML) in 22 CFR part 121. Defense articles, associated 
technical data (including software), and defense services recorded or 
stored in any physical form, controlled for export and permanent import 
by 22 CFR parts 120 through 130. 22 CFR part 121, which contains the 
USML, is administered by the DoS Directorate of Defense Trade Controls.
    Museum, DoD or Service. An appropriated fund entity that is a 
permanent activity with a historical collection, open to both the 
military and civilian public at regularly scheduled hours, and is in 
the care of a professional qualified staff that performs curatorial and 
related historical duties full time.
    Mutilation. A process that renders materiel unfit for its 
originally intended purposes by cutting, tearing, scratching, crushing, 
breaking, punching, shearing, burning, neutralizing, etc.
    NAF property. Property purchased with NAFs, by religious activities 
or nonappropriated morale welfare or recreational activities, post 
exchanges, ships stores, officer and noncommissioned officer clubs, and 
similar activities. Such property is not Federal property.
    Narcotics. See controlled substances.
    National stock number (NSN). The 13-digit stock number replacing 
the 11-digit federal stock number. It consists of the 4-digit federal 
supply classification code and the 9-digit national item identification 
number. The national item identification number consists of a 2-digit 
National Codification Bureau number designating the central cataloging 
office (whether North Atlantic Treaty Organization or other friendly 
country) that assigned the number and a 7-digit (xxx-xxxx) 
nonsignificant number. Arrange the number as follows: 9999-00-999-9999.
    Nonappropriated fund (NAF). Funds generated by DoD military and 
civilian personnel and their dependents and used to augment funds 
appropriated by Congress to provide a comprehensive, morale building, 
welfare, religious, educational, and recreational program, designed to 
improve the well-being of military and civilian personnel and their 
dependents.
    Nonprofit institution. An institution or organization, no part of 
the net earnings of which inures or may lawfully inure to the benefit 
of any private shareholder or individual, and which has been held to be 
tax exempt under the provisions of 26 U.S.C. 501, also known as the 
Internal Revenue Code of 1986.
    Nonsalable materiel. Materiel that has no reutilization, transfer, 
donation, or sale value as determined by the DLA Disposition Services 
site, but is not otherwise restricted from disposal by U.S. law or 
Federal or military regulations.
    Obsolete combat materiel. Military equipment once used in a 
primarily combat role that has been phased out of operational use; if 
replaced, the replacement items are of a more current design or 
capability.
    Ordnance. Explosives, chemicals, pyrotechnics, and similar stores, 
e.g., bombs, guns and ammunition, flares, smoke, or napalm.
    ppm. Unit of concentration by volume of a specific substance.
    Personal property. Property except real property. Excludes records 
of the Federal Government, battleships, cruisers, aircraft carriers, 
destroyers, and submarines.
    Pilferable materiel. Materiel having a ready resale value or 
application to personal possession, which is especially subject to 
theft.
    Plant equipment. Personal property of a capital nature (including 
equipment, machine tools, test equipment, furniture, vehicles, and 
accessory and auxiliary items) for use in manufacturing supplies, in 
performing services, or for any administrative or general plant 
purpose. It does not include special tooling or special test equipment.
    Precious metals. Gold, silver, and the platinum group metals 
(platinum,

[[Page 68164]]

palladium, iridium, rhodium, osmium, and ruthenium).
    Precious Metals Recovery Program (PMRP). A DoD program for 
identification, accumulation, recovery, and refinement of precious 
metals from excess and surplus end items, scrap, hypo solution, and 
other precious metal bearing materiel for authorized internal purposes 
or as GFM.
    Pre-receipt. Documentation processed prior to physically 
transferring or turning the property into a DLA Disposition Services 
site.
    Privacy Act property. Any document or other information about an 
individual maintained by the agency, whether collected or grouped, 
including but not limited to, information regarding education, 
financial transactions, medical history, criminal or employment 
history, or other personal information containing the name or other 
personal identification number, symbol, etc., assigned to such 
individual.
    Privately owned personal property. Personal effects of DoD 
personnel (military or civilian) that are not, nor will ever become, 
Government property unless the owner (or heirs, next of kin, or legal 
representative of the owner) executes a written and signed release 
document unconditionally giving the U.S. Government all right, title, 
and interest in the privately owned property.
    Public agency. Any State, political subdivision thereof, including 
any unit of local government or economic development district; or any 
department, agency, instrumentality thereof, including 
instrumentalities created by compact or other agreement between States 
or political subdivisions, multi-jurisdictional substate districts 
established by or under State law; or any Indian tribe, band, group, 
pueblo, or community located on a State reservation. (See Sec.  273.8 
regarding donations made through State agencies.)
    Qualified recycling programs (QRP). Organized operations that 
require concerted efforts to cost effectively divert or recover scrap 
or waste, as well as efforts to identify, segregate, and maintain the 
integrity of recyclable materiel to maintain or enhance its 
marketability. If administered by a DoD Component other than DLA, a QRP 
includes adherence to a control process providing accountability for 
all materials processed through program operations.
    Reclamation. A cost avoidance or savings measure to recover useful 
(serviceable) end items, repair parts, components, or assemblies from 
one or more principal end items of equipment or assemblies (usually 
supply condition codes (SCCs) listed in DLM 4000.25-2 as SCC H for 
unserviceable (condemned) materiel, SCC P for unserviceable 
(reclamation) materiel, and SCC R for suspended (reclaimed items, 
awaiting condition determination) materiel) for the purpose of 
restoration to use through replacement or repair of one or more 
unserviceable, but repairable principal end items of equipment or 
assemblies (usually SCCs listed in DLM 4000.25-2 as SCC E for 
unserviceable (limited restoration) materiel, SCC F for unserviceable 
(reparable) materiel, and SCC G for unserviceable (incomplete) 
materiel). Reclamation is preferable prior to disposition (e.g., DLA 
Disposition Services site turn-in), but end items or assemblies may be 
withdrawn from DLA Disposition Services sites for such reclamation 
purposes.
    Restricted parties. Those countries or entities that the Department 
of State (DoS), DOC, or Treasury have determined to be prohibited or 
sanctioned for the purpose of export, sale, transfer, or resale of 
items controlled on the United States Munitions List (USML) or Commerce 
Control List. A consolidated list of prohibited entities or 
destinations for which transfers may be limited or barred, may be found 
at: http://export.gov/ecr/eg_main_023148.asp.
    Reutilization. The act of re-issuing FEPP and excess property to 
DoD Components. Also includes qualified special programs (e.g., Law 
Enforcement Agency (LEA), Humanitarian Assistance Program, Military 
Affiliate Radio System (MARS)) pursuant to applicable enabling 
statutes.
    Salvage. Personal property that has some value in excess of its 
basic material content, but is in such condition that it has no 
reasonable prospect of use as a unit for the purpose for which it was 
originally intended, and its repair or rehabilitation for use as a unit 
is impracticable.
    Scrap. Recyclable waste and discarded materials derived from items 
that have been rendered useless beyond repair, rehabilitation, or 
restoration such that the item's original identity, utility, form, fit 
and function have been destroyed. Items can be classified as scrap if 
processed by cutting, tearing, crushing, mangling, shredding, or 
melting. Intact or recognizable USML or CCL items, components, and 
parts are not scrap. 41 CFR 102-36.40 and 15 CFR 770.2 provide 
additional information on scrap.
    Screening. The process of physically inspecting property or 
reviewing lists or reports of property to determine whether it is 
usable or needed.
    Sensitive items. Materiel that requires a high degree of protection 
and control due to statutory requirements or regulations, such as 
narcotics and drug abuse items; precious metals; items of high value; 
items that are highly technical, or of a hazardous nature; non-nuclear 
missiles, rockets, and explosives; small arms, ammunition and 
explosives, and demolition material.
    Service educational activity (SEA). Any educational activity that 
meets specified criteria and is formally designated by the Department 
of Defense as being of special interest to the Military Services. 
Includes educational activities such as maritime academies or military, 
naval, or Air Force preparatory schools, junior colleges, and 
institutes; senior high school-hosted Junior Reserve Officer Training 
Corps; and nationally organized youth groups. The primary purpose of 
such entities is to offer courses of instruction devoted to the 
military arts and sciences.
    Small arms/light weapons. Man-portable weapons made or modified to 
military specifications for use as lethal instruments of war that expel 
a shot, bullet, or projectile by action of an explosive. Small arms are 
broadly categorized as those weapons intended for use by individual 
members of armed or security forces. They include handguns; rifles and 
carbines; sub-machine guns; and light machine guns. Light weapons are 
broadly categorized as those weapons designed for use by two or three 
members of armed or security forces serving as a crew, although some 
may be used by a single person. They include heavy machine guns; hand-
held under-barrel and mounted grenade launchers; portable anti-aircraft 
guns; portable anti-tank guns; recoilless rifles; man-portable 
launchers of missile and rocket systems; and mortars.
    Standard price. The price customers are charged for a DoD managed 
item (excluding subsistence), which remains constant throughout a 
fiscal year. The standard price is based on various factors which 
include the latest acquisition price of the item plus surcharges or 
cost recovery elements for transportation, inventory loss, 
obsolescence, maintenance, depreciation, and supply operations.
    State agencies for surplus property (SASP). The agency designated 
under State law to receive Federal surplus personal property for 
distribution to eligible donation recipients within the States as 
provided for in 40 U.S.C. 549.

[[Page 68165]]

    State or local government. A State, territory, or possession of the 
United States, the District of Columbia, American Samoa, Guam, Puerto 
Rico, Commonwealth of Northern Mariana Islands, the U.S. Virgin 
Islands, and any political subdivision or instrumentality thereof.
    Supply condition codes (SCC). Code used to classify materiel in 
terms of readiness for issue and use or to identify action underway to 
change the status of materiel. These codes are assigned by the Military 
Departments or Defense Agencies. DLA Disposition Services may change a 
SCC if there is an appearance of an improperly assigned code and the 
property is of a non-technical nature. If change is not appropriate or 
property is of a technical nature, DLA Disposition Services sites may 
challenge a suspicious SCC.
    Surplus personal property. Excess personal property no longer 
required by the Federal agencies, as determined by the Administrator of 
General Services. Applies to surplus personal property in the United 
States, American Samoa, Guam, Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, and the U.S. Virgin Islands.
    Trade security controls (TSC). Policy and procedures, in accordance 
with DoD Instruction 2030.08, designed to prevent the sale or shipment 
of USG materiel to any person, organization, or country whose interests 
are unfriendly or hostile to those of the United States and to ensure 
that the disposal of DoD personal property is performed in compliance 
with U.S. export control laws and regulations, the International 
Traffic in Arms Regulations (ITAR) in 22 CFR parts 120 through 130, and 
the EAR in 15 CFR parts 730 through 774.
    Transfer. The act of providing FEPP and excess personal property to 
Federal civilian agencies (FCAs) as stipulated in the FMR. Property is 
allocated by the GSA. When a line item is less than $10,000, an FCA may 
coordinate allocation to another FCA directly.
    Trash. Post-consumer refuse, waste and food by-products such as 
litter, rubbish, cooked grease, bones, fats, and meat trimmings.
    Uniform Materiel Movement and Issue Priority System (UMMIPS). 
System to ensure that requirements are processed in accordance with the 
mission of the requiring activity and the urgency of need, and to 
establish maximum uniform order and materiel movement standard.
    Unique item identifier (UII). A set of data elements marked on an 
item that is globally unique and unambiguous. The term includes a 
concatenated UII or a DoD-recognized unique identification equivalent.
    Unsalable materiel. Materiel for which sale or other disposal is 
prohibited by U.S. law or Federal or military regulations.
    Usable property. Commercial and military type property other than 
scrap and waste.
    Veterans' organization. An organization composed of honorably 
discharged soldiers, sailors, airmen, and marines, which is established 
as a veterans' organization and recognized as such by the U.S. 
Department of Veterans Affairs.
    Zone of interior (ZI). The United States and its territories and 
possessions, applicable to areas covered by GSA and where excess 
property is considered domestic excess. Includes the 50 States, 
District of Columbia, Puerto Rico, American Samoa, Guam, Northern 
Mariana Islands, and the U.S. Virgin Islands.


Sec.  273.4  Policy.

    It is DoD policy consistent with 41 CFR chapters 101 and 102 that 
excess DoD property must be screened and redistributed among the DoD 
Components, and reported as excess to the GSA. Pursuant to 40 U.S.C. 
701, DoD will efficiently and economically dispose DoD FEPP.


Sec.  273.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Logistics and Materiel 
Readiness (ASD(L&MR)), under the authority, direction, and control of 
the USD(AT&L), and in accordance with DoD Directive 5134.12:
    (1) Develops DoD materiel disposition policies, including policies 
for FEPP.
    (2) Oversees the effective implementation of the DoD materiel 
disposition program.
    (3) Approves policy changes as appropriate to support contingency 
operations.
    (4) Approves national organizations for special interest 
consideration as SEAs, and approve categories of property considered 
appropriate, usable, and necessary for transfer to SEAs.
    (b) The Director, Defense Logistics Agency (DLA), under the 
authority, direction, and control of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, through the Assistant Secretary 
of Defense for Logistics and Materiel Readiness (ASD(L&MR)), and in 
addition to the responsibilities in paragraph (c) of this section:
    (1) Provides agency-level command and control and administers the 
worldwide Defense Materiel Disposition Program.
    (2) Implements guidance issued by the ASD(L&MR) or other 
organizational elements of the OSD and establishes system concepts and 
requirements, resource management, program guidance, budgeting and 
funding, training and career development, management review and 
analysis, internal control measures, and crime prevention for the 
Defense Materiel Disposition Program.
    (3) Chairs the Disposal Policy Working Group (DPWG).
    (4) Provides direction to the DLA Disposition Services on 
implementing the worldwide defense materiel disposition program.
    (5) Provides direction to the DLA inventory control points (ICPs) 
on the cataloging of items in the Federal Logistics Information System 
(FLIS) as outlined in DoD 4100.39-M, ``Federal Logistics Information 
System (FLIS) Procedures Manual-Glossary and Volumes 1-16'' (available 
at http://www.dtic.mil/whs/directives/corres/html/410039m.html). This 
is done to prevent the unauthorized disposition or release of items 
within DoD, other federal civilian agencies, or release into commerce.
    (6) Promotes maximum reuse of FEPP, excess, and surplus property. 
Pursues all possible avenues to sponsor or endorse reuse of excess DoD 
property and preclude unnecessary purchases.
    (7) Directs the DLA Disposition Services communications with the 
DoD Components regarding changes in service delivery processes or plans 
that will affect disposal support provided. In overseas locations, 
these communications will include geographic Combatant Commanders, U.S. 
Chiefs of Mission, and the in-country security assistance offices.
    (8) Accommodates contingency operation requirements. Directs the 
DLA support team to determine any needed deviations from standard 
disposal processing guidance and communicates approved temporary 
changes to the Military Departments and DLA Disposition Services.
    (9) Ensures maximum compatibility between documentation, 
procedures, codes, and formats used in materiel disposition systems and 
the Military Departments' supply systems.
    (10) Programs, budgets, funds, accounts, allocates and controls 
personnel, spaces, and other resources for its respective activities.
    (11) Annually provides to GSA a report of property transferred to 
non-federal recipients in accordance with 41 CFR 102-36.295.
    (12) Assumes the worldwide disposal of all DoD HP except for those 
categories

[[Page 68166]]

specifically designated to remain the responsibility of the Military 
Department or Defense Agency as described in DoD Manual 4160.21, Volume 
4.
    (13) Ensures property disposal training courses are available 
(e.g., at DLA Training Center) for all personnel associated with the 
disposal program.
    (14) Ensures DLA Disposition Services follows the DoD disposal 
hierarchy with landfill disposal as a last resort.
    (c) The DoD Components Heads:
    (1) Recommend Defense Materiel Disposition Program policy changes 
to the ASD(L&MR).
    (2) Recommend Defense Materiel Disposition Program procedural 
changes to the Director, DLA, and provide information copies to the 
ASD(L&MR).
    (3) Assist the Director, DLA, upon request, to resolve matters of 
mutual concern.
    (4) Treat the disposal of DoD property as an integral part of DoD 
Supply Chain Management; ensure that disposal actions and costs are a 
part of each stage of the supply chain management of items and that 
disposal of property is a planned event at all levels of their 
organizations.
    (5) Provide the Director, DLA, with mutually agreed-upon data 
necessary to administer the Defense Materiel Disposition Program.
    (6) Participate in the DoD PMRP and promote maximum reutilization 
of FEPP, excess, and surplus property and fine precious metals for 
internal use or as GFM.
    (7) Nominate to the ASD(L&MR) national organizations for special 
interest consideration as SEAs; approve schools (non-national 
organizations) as SEAs; and recommend to the ASD(L&MR) categories of 
property considered appropriate, usable, and necessary for transfer to 
SEAs.
    (8) Provide administrative and logistics support, including 
appropriate facilities, for the operations of tenant and related off-
site DLA Disposition Services field activities under inter-Service 
support agreements (ISSAs).
    (9) For property not explicitly identified in this part, follow 
Service-unique regulations to dispose of and maintain accountability of 
property. Ensure all accountable records associated with the disposal 
of FEPP, excess, and surplus property are established and updated to 
reflect supply status and ensure audit ability in accordance with DoD 
Instruction 5000.64, ``Accountability and Management of DoD Equipment 
and Other Accountable Property'' (available at http://www.dtic.mil/whs/directives/corres/pdf/500064p.pdf). This requirement also applies to 
modified processes that may be developed for contingency operations.
    (10) Ensure completion of property disposition (reutilization and 
marketing) training courses, as appropriate.
    (11) Administer reclamation programs and accomplish reclamation 
from excess materiel.
    (12) Establish and administer disposal accounts, as jointly agreed 
to by DLA and the Military Departments, to support the demilitarization 
(DEMIL) and reclamation functions performed by the Military 
Departments.
    (13) Dispose of surplus merchant vessels or vessels of 1,500 gross 
tons or more, capable of conversion to merchant use, through the 
Federal Maritime Administration, U.S. Department of Transportation, by 
forwarding a ``Report of Excess Personal Property'' Standard Form 120 
to GSA, in accordance with the procedures in 41 CFR chapters 101 and 
102. For vessels explicitly excluded by 41 CFR chapters 101 and 102, 
follow procedures in DoD 4160.28-M, Volumes 1-3, ``Defense 
Demilitarization: Program Administration, Demilitarization Coding, 
Procedural Guidance'' (available at http://www.dtic.mil/whs/directives/corres/pdf/416028m_vol1.pdf, http://www.dtic.mil/whs/directives/corres/pdf/416028m_vol2.pdf, http://www.dtic.mil/whs/directives/corres/pdf/416028m_vol3.pdf), i.e., battleships, cruisers, aircraft carriers, 
destroyers, or submarines.
    (14) Dispose of HP specifically designated as requiring DoD 
Component processing.
    (15) Request DLA Disposition Services provide sales services, as 
needed, for recyclable marketable materials generated as a result of 
resource recovery programs through the DoD Component QRP in accordance 
with the procedures in Sec.  273.7.
    (16) Consider public donation if applicable before landfill 
disposal and monitor, with DLA Disposition Services Site personnel, all 
property sent to landfills to ensure no economically salable or 
recyclable property is discarded.
    (17) Report, accurately identify on approved turn in documents, and 
turn in all authorized scrap generations to servicing DLA Disposition 
Services sites.
    (18) Update the DoD IUID Registry upon the materiel disposition of 
uniquely identified items in accordance with the procedures in Sec.  
273.9.
    (19) Improve disposal policies, training, and procedural 
implementation among the DoD Components and Federal civilian agencies 
through membership on the DPWG.


Sec.  273.6  Procedures.

    (a) Personal property disposition. The general guidelines and 
procedures for property disposition are:
    (1) 41 CFR chapters 101 and 102 implements 40 U.S.C. subtitle I and 
section 101 which established the Personal Property Disposition 
Program. 41 CFR chapter 101 and other laws and regulations apply to the 
disposition of FEPP, excess, and surplus property. In the event of 
conflicting guidance, 41 CFR chapters 101 and 102 takes precedence. 41 
CFR chapter 102 is the successor regulation to 41 CFR chapter 101, the 
``Federal Property Management Regulation''. It updates regulatory 
policies of 41 CFR chapter 101.
    (2) All references to ``days'' are calendar days unless otherwise 
specified.
    (3) The Department of Defense provides guidance for budgeting for 
the disposal of excess, surplus, and FEPP property through DoD 7000.14-
R, ``Department of Defense Financial Management Regulations (FMRs): 
Volume 12, `Special Accounts Funds and Programs'; Chapter 7, `Financial 
Liability for Government Property Lost, Damaged, Destroyed, or Stolen' 
'' (http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_12.pdf), with updates via program budget decisions. The Service 
level billing is based on the services turn-in percentage of the 
Disposition Services workload. As an example, if the Army constitutes 
40 percent of the workload the Army will pay 40 percent of the 
Disposition Services Service-level bill.
    (i) Billings are addressed to each Military Department, Defense 
Agency, and FCA.
    (ii) Billing for disposition of excess property depends on 
decisions made between DLA and the customer: the Military Department, 
Defense Agency, those sponsoring DoD-related organizations (e.g., Civil 
Air Patrol, MARS) or FCA.
    (b) Scope and relevancy. (1) In conjunction with DoD 4160.28-M 
Volumes 1-3, the provisions of this part apply to service providers, 
whether they are working at a government facility or at a commercial 
site, and to contractors to the extent it is stipulated in the 
performance work statement of the contracts. DoD 4160.28-M and 10 
U.S.C. 2576 contain additional specific guidance for property 
identified as MLI or CCL items.
    (2) The procedures in this subpart will be used to the extent 
possible in all

[[Page 68167]]

contingency operations. As appropriate, the ASD(L&MR) will modify 
policy guidance to support the mission requirements and operational 
tempo of contingency operations.
    (3) This subpart does not govern the disposal of the property 
described in paragraphs (b)(3)(i), (ii), and (iii) of this section. 
However, once property in these categories has been altered to remove 
the inherently sensitive characteristics, it may be processed through a 
DLA Disposition Services site using an appropriate FSC code for the 
remaining components.
    (i) Items under management control of the Defense Threat Reduction 
Agency in Federal Supply Group (FSG) 11. These items include Department 
of Energy special design and quality controlled items and all DoD items 
designed specifically for use on or with nuclear weapons. These items 
are identified by manufacturers' codes 57991, 67991, 77991, and 87991 
in the DLA Logistics Information Service FLIS. These items will be 
processed in accordance with Air Force Instruction 21-204, ``Nuclear 
Weapons Maintenance Procedures'' (available at http://static.e-publishing.af.mil/production/1/af_a4_7/publication/afi21-204/afi21-204.pdf).
    (ii) Cryptologic and cryptographic materiel. This materiel must be 
processed in accordance with Committee on National Security Systems 
Instruction 4008, ``Program for the Management and Use of National 
Reserve Information Assurance Security Equipment'' (available at 
https://www.cnss.gov/Assets/pdf/CNSSI-4008.pdf).
    (iii) Naval Nuclear Propulsion Plant materiel. This materiel must 
be processed in accordance with Office of the Chief of Naval Operations 
Instruction (OPNAVINST) N9210.3, ``Safeguarding of Naval Nuclear 
Propulsion Information (NNPI)'' (available at http://doni.daps.dla.mil/Directives/09000%20General%20Ship%20Design%20and%20Support/09-200%20Propulsion%20Plants%20Support/N9210.3%20(Unclas%20Portion).pdf) 
and 45 Manual NAVSEA S9213-45-Man-000, ``Naval Nuclear Material 
Management Manual.''
    (c) Objectives. The objectives of the Defense Materiel Disposition 
Program are to:
    (1) Provide standardized disposition management guidance for DoD 
excess property and FEPP (including scrap) and HP, by using efficient 
internal and external processes. The expected outcome includes 
protecting national security interests, minimizing environmental 
mishaps, satisfying valid needs by extended use of property, permitting 
authorized donations, obtaining optimum monetary return to the U.S. 
Government, and minimizing abandonment or destruction (A/D) of 
property.
    (2) Migrate from legacy transactions with 80 record position 
formats applicable to military standard system procedures (e.g., 
Defense Logistics Manual (DLM) 4000.25-1, ``Military Standard 
Requisitioning and Issue Procedures (MILSTRIP)'' (available at http://www2.dla.mil/j-6/dlmso/elibrary/Manuals/DLM/MILSTRIP/MILSTRIP.pdf) and 
DLM 4000.25-2, ``Military Standard Transaction Reporting and Accounting 
Procedures (MILSTRAP)'' (available at http://www2.dla.mil/j-6/dlmso/elibrary/Manuals/DLM/MILSTRAP/MILSTRAP.pdf) to variable length DLMS 
transactions as described in DLM 4000.25, ``Defense Logistics 
Management System (DLMS)'' (available at http://www2.dla.mil/j-6/dlmso/elibrary/Manuals/DLM/DLM_4000.25_DLMS_Manual_Combined.pdf) (American 
National Standards Institute Accredited Standards Committee (ANSI ASC) 
X12 or equivalent XML schema) to track items throughout the supply 
chain life cycle. Implementation must be consistent with DoD Directive 
8320.02, ``Data Sharing in a Net Centric Department of Defense'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/832002p.pdf).
    (3) Ensure cost-effective disposal of precious metals bearing scrap 
and end items for the replenishment of valuable resources through the 
DoD PMRP.
    (4) Ensure personal property and related subcomponents are not 
declared excess and disposed of prior to determining the need for 
economic recovery.
    (5) Encourage Military Departments and Defense Agencies to:
    (i) Comply with the spirit and intent of Executive Order 12862, 
``Setting Customer Service Standards.''
    (ii) Set results-oriented goals, such as delivering customer value 
that results in improvement of overall Military Department performance.
    (iii) Serve the tax payer's interests by ensuring tax money is used 
wisely and by being responsive and reliable in all dealings with the 
public.
    (d) Foreign liaison. (1) Authority for granting visits by foreign 
nationals representing foreign governments rests with the International 
Programs Division (J-347) at DLA. Prospective official foreign visitors 
should submit requests 30 days in advance through their embassy in 
accordance with procedures in DoD Directive 5230.20, ``Visits and 
Assignments of Foreign Nationals'' (available at http://www.dtic.mil/whs/directives/corres/pdf/523020p.pdf). These requests may require a 
security clearance from the host Military Department. DLA processes the 
requests, and will provide written authority to primary-level field 
activity commanders or DLA Disposition Services site chiefs. 
Unclassified visits by foreign nationals can be approved for 
inspections prior to acquiring property through security assistance 
programs or other programs authorized by statute.
    (2) A commander of a DoD activity may authorize foreign nationals 
and representatives of foreign governments or international 
organizations to visit a DLA Disposition Services site, except for 
those foreign nationals and representatives from foreign countries 
designated as restricted parties in the International Traffic in Arms 
Regulations (ITAR) in 22 CFR parts 120 through 130 and the EAR in 15 
CFR parts 730 through 774.
    (3) Visits by foreign nationals for public sales will be at the 
discretion of the host installation commander in accordance with U.S. 
export control laws and regulations, the ITAR in 22 CFR parts 120 
through 130 and the EAR in 15 CFR parts 730 through 774.
    (4) All requests for unclassified information, not previously 
approved for public release will be referred to the appropriate public 
affairs office. This includes requests submitted by representatives of 
foreign governments or representatives of international organizations.
    (5) Requests from foreign nationals or representatives from foreign 
governments of restricted parties will be referred to the appropriate 
security office.
    (6) Release of MLI technical data or CCL items technology will be 
in accordance with DoD 4100.39-M, DoD 4160.28-M Volumes 1-3, 10 U.S.C. 
2576, 22 CFR parts 120 to 130, and 15 CFR parts 730 to 774, DoD 
Instruction 2040.02, and DoD Instruction 2030.08.
    (e) Training. Personnel with Materiel Disposition Program 
responsibilities (DLA Disposition Services employees, ICP integrated 
materiel managers (IMMs), Reservists, etc.) as well as those DoD-
related and non-DoD organizations disposing of excess, surplus, FEPP, 
and scrap through the Department of Defense, require applicable 
training in defense materiel disposition policies, procedures, and 
related technical areas such as safety, environmental protection, 
DEMIL, TSC, accounting and accountability, administration, or 
management of those activities.

[[Page 68168]]

Required training will be accomplished according to DoD 4160.28-M 
Volumes 1-3 and DoD Instruction 2030.08, and applicable DoD, DLA, and 
Military Department training issuances. In addition to formal training, 
the DLA Disposition Services Web site (https://www.dispositionservices.dla.mil) provides guidance on various topics 
related to materiel disposition.
    (f) DoD Components. The DoD Components:
    (1) Provide administrative and logistics support, including 
appropriate facilities for the segregation of material according to the 
established ISSAs.
    (i) Establish disposal facilities at suitable locations, separate 
from host installation active stocks. These areas should permit proper 
materiel segregation and be convenient to road networks and railroad 
sidings.
    (ii) Approve all facility improvement projects. Identify in the 
ISSA reimbursable and non-reimbursable host maintenance and repair 
support, not exceeding that prescribed by regulations of the host 
activity.
    (iii) Fence or otherwise protect the disposal yard to ensure that 
materiel is safeguarded against theft or pilferage. Security matters 
identified in ISSAs are covered by security regulations of the DoD 
Components.
    (iv) Provide information security support to DLA Disposition 
Services field activities through ISSAs, including the retrieval, 
secure storage, and subsequent determination of the appropriate 
disposition of classified property found in disposal assets.
    (2) Properly containerize and ensure all property turned in to DLA 
Disposition Services sites is safe to handle and non-leaking to ensure 
environmental compliance during transport to the DLA Disposition 
Services site and storage during the disposal process. Drain all fluids 
from unserviceable vehicles prior to release to disposal and treat 
fluids according to environmental requirements in accordance with the 
procedures in Enclosure 3 of DoD Manual 4160.21, Volume 4, ``Defense 
Materiel Disposition Manual: Instructions for Hazardous Property and 
Other Special Processing Materiel''.
    (3) Ensure HW storage facilities meet all applicable environmental 
standards and requirements, including 40 CFR parts 262, 264, and 265.
    (4) Provide funds for disposal of HP failing reutilization, 
transfer, donation or sale (RTDS), or if the HP is not eligible for 
RTDS, that it is disposed of on a DLA disposal service contract. 
Funding for disposal by the Military Department or Defense Agency also 
applies in instances when non-regulated waste requires special handling 
for disposal via disposal service contract, or when special services 
are requested on the disposal service contract.
    (5) Comply with the Defense DEMIL Program in accordance with DoD 
Instruction 4160.28 and DoD 4160.28-M Volumes 1-3.
    (i) Provide proper instructions for DEMIL ``F'' property to the DLA 
Disposition Services site at the time of physical turn-in or 
immediately following electronic turn-in in accordance with procedures 
in Enclosure 5 of DoD Manual 4160.21, Volume 2 and Enclosure 3 of DoD 
Manual 4160.21, Volume 4 and the procedures on the Army's Integrated 
Logistics Support Center Web site https://tulsa.tacom.army.mil/DEMIL.
    (ii) Ship small arms serialized weapons and serialized parts to the 
Anniston, Alabama, DEMIL Center, as identified on the DLA Disposition 
Services Web site (https://www.dispositionservices.dla.mil). Contact 
the Anniston center for shipment instructions. All activities 
generating serialized weapons and serialized weapons parts must report 
a ``ship'' transaction, using the appropriate DLA Disposition Services 
DEMIL Center DoDAAC, to the DoD Small Arms/Light Weapons Serialization 
Program registry.
    (6) Implement DoD QRP, as directed by DoD Instruction 4715.4, 
``Pollution Prevention'' (available at http://www.dtic.mil/whs/directives/corres/pdf/471504p.pdf). Establish QRPs to cost effectively 
divert or recover scrap or waste from the waste streams, as well as to 
identify, collect, properly segregate and maintain the integrity of 
recyclable materials in a way that will maintain or enhance their 
marketability. Indicate on the turn-in documents that QRP material is 
identified as such with funds to be deposited to the appropriate budget 
clearing account.
    (7) Implement TSC measures in accordance with DoD Instruction 
2030.08 for USML and CCL items and comply with applicable export 
control regulations and laws.
    (g) DLA Disposition Services. The DLA Disposition Services will:
    (1) Provide Military Departments and Defense Agencies with 
disposition solutions and best value support for the efficient and 
timely RTDS or disposal of excess, surplus, and FEPP property. This 
includes all required training and guidance on programs affecting 
disposition practices.
    (2) Provide visibility and promote maximum reuse of DLA Disposition 
Services-managed inventory assets. Implement transfer and donation 
policies and procedures consistent with GSA regulations.
    (3) Provide tailored disposal support to the DoD warfighter during 
contingency operations, as approved by the ASD(L&MR).
    (i) Work with the Military Departments to receive and dispose of 
property in the most efficient manner. If standard accountability 
practices are not practical, alternative processes may be established 
on a temporary basis. However, as time or conditions permit, prescribed 
processes will be established and appropriate additions, deletions, and 
adjustments to the official accountable record will be completed.
    (ii) Provide comprehensive disposal services supporting customer-
unique needs based on mutually developed service agreements. DLA 
Disposition Services, along with DLA, will work with customers of all 
levels, e.g., generators, major commands, and Services, to define 
expectations and establish service delivery strategies.
    (4) Use the most appropriate sales method to obtain optimum return 
on investment for all DoD surplus property sold. Respond to inquiries, 
process disputes, protests, and claims pertaining to disposable 
property sales.
    (5) Implement quality control programs for the Defense Materiel 
Disposition Program to assure optimum reutilization; proper DEMIL; use 
of environmentally sound disposal practices; implementation of TSC 
measures for MLI and CCL items.
    (6) Implement TSC in accordance with DoD Instruction 2030.08 for 
USML and CCL items and comply with applicable export control 
regulations and laws.
    (7) Monitor DLA Disposition Services site PMRP operations and 
provide support to DoD Components and participating federal agencies. 
Manage the recovery operations of the PMRP.
    (8) Prepare and distribute reports for disposition.
    (9) Serve as the office of primary responsibility for 
environmentally regulated and HP as detailed in DoD Manual 4160.21, 
Volume 4.
    (10) Comply with and implement the provisions of DoD Instruction 
4160.28, DoD 4160.28-M Volumes 1-3, and DoD Instruction 2030.08 in the 
execution of DLA Disposition Services worldwide. Coordinate procedural 
waivers or deviations for approval by the DoD DEMIL Program Office or 
DoD TSC Office in DLA-HQ (J-334). Forward policy waivers or deviations 
from the DoD DEMIL Program Office or DoD TSC Office to the USD(AT&L) or 
USD(P) respectively for approval.

[[Page 68169]]

    (11) Monitor property accountability and approve adjustments or 
corrections to property accounts for assigned DLA Disposition Services 
sites.
    (12) Comply with implementing guidance relative to relationships 
with Combatant Commanders as prescribed in DoD Directive 5105.22, 
``Defense Logistics Agency (DLA)'' (available at http://www.dtic.mil/whs/directives/corres/pdf/510522p.pdf).
    (13) Support disposal of Military Assistance Program property and 
other foreign-owned property in accordance with DoD 5105.38-M and Sec.  
273.7 of this subpart.
    (14) Provide reutilization, donation, and marketing assistance and 
disposal service to customers.
    (15) Maintain liaison with generating activities to determine most 
efficient method of acceptance (receipt in place vs. physical turn-in), 
determine mutually agreed-upon schedules for property receipts, and 
execute memorandums of understanding (MOUs) for receipt-in-place 
transactions.
    (16) Process excess property, surplus property, FEPP, nonsalable 
materiel, and other authorized turn-ins from generating activities.
    (17) Inspect and accumulate physical receipts of property; verify 
identity, by UII or IUID when applicable, and quantity. DLA Disposition 
Services sites need not verify quantities where units of issues are: 
lot, assortment, board foot, cubic foot, foot, inch, length, meter, 
square foot, square yard, and yard. These units of issue are 
impractical and economically unfeasible.
    (18) Establish and maintain visibility of accountable property 
records for excess, surplus, and FEPP property.
    (19) Provide or arrange adequate covered storage to protect 
received property from the elements, maintain its value and condition, 
and reduce handling. Store property to prevent contamination or mixing, 
ensure proper identification and segregation (bins or areas are 
prominently marked, labeled, tagged, or otherwise readily identifiable 
with the property locator record), and allow inspection.
    (20) Fence or otherwise protect the disposal yard to ensure 
materiel is safeguarded against theft or pilferage. DLA Disposition 
Services are generally a tenant operation on a DoD installation that 
generates disposal property. The DLA Disposition Services must comply 
with the security matters identified in ISSAs established with the DoD 
Component regarding security regulations.
    (21) Provide HW storage, as appropriate. Ensure HW storage 
facilities meet all applicable environmental standards and 
requirements, including those specified in 40 CFR part 264.
    (22) Prepare ISSAs. Coordinate with the local installation to 
resolve matters of mutual concern.
    (23) Provide information and assistance to those who are processing 
precious metals-bearing property into DoD PMRP.
    (24) Ensure periodic inventories are conducted, accountable 
property records updated, and required inventory adjustment documents 
are prepared and processed.
    (25) Implement reutilization, transfer, or donation (RTD) of 
surplus property. Promote maximum RTD of FEPP, excess property, and 
surplus property. Process authorized RTD requests. Ensure accountable 
records are updated in accordance with DoD Instruction 5000.64.
    (26) Provide assistance to all authorized screeners, donees, and 
other interested persons.
    (27) Facilitate the sale of property not reutilized, transferred, 
or donated, and appropriate for release into commerce.
    (28) Deposit sale proceeds and other funds received, including 
storage charges and transfer monies to the appropriate accounts.
    (29) Manage the DoD scrap recycling program (including precious 
metals recovery) and related financial records.
    (30) Assist host installations in executing their QRPs in 
accordance with 10 U.S.C. 2577 and deliver sales revenues from eligible 
personal property to defray the costs incurred by operating and 
improving recycling programs, financing pollution abatement and 
environmental programs, funding energy conservation improvements, 
improving occupational, safety, and health programs, and funding 
morale, welfare, and recreation programs.
    (31) Ensure DEMIL, including small arms serialized weapons and 
serialized parts is accomplished in accordance with DoD Instruction 
4160.28 and DLA Disposition Services internal direction. Provide 
shipment locations and instructions to generating activities, as 
requested.
    (32) Document handling and receipt of serialized weapons in 
accordance with the procedures in Defense Logistics Agency Instruction 
(DLAI) 1104, ``Control of Small Arms by Serial Number'' (available at 
http://www.dla.mil/issuances/Documents_1/i1104.pdf) for the control of 
small arms by serial number.
    (33) Update the DoD IUID Registry upon the materiel disposition of 
uniquely identified items in accordance with the procedures in Sec.  
273.9.
    (h) ICP Manager. The ICP Manager is responsible for the materiel 
management of a group of items either for a particular Military 
Department or for the DoD as a whole. For the Defense Materiel 
Disposition Program, the ICP manager will:
    (1) Ensure managed items are properly cataloged in the FLIS, in 
accordance with DoD 4100.39-M. To prevent unauthorized disposition or 
release within DoD, other Federal civilian agencies, or release into 
commerce, include required data elements such as UII (when applicable), 
accurate codes for DEMIL, controlled inventory items, precious metals, 
shelf life items, and critical items (critical safety items (CSI) or 
flight safety critical aircraft parts), or other applicable data 
elements.
    (2) Prepare complete instructions when property is assigned DEMIL 
Code ``F,'' in accordance with life-cycle management requirements in 
Enclosure 5 of DoD 4160.28-M Volume 2. Additionally, load the 
instruction in the DoD DEMIL ``F'' Instruction repository hosted by the 
Army's Integrated Logistics Support Center Web site at https://tulsa.tacom.army.mil/.
    (3) Review DLA Disposition Services assets and orders, as 
appropriate, prior to initiating new purchases.
    (4) Process other ICP interrogations or orders for requirements 
assigned a UMMIPS priority designator:
    (i) Falling within Issue Priority Group 1 (Priorities 01-03).
    (ii) In accordance with the procedures in DLM 4000.25-1.
    (iii) Considering on-hand assets to the same extent as would be 
done to satisfy their own service orders.
    (5) Prepare data, records for accountability, and provide 
disposition recommendations as prescribed here and in DoD Instruction 
5000.64 in order to maintain backup material for audit review.
    (6) Annually provide DLA Disposition Services with updates to 
points of contact on the DoD DEMIL program Web site https://demil.osd.mil/ for operational matters, such as reutilization, 
donation, DEMIL, precious metals, HP, and CSIs.
    (7) Arrange for DEMIL of those items not authorized for DLA 
Disposition Services site DEMIL processing.
    (8) Submit available technical data needed to prepare specialized 
offers and reclamation requirements, when requested.
    (9) Identify items requiring reclamation and advise Military 
Department and Defense Agency ICPs or

[[Page 68170]]

IMMs of items with reclamation potential.
    (10) Prepare and forward reclamation transactions for the 
interservice interchange of data for component parts with reclamation 
potential.
    (11) Process reclamation notifications and data interchange 
transactions of other ICPs.


Sec.  273.7  Excess DoD property and scrap disposal processing.

    (a) General. (1) Military Departments and Defense Agencies will 
declare DoD property excess and use the DoD in-transit control system 
(ICS) as required by DoD Instruction 5000.64 and DLM 4000.25-2.
    (2) Generating activities are encouraged to retain physical custody 
until disposition instructions are provided to reduce processing costs; 
e.g., packaging, crating, handling, and transportation (PCH&T).
    (3) Disposal of wholesale excess DoD property CONUS stocks from DLA 
Depot recycling control points (RCPs) is automated. This property does 
not require transport to a DLA Disposition Services site. Authorized 
excess DoD property is transferred between the RCP account and the DLA 
Disposition Services account (SC4402). The following FSGs, FSCs, SCCs, 
and DEMIL codes are ineligible for RCP:
    (i) FSGs: 10, 11, 12, 13, 14, 18, 26, 68, 80, 87, 88, 89, 91 and 
94.
    (ii) FSCs: 2350, 3690, 4470, 4920, 4927, 6505, 6508, 6750, and 
8120.
    (iii) SCCs: H.
    (iv) DEMIL Codes: G and P.
    (b) Property and scrap accepted and excluded. (1) DLA Disposition 
Services must accept and dispose of all authorized DoD-generated 
excess, surplus, FEPP, scrap, and other personal property with the 
exclusions in paragraph (e) of this section.
    (2) Property not disposed of through RTDS will be processed for 
disposal under an HW contract, except as specified elsewhere. For 
example, HP will be processed on HW disposal service contracts. Other 
property will be downgraded to scrap, demilitarized, processed for A/D, 
or disposed of through a DLA Disposition Services service contract.
    (3) DLA Disposition Services sites minimize processing delays as 
much as possible. In the event a site is unable to physically accept 
the property at the desired time and location due to workload, 
generating activities may retain the property for processing in-place, 
seek another DLA Disposition Services site, or hold the property until 
the DLA Disposition Services site is able to receive the property.
    (4) DLA Disposition Services sites:
    (i) Accept and process nonsalable materiel that has no 
reutilization, transfer, donation, or sale value but is not otherwise 
restricted from disposal by U.S. law or Federal or military 
regulations.
    (ii) Ensure that disposition is by the most economical and 
practical method; for example, donation in lieu of A/D or through a 
service contract that meets minimum legal requirements for disposal of 
the specific types of property.
    (5) DLA Disposition Services sites may not accept (either 
physically or on its account) and no reutilization or sale service will 
be given for:
    (i) Radioactive waste, items, devices, or materiel (all materiel 
that is radioactive).
    (ii) Property designated for disposal by the Military Departments 
as identified in DoD Manual 4160.21, Volume 4.
    (iii) Classified material, except that which is addressed by 
paragraph (b)(5)(v) of this section.
    (iv) Nuclear weapons-related materiel.
    (v) Classified and unclassified information systems security 
material (cryptological (CRYPTO) or communications security (COMSEC)). 
Disposal of FSCs 5810 and 5811 are the responsibility of the Military 
Departments and may not be transferred to DLA Disposition Services in 
their original configuration as specified in DoD 4160.28-M Volumes 1-3.
    (vi) Property containing information covered by 5 U.S.C. 552a, also 
known as the Privacy Act of 1974.
    (6) DoD Components will manage the collection and disposal of 
installation refuse and trash. If refuse and trash, when properly 
segregated, possesses RTDS potential, disposition may be accomplished 
via DLA Disposition Services, recycling provisions of refuse collection 
contracts, in-house refuse operations, or QRPs as appropriate.
    (7) The DLA Disposition Services site operating as a tenant on an 
installation will notify the host activity when unauthorized shipments 
are received at the DLA Disposition Services site (including off-site 
shipments) of radioactive items, classified material, nuclear weapons-
related materiel, and classified and unclassified information systems 
security material (CRYPTO/COMSEC). The host activity will be 
responsible for retrieving and securing any radioactive items, 
classified items and unclassified information systems security material 
(CRYPTO/COMSEC) immediately upon request of the DLA Disposition 
Services site.
    (8) DLA Disposition Services sites will not accept scrap 
accumulations that are contaminated or commingled with:
    (i) MPPEH.
    (ii) MLI that require DEMIL (DEMIL Codes C, D, E and F) and MLI 
that require mutilation (DEMIL Code B). MLI with DEMIL Code G and P are 
not authorized for acceptance by DLA Disposition Services in their 
original state.
    (iii) CCL items that have not undergone mutilation to the point of 
scrap as defined in DoD Instruction 2030.08.
    (iv) HP FSCs.
    (9) Contaminated scrap should be turned in as HW.
    (c) Scrap segregation and identification. (1) Separating material 
at the source simplifies scrap segregation and reduces handling. 
Commingling material may reduce or, in some instances, destroy the 
value of the scrap.
    (2) Generating activities are responsible for initial 
identification and segregation. The major basic material or content 
will be used in the item nomenclature block of the DTID.
    (3) Scrap will be segregated to ensure only authorized items are in 
a scrap pile.
    (4) DLA Disposition Services sites will provide guidance and, where 
possible, containers for use by scrap generators at the source.
    (5) The generating activity collecting the scrap or waste will 
maintain proper segregation of the material and determine a point at 
which no further material will be added. When scrap piles are being 
built by the DLA Disposition Services site, the same principles apply. 
Scrap generated from explosive and incendiary items and chemical 
ammunition is dangerous and will not be commingled with other types of 
property.
    (d) Documentation for disposal through DLA Disposition Services. 
(1) Use DoD automated information systems to the extent practical to 
prepare documentation for excess, surplus, or scrap DoD property or 
FEPP. This method of submitting information is preferred, particularly 
for turn-in of HW. In addition to submitting the information through 
automated information systems, hard copies must be produced and 
maintained with the items during the disposal processes.
    (2) The generator will provide to the DLA Disposition Services site 
an original and three hard copies of a DD Form 1348-1A, ``Issue 
Release/Receipt Document,'' or DD Form 1348-2, ``Issue Release/Receipt 
Document with Address Label'' (available at http://www.dtic.mil/whs/
directives/infomgt/

[[Page 68171]]

forms/formsprogram.htm.) The DTID must include a valid DoDAAC as 
authorized in Volume 6 of DLM 4000.25, ``Department of Defense Activity 
Address Code (DoDAAC) Directory (Activity Address Code Sequence)'' 
(available at http://www2.dla.mil/j-6/dlmso/elibrary/Manuals/DLM/V6/Volume6.pdf). All further references to DD Form 1348-1A, which also 
include DD Form 1348-2, will be referred to in this subpart as a DTID. 
Table 1 of this section provides guidance on preparation of the DD Form 
1348 series documents. For scrap transfers, see paragraph (f) of this 
section.

 Table 1--Transfers of Usable Property to DLA Disposition Services Sites
          (Single Line Item Turn Ins) Using DD Forms 1348-1A/2
------------------------------------------------------------------------
                                                         Entry and
         Field legend            Record position        instructions
------------------------------------------------------------------------
Document Identifier (DI)......  1-3..............  A5J/940R. Use
                                                    information on the
                                                    source document to
                                                    perpetuate the
                                                    archived DI. For
                                                    locally determined
                                                    excesses generated
                                                    at a base, post,
                                                    camp, or station,
                                                    assign a DI code as
                                                    determined by
                                                    shipping activity
                                                    procedures.
Routing Identifier............  4-6..............  Enter the record
                                                    indicator (RI) of
                                                    the shipping
                                                    activity or leave
                                                    blank when the
                                                    shipping activity is
                                                    not assigned an RI.
Media and Status..............  7................  Leave blank.
Stock or Part Number..........  8-22.............  See block 25.
Unit of Issue.................  23-24............  Enter the unit of
                                                    issue of the stock
                                                    or part number being
                                                    turned in.
Disposal Quantity.............  25-29............  Enter the quantity
                                                    being turned in to
                                                    disposal activity.
                                                    See block 26.
Document Number...............  30-43............  See block 24.
Alpha Suffix..................  44...............  Leave blank
                                                    (Exception: Use if
                                                    DTID consists of
                                                    multiple documents
                                                    because the 5-digit
                                                    quantity field
                                                    (Record Positions 24-
                                                    29) is
                                                    insufficient.) See
                                                    block 24.
Supplementary Address.........  45-50............  Enter DoDAAC of
                                                    predesignated
                                                    consignee DLA
                                                    Disposition Services
                                                    Site.
------------------------------------------------------------------------
A DoDAAC is the key component for using the DLA Disposition Services
 property accounting disposal system to either turn in or order excess
 property to and from DLA Disposition Services. The code is required for
 all DoD activities, contractors, and FCAs to order, receive, ship,
 identify custody of government property, or reflect identification in a
 specified military standard logistics system. The code must be approved
 by the Military Departments, Defense Agencies, and FCA authoritative
 organization and be officially registered in the DoD activity address
 file. The DoDAAC system provides identification codes, plain text
 addresses, and selected data characteristics of organizational
 activities needed to order, mark, prepare shipping documents, bills,
 etc., and only recognizes active DoDAACs. FCAs are only authorized to
 turn excess property in to DLA Disposition Services for disposal if
 they have officially authorized an Economy Act Order for reimbursement
 of transaction billing charges..
------------------------------------------------------------------------
Signal........................  51...............  This code is used to
                                                    designate the bill-
                                                    to and ship-to (or
                                                    ship-from in the
                                                    case of DI code
                                                    FT_and FD_records)
                                                    activities. Codes B,
                                                    C, and L apply to HM/
                                                    HW transfers.
Fund..........................  52-53............  For HM and waste turn-
                                                    ins, enter the fund
                                                    code from Military
                                                    Standard Billing
                                                    System (MILSBILLS)
                                                    designating the
                                                    funds to be charged.
                                                    For non-military
                                                    activities who are
                                                    not users of
                                                    MILSBILLS, (e.g.,
                                                    FCAs or NAFs) using
                                                    an activity address
                                                    code), enter ``XP.''
Distribution..................  54...............  Use the information
                                                    on the source
                                                    document to
                                                    perpetuate the
                                                    archived data or
                                                    leave blank.
Retention Quantity............  55-61............  Enter the quantity to
                                                    be retained in
                                                    inventory or leave
                                                    quantity blank.
Precious Metals...............  62...............  Enter applicable code
                                                    from Appendix AP2.23
                                                    of DLM 4000.25-1.
Automated Data Processing       63...............  Enter applicable code
 Equipment Identification.                          from AP2.24 of DLM
                                                    4000.25-1.
Disposal Authority............  64...............  Enter applicable code
                                                    from DLM 4000.25-1
                                                    Appendix AP2.21.
                                                    (Mandatory) (FCAs
                                                    use DAC ``F''--not
                                                    shown in appendix.)
Demilitarization Code.........  65...............  Enter the Web-Enabled
                                                    FLIS or Federal
                                                    Logistics Data
                                                    (FEDLOG) recorded
                                                    DEMIL code of
                                                    record. For LSNs,
                                                    Navy item control
                                                    numbers, or Army
                                                    control numbers
                                                    assign DEMIL code in
                                                    accordance with
                                                    current Volume 2 of
                                                    DoD 4160.28-M
                                                    (Mandatory).
Reclamation...................  66...............  Enter code ``Y'' if
                                                    reclamation was
                                                    performed prior to
                                                    release to a DLA
                                                    Disposition Services
                                                    site. Enter ``R'' if
                                                    reclamation is to be
                                                    performed after turn
                                                    in to DLA
                                                    Disposition Services
                                                    site. Enter code
                                                    ``N'' if reclamation
                                                    is not required.
Routing Identifier............  67-69............  Generate from
                                                    disposal release
                                                    order.
Identifier Ownership..........  70...............  Enter applicable code
                                                    or leave blank.
SCC...........................  71...............  Enter applicable code
                                                    from DLM 4000.25-2.
Management....................  72...............  Enter information
                                                    from source document
                                                    to perpetuate
                                                    archived data or
                                                    leave blank. If
                                                    block 71 (SCC) is Q
                                                    and the management
                                                    code is blank, DLA
                                                    Disposition Services
                                                    will mutilate the
                                                    property upon
                                                    receipt.
Criticality Code..............  73...............  Enter criticality
                                                    code documented in
                                                    FLIS for the items
                                                    in accordance with
                                                    DoD 4100.39-M which
                                                    indicates when an
                                                    item is technically
                                                    critical, by reason
                                                    of tolerance, fit,
                                                    application, nuclear
                                                    hardness properties,
                                                    or other
                                                    characteristics that
                                                    affects the
                                                    identification of
                                                    the item.

[[Page 68172]]

 
Unit Price....................  74-80............  Enter the unit price
                                                    for the NSN or part
                                                    number in record
                                                    positions 8-22.
------------------------------------------------------------------------
         Block Entries
------------------------------------------------------------------------
1.............................  Enter the extended value of the
                                 transaction.
2.............................  Enter the shipping point identified by
                                 DoDAAC; if reduced printing is used,
                                 the clear address may be entered in
                                 addition to the DoDAAC.
3.............................  Enter the consignee DLA Disposition
                                 Services site by DoDAAC. This will be
                                 the predesignated DLA Disposition
                                 Services site and will be entered by
                                 the shipping activity; if reduced
                                 printing is used, the in the clear
                                 address may be entered in addition to
                                 the DoDAAC.
4.............................  Insert HM or HW, if applicable.
5.............................  Enter the date of document preparation,
                                 if required by the shipper.
6.............................  Enter the national motor freight
                                 classification, if required by the
                                 shipper.
7.............................  Enter the freight rate, if required by
                                 the shipper.
8.............................  Enter coded cargo data, if required by
                                 the shipper.
9.............................  Enter applicable controlled inventory
                                 item code (CIIC), which describes the
                                 security or pilferage classification of
                                 the shipment from DoD 4100.39-M.
10............................  Enter the quantity actually received by
                                 the DLA Disposition Services site, if
                                 different from positions 25-29.
11............................  Enter the number of units of issue in a
                                 package, if required by the shipper.
12............................  Enter the unit weight applicable to the
                                 unit of issue, if required by the
                                 shipper.
13............................  Enter the unit cube applicable to the
                                 unit of issue, if required by the
                                 shipper.
14............................  Enter the uniform freight
                                 classification, if required by the
                                 shipper.
15............................  Enter the FLIS or FEDLOG recorded shelf-
                                 life code in block 15, if appropriate;
                                 otherwise, leave blank.
16............................  Enter in the clear freight
                                 classification nomenclature, if
                                 required by the shipper.
17............................  Enter the item nomenclature. For non-NSN
                                 items, enter as much descriptive
                                 information as possible. Specified
                                 additive data or certification from the
                                 generating source for specific types of
                                 property should be entered.
18............................  Enter type of container, if required by
                                 the shipper.
19............................  Enter number of containers that makes up
                                 the shipment, if required by the
                                 shipper.
20............................  Enter total weight of shipment, if
                                 required by the shipper.
21............................  Enter total cube of shipment, if
                                 required by the shipper.
22............................  Received by (for DLA Disposition
                                 Services site) signature of person
                                 receiving the materiel.
23............................  Date received (for DLA Disposition
                                 Services site) date materiel was
                                 received and signed for.
24............................  Document number. Generate from source
                                 document. DTID consists of 6-digit
                                 DoDAAC + 1-digit last number of year, 3-
                                 digit Julian Date + 4-digit generator-
                                 assigned serial number. This cannot be
                                 the same document number that was used
                                 to receive the materiel. For locally
                                 determined excesses generated at base,
                                 post, camp, or station, assign a
                                 document number as determined by
                                 Service or agency procedures. Leave
                                 suffix code blank unless needed to
                                 indicate additional documents to show
                                 complete quantity. Generating
                                 activities and ordering activities and
                                 their contractors must have a valid
                                 DoDAAC, as defined in DoD 5105.38-M to
                                 use DLA Disposition Services.
25............................  NSN--Enter the stock or part number
                                 being turned-in. For subsistence items,
                                 enter the type of pack in record
                                 position 21. If an NSN is not used,
                                 FSC, part number, noun or nomenclature,
                                 where appropriate, to build an LSN.
26............................  Leave blank. Reserved for DLA
                                 Disposition Services Site use.
27............................  This block may contain additional data
                                 including bar coding for internal DLA
                                 Disposition Services use, generator
                                 certifications (e.g., inert
                                 certificate) or fund citation, FSCAP
                                 criticality code, etc. Enter data in
                                 this block as required by the shipping
                                 activity or the DLA Disposition
                                 Services Site receiving the materiel.
                                 When data is entered in this block, it
                                 will be clearly identified. For HM and
                                 waste turn ins, enter the DoDAAC of the
                                 bill to office, the contract line item
                                 number (CLIN) for the item, and the
                                 total cost of the disposal, (that is,
                                 CLIN cost times quantity in pounds
                                 equals cost of disposal).
------------------------------------------------------------------------

    (3) Generating activities may use the DLA Disposition Services web-
based program electronic turn-in document (ETID) for submitting the 
required information electronically. ETID accommodates generators that 
do not have service-unique automated capabilities. ETID access and 
guidance are located on the DLA Disposition Services Web site. 
Generating activities requiring ETID access must apply for a user ID 
and password.
    (4) In addition to the data required by DLM 4000.25-1, the DTID 
must clearly indicate:
    (i) The reimbursable category (such as foreign purchased, NAF, 
FCA), including the reimbursement fund citation, or an appropriate 
indicator that reimbursement is required (e.g., purchased with NAF or 
Disposal Authority Code ``F'' for FCAs). DTIDs without reimbursement 
data will be processed as non-reimbursable.
    (ii) The value and a list of component parts removed from major end 
items or a copy of the limited technical inspection showing the nature 
and extent of repair required.
    (iii) One of the SCCs listed in DLM 4000.25-2 as determined by the 
generator.
    (5) DoD Components will turn in usable property with line item 
designations.
    (i) To the extent possible, usable property will be turned in as 
individual line items with their assigned and valid NSN and UII (when 
applicable). Exceptions include property turned in as generator 
batchlots (see criteria in paragraph (g)(5)(ii) of this section); 
furniture turned in as a group on a

[[Page 68173]]

single form; and locally purchased property without an NSN.
    (ii) Property may be turned in without a valid NSN when the 
materiel cannot be identified to a valid NSN in FEDLOG (e.g., locally 
purchased property). Prior to assigning an LSN, generating activities 
will match the part number or bar code number from the property against 
the DLA Logistics Information Service Universal Directory of Commercial 
Items Cross Reference Inquiry.
    (iii) Generating activities will assign an LSN if a part number or 
barcode is not available; the property is lost, abandoned, or unclaimed 
privately owned personal property; or the property is confiscated or 
captured enemy materiel. In Block 25 of the DTID, annotate the FSC, 
NATO codification bureau code, if available, and identify the noun, 
nomenclature, or part number.
    (iv) Due to national security concerns, the FSCs listed in Table 2 
of this section that are clearly MLI or CCL items require a higher 
degree of documentation. When these items are not assigned an NSN, the 
DTID must include the appropriate FSC; the valid part number and 
manufacturer's name; nomenclature that accurately describes the item; 
the end item application; and a clear text statement explaining why the 
NSN is not included (e.g., locally purchased item, found on post, lost, 
abandoned, privately owned property). This information may be annotated 
directly on the DTID or securely attached to the DTID.

      Table 2--Federal Stock Classes Requiring Turn-In By Valid NSN
------------------------------------------------------------------------
 
------------------------------------------------------------------------
GROUP 10              GROUP 23                  GROUP 58
ALL FSCs              FSC 2305                  FSC 5810 \2\
                      FSC 2355                  FSC 5811 \2\
GROUP 11              MLI or CCL items 2350     FSC 5820
ALL FSCs              ........................  FSC 5821
                      GROUP 28                  FSC 5825
GROUP 12              FSC 2840                  FSC 5826
ALL FSCs              FSC 2845                  FSC 5840
                                                FSC 5841
GROUP 13              GROUP 29                  FSC 5845
ALL FSCs              FSC 2915                  FSC 5846
                                                FSC 5850
GROUP 14              GROUP 36                  FSC 5855
ALL FSCs              FSC 3690                  FSC 5860
 
GROUP 15              GROUP 42                  GROUP 59
FSC 1560              FSC 4230                  FSC 5963
                                                FSC 5985
GROUP 16              GROUP 44                  FSC 5998
FSC 1670              FSC 4470\1\               FSC 5999
 
GROUP 17              GROUP 49                  GROUP 66
FSC 1710              FSC 4921                  FSC 6615
FSC 1720              FSC 4923                  ........................
                      FSC 4925                  GROUP 69
GROUP 18              FSC 4927                  FSC 6920
FSC 1810              FSC 4931                  FSC 6930
FSC 1820              FSC 4933                  FSC 6940
FSC 1830              FSC 4935                  ........................
FSC 1840              FSC 4960                  GROUP 84
                                                FSC 8470
GROUP 19              ........................  FSC 8475
FSC 1905              ........................  ........................
------------------------------------------------------------------------
\1\ Disposal of originally configured Navy assigned FSC 4470 items is
  the responsibility of the U.S. Navy.
\2\ Disposal of FSC 5810/5811 equipment with a CIIC of 9 and that is
  classified (CIICs D, E, and F) or designated CCI is the responsibility
  of the owning Military Department and will not be received by DLA
  Disposition Services sites in its original configuration.

    (v) The DTID for any property turned in by LSN without an assigned 
DEMIL code must include a required clear text DEMIL statement, based on 
information in DoD 4160.28-M Volumes 1-3. Generating activities may 
request assistance of a DLA Disposition Services site, DLA, or the 
integrated manager for the FSC to determine the appropriate statement. 
DLA Disposition Services sites will assist generating activities in 
developing the clear text DEMIL statement and assignment of the 
appropriate DEMIL code. If assistance is not requested or not used, DLA 
Disposition Services sites may reject the turn-in of materiel which 
does not meet established criteria.
    (6) Scrap DTIDs will include:
    (i) DI code.
    (ii) Unit of issue (pounds or kilograms).
    (iii) Quantity (total weight (estimated or actual)).
    (iv) DTID number.
    (v) Precious metals indicator code.
    (vi) Disposal authority code.
    (vii) Basic material content (Block 17).
    (viii) Reimbursement data, if applicable.
    (7) For HP documentation, see DoD Manual 4160.21, Volume 4.
    (8) The generating activities will complete documentation for in-
transit control of property (excluding scrap (SCC S)), waste, NAF, 
lost, abandoned, or unclaimed, privately owned, and FCA property) in 
accordance with DoD 4160.28-M Volume 3, for shipments or transfers to 
DLA Disposition Services sites of property with a total acquisition 
value of $800 or greater and all property designated as pilferable or 
sensitive identified by an NSN or part number. The ICS document tracks 
property from the time of release by generating activity (regardless 
whether the property is shipped to the DLA Disposition Services site or 
retained by the generating activity) until the DLA Disposition Services 
site accepts accountability. The generating activities will update the 
records to reflect the change in accountability and custody.
    (9) DoD Components will identify defective items, parts, and 
components containing latent defects.
    (i) General information--(A) Category 1 (CAT 1) defective or 
counterfeit property. (1) Is identified as military or Federal 
Government specification property intended for use in safety critical 
areas of systems, as determined by the user and reported to the item 
manager.
    (2) Does not meet commercial specifications.
    (3) If used, would create a public health or safety concern; RTDS 
as usable property is prohibited.
    (4) Must be mutilated by the generating activity according to 
specific instructions provided by the item manager.
    (B) Category 2 (CAT 2) defective property. (1) Does not meet 
military or Federal Government specifications, but may meet commercial 
specifications.
    (2) Cannot be used for its intended military purpose and must not 
be redistributed within the Department of Defense, as directed by the 
item manager.
    (3) May be used for commercial purposes and may be transferred, 
donated, or sold as usable property.
    (4) If sold, requires special terms and conditions warning 
purchasers that the property is CAT 2 defective and is not acceptable 
for resale back to the Department of Defense.
    (ii) ICP requirements. (A) ICPs will list defective property with 
the Government-Industry Data Exchange Program (GIDEP). GIDEP is located 
at http://www.gidep.org/.
    (B) The DLA Disposition Services Safe Alert or Latent Defect (SALD) 
program contains additional disposal processing information for 
defective property and can be viewed at http://www.dispositionservices.dla.mil/.
    (iii) Sales requirements. (A) If the property has been rejected as 
defective due to non-conformance with U.S. Government specifications, 
it may be authorized for sale with a statement as to the specific 
reason for its rejection. DLA Disposition Services will ensure that 
U.S. Government identification,

[[Page 68174]]

such as contract numbers, specification numbers, NSN, and any other 
printing that would identify the item with the U.S. Government is 
removed or obliterated. A statement to this effect will be included in 
the sales offering, as a condition of sale. Terms or conditions in sale 
offerings will warn purchasers that the property is CAT 2 defective and 
is not acceptable for resale to the Department of Defense.
    (B) Return copies of the DTID from the DLA Disposition Services 
site. Unless generating activities provide written notification to DLA 
Disposition Services sites that electronic receipt confirmations are 
acceptable, DLA Disposition Services sites will provide final receipt 
documentation for each DTID. Generating activities can use the DLA 
Disposition Services property accounting system to query transactions 
status.
    (e) Property custody determinations--(1) Physical custody 
retention. (i) Generating activities should consider retaining physical 
custody of property declared as excess to reduce handling and preclude 
transportation costs.
    (ii) An MOU will be established between the servicing DLA 
Disposition Services site and the generating activity. Custodial and 
accountability responsibilities will be identified in the MOU. DLA 
Disposition Services sites will not take accountability until the MOU 
is executed and signed at the approval levels identified in the MOU.
    (iii) Inspection(s) will be completed by the DLA Disposition 
Services site, where appropriate. If not accomplished by the DLA 
Disposition Services site, a mutually agreeable disposal condition code 
will be assigned.
    (iv) Generating activities are responsible for all expenses 
incurred before acceptance of accountability by a DLA Disposition 
Services site. At the point of DLA Disposition Services accountability 
acceptance (not in conditional acceptance time frame as described in 
paragraph (g)(2) of this section), expenses (e.g., PCH&T of non-
hazardous excess, surplus, and FEPP) are borne by DLA Disposition 
Services. Exceptions may be negotiated by a DoD Component or federal 
agency representative at a level commensurate with DLA Disposition 
Services Director (Senior Executive Service level).
    (v) The DLA Disposition Services site will provide barcode labels 
to the generating activity to affix on the property. The labels will 
contain the DTID number, DEMIL code, and federal condition code. The 
label will be positioned to clearly indicate that the property 
accountability has passed to DLA Disposition Services (e.g., ``on DLA 
Disposition Services Site Inventory''). Property should be consolidated 
and protected in a designated area. The activity with physical custody 
is responsible for the property's care and protection until it is 
disposed of or moved to a DLA Disposition Services site.
    (2) Turn-ins. When the generating activity decides to transport 
property to the DLA Disposition Services site, the care and custody of 
the property will be borne by the DLA Disposition Services site at the 
point of physical receipt.
    (f) Transferring usable property and scrap to a DLA Disposition 
Services site. (1) Generating activities will comply with this part, 
DLM 4000.25-1, and their Service or agency retention and disposal 
policies and procedures when preparing property for transfer for 
disposal. The generating service will maintain accountable records of 
accountable property, in accordance with DoD Instruction 5000.64, until 
formally relieved of accountability by DLA Disposition Services.
    (2) Generating activities will schedule all transfers (receipt in-
place or physical) through advanced notification (i.e., use of a 
listing or automated DTIDs.)
    (3) Usable property will, to the extent possible, be transferred as 
individual line items with their assigned valid NSN and UII (when 
applicable). Exceptions include property turned in as generator 
batchlots, furniture turned in as a group on a ``tally-in'' form, and 
locally purchased property without an NSN.
    (4) Scrap, properly identified with supply class by basic material 
content and segregated, must be transferred to a DLA Disposition 
Services site using a DTID.
    (5) If the deficiency prohibits further DoD use, the materiel will 
remain in SCC Q, and owners will direct transfer of the materiel to DLA 
Disposition Services sites following the guidance in paragraph (d)(9) 
of this section. Improperly documented, unauthorized source, defective, 
non-repairable, and time-expired aviation CSI/FSCAP materiel that is 
not mutilated by the holding activity will be directed to the DLA 
Disposition Services site in SCC Q with management code S. All such 
materiel will be mutilated. The ICP/IMM should identify to the DLA 
Disposition Services any unique instructions for disposal requiring 
specific methods or information regarding hazardous material, waste, or 
property contained in the item. When transferring such aviation CSI/
FSCAP to a DLA Disposition Services site, the generating activity DTID 
must clearly state in block 17 that the part is defective, non-
reparable, time-expired, or otherwise deficient and that mutilation is 
required.
    (6) Property capable of spilling or leaking may not be transferred 
to a DLA Disposition Services site in open, broken, or leaking 
containers. All property will be non-leaking and safe to handle.
    (7) For physical transfers, generating activities will be 
responsible for movement of the property or scrap to the nearest DLA 
Disposition Services location.
    (8) DEMIL instructions are to be provided by the ICP or IMM. DEMIL 
F items must have a valid and verifiable NSN. LSNs with DEMIL F are not 
valid. DLA Disposition Services sites will not accept DEMIL F property 
without the proper instructions.
    (9) DTIDs that do not meet the requirements in paragraph (e) of 
this section will be rejected and returned to the Military Departments.
    (10) To obtain DEMIL F instructions, please visit the Army's 
Integrated Logistics Support Center Web site at https://tulsa.tacom.army.mil/DEMIL.
    (g) Receipt of property and scrap--(1) During transfer. (i) DLA 
Disposition Services sites are responsible for ensuring proper receipt, 
classification, processing, safeguarding, storing, and subsequent 
shipping of all property and scrap. This includes property to be 
accounted for as items and properly segregated scrap and waste with 
RTDS value, and materiel destined for disposal.
    (ii) DLA Disposition Services sites will assist, when requested, in 
tracing property when an in-transit control follow-up has been received 
by the generating or shipping activity.
    (iii) DLA Disposition Services sites will maintain close liaison 
with generating activities to ensure:
    (A) Informational guidance on disposal transfers is given to 
generating activities.
    (B) A DLA Disposition Services site's receiving capability and the 
volume of property to be transferred is taken into consideration for 
turn-in scheduling. Property inspections will be performed in-place if 
more advantageous due to the characteristics of the property, as 
determined by DLA Disposition Services.
    (C) Assistance is provided to generating activities, as needed, to 
assure proper segregation of scrap and HW material before transfer. If 
the weight generated, market conditions, or local trade practices 
warrant, further scrap segregation will be made.
    (D) All property (except unsalable materiel that is precluded from 
sale by

[[Page 68175]]

law), including scrap and refuse or trash with a RTDS value, is 
processed as set forth in this part and will not be disposed of by 
dumping in landfills. If the DLA Disposition Services site has 
knowledge of salable materiel being dumped in a sanitary fill, the DLA 
Disposition Services site chief will notify the installation commander 
regarding the matter.
    (E) Property received is protected to prevent damage from 
unnecessary exposure to the elements. Property transferred as condemned 
may still be usable, and its preservation may benefit the Defense 
Materiel Disposal Program.
    (1) Instances of improper handling of government property will be 
brought to the attention of the generating activity or installation 
commander for remedial action.
    (2) Recurrent instances of improper care or handling will be 
documented for referral to DLA and the disposal focal points of the 
Military Departments and Defense Agencies.
    (iv) The generating activity will assure all property and scrap is 
properly identified, including special handling requirements, and that 
automated information system or manually prepared documentation 
contains the required number of copies and appropriate information for 
property received in place or physically accepted.
    (A) To the maximum extent possible, DLA Disposition Services sites 
will validate items during pre-receipt processes with documentation 
preparation and receipt processes with the physical transfer of the 
property.
    (1) The generator's representative (if present) should assist with 
validation. Whether received in place or at a DLA Disposition Services 
site, a receipt copy of the DTID will be provided to the generator's 
representative at that time.
    (2) If the turn-in is not accompanied by the generator's 
representative, the official receipt documentation will be provided in 
the most efficient method available; e.g., through an electronic 
listing of items received, an actual copy of an annotated DTID or an 
electronic return of an annotated DTID through a web based document 
management system.
    (3) For turn-ins accompanied by a generator representative, a 
conditional receipt copy will be provided at the time of delivery. DLA 
Disposition Services sites will initial in block 22 and date block 23 
of the DTID. This copy constitutes conditional acceptance and becomes 
the official receipt unless property is rejected on a supply 
discrepancy report within 15 workdays.
    (B) Validation will consist of verifying property description and 
quantity, and assuring an authorized and appropriate SCC was assigned 
by the generating activity. DLA Disposition Services sites and 
generating activities will work together to validate and verify 
requirements and obtain appropriate certifications, etc., when property 
is received in place versus physically transported to a DLA Disposition 
Services site. The MOU, discussed in Sec.  273.6, will be used for 
securing and documenting these requirements.
    (C) DLA Disposition Services site personnel may exercise 
discretionary authority to change and challenge SCCs (except for items 
in SCC Q, which will be downgraded to scrap and mutilated).
    (D) For items in the general hardware, clothing, tools, furniture, 
and other nontechnical FSCs, DLA Disposition Services sites are 
authorized to use their best knowledge, judgment, and discretion to 
change and assign the appropriate SCC when determined, through physical 
inspection and examination, or where an obvious error in condition 
coding exists. DLA Disposition Services sites are responsible for any 
SCC changes they make and will document the change on the DTID.
    (E) For specialized items such as avionics, or items that require 
test, measurement, or diagnostic to determine serviceability, DLA 
Disposition Services site should challenge the generating activity SCC 
assignment if it appears incorrect. Items in original pack and unopened 
containers that are coded condemned or unserviceable should be viewed 
with guarded skepticism and challenged back to the generating activity.
    (v) Appropriate actions will be taken for discrepancies detected 
during pre-receipt or receipt:
    (A) If property is to be physically received and the generating 
activity's representative is present, accountability and physical 
custody of the property will normally remain with the generator until 
reconciled. DLA Disposition Services sites, at their discretion, may 
retain physical custody until reconciled.
    (B) Discrepancies noted during the receiving process, which may be 
discovered after electronic or hard copy documentation is received, 
will be processed in accordance with DLAI 4140.55/AR 735-11-2/Secretary 
of the Navy Instruction (SECNAVINST) 4355.18A/Air Force Joint Manual 
(AFJM) 23-215, ``Reporting of Supply Discrepancies'' (available at 
http://www.dla.mil/issuances/Documents_1/i4140.55%20(Joint%20Pub%20-
%206%20Aug%202001).pdf.
    (C) DLA Disposition Services will barcode the property for 
identification purposes. Barcoding should include use of any UII or 
IUID in place when applicable.
    (2) Conditional and accountable acceptance distinction. Conditional 
and accountable acceptances are separate actions.
    (i) Conditional acceptance occurs when a generating activity 
representative accompanies a transfer. DLA Disposition Services sites 
will provide a conditional receipt copy at time of physical delivery. 
Conditional acceptance becomes official and final acceptance receipt 
unless property is officially rejected by the DLA Disposition Services 
site within 15 workdays.
    (ii) Accountable acceptance becomes final when verification of 
accurate property description, valid condition code assignment, correct 
quantity, and UII (when applicable) is completed by the DLA Disposition 
Services site. Physical inspections will be conducted, as appropriate.
    (iii) During the conditional acceptance processing, if the property 
is physically transferred to the DLA Disposition Services site and an 
inventory discrepancy surfaces, the DLA Disposition Services site will 
research and provide a report of the lost, damaged, or destroyed 
property in accordance with procedures in DoD 7000.14-R Volume 12, 
Chapter 7. If the property remains at the generating activity site for 
receipt-in-place and an inventory discrepancy surfaces, the generating 
activity will research and provide a report of the lost, damaged, or 
destroyed property in accordance with procedures in DoD 7000.14-R 
Volume 12, Chapter 7. The accountable organization will amend the 
accountable property records as appropriate upon completion of the 
property loss investigation.
    (3) Document acceptance. DLA Disposition Services sites will use a 
full signature for receipts in block 22 of the DTID. The conditional 
acceptance date will be entered in block 23. DLA Disposition Services 
sites will also use this date for the accountable record receipt 
transaction.
    (4) Returning receipts. DLA Disposition Services sites will return 
one hard copy on physical transfers, including generator-prepared 
batchlots, if required by the generating activity. DLA Disposition 
Services will make return receipts available to generators via a web 
based document management system. Generating activities may access this 
system via the DLA Disposition Services Web site and search, view, and

[[Page 68176]]

download copies of turn-in documentation. DLA Disposition Services 
personnel should work with generating activities to encourage the use 
of a web-based document management system and eliminate hard copy 
return receipts.
    (i) For property physically received by a DLA Disposition Services 
site, generating activities will be provided a receipt copy upon 
delivery.
    (A) These receipts are considered conditional acceptance of 
accountability, pending completion of DLA Disposition Services site 
inspection and verification of the turn-in. If no follow-up report is 
received by the generating activity within 15 workdays, the provisional 
copy becomes the official receipt document, and the DLA Disposition 
Services Site assumes full accountability.
    (B) If the receipt is not recorded in a web based document 
management system within 30 days, the provisional copy becomes the 
official receipt copy and the DLA Disposition Services Site assumes 
full accountability.
    (C) If a discrepancy is found, DLA Disposition Services sites may 
contact the generating activity and attempt resolution. If required, 
the guidance shown in paragraph (g)(2)(iii) of this section will be 
used for inventory discrepancies.
    (D) When acceptance is not possible, a reject notice will be 
provided to the generating activity within 7 workdays. Return receipts 
are available to generators via a web based document management system.
    (ii) For turn-ins made by commercial carrier, parcel post, etc., 
DLA Disposition Services sites will provide receipt copies no later 
than 5 workdays after delivery. These receipts are considered 
conditional acceptance of accountability pending completion of DLA 
Disposition Services site inspection and verification of the turn-in. 
If a discrepancy is found, DLA Disposition Services sites may contact 
and attempt resolution. When acceptance is not possible, a reject 
notice will be provided to the generating activity within 7 workdays.
    (5) DLA Disposition Services site batchlots. (i) Consistent with 
the DoD ICS and in accordance with DLA Disposition Services operating 
guidance, DLA Disposition Services sites may batchlot property after 
receipt:
    (A) Batchlot property with an extended line item value of $800 or 
less, in SCCs A--H.
    (B) Batchlot property that does not contain pilferable or sensitive 
materiel.
    (ii) Property assigned DEMIL code ``A'' in the critical or non-
critical FSG/FSCs, excluding FSCs 5985, 5998, and 5999, is eligible for 
batchlotting.
    (iii) DLA Disposition Services sites may batchlot property 
requiring the same type of special processing, e.g., reimbursable 
property, same FSC.
    (iv) DLA Disposition Services sites may batchlot clothing and 
textile products with infrared or spectral reflectance with a DEMIL 
code of ``E,'' but the batchlots require a certification on the DTID 
(see Figure 1 of this section).
[GRAPHIC] [TIFF OMITTED] TR03NO15.222

    (v) DLA Disposition Services sites will exclude from batchlotting:
    (A) Chemical, biological, radiological, and nuclear (CBRN) property 
and clothing (FSG 83 and 84); lab equipment such as centrifuges, 
biological incubators, micromilling machines, biological safety 
cabinets and laboratory evaporators; (FSG 66), camouflage clothing and 
individual equipment.
    (B) Low dollar property with high potential for RTDS.
    (C) Property defined as a special case in Enclosure 3 of DoD Manual 
4160.21, Volume 4 that requires special receipt and handling 
requirements that cannot be met at time of receipt.
    (D) DEMIL required items identified in DoD 4160.28-M Volumes 1-3, 
DEMIL codes B, Q, and property in critical FSCs in DEMIL codes C, D, E, 
F, G, and P. Property in FSCs 5935, 5996, and 5999 will not be 
batchlotted regardless of DEMIL code.
    (E) Property requiring inert certification.
    (F) Small arms or light weapons.
    (G) Lasers.
    (H) Radioactive materiels (e.g., gauges, meters, watches) not 
eligible for turn-in.
    (I) Chemical, biological, radiological, nuclear--defense (CBRN-D) 
equipment--These items are DEMIL F and instructions have to be followed 
for disposition and are NOT turned in to DLA disposition.
    (J) Items with a CIIC. Items determined to be pilferable or 
sensitive in accordance with Volume 6 of DLM 4000.25 and DLA Regulation 
4145.11/AR 740.7/Navy Supply System Command Instruction (NAVSUPINST) 
4440.146C/Marine Corps Order (MCO) 4450.11, ``Safeguarding of DLA 
Sensitive Inventory Items, Controlled Substances, and Pilferable Items 
of Supply'' (available at http://

[[Page 68177]]

www.dla.mil/issuances/Documents_1/r4145.11.pdf).
    (K) HP.
    (L) Metalworking machinery and former industrial plant equipment.
    (M) Grade 8 fasteners and machine bolts in FSCs 5305 and 5306. Do 
not batchlot these items if they appear on the SALD list.
    (N) Property in SCC A with a total extended value, per DTID, of $50 
or more, as shown in Table 3 of this section.

      Table 3--FSCs in SCC A > or = $50 Excluded From Batchlotting
------------------------------------------------------------------------
                  FSC                              Description
------------------------------------------------------------------------
2910...................................  Engine Fuel System Component,
                                          Non-Aircraft.
2920...................................  Engine Electrical System
                                          Components, Non-Aircraft.
2940...................................  Engine Air and Oil Filters,
                                          Strainers and Cleaners, Non-
                                          Aircraft.
2990...................................  Miscellaneous Engine
                                          Accessories, Non-Aircraft.
3030...................................  Belting, Drive Belts, Fan
                                          Belts, and Accessories.
4730...................................  Fittings and Specialties; Hose,
                                          Pipe, and Tube.
5660...................................  Fencing, Fences and Gates and
                                          Components.
5895...................................  Miscellaneous Communication
                                          Equipment.
5910...................................  Capacitors.
5935...................................  Connectors, Electrical.
5940...................................  Lugs, Terminals and Terminal
                                          Strips.
5961...................................  Semi-Conductor Devices and
                                          Associated Hardware.
6530...................................  Hospital Furniture, Equipment,
                                          Utensils and Supplies.
6680...................................  Liquid/Gas Flow, Liquid level/
                                          Mechanical Motion Measuring
                                          Instruments.
7105...................................  Household Furniture.
7195...................................  Miscellaneous Furniture and
                                          Fixtures.
9999...................................  Miscellaneous Items (cannot
                                          conceivably be classified
                                          anywhere else).
------------------------------------------------------------------------

    (vi) Notwithstanding the information in paragraph (g)(5)(v) of this 
section, RTD customers may order individual items from a batchlot. DLA 
Disposition Services sites will honor these requests. Otherwise, items 
will not be removed from batchlots.
    (vii) DLA Disposition Services sites are responsible for ensuring 
official receipt copies are returned accessible to generating 
activities (electronically or hard copy). They must provide tracing 
assistance for any DTID receipt copy not received by the generating 
activity.
    (h) Identification, barcoding, and storage requirements. (1) Usable 
property, transferred to a DLA Disposition Services site or received in 
original location, must be clearly identified with barcode labels. The 
labels will be affixed to property from time of receipt (physically or 
receipt-in-place) until final removal and will correspond with 
accountability records. For property stored at DLA Disposition Services 
sites, signs will be placed appropriately to identify property status 
(RTD, DEMIL, etc.) and to minimize confusion to customers.
    (2) Scrap transferred to a DLA Disposition Services site or 
received in original location will be accumulated and segregated to 
prevent commingling basic material content.
    (i) For use in providing the basic material content information, 
scrap will be identified using the standard waste and scrap 
classification code (SCL) contained in the DAISY codes and terms pocket 
reference located at the DLA Disposition Services Web page (https://www.dispositionservices.dla.mil/publications/index.shtml). The pocket 
reference is formatted alphabetically.
    (ii) Barcoded labels are not required for scrap accumulations. 
However, both the generating activity and DLA Disposition Services 
accounting records must correspond with the scrap identifications and 
weights. DLA Disposition Services must use the SCL in its DAISY 
accounting records.
    (iii) During storage, DLA Disposition Services will place 
appropriate signs to identify types of scrap and maximize visibility to 
customers.
    (i) Accounting for property at the DLA Disposition Services site. 
(1) Correct accounting for all excess property, surplus property, and 
FEPP by both the Military Departments and DLA Disposition Services 
sites is critical. Non-compliance can result in property being 
misappropriated with potentially severe consequences. Proper accounting 
impacts resourcing (money, equipment, and personnel) decisions.
    (2) Accountability records will be maintained in auditable 
condition, allow property to be traced from receipt to final 
disposition and cleared from the ICS, when appropriate. DLA Disposition 
Services' accountability system will incorporate the requirements of 
DoD Directive 8320.02, 15 CFR parts 730 through 799, and DLA Regulation 
7500.1, ``Accountability and Responsibility for Government Property in 
the Possession of the Defense Logistics Agency,'' (DLA Regulation 
7500.1 is available at: http://www.dla.mil/issuances/.
    (3) If a contingency operation requires a deviation from standard 
accountability practices, Military Departments and DLA Disposition 
Services sites will maintain spreadsheets, listings, or the most 
appropriate method of temporary accountable records. When the 
contingency operation reaches a point where prescribed accountability 
practices can be resumed, the temporary documents will be used for 
establishing, updating, or adjusting official accountability records 
(both Military Departments and DLA Disposition Services sites) as 
applicable.
    (4) DLA Disposition Services' property accountability records will 
be maintained in sufficient detail to support required sales proceeds 
reimbursements.
    (i) Materiel with different fund citation appropriations may be 
combined in sale lots; however, DLA Disposition Services accountability 
systems will retain individual disbursement information to allow 
appropriate reimbursements to local or departmental accounts, as 
designated by DoD 7000.14-R, ``Department of Defense Financial 
Management Regulations (FMRs): Volume 11a, ``Reimbursable Operations, 
Policy and Procedures``; Chapter 5, ``Disposition of Proceeds from 
Department of Defense Sales of Surplus Personal Property'', (available 
at http://comptroller.defense.gov/fmr/current/11a/Volume_11a.pdf).

[[Page 68178]]

    (ii) Non-reimbursable scrap may be physically combined with other 
scrap when considered advantageous; however, accountability records 
will be maintained to substantiate pro-rating of the proceeds.
    (5) Usable and scrap determination and accounting are calculated as 
follows:
    (i) When property not requiring DEMIL is assigned SCCs F, G, or H, 
the DLA Disposition Services site may determine property has scrap 
value only and classify and process as ``scrap upon receipt.''
    (ii) Personal property assigned other SCCs, which the DLA 
Disposition Services site determines to only have basic materiel 
content value, may be downgraded to scrap after the end-of-screening 
date (ESD) and completion of any required DEMIL.
    (iii) DLA Disposition Services sites will minimize changing or 
challenging SCCs and downgrades upon receipt.
    (iv) When an item has been offered on a competitive sale and no bid 
has been received, or bids received are less than the scrap value of 
the item, the property may be downgraded to scrap and re-offered for 
sale as scrap. This includes property returned to a DLA Disposition 
Services site from a joint commercial sales partner that has been 
confirmed as mis-described or as containing only basic material content 
value. Similar items received within a 12-month period that have a 
history of being nonsalable may be downgraded to scrap at ESD.
    (v) When a DLA Disposition Services site determines obsolete 
printed materials have no RTD potential and only scrap market value, 
these items will be downgraded to scrap upon receipt.
    (vi) When end items are turned in as scrap and are reclaimed or 
disassembled for their usable components, the DLA Disposition Services 
site's records will be adjusted to reflect the acquisition cost 
(estimated, if not known) of the components removed.
    (6) Scrap accounting is calculated by weight.
    (i) Estimated weight may be used for receiving scrap if scales are 
not available or if weighing is impractical. Disposition of scrap for 
sale or demanufacturing must be weighed to provide accurate accounting 
and reconciliation with the DLA Disposition Services accountable 
record.
    (ii) The acceptable degree of accuracy of estimation is 25 percent 
for property processed by the ton, and 10 percent for property 
processed by the pound. Overages and shortages discovered on release of 
property that exceed allowable tolerances will be adjusted.
    (iii) High value scrap must be weighed at the time of receipt.
    (j) Calibration and maintenance of weigh scales. (1) DoD 
activities, including DLA Disposition Services sites with scales used 
for receipts and disposition of scrap, will ensure weigh scales under 
their jurisdiction are maintained, repaired, and calibrated annually or 
more often if required by State or local laws.
    (2) Activities with scales will maintain a log or record of visits 
by qualified inspectors showing the date of the visit and, where 
appropriate, action taken to correct the accuracy of the scales. A 
signed copy of the inspector's findings will be maintained. The 
activity is responsible for obtaining the services of a qualified scale 
inspector and requesting repair when needed.
    (k) Physical inventory accuracy. (1) DLA Disposition Services sites 
will conduct physical inventories. At a minimum, a sample inventory 
will be conducted at each DLA Disposition Services site annually. 
Inventory accuracy of at least 90 percent will be maintained for all 
usable property, except DEMIL required property, HP, and pilferable or 
sensitive property. Discrepancies will be corrected in accordance with 
paragraph (l) of this section. If sample inventories for usable 
property are less than 90 percent accurate, a wall-to-wall inventory 
will be conducted.
    (2) Physical inventories for DEMIL required property, HP, and 
pilferable or sensitive property will be conducted at least annually. 
Inventory accuracy of 100 percent will be maintained. If less than 100 
percent accuracy, DLA Disposition Services site will report the 
discrepancies in accordance with procedures in DoD 7000.14-R.
    (3) Usable property remaining on the DLA Disposition Services site 
account in excess of 6 months will be inventoried on a monthly basis 
and certified.
    (4) Inventory discrepancies will be researched as part of the 
inventory process and corrections documented as inventory adjustments.
    (5) DLA Disposition Services will provide the DLA Disposition 
Services sites with direction for maintaining and reconciling scrap 
accumulations and accountable records. Reconciliation will be performed 
at least monthly.
    (l) Inventory discrepancies and adjustments--(1) Errors before 
acceptance. Item identification, quantity, condition, or price data 
errors discovered before official acceptance of accountability will be 
resolved and corrected during receipt.
    (2) Errors after acceptance. Discrepancies discovered after 
acceptance of accountability; that is, differences between recorded 
balances and quantities on hand, will be processed as inventory 
adjustments. Inventory adjustment procedures are contained in DoD 
7000.14-R, Volume 12, Chapter 7.
    (3) Property not in DLA Disposition Services site custody. (i) When 
property for which a DLA Disposition Services site has assumed 
accountability, but not physical custody, becomes lost, damaged, or 
destroyed, the custodial activity will investigate the discrepancy and 
provide its findings to the DLA Disposition Services site.
    (ii) The DLA Disposition Services site will provide the custodial 
activity with requested item identification number, such as NSN, DTID 
number, or UII (when applicable) or copies of pertinent documentation 
for the lost, damaged, or destroyed item.
    (A) If the custodial activity determines the discrepancy is due to 
a record keeping error, it will fully document the error and inform the 
DLA Disposition Services site to prepare an inventory adjustment.
    (B) If the discrepancy is not due to a record keeping error, the 
custodial activity must prepare a DD Form 200, ``Financial Liability 
Investigation of Property Loss,'' in accordance with criteria contained 
in DoD 7000.14-R, Volume 12, Chapter 7.
    (iii) Within 30 days after notification of the loss of the 
property, the custodial activity must provide the DLA Disposition 
Services site a completed copy of the DD Form 200 as supportive 
documentation for the DLA Disposition Services site to process an 
inventory adjustment.
    (m) Property disposition--(1) Packing, crating, and handling 
(PC&H). PC&H for DoD orders will be arranged by the DLA Disposition 
Services site in most cases. When property is received in place, the 
generating activity will prepare the property for shipment. DLA 
Disposition Services will submit payment for these services according 
to the established ISSA or by DLA Disposition Services military 
interdepartmental purchase request.
    (2) Transportation. DLA Disposition Services will directly fund 
transportation costs associated with reutilized property on each 
transaction. However, these costs are recouped as part of the Service-
level annual billings for all associated disposition costs incurred by 
the services including all transportation costs during the year.

[[Page 68179]]

That is, individual DoD units do not pay for reutilization 
transportation on each individual transaction, but their Military 
Service is billed on an annual basis.
    (n) Audits--(1) Outside command involvement. When it is necessary 
to obtain or confirm data on materiel transferred to or from disposal 
accounts, and this involves crossing command lines between DoD 
Components, the policy in DoD Instruction 7600.02, ``Audit Policies'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/760002p.pdf) will apply.
    (2) Joint Service/DLA Directives used during audits. The DoD 
Components will maintain a clear audit trail of the documentation for 
the disposition of property in accordance with their internal issuances 
for audits. The internal issuances that govern Army, Navy, and Air 
Force are:
    (i) AR 36-2, ``Audit Services in the Department of the Army'' 
(available at http://www.apd.army.mil/pdffiles/r36_2.pdf).
    (ii) SECNAVINST 7510.7F.
    (iii) Air Force Policy Directive 65-3, ``Internal Auditing'' 
(available at http://static.e-publishing.af.mil/production/1/saf_fm/publication/afpd65-3/afpd65-3.pdf).


Sec.  273.8  Donations, loans, and exchanges.

    (a) Authority and scope--(1) FMR. Provisions for donation of 
surplus personal property are provided in accordance with 41 CFR part 
102-37.
    (2) Other regulations. (i) 10 U.S.C. 2576a permits the Secretary of 
Defense to transfer certain property for use for State and local law 
enforcement agencies. Notwithstanding 41 CFR chapters 101 and 102, 
donations may be made only as authorized by law; under separate 
statutes, the Secretaries of the Military Departments may donate 
certain excess materiel to authorized recipients; through GSA, the 
Department of Defense may donate surplus property to authorized donees. 
Donations are subordinate to federal agency needs, but take precedence 
over sale or A/D. This section also contains guidance and procedures 
pertaining to loans or exchanges, providing specific instructions to 
authorized donees.
    (ii) 42 U.S.C. chapter 68 authorizes federal assistance to States, 
local government, and relief organizations based on a declaration of 
emergency or major disaster.
    (iii) 10 U.S.C. 2557, 2572, 2576, and 5576a establishes the 
procedures for organizations participating in surplus personal property 
donation programs, specifically the organizations discussed in this 
section.
    (3) Agreements. Technology transfer projects and 10 U.S.C. 2194 
address educational partnership agreements.
    (b) Compliance with nondiscrimination statutes requirements. (1) 
All of the donation programs covered by this section must comply with:
    (i) 42 U.S.C. 2000a, also known as Title VI of the Civil Rights Act 
of 1964.
    (ii) 20 U.S.C. 1681, also known as Title IX of the Education 
Amendments of 1972.
    (iii) 29 U.S.C. 701 also known as the Rehabilitation Act of 1973.
    (iv) 42 U.S.C. 6101 also known as the Age Discrimination Act of 
1973.
    (2) Any complaints alleging violations of these acts or inquiries 
concerning the applicability to the programs covered in this section 
will be handled by elevating issues through the appropriate chains of 
command and agency-to-agency dialog.
    (c) Donations of surplus personal property--(1) General. (i) 
Surplus property is allocated by GSA considering the factors listed in 
41 CFR chapters 101 and 102.
    (ii) GSAXcess[supreg] is available for State agencies for surplus 
property (SASPs) and donees, when authorized, to search for and select 
property for donation. Screening is accomplished during the timeframes 
specified in Sec.  273.15.
    (iii) Upon allocation, GSAXcess[supreg] will generate the SF 123, 
``Transfer Order Surplus Personal Property'' to the agency for approval 
and return. DoD orders for DLA Disposition Services assets with a 
UMMIPS Priority Designator within Issue Priority Group 1 (Priorities 
01-03), and non-mission capable supply (NMCS) orders will be submitted 
to DLA Disposition Services as an exception. DLA Disposition Services 
will immediately fill these orders and notify the GSA area property 
officer for the Front End Data System record adjustment. Priorities 4-
15 orders received during this timeframe will not be honored.
    (2) Accessing GSAXcess[supreg]. GSAXcess[supreg] screening requires 
an access code from GSA. To learn about GSAXcess[supreg] and obtain 
access code information, see https://gsaxcess.gov/.
    (3) Release of Government liability. On a case-by-case basis, 
``hold harmless'' clauses to protect the United States may be used, 
depending on the types and quantities of property. Such provisions must 
be written in coordination with appropriate DoD Component legal 
counsel.
    (4) Reporting. DLA will provide GSA a report of property 
transferred to non-federal recipients. The report:
    (i) Will be submitted to GSA through the GSA on-line Personal 
Property Reporting Tool within 90 calendar days after the close of each 
fiscal year. The Personal Property Reporting Tool is located at https://gsa.inl.gov/property. If for any reason the report is delayed, the 
organization who possesses the property should contact the GSA Personal 
Property Asset Management (MTA), 1800 F Street NW., Washington, DC 
20405, with an explanation of the delay. The report must cover personal 
property disposed during the fiscal year in all areas within the 50 
United States, the District of Columbia, Puerto Rico, American Samoa, 
Guam, the Northern Mariana Islands, the Federated States of Micronesia, 
the Marshall Islands, Palau, and the U.S. Virgin Islands. Negative 
reports are required.
    (ii) Must reference Interagency Report Control Number 0154-GSA-AN 
and contain:
    (A) Name of the non-Federal recipient.
    (B) Zip code of the recipient.
    (C) Explanation as to the type of recipient (e.g., contractor, 
grantee, cooperative, Stevenson-Wydler recipient, licensee, permittee).
    (D) Appropriate 2-digit FSC group.
    (E) Total original acquisition cost of all personal property 
furnished to each recipient.
    (F) Appropriate comments as necessary.
    (G) IUID or UII equivalent.
    (5) Donation restrictions. (i) All surplus property (including 
property held by working capital funds established under 10 U.S.C. 2208 
or in similar funds) is available for donation to eligible recipients, 
in accordance with authorizing laws, except for property in the 
categories in paragraphs (c)(5)(i)(A) through (M) of this section:
    (A) Agricultural commodities, food, and cotton or woolen goods 
determined from time to time by the Secretary of Agriculture to be 
commodities requiring special handling with respect to price support or 
stabilization.
    (B) Controlled substances.
    (C) Foreign purchased property (as identified in DoD 5105.38-M).
    (D) Naval vessels of the following categories: battleships, 
cruisers, aircraft carriers, destroyers, and submarines.
    (E) NAF property.
    (F) MLI, except in compliance with DoD Instruction 4160.28, DoD 
4160.28-M Volumes 1-3, and DoD Instruction 2030.08.
    (G) CCL items, except in compliance with 15 CFR parts 730 through 
774 and DoD Instruction 2030.08.
    (H) Property acquired with trust funds (e.g., social security trust 
funds).
    (I) Records of the Federal Government.

[[Page 68180]]

    (J) Vessels of 1,500 gross tons or more, excluding specified Naval 
combat vessels, which the Maritime Administration determines to be 
merchant vessels or capable of conversion to merchant use (as defined 
in 41 CFR chapters 101 and 102).
    (K) Items as may be specified from time to time by the GSA Office 
of Government-wide Policy.
    (L) Property that requires reimbursement upon transfer (such as 
abandoned or other unclaimed property that is found on premises owned 
or leased by the Government).
    (M) Hazardous waste.
    (N) Other Hazardous property and hazardous materials not otherwise 
identified in the categories in paragraphs (c)(5)(i)(A) through (M) of 
this section that is not serviceable, for example supply condition 
codes (SCCs) listed in DLM 4000.25-2 as SCC E for unserviceable 
(limited restoration) materiel, SCC F for unserviceable (reparable) 
materiel, and SCC G for unserviceable (incomplete) materiel, SCC H for 
unserviceable (condemned) materiel, SCC P for unserviceable 
(reclamation) materiel.
    (ii) Certain items require special processing for donations (in 
accordance with the requirements in DoD 5105.38-M. DoD Manual 4160.21, 
Volume 4 provides the procedures.
    (6) Returnable DoD property. (i) As restrictions are imposed on 
certain commodities, the Department of Defense, through GSA, will 
request a return of these items and provide guidance.
    (ii) Known restrictions require written certification and signature 
by the recipient at the time of removal.
    (7) Allocating surplus property. GSA directly allocates property 
to:
    (i) FAA. Public airports are managed through the FAA.
    (A) The FAA Administrator has the responsibility for selecting 
property determined to be either:
    (1) Essential, suitable, or desirable for the development, 
improvement, operation, or maintenance of a public airport, as defined 
in 49 U.S.C. 47102.
    (2) Reasonably necessary to fulfill the immediate and foreseeable 
future needs of the grantee for the development, improvement, 
operation, or maintenance of a public airport.
    (3) Needed to develop sources of revenue from non-aviation 
businesses at a public airport.
    (B) Public airports will secure advance approval of donations by 
obtaining signatures of the applicable FAA airport branch chief and by 
the GSA regional office on the order (SF 123).
    (ii) United States Agency for International Development.
    (iii) SASPs. (A) SASPs are responsible for determining eligibility 
of applicants; fairly and equitably distributing donated property to 
eligible donees within their State; assuring donees comply with 
donation terms and conditions; and when requested by donee, arranging 
for or providing shipment of property from the federal holding agency, 
e.g., DLA Disposition Services sites, directly to the recipients.
    (B) The SASP donates property to public and eligible nonprofit 
organizations. Types of eligible recipients are:
    (1) Medical institutions, hospitals, clinics, and health centers.
    (2) Drug abuse and alcohol centers.
    (3) Providers of assistance to homeless individuals.
    (4) Providers of assistance to impoverished families and 
individuals.
    (5) Schools, colleges, and universities.
    (6) Schools for the mentally and physically disabled.
    (7) Child care centers.
    (8) Radio and television stations licensed by the Federal 
Communications Commission as educational radio or television stations.
    (9) Museums attended by the public.
    (10) Libraries providing the resident public (community, district, 
State, or region) with free access.
    (11) State and local government agencies, or nonprofit 
organizations or institutions. 42 U.S.C. 3015 and 3020 authorizes 
donations of surplus property to State and local government agencies, 
or nonprofit organizations or institutions that receive federal funding 
to conduct programs for older individuals.
    (12) States and territories.
    (13) SEAs. The Deputy Secretary of Defense is authorized to 
designate new SEAs. Table 4 of this section includes the list of 
approved SEAs. SEA nominations from the Military Departments or Defense 
Agencies should be forwarded to the Office of the Assistant Secretary 
of Defense for Logistics and Materiel Readiness, 3500 Defense Pentagon, 
Washington, DC 20301-3500
    (14) Educational activities that are of special interest to the 
Military Services may receive surplus DoD property in accordance with 
41 CFR chapter 101.

                      Table 4--SEA National Offices
------------------------------------------------------------------------
 
------------------------------------------------------------------------
American National Red Cross, 17th and D  Armed Services YMCA of the USA,
 Streets NW., Washington, DC 20006.       6225 Brandon Avenue, Suite
                                          215, Springfield, VA 22150-
                                          2510.
Big Brothers/Big Sisters of America,     Boys and Girls Clubs of
 230 North 13th Street, Philadelphia,     America, 771 First Avenue, New
 PA 19107.                                York, NY 10017.
Boy Scouts of America, 1325 Walnut Hill  Camp Fire, Inc., 4601 Madison
 Lane, Irving, TX 75038-3096.             Avenue, Kansas City, MO 64112-
                                          1278.
The Center for Excellence In Education,  Girl Scouts of America, 420 5th
 7710 Old Springhouse Road, McLean, VA    Avenue, New York, NY 10018-
 22102.                                   2702.
Little League Baseball, Inc.,            National Association for Equal
 Williamsport, PA 17701.                  Opportunity In Higher
                                          Education, 2243 Wisconsin
                                          Avenue NW., Washington, DC
                                          20007.
National Ski Patrol System, Inc., 133    U.S. Naval Sea Cadet Corps,
 South Van Gordon Street, Suite 100,      2300 Wilson Boulevard,
 Lakewood, CO 80228.                      Arlington, VA 22201.
United Service Organizations, Inc., 601  United States Olympic
 Indiana Avenue, Washington, DC 20004.    Committee, 1 Olympic Plaza,
                                          Colorado Springs, CO 80909-
                                          5760.
National Director, Young Marines of the  President--Board of Directors,
 Marine Corps, P.O. Box 70735,            Marine Cadets of America, USN
 Southwest Station, Washington, DC        & MC Reserve Center, Fort
 20024-0735.                              Nathan Hale Park, New Haven,
                                          CT 06512-3694.
Corporation for the Promotion of Rifle   Marine Corps League, P.O. Box
 Practice and Firearms Safety, Erie       3070, Merrifield, VA 22116.
 Industrial Park, Building 650, P.O.
 Box 576, Port Clinton, OH 43452.
------------------------------------------------------------------------

    (C) High schools that host a Junior Reserve Officer Training Corps 
(JROTC) Unit or a National Defense Cadet Corps Unit, Naval Honor 
Schools, and State Maritime Academies should contact

[[Page 68181]]

their sponsoring Military Department regarding donations.
    (D) SEAs must maintain separate records that include:
    (1) Documentation verifying that the activity has been designated 
as eligible by the Department of Defense to receive surplus DoD 
property.
    (2) A statement designating one or more donee representatives to 
act for the SEA in acquiring property.
    (3) A listing of the types of property that are needed or have been 
authorized by the Department of Defense for use in the SEA program.
    (8) Identification of screeners. (i) SASP personnel or donee 
personnel representing a SASP must have a valid screener-identification 
card (GSA Optional Form 92, screener's identification, or other 
suitable identification approved by GSA) before screening and selecting 
property at holding agencies. However, SASP or donee personnel do not 
need a screener ID card to inspect or remove property previously set 
aside or approved by GSA for transfer.
    (ii) Screeners, having identified themselves and indicated the 
purpose of their visit, will sign the Visitor or Vehicle Register and 
be allowed to complete donation screening only.
    (9) Screening and ordering procedures for DLA Disposition Services 
property. (i) Section 273.15(c) outlines the screening timeframes for 
ZI surplus and FEPP that has reached the surplus release date.
    (ii) When a prospective donee contacts a DLA Disposition Services 
site or military installation regarding possible acquisition of surplus 
property, the individual or organization will be advised to contact the 
applicable SASP for determination of eligibility and procedures to be 
followed. The DLA Disposition Services sites will assist interested 
parties regarding availability of surplus property.
    (iii) SASP contacts may be located on the GSA Web site at http://www.gsa.gov/portal/content/100851.
    (iv) Prospective donees must go to GSAXcess[supreg] to gain access, 
shop, and select property.
    (A) Once GSA allocates property, the SASP will receive an SF 123. 
The donee should then sign and return the SF 123 to the appropriate GSA 
office.
    (B) GSA will then approve the SF 123 by signature, return the SF 
123 to the SASP, and notify DLA Disposition Services with an electronic 
order.
    (v) Procedures for return of surplus FEPP to the United States for 
ultimate donation are covered in Enclosure 4 of DoD Manual 4160.21, 
Volume 2.
    (vi) DLA Disposition Services sites will require recipients of HM 
to sign a certification statement as shown in Figure 2 of this section.
[GRAPHIC] [TIFF OMITTED] TR03NO15.223

    (A) After allocation and approval, if the customer no longer wants 
or needs the property, the customer is required to notify the SASP, 
GSA, and the DLA Disposition Services site.
    (B) GSA may reallocate the property if there is an existing request 
by another potential recipient. If the property is reallocated, 
cancellation of the existing request will be transmitted by GSA and

[[Page 68182]]

another transmission to DLA Disposition Services is required.
    (C) If the property is not reallocated, GSA must cancel the 
existing MRO.
    (10) Customer removal of ordered property. (i) All transportation 
arrangements and costs are the responsibility of the SASP or designated 
donee. The DLA Disposition Services site may not act as agent packager 
or shipper. Until release, each holding activity is responsible for the 
care and handling of its property.
    (ii) The SASP or designated donee will only pay for direct costs of 
care and handling incurred in the actual packing, crating, preparation 
for shipment, and loading. The price will be the actual or carefully 
estimated costs incurred by DoD traffic management activities for 
labor, material, or services used in donating the property.
    (iii) Advance payment for care and handling costs will normally be 
required; however, State and local governmental units may be exempted 
from this requirement and authorized to make payment within 60 days 
from date of receipt of property. Advance payment may be required in 
any case where prompt payment after billing has been unsatisfactory.
    (iv) Donees must schedule removal of property with the DLA 
Disposition Services site. Upon arrival, the individual must provide 
identification and must sign the DLA Disposition Services Visitor or 
Vehicle Register, indicating the purpose of the visit.
    (v) The individual must provide an approved SF123 as authorization 
for removal.
    (vi) DLA Disposition Services sites will release surplus property 
to authorized donees upon receipt of a properly completed and approved 
SF 123 or MRO.
    (d) Special donations (gifts), loans, and exchanges outside the 
FMR--(1) Compliance. The DoD Components:
    (i) Comply with the specific governing statute for the type of 
property and ensure the limitations of the governing statute are 
observed. In accordance with 10 U.S.C. 2572 and DoD issuances, the 
Secretary of a Military Department or the Secretary of the Treasury is 
permitted to donate, lend, or exchange, as applicable, without expense 
to the United States, books, manuscripts, works of art, historical 
artifacts, drawings, plans, models and condemned or obsolete combat 
materiel that are not needed by the Military Services.
    (ii) Establish supplementary procedures governing loans, donations, 
and exchanges.
    (iii) May donate, loan or exchange items as identified in paragraph 
(d)(1) of this section, if the special donation, loan, or exchange 
action occurs prior to transfer to DLA Disposition Services for 
disposition. It is not authorized after property has been officially 
declared excess and transferred to DLA Disposition Services.
    (iv) May exchange assets for:
    (A) Similar items;
    (B) Conservation supplies, equipment, facilities, or systems;
    (C) Search, salvage, or transportation services;
    (D) Restoration, conservation or preservation services; or
    (E) Educational programs when it directly benefits the historical 
collection of the DoD Components.
    (v) May not make an exchange unless the monetary value of the 
property transferred or services provided to the United States under 
the exchange is not less than the value of the property transferred by 
the United States. The Secretary concerned may waive this limitation in 
the case of an exchange for property in which the Secretary determines 
the item to be received by the United States will significantly enhance 
the historical collection of the property administered by the 
Secretary.
    (vi) Will not incur costs in connection with loans or gifts. 
However, the DoD Component concerned may, without cost to the 
recipient, DEMIL, prepare, and transport within the CONUS items 
authorized for donation to a recognized war veterans' association in 
accordance with DoD 4160.28-M Volumes 1-3 if the DoD Component 
determines this can be accomplished as a training mission, without 
additional expenditures for the unit involved.
    (vii) Will maintain official records of all DoD materiel loaned 
including physical inventory, record reconciliation, and management 
reporting specified in the inventory management procedures in DoD 
Manual 4140.01, ``DoD Supply Chain Materiel Management Procedures'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/414001m/414001m_vol01.pdf). Verify yearly that property is being used for 
approved purposes, is being maintained and protected according to the 
agreement, and that the recipient organization still desires to retain 
the property. The DoD Component may perform this annual check by any 
method that provides reasonable assurance the recipient organization is 
fulfilling its responsibilities. DoD Components may request assistance 
from qualified DoD organizations.
    (2) Organizations authorized to receive loans and donations. (i) A 
municipal corporation.
    (ii) A soldiers' monument association.
    (iii) An incorporated museum or memorial that is operated by a 
historical society, a historical institution of a State or foreign 
nation, or a nonprofit military aviation heritage foundation or 
association incorporated in a State.
    (iv) An incorporated museum that is operated and maintained for 
educational purposes only and the charter of which denies it the right 
to operate for profit.
    (v) A post of the Veterans of Foreign Wars of the United States or 
the American Legion or a unit of any other recognized war veterans' 
association.
    (vi) A local or national unit of any war veterans' association of a 
foreign nation recognized by the national government of that nation (or 
by the government of one of the principal political subdivisions of 
that nation).
    (vii) A post of the Sons of Veterans Reserve.
    (3) Requirements for veterans' organizations. To qualify, veterans' 
organizations must be:
    (i) Sponsored by a Military Department.
    (ii) Evaluated based on its size, purpose, the type and scope of 
services it renders to veterans, and composed of honorably discharged 
American soldiers, sailors, airmen, marines, or coastguardsmen.
    (4) Requirements for museums. To qualify, museums must:
    (i) Meet State (or equivalent foreign national) criteria for not-
for-profit museums.
    (ii) Have an existing facility suitable for the display and 
protection of the type of property desired for loan or donation. If the 
requester has a facility under construction that will meet those 
requirements, interim eligibility may be granted.
    (iii) Have a professional staff that can care for and accept 
responsibility for the loaned or donated property.
    (iv) Have assets that, in the determination of the loaning or 
donating service, indicate the capability of the loaner and the 
borrower to provide the required care and security of historical 
property.
    (5) Eligibility determination. The DoD Components will determine 
the eligibility of organizations for gifts and loans. The DoD 
Components may establish eligibility requirements dependent upon the 
unique nature of the specific historical item; however, the minimum 
requirements are:
    (i) Limit donations, loans, or exchanges to property stipulated by 
10

[[Page 68183]]

U.S.C. 2557, 2572, 2576, and 2576a. Except for relevant records for 
aircraft and associated engines and equipment (unless authorized under 
DoD 4160.28-M Volumes 1-3 and DoD Instruction 2030.08), government 
records may not be released.
    (ii) Approve the loan, donation, or exchange; process requests for 
variations from the original agreement; and maintain official records 
of all donation, loan, and exchange agreements. The approval of 
exchanges may be delegated at the discretion of the Secretary 
concerned, and is encouraged for low-dollar transactions.
    (iii) Establish controls for determining compliance by the 
recipient organization with the display, security, and usage criteria 
provided in the loan and donation agreements.
    (iv) Provide disposition instructions to the recipient organization 
when loaned or donated property is no longer needed or authorized for 
continued use.
    (v) Establish conditions for making donations, loans, or exchanges.
    (vi) Establish a process (e.g., a council or other means suitable 
to the loan and donation organization) to review and approve proposed 
exchanges incorporating legal and financial review independent of the 
museum involved. Personnel directly involved in museum operations will 
not act as sole approving authority for any exchange transactions.
    (vii) Ensure that correspondence regarding loans, donations, or 
exchanges is signed by individuals authorized to obligate their 
organization.
    (viii) Ensure appropriate DEMIL of the property as prescribed in 
DoD 4160.28-M Volumes 1-3 before release. If standard DEMIL criteria 
cannot be applied without destroying the display value, specific DEMIL 
actions (such as aircraft structural cuts) may be delayed. The 
recipient organization must agree to assume responsibility for the 
property DEMIL action, at no cost to the Government, when the item is 
no longer desired or authorized for display purposes. The recipient 
organization may also return the property to the Government via the 
donating Military Department for full DEMIL action.
    (ix) Loan, donate, or exchange property on an ``as is, where is'' 
basis and ensure that the recipient organization agrees to pay all 
costs incident to preparation, handling, and movement of the property. 
Military Department contact points for the loan, donation, or exchange 
of property are at Table 5 of this section.
    (A) Property may not be repaired, modified, or changed at 
government expense over and above normal preparation for handling and 
movement, even if reimbursement is offered for services rendered.
    (B) Property may not be moved at government expense to a 
recipient's location or to another location closer to the recipient to 
prevent or lessen the recipient organization's processing or 
transportation costs.
    (C) No charge will be made for the property itself, but all 
physical processing of the property for the loan or donation will be 
the responsibility of the recipient organization. The recipient 
organization will pay all applicable charges before release of the 
property.

   Table 5--Military Department Contact Points for Loan, Donation, or
                          Exchange of Property
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
ARMY: (all commodities)
    Commander
    U.S. Army Tank Automotive and Armament Command
    ATTN: AMSTA-IM-OER
    Warren, MI 48397-5000
    Email: [email protected]
    Telephone: 1-800-325-2920 extension 48469
NAVY:
Navy and Marine Corps aircraft, air launched missiles, aircraft engines,
 and aviation related property:
    Commanding Officer
    NAVSUP Weapon Systems Support
    ATTN: Code-03432-06
    700 Robbins Ave.
    Philadelphia, PA 19111-5098
Obsolete or condemned Navy vessels for donation as memorials; Navy major
 caliber guns and ordnance; and shipboard materiel:
    Commander
    ATTN: NAVSEA-OOD, NC
    Naval Sea Systems Command
    2531 Jefferson Davis Highway
    Arlington, VA 22242-5160
AIR FORCE:
Air Force aircraft, missiles or any other items authorized for donation
 for display purposes to a museum recipient:
    NMUSAF/MUX
    1100 Spaatz St.
    Wright-Patterson AFB, OH 45433-7102
The USAF Museum operates a loan program only. Donations are not offered.
Any other Air Force item authorized for donation for display purposes
 (to recipients other than a museum):
    HQ AFMC/A4RM
    4375 Chidlaw Rd., Building 262
    Wright-Patterson AFB, OH 45433-5006
MARINE CORPS:
Marine Corps assault amphibian vehicles (to recipients other than a
 museum):
    Commandant of the Marine Corps
    ATTN: LPC-2
    HQ U.S. Marine Corps
    3000 Marine Corps, Pentagon, RM 2E211
    Washington, DC 20350
Marine Corps historical property (all other inquiries):
    Commandant of the Marine Corps
    ATTN: History and Museum Division (HD)
    Marine Corps Historical Center

[[Page 68184]]

 
    1254 Charles Morris Street SE
    Washington Navy Yard, DC 20374-5040
U.S. Coast Guard
For U. S. Coast Guard historical assets contact COMDT (CG-09224) at mail
 stop 7031:
    Commandant (CG-09224)
    U. S. Coast Guard Headquarters, Douglas A. Munro Building
    2703 Martin Luther King Jr. Ave. South East, Stop 7031
    Washington, DC 20593-7031
For all other assets contact Commandant (CG-844) at mail stop 7618:
    Commandant (CG-844)
    U. S. Coast Guard Headquarters, Douglas A. Munro Building
    2703 Martin Luther King Jr. Avenue South East, Stop 7618
    Washington, DC 20593-7618
------------------------------------------------------------------------

    (x) Record assets on property accountability records before they 
are loaned, donated, or exchanged.
    (xi) Coordinate with the DoS before a donation, loan, or exchange 
is formalized with a foreign museum.
    (xii) Ensure an official authorized to obligate the organization 
signs a certificate of assurance, as shown at Figure 3 of this section.

[[Page 68185]]

[GRAPHIC] [TIFF OMITTED] TR03NO15.224

    (xiii) Ensure proper documentation is finalized in accordance with 
DoD 4160.28-M Volumes 1-3 before the release of any property to an 
authorized recipient.

[[Page 68186]]

    (A) Use the standard loan agreement in the format prescribed by 
Figure 4 of this section or a similar document providing the same data 
for accomplishing property loans.

[[Page 68187]]

[GRAPHIC] [TIFF OMITTED] TR03NO15.225


[[Page 68188]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.226


[[Page 68189]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.227

    (B) Accomplish property donations made under this authority by use 
of the conditional deed of gift agreement inthe format prescribed in 
Figure 5 of this section or a similar document providing the same data.

[[Page 68190]]

[GRAPHIC] [TIFF OMITTED] TR03NO15.228


[[Page 68191]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.229


[[Page 68192]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.230

    (C) Accomplish property exchanges made under this authority by use 
of the exchange agreement in the format prescribed in Figure 6 of this 
section or a similar document providing the same data. Items may not be 
exchanged until a determination is made that the item is not needed for 
operational requirements by another Military Department. If the council 
or similar staff review process considers it unlikely the item in 
question will be needed by another Military Department, screening may 
be omitted. A museum of one Military Department may not acquire for the 
purpose of exchanging historical items being screened by another 
Military Department museum.

[[Page 68193]]

[GRAPHIC] [TIFF OMITTED] TR03NO15.231


[[Page 68194]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.232

    (xiv) Avoid stockpiling condemned or obsolete combat materiel in 
anticipation of future exchanges. Items that cannot be exchanged within 
a 2-year period should be processed for disposal.

[[Page 68195]]

    (xv) Notify exchange recipients that the Department of Defense 
cannot certify aircraft, components, or parts as airworthy. Aircraft, 
components, or parts must be certified by the FAA as airworthy before 
being returned to flight usage. If available, logbooks and maintenance 
records for FSCAP must accompany the aircraft and FSCAP. If such 
documentation is not available, or if the aircraft or FSCAP have been 
crash-damaged or similarly compromised, the aircraft, components, or 
parts may not be exchanged, unless the FSCAP parts have been removed 
from the aircraft or component prior to the exchange. Waivers to this 
FSCAP documentation requirement may be considered on a case-by-case 
basis and are restricted to ``display only'' property (not parts); 
waivers will apply only to the exchange of the whole aircraft, aircraft 
engines, and aircraft components. The exchange agreement must 
explicitly cite the lack of documentation.
    (xvi) Consider any adverse market impact that may result from the 
exchange of certain items. The Military Department should consult with 
outside organizations for market impact advice, as appropriate.
    (xvii) Elect to donate property without conditions; for example, 
when the administrative costs to the Military Department to perform 
yearly checks would exceed the value of the property. Unconditional 
donations are restricted to books, manuscripts, works of art, drawings, 
plans and models, and historical artifacts valued at less than $10,000 
that do not require DEMIL (see Figure 7 of this section).

[[Page 68196]]

[GRAPHIC] [TIFF OMITTED] TR03NO15.233


[[Page 68197]]


[GRAPHIC] [TIFF OMITTED] TR03NO15.234

    (6) Military departments loans of bedding. Consistent with 10 
U.S.C. 2557, the Secretary of a Military Department may provide bedding 
in support of homeless shelters that are operated by entities other 
than the Department of Defense. Bedding may be provided to the extent 
that the Secretary determines the donation will not interfere with 
military requirements.
    (7) Army loans to veterans' organizations. (i) The Department of 
the Army, in accordance with 10 U.S.C. 4683, may loan to recognized 
veterans' organizations (or local units of national veterans' 
organizations recognized by the U.S. Department of Veterans Affairs) 
obsolete or condemned rifles or cartridge belts for use by that unit 
for ceremonial purposes. Rifle loans to any one post, local unit, or 
municipality are limited by statute to not more than 10 rifles.
    (ii) The Secretary of the Army, in accordance with 10 U.S.C. 4683 
and Service-unique regulations prescribed by the Secretary, may 
conditionally lend or donate excess M-1 rifles (not more than 15), 
slings, and cartridge belts to any eligible organization for use by 
that organization for funeral ceremonies of a member or former member 
of the Military Services, and for other ceremonial purposes. If the 
loaned or donated properties under paragraph (d)(8)(i) of this section 
are to be used by the eligible organizations for funeral ceremonies of 
a member or former member of the Military Services, the Secretary may 
issue and deliver the rifles, together with the necessary accoutrements 
and blank ammunition, without charge.
    (8) Navy loans and donations. (i) The Secretary of the Navy, in 
accordance with 10 U.S.C. 7545, may donate or loan captured, condemned, 
or obsolete ordnance materiel, books, manuscripts, works of art, 
drawings, plans, models, trophies and flags, and other condemned or 
obsolete materiel, as well as materiel of historical interest. The 
Secretary of the Navy may donate this material to any State, territory, 
commonwealth, or possession of the United States and political 
subdivision or municipal corporation thereof, the District of Columbia, 
libraries, historical societies, and educational institutions whose 
graduates or students were in World War I or World War II.
    (A) Loans and donations made under this authority will be subject 
to the same guidelines for donations in accordance with 10 U.S.C. 2572.
    (B) If materiel to be loaned or donated is of historic interest, 
the application will be forwarded through the Navy Curator.
    (C) Donations made under this authority must first be referred to 
the Congress.
    (D) Donations and loans made under 10 U.S.C. 7545 will be made with 
a conditional deed of gift (see Figure 5 of this section for sample 
wording).
    (ii) In accordance with 10 U.S.C. 7306, the Secretary of the Navy, 
with approval of Congress, may donate obsolete, condemned, or captured 
Navy ships, boats, and small landing craft to the States, territories, 
or possessions of

[[Page 68198]]

the United States, and political subdivisions or municipal corporations 
thereof, the District of Columbia, or to associations or corporations 
whose charter or articles of agreement denies them the right to operate 
for profit. The Navy restricts the use of donated vessels for use in 
static display purposes only (i.e., as memorials or museums).
    (A) Applications for ships, boats, and small landing craft will be 
submitted to the Commander, Naval Sea Systems Command (NSEA 00DG), 2531 
Jefferson Davis Highway, Arlington, VA 22240-5160.
    (B) Before submission of an application, the applicant must locate 
obsolete, condemned, or captured Navy ships, boats, and small landing 
craft which are available for transfer.
    (iii) Each application will contain:
    (A) Type of vessel desired, or in the case of combatant vessels, 
the official Navy identification of the vessel desired.
    (B) Statement of the proposed use to be made of the vessel and 
where it will be located.
    (C) Statement describing and confirming availability of a berthing 
site and the facilities and personnel to maintain the vessel.
    (D) Statement that the applicant agrees to maintain the vessel, at 
its own expense, in a condition satisfactory to the Department of the 
Navy, in accordance with instructions that the Department may issue, 
and that no expense will result to the United States as a consequence 
of such terms and conditions prescribed by the Department of the Navy.
    (E) Statement that the applicant agrees to take delivery of the 
vessel ``as is, where is'' at its berthing site and to pay all charges 
incident to such delivery, including without limitation preparation of 
the vessel for removal or tow, towing, insurance, and berthing or other 
installation at the applicant's site.
    (F) Statement of financial resources currently available to the 
applicant to pay the costs required to be assumed by a donee. The 
statement should include a summary of sources, annual income, and 
annual expenditures exclusive of the estimated costs attributable to 
the requested vessel to permit an evaluation of funds available for 
upkeep of the vessel. In the event the applicant will rely on 
commitments of donated services and materials for maintenance and use 
of the vessel, such commitments must be described in detail.
    (G) Statement that the applicant agrees that it will return the 
vessel, if and when requested to do so by the Department of the Navy, 
during a national emergency, and will not, without the written consent 
of the Department, use the vessel other than as stated in the 
application or destroy, transfer, or otherwise dispose of the vessel.
    (H) If the applicant asserts it is a corporation or association 
whose charter or articles of agreement denies it the right to operate 
for profit, their application must also contain a copy of the 
organization's bylaws and either:
    (1) A properly authenticated copy of the charter.
    (2) Certificate of incorporation.
    (3) Articles of agreement made either by:
    (i) The Secretary of State or other appropriate officials of the 
State under the laws where the applicant is incorporated.
    (ii) Organized or other appropriate public official having custody 
of such charter, certificate or articles.
    (I) If the applicant is not incorporated, their application must 
also include the citation of the law and a certified copy of the 
association's charter stating it is empowered to hold property and to 
be bound by the acts of the proposed signatories to the donation 
agreement.
    (J) If the applicant is not a State, territory, or possession of 
the United States, a political subdivision or municipal corporation 
thereof, or the District of Columbia, the application must also include 
a copy of a determination by the Internal Revenue Service that the 
applicant is exempt from tax under the Internal Revenue Code.
    (K) A notarized copy of the resolution or other action of its 
governing board or membership authorizing the person signing the 
application to represent the organization and to sign on its behalf to 
acquire a vessel.
    (L) A signed copy of the assurance of compliance.
    (M) A statement that the vessel will be used as a static display 
only as a memorial or museum and no system aboard the vessel will be 
activated or permitted to be activated for the purpose of navigation or 
movement under its own power.
    (N) A statement that the galley will not be activated for serving 
meals.
    (iv) Upon receipt, the Navy will determine the eligibility of the 
applicant to receive a vessel by donation. If eligible, the formal 
application will be processed and notice of intention to donate 
presented to the Congress as required by 10 U.S.C. 7306, provided the 
applicant has presented evidence satisfactory to the government that 
the applicant has adequate financial means to accomplish all of the 
obligations required under a donation contract. The Navy will have 
authority to donate only after the application has been before the 
Congress for a period of 60 days of continuous session without adverse 
action by the Congress in accordance with 10 U.S.C. 7306.
    (v) All vessels, boats, and service craft, donated in accordance 
with 10 U.S.C. 7306, will be used as static displays only for use as 
memorials and cannot be activated for the purpose of navigation or 
movement under its own power. Donations of vessels under any other 
authority of this section are subject to certain inspection and 
certification requirements. Applicants for vessels or service craft 
will be advised in writing by the office taking action on the 
applications that, should their request be approved and before 
operation of the vessel or service craft, one of the following 
stipulations will apply:
    (A) The donee agrees that if the vessel is 65 feet in length or 
less, it may not be operated without a valid certificate of inspection 
issued by the U.S. Coast Guard, while carrying more than six 
passengers, as defined in 46 U.S.C. 2101(21)(B).
    (B) The donee agrees that if the vessel is more than 65 feet in 
length, it may not be operated without a valid certificate of 
inspection issued by the U.S. Coast Guard.
    (vi) In accordance with 10 U.S.C. 7546 and subject to the approval 
of the Navy Museum Curator, the nameplate or any small article of a 
negligible or sentimental value from a ship may be loaned or donated to 
any individual who sponsored that ship provided that such loan or 
donation will be at no expense to the Navy.
    (9) Donation of excess chapel property. In accordance with 10 
U.S.C. 2580, the Secretary of a Military Department may donate excess 
personal property to religious organizations (as described in 26 U.S.C. 
501), for the purposes of assisting such organizations in restoring or 
replacing property of the organization that has been damaged or 
destroyed as a result of arson or terrorism. The property authorized 
for donation will be limited to ecclesiastical equipment, furnishings 
and supplies that fall within FSC 9925, and furniture.
    (10) Disposition after use of special donations (gifts), loans, and 
exchanges. (i) The requirements of the recipient organization are:
    (A) For materiel no longer desired or authorized for continued use 
by a recipient organization, the Military Department will advise the 
recipient organization if it wants to repossess the property. 
Regardless of the

[[Page 68199]]

determination made, care will be taken to ensure the recipient 
organization fulfills its responsibility to finalize the disposition 
action at no cost to the government. Repossession of the property will 
be governed by the property's historical significance, its potential 
for use in behalf of other requests, or its estimated sale value, if 
sold by the Department of Defense. Repossession of property will be 
documented; copies of the documentation will be retained by the donee 
and lender.
    (B) Based on type of property, its location, etc., it is not always 
feasible to require the physical movement of the property to the 
nearest DLA Disposition Services site. In these cases, the owning 
Military Department may elect to work with DLA Disposition Services for 
receipt and sale in-place, when economically feasible.
    (ii) Return of property donated to the Navy is subject to the 
approval of the Curator for the Department of the Navy. Any article, 
materiel, or equipment, including silver service, loaned or donated to 
the naval service by any State, group, or organization may be returned 
to the lender or donee in accordance with 10 U.S.C. 7546. When the 
owner cannot be located after a reasonable search, or if, after being 
offered the property, the owner states in writing that the return of 
the property is not desired, the property will be disposed of in the 
same manner as other surplus property.
    (e) Disaster assistance for States. 42 U.S.C. chapter 68 allows for 
disaster assistance to States.
    (1) 42 U.S.C. chapter 68, also known and referred to in this rule 
as ``The Stafford Act'' authorizes federal assistance to States, local 
governments, and relief organizations. Upon declaration by the 
President of an emergency or a major disaster, under, the Stafford Act, 
the State receiving the declaration is notified immediately and a 
notice of the declaration is published in the Federal Register by the 
Federal Emergency Management Agency (FEMA).
    (2) Excess personal property may be loaned to State and local 
governments for use or distribution for emergency or major disaster 
assistance purposes. Such uses may include the restoration of public 
facilities that have been damaged as well as the essential 
rehabilitation of individuals in need of major disaster assistance. The 
availability of Federal assistance under the Stafford Act is subject to 
the time periods prescribed in FEMA regulations.
    (f) Academic institutions and non-profit organizations. Educational 
partnership (or other) agreements may be established for the loan or 
donation of property.
    (1) Under an educational partnership (or other) agreement, and 
consistent with 10 U.S.C. 2194, the Secretary of Defense authorized the 
director of each defense laboratory to enter into one or more 
educational partnership agreements with U.S. educational institutions 
for the purpose of encouraging and enhancing study in scientific 
disciplines at all levels of education. The educational institutions 
will be local educational agencies, colleges, universities, and any 
other nonprofit institutions that are dedicated to improving science, 
mathematics, and engineering education. The point of contact is the DoD 
Technology Transfer Program Manager, Suite 1401 Two Skyline Place, 5203 
Leesburg Pike, Falls Church, VA 22041-3466.
    (2) In accordance with 15 U.S.C. 3710(i), the director of a DoD 
laboratory may directly transfer (donate) laboratory (e.g., scientific, 
research) equipment that is excess to the needs of that laboratory to 
public and private schools and nonprofit institutions in the U.S. zone 
of interior (ZI).
    (3) Determinations of property suitable for donation will be made 
by the head of the laboratory. Property will be screened within the DoD 
laboratory and scientific community prior to release.
    (4) Laboratories should be aware that some property might be 
environmentally regulated and, if exported, may require a U.S. DoS or 
Commerce export license, including certain circumstances where exports 
to foreign parties take place in the U.S. Moreover, some property may 
require DEMIL. Standard eligibility criteria must be ensured and a 
screening process for determining trade and security control risk are 
mandatory.


Sec.  273.9  Through-life traceability of uniquely identified items.

    (a) Authority and scope--(1) Property accountability. The 
accountability of property will be enabled by IUID for identification, 
tracking, and management in accordance with DoD Instruction 5000.64 and 
DoD Directive 8320.03, ``Unique Identification (UID) Standards for a 
Net-Centric Department of Defense'' (http://www.acq.osd.mil/dpap/UID/attachments/832003p1-20070420.pdf). DoD Component heads post changes to 
the property records for all transactions as required (e.g., loan, 
loss, damage, disposal, inventory adjustments, item modification, 
transfer, sale) pursuant to DoD Instruction 5000.64.
    (2) IUID. IUID provides a standards-based approach to establish a 
UII encoded in a machine-readable two-dimensional data matrix barcode 
that serves to distinguish a discrete item from other items. Qualifying 
items as defined by DoD Instruction 8320.04, ``Item Unique 
Identification (IUID) Standards for Tangible Personal Property'' 
(http://www.dtic.mil/whs/directives/corres/pdf/832004p.pdf) will be 
marked with a two-dimensional Data Matrix barcode in accordance with 
Military Standard 130N, ``Department of Defense Standard Practice 
Identification Marking of U.S. Military Property'' (available at http://www.acq.osd.mil/dpap/pdi/uid/docs/mil-std130N_ch1.pdf) and registered 
in the IUID Registry.
    (3) Identification marking of U.S. military property. Military 
Standard 130N provides the item marking criteria for development of 
specific marking requirements and methods for identification of items 
of military property produced, stocked, stored, and issued by or for 
the DoD. It also provides the criteria and data content for both free 
text and machine-readable information applications of item 
identification two-dimensional data matrix marking and includes the 
IUID requirements of DoD Instruction 8320.04.
    (4) Registration of UIIs. Enclosure 3 of DoD Instruction 8320.04 
provides procedures for the registration of UIIs in the DoD IUID 
Registry.
    (b) Updating the DoD IUID Registry--(1) Obtaining user access. 
Authorized Government users may add items, update, and add events to 
existing items. Generating activities and DLA Disposal Services can 
register for access by following the instructions for the Business 
Partner Network Support Environment Registration System at https://iuid.logisticsinformationservice.dla.mil/BRS.
    (2) Life-cycle events for materiel disposition. When an item leaves 
DoD inventory, its status, or life-cycle event, must be changed in the 
DoD IUID. A drop-down menu in the registry contains the possible life-
cycle events: abandoned, consumed, destroyed by accident, destroyed by 
combat, donated, exchanged--repair, exchanged--sold, exchanged--
warranty, expended--experimental/target, expended--normal use, leased, 
loaned, lost, reintroduced, retired, scrapped, sold--foreign 
government, sold--historic, sold--nongovernment, sold--other federal, 
sold--state/local, and stolen.
    (3) Updating procedures. When an item that is marked with a UII 
enters the

[[Page 68200]]

materiel disposition process through a transfer between Components or 
if the item leaves DoD inventory, an update to the IUID Registry is 
required. Procedures for performing required updates to the IUID 
Registry can be found in the IUID registry user manual available at 
https://iuid.logisticsinformationservice.dla.mil.

Subpart B--Reutilization, Transfer, and Sale of Property


Sec.  273.10  Purpose.

    (a) This part is composed of several subparts, each containing its 
own purpose. In accordance with the authority in DoD Directive 5134.12, 
``Assistant Secretary of Defense for Logistics and Materiel Readiness 
(ASD(L&MR)),'' DoD Instruction 4140.01, ``DoD Supply Chain Materiel 
Management Policy,'' and DoD Instruction 4160.28, ``DoD 
Demilitarization (DEMIL) Program,'' this part establishes the sequence 
of processes for the disposition of personal property of the DoD 
Components.
    (b) This subpart:
    (1) Implements policy for reutilization, transfer, excess property 
screening, and issue of surplus property and foreign excess personal 
property (FEPP), scrap released by qualified recycling programs (QRPs), 
and non-QRP scrap.
    (2) Provides guidance for removing excess material through security 
assistance programs and foreign military sales (FMS).
    (3) Provides detailed instructions for the sale of surplus property 
and FEPP, scrap released by QRPs, and non-QRP scrap.


Sec.  273.11  Applicability.

    (a) This subpart applies to the Office of the Secretary of Defense, 
the Military Departments, the Office of the Chairman of the Joint 
Chiefs of Staff and the Joint Staff, the Combatant Commands, the Office 
of the Inspector General of the Department of Defense, the Defense 
Agencies, the DoD Field Activities, and all other organizational 
entities within the Department of Defense (hereinafter referred to 
collectively as the ``DoD Components'').
    (b) 41 CFR chapters 101 and 102, also known as the Federal Property 
Management Regulation and Federal Management Regulation (FPMR and FMR), 
and 40 U.S.C. subtitle I, also known as the Federal Property and 
Administrative Services, take precedence over this part if a procedural 
conflict exists.


Sec.  273.12  Definitions.

    Unless otherwise noted, these terms and their definitions are for 
the purpose of this subpart:
    Abandonment and destruction (A/D). A method for handling property 
that:
    (1) Is abandoned and a diligent effort to determine the owner is 
unsuccessful.
    (2) Is uneconomical to repair or the estimated costs of the 
continued care and handling of the property exceeds the estimated 
proceeds of sale.
    (3) Has an estimated cost of disposal by A/D that is less than the 
net sales cost.
    Accountability. The obligation imposed by law, lawful order, or 
regulation accepted by a person for keeping accurate records to ensure 
control of property, documents, or funds with or without possession of 
the property. The person who is accountable is concerned with control, 
while the person who has possession is responsible for custody, care, 
and safekeeping.
    Accountable officer. The individual responsible for acquiring and 
maintaining DoD items of supply (physical property and records), 
approving property orders (including reutilization of excess property 
requests), and authenticating materiel release orders (MROs). 
Comparative terms are: Army Supply Support Accountable Officer, Navy 
Accountable Officer, Air Force Accountable Officer/Chief of Supply 
Materiel Support Division, Marine Corps Unit Supply Officer.
    Acquisition cost. The amount paid for property, including 
transportation costs, net any trade and cash discounts. Also see 
standard price.
    Ammunition. Generic term related mainly to articles of military 
application consisting of all kinds of bombs, grenades, rockets, mines, 
projectiles, and other similar devices or contrivances.
    Batchlot. The physical grouping of individual receipts of low-
dollar-value property. The physical grouping consolidates multiple 
disposal turn-in documents (DTIDs) under a single cover DTID. The 
objective of batchlotting is to reduce the time and costs related to 
physical handling and administrative processes required for receiving 
items individually. The cover DTID establishes accountability in the 
accountable record, and individual line items lose their identity.
    Bid. A response to an offer to sell, that, if accepted, would bind 
the bidder to the terms and conditions of the contract (including the 
bid price).
    Bidder. Any entity that is responding to or has responded to an 
offer to sell.
    Commerce control list (CCL) items (formerly known as strategic list 
item). Commodities, software, and technology subject to export controls 
in accordance with Export Administration Regulations (EAR) in 15 CFR 
parts 730 through 774. The EAR contains the CCL and is administered by 
the Bureau of Industry and Security, DOC.
    Component. An item that is useful only when used in conjunction 
with an end item. Components are also commonly referred to as 
assemblies. For purposes of this definition an assembly and a component 
are the same. There are two types of ``components: Major components and 
minor components. A major component includes any assembled element 
which forms a portion of an end item without which the end item is 
inoperable. For example, for an automobile, components will include the 
engine, transmission, and battery. If you do not have all those items, 
the automobile will not function, or function as effectively. A minor 
component includes any assembled element of a major component. 
Components'' consist of parts. References in the CCL to components 
include both major components and minor components.
    Continental United States (CONUS). Territory, including the 
adjacent territorial waters, located within the North American 
continent between Canada and Mexico (comprises 48 States and the 
District of Columbia).
    Contractor inventory. (1) Any property acquired by and in the 
possession of a contractor or subcontractor (including Government-
furnished property) under a contract, terms of which vest title in the 
U.S. Government (USG) and in excess of the amounts needed to complete 
full performance under the entire contract.
    (2) Any property for which the USG is obligated to or has an option 
to take over under any type of contract resulting from changes in the 
specifications or plans or termination of such contract (or 
subcontract) before completion of the work, for the convenience of or 
at the option of the USG.
    Defense Logistics Agency (DLA) Disposition Services. The 
organization provides DoD with worldwide reuse, recycling and disposal 
solutions that focus on efficiency, cost avoidance and compliance.
    DLA Disposition Services site. The DLA Disposition Services office 
that has accountability for and control over disposable property. May 
be managed in part by a commercial contractor. The term is applicable 
whether the disposal facility is on a commercial site or a

[[Page 68201]]

Government installation and applies to both Government and contractor 
employees performing the disposal mission.
    Demilitarization (DEMIL) Code A. DEMIL not required.
    DEMIL. The act of eliminating the functional capabilities and 
inherent military design features from DoD personal property. Methods 
and degree range from removal and destruction of critical features to 
total destruction by cutting, crushing, shredding, melting, burning, 
etc. DEMIL is required to prevent property from being used for its 
originally intended purpose and to prevent the release of inherent 
design information that could be used against the United States. DEMIL 
applies to material in both serviceable and unserviceable condition.
    Disposal. End-of-life tasks or actions for residual materials 
resulting from demilitarization or disposition operations.
    Disposition. The process of reusing, recycling, converting, 
redistributing, transferring, donating, selling, demilitarizing, 
treating, destroying, or fulfilling other end of life tasks or actions 
for DoD property. Does not include real (real estate) property.
    Diversion. Includes collection, separation, and processing of 
material for use as raw material in the manufacture of goods sold or 
distributed in commerce or the reuse of material as substitutes for 
goods made of virgin material.
    DoD Activity Address Code (DoDAAC). A 6-digit code assigned by the 
Defense Automatic Addressing System (DAAS) to provide a standardized 
address code system for identifying activities and for use in 
transmission of supply and logistics information that supports the 
movement of property.
    DoD Item Unique Identification (IUID) Registry. The DoD data 
repository that receives input from both industry and Government 
sources and provides storage of, and access to, data that identifies 
and describes tangible Government personal property.
    Donation. The act of providing surplus personal property at no 
charge to a qualified donation recipient, as allocated by the General 
Services Administration (GSA).
    Educational institution. An approved, accredited, or licensed 
public or nonprofit institution or facility, entity, or organization 
conducting educational programs, including research for any such 
programs, such as a childcare center, school, college, university, 
school for the mentally handicapped, school for the physically 
handicapped, or an educational radio or television station.
    End of screening date. The date when formal reutilization, 
transfer, and donation screening time expires.
    Estimated fair market value. The selling agency's best estimate of 
what the property would be sold for if offered for public sale.
    Excess personal property. (1) Domestic excess. Personal property 
that the United States and its territories and possessions, applicable 
to areas covered by GSA (i.e., the 50 States, District of Columbia, 
Puerto Rico, American Samoa, Guam, Northern Mariana Islands, the 
Federated States of Micronesia, the Marshall Islands, Palau, and the 
U.S. Virgin Islands), consider excess to the needs and mission 
requirements of the United States.
    (2) DoD Component excess. Items of DoD Component owned property 
that are not required for their needs and the discharge of their 
responsibilities as determined by the head of the Service or Agency.
    (3) Foreign excess personal property (FEPP). U.S.-owned excess 
personal property that is located outside the ZI. This property becomes 
surplus and is eligible for donation and sale as described in Sec.  
273.15(b).
    Federal civilian agency (FCA). Any non-defense executive agency 
(e.g. DoS, Department of Homeland Security) or any establishment in the 
legislative or judicial branch of the USG (except the Senate, the House 
of Representatives, and the Architect of the Capitol and any activities 
under his or her direction).
    Federal condition code. A two-digit code consisting of an alphabet 
supply condition code in the first digit, and a numeric or alphabet 
disposal condition code (DCC) in the second digit. A combination of the 
supply condition code and the DCC, which most accurately describes the 
materiel's physical condition.
    (1) Disposal condition code (DCC). Codes assigned by the DLA 
Disposition Services site based upon inspection of materiel at time of 
receipt.
    (2) Supply condition codes. Codes used to classify materiel in 
terms of readiness for issue and use or to identify action underway to 
change the status of materiel. These codes are assigned by the DoD 
Components. DLA Disposition Services may change a supply condition code 
if the code was assigned improperly and the property is of a non-
technical nature. If change is not appropriate or property is of a 
technical nature, DLA Disposition Services sites may challenge a 
suspicious supply condition code.
    FEPP. See excess personal property.
    Foreign military sales (FMS). A process through which eligible 
foreign governments and international organizations may purchase 
defense articles and services from the USG. A government-to-government 
agreement, documented in accordance with DoD 5105.38-M.
    Foreign purchased property. Property paid for by foreign countries, 
but where ownership is retained by the United States.
    Generating activity (``generator''). The activity that declares 
personal property excess to its needs.
    Government furnished equipment. An item of special tooling, special 
test equipment, or equipment, in the possession of, or directly 
acquired by, the Government and subsequently furnished to the 
contractor for the performance of a contract.
    Government furnished materiel. Property provided by the U.S. 
Government for the purpose of being incorporated into or attached to a 
deliverable end item or that will be consumed or expended in performing 
a contract. Government-furnished materiel includes assemblies, 
components, parts, raw and process material, and small tools and 
supplies that may be consumed in normal use in performing a contract. 
Government-furnished materiel does not include material provided to 
contractors on a cash-sale basis nor does it include military property, 
which are government-owned components, contractor acquired property, 
government furnished equipment, or major end items being repaired by 
commercial contractors for return to the government.
    GSAXcess[supreg]. A totally web-enabled platform that eligible 
customers use to access functions of GSAXcess[supreg] for reporting, 
searching, and selecting property. This includes the entry site for the 
Federal Excess Personal Property Utilization Program and the Federal 
Surplus Personal Property Donation Program operated by the GSA.
    Hazardous property (HP). A composite term to describe DoD excess 
property, surplus property, and FEPP, which may be hazardous to human 
health, human safety, or the environment. Various Federal, State, and 
local safety and environmental laws regulate the use and disposal of 
HP. In more technical terms, HP includes property having one or more of 
the following characteristics:
    (1) Has a flashpoint below 200[deg] F (93[deg] C) closed cup, or is 
subject to spontaneous heating or is subject to polymerization with 
release of large amounts of energy when handled,

[[Page 68202]]

stored, and shipped without adequate control.
    (2) Has a threshold limit value equal to or below 1,000 parts per 
million for gases and vapors, below 500 milligrams per cubic meter (mg/
m\3\) for fumes, and equal to or less than 30 million particles per 
cubic foot or 10 mg/m\3\ for dusts (less than or equal to 2.0 fibers 
per cubic centimeter greater than 5 micrometers in length for fibrous 
materials).
    (3) Causes 50 percent fatalities to test animals when a single oral 
dose is administered in doses of less than 500 mg per kilogram of test 
animal weight.
    (4) Is a flammable solid as defined in 49 CFR 173.124, or is an 
oxidizer as defined in 49 CFR 173.127, or is a strong oxidizing or 
reducing agent with a half cell potential in acid solution of greater 
than +1.0 volt as specified in Latimer's table on the oxidation-
reduction potential.
    (5) Causes first-degree burns to skin in short-time exposure or is 
systematically toxic by skin contact.
    (6) May produce dust, gases, fumes, vapors, mists, or smoke with 
one or more of the characteristics in the course of normal operations.
    (7) Produces sensitizing or irritating effects.
    (8) Is radioactive.
    (9) Has special characteristics which, in the opinion of the 
manufacturer, could cause harm to personnel if used or stored 
improperly.
    (10) Is hazardous in accordance with 29 CFR part 1910, also known 
as the Occupational Safety and Health Standards.
    (11) Is hazardous in accordance with 49 CFR parts 171 through 179.
    (12) Is regulated by the Environmental Protection Agency in 
accordance with 40 CFR parts 260 through 280.
    Hazardous waste (HW). An item that is regulated pursuant to 42 
U.S.C. 6901 or by State regulation as an HW. HW is defined federally at 
40 CFR part 261. Overseas, HW is defined in the applicable final 
governing standards or overseas environmental baseline guidance 
document, or host nation laws and regulations.
    Identical bid. Bids for the same item of property having the same 
total price.
    Industrial scrap. Consists of short ends, machinings, spoiled 
materials, and similar residue generated by an industrial-funded 
activity.
    Information technology. Any equipment or interconnected system or 
subsystem of equipment that is used in the automatic acquisition, 
storage, manipulation, management, movement, control, display, 
switching, interchange, transmission or reception of data or 
information by the DoD Component. Includes computers, ancillary 
equipment, software, firmware, and similar procedures, services 
(including support services), and related sources. Does not include any 
equipment that is acquired by a Federal contractor incidental to a 
Federal contract. Equipment is ``used'' by a DoD Component if the 
equipment is used by the DoD Component directly or is used by a 
contractor under a contract with the DoD Component that:
    (1) Requires the use of such equipment.
    (2) Requires the use to a significant extent of such equipment in 
the performance of a service or the furnishing of a product.
    Installation. A military facility together with its buildings, 
building equipment, and subsidiary facilities such as piers, spurs, 
access roads, and beacons.
    International organizations. For trade security control purposes, 
this term includes: Columbo Plan Council for Technical Cooperation in 
South and Southeast Asia; European Atomic Energy Community; Indus Basin 
Development; International Atomic Energy; International Red Cross; 
NATO; Organization of American States; Pan American Health 
Organization; United Nations (UN); UN Children's Fund; UN Development 
Program; UN Educational, Scientific, and Cultural Organization; UN High 
Commissioner for Refugees Programs; UN Relief and Works Agency for 
Palestine Refugees in the Near East; World Health Organization; and 
other international organizations approved by a U.S. diplomatic 
mission.
    Interservice. Action by one Military Department or Defense Agency 
ICP to provide materiel and directly related services to another 
Military Department or Defense Agency ICP (either on a recurring or 
nonrecurring basis).
    Inventory adjustments. Changes made in inventory quantities and 
values resulting from inventory recounts and validations.
    Inventory control point (ICP). An organizational unit or activity 
within the DoD supply system that is assigned the primary 
responsibility for the materiel management of a group of items either 
for a particular Military Department or for the DoD as a whole. In 
addition to materiel manager functions, an ICP may perform other 
logistics functions in support of a particular Military Department or 
for a particular end item (e.g., centralized computation of retail 
requirements levels and engineering tasks associated with weapon system 
components).
    Item unique identification (IUID). A system of establishing 
globally widespread unique identifiers on items of supply within the 
DoD, which serves to distinguish a discrete entity or relationship from 
other like and unlike entities or relationships. Automatic 
identification technology is used to capture and communicate IUID 
information.
    Law enforcement agencies (LEAs). Government agencies whose primary 
function is the enforcement of applicable Federal, State, and local 
laws, and whose compensated law enforcement officers have powers of 
arrest and apprehension.
    Local screening. The onsite review of excess, surplus, and FEPP for 
reutilization, transfer, and donation.
    MAP property. U.S. security assistance property provided under 22 
U.S.C.2151, also known as the Foreign Assistance Act, generally on a 
non-reimbursable basis.
    Marketing. The function of directing the flow of surplus and FEPP 
to the buyer, encompassing all related aspects of merchandising, market 
research, sale promotion, advertising, publicity, and selling.
    Material potentially presenting an explosive hazard (MPPEH). 
Material owned or controlled by the Department of Defense that, prior 
to determination of its explosives safety status, potentially contains 
explosives or munitions (e.g., munitions containers and packaging 
material; munitions debris remaining after munitions use, 
demilitarization, or disposal; and range-related debris) or potentially 
contains a high enough concentration of explosives that the material 
presents an explosive hazard (e.g., equipment, drainage systems, 
holding tanks, piping, or ventilation ducts that were associated with 
munitions production, demilitarization, or disposal operations). 
Excluded from MPPEH are munitions within the DoD-established munitions 
management system and other items that may present explosion hazards 
(e.g., gasoline cans and compressed gas cylinders) that are not 
munitions and are not intended for use as munitions.
    Munitions list item (MLI). Any item contained on the USML in 22 CFR 
part 121. Defense articles, associated technical data (including 
software), and defense services recorded or stored in any physical 
form, controlled by 22 CFR parts 120 through 130. 22 CFR part 121, 
which contains the USML, is administered by the DoS Directorate of 
Defense Trade Controls.
    Museum, DoD or Service. An appropriated fund entity that is a 
permanent activity with a historical collection, open to both the 
military and

[[Page 68203]]

civilian public at regularly scheduled hours, and is in the care of a 
professional qualified staff that performs curatorial and related 
historical duties full time.
    Mutilation. A process that renders materiel unfit for its 
originally intended purposes by cutting, tearing, scratching, crushing, 
breaking, punching, shearing, burning, neutralizing, etc.
    National stock number (NSN). The 13-digit stock number replacing 
the 11-digit federal stock number. It consists of the 4-digit federal 
supply classification code and the 9-digit national item identification 
number. The national item identification number consists of a 2-digit 
National Codification Bureau number designating the central cataloging 
office (whether North Atlantic Treaty Organization or other friendly 
country) that assigned the number and a 7-digit (xxx-xxxx) 
nonsignificant number. Arrange the number as follows: 9999-00-999-9999.
    Nonappropriated funds (NAF). Funds generated by DoD military and 
civilian personnel and their dependents and used to augment funds 
appropriated by Congress to provide a comprehensive, morale building, 
welfare, religious, educational, and recreational program, designed to 
improve the well-being of military and civilian personnel and their 
dependents.
    NAF property. Property purchased with NAFs, by religious activities 
or nonappropriated morale welfare or recreational activities, post 
exchanges, ships stores, officer and noncommissioned officer clubs, and 
similar activities. Such property is not Federal property.
    Nonprofit institution. An institution or organization, no part of 
the net earnings of which inures or may lawfully inure to the benefit 
of any private shareholder or individual, and which has been held to be 
tax exempt under the provisions of 26 U.S.C. 501, also known as the 
Internal Revenue Code of 1986.
    Personal property. Property except real property. Excludes records 
of the Federal Government, battleships, cruisers, aircraft carriers, 
destroyers, and submarines.
    Precious metals recovery program (PMRP). A DoD program for 
identification, accumulation, recovery, and refinement of precious 
metals (PM) from excess and surplus end items, scrap, hypo solution, 
and other PM bearing materiel for authorized internal purposes or as 
Government furnished materiel.
    Precious metals (PM). Gold, silver, and the platinum group metals 
(platinum, palladium, iridium, rhodium, osmium, and ruthenium).
    Privately owned personal property. Personal effects of DoD 
personnel (military or civilian) that are not, nor will ever become, 
government property unless the owner (or heirs, next of kin, or legal 
representative of the owner) executes a written and signed release 
document unconditionally giving the USG all right, title, and interest 
in the privately owned property.
    Qualified recycling programs (QRP). Organized operations that 
require concerted efforts to cost effectively divert or recover scrap 
or waste, as well as efforts to identify, segregate, and maintain the 
integrity of recyclable material to maintain or enhance its 
marketability. If administered by a DoD Component, a QRP includes 
adherence to a control process providing accountability for all 
materials processed through program operations.
    Radioactive material. Any material or combination of materials that 
spontaneously emits ionizing radiation and which is subject to 
regulation as radioactive or nuclear material under any Federal law or 
regulation.
    Reclamation. A cost avoidance or savings measure to recover useful 
(serviceable) end items, repair parts, components, or assemblies from 
one or more principal end items of equipment or assemblies (usually 
Supply condition codes (SCCs), H, P, and R) for the purpose of 
restoration to use through replacement or repair of one or more 
unserviceable, but repairable principal end item of equipment or 
assemblies (usually SCCs E, F, and G). Reclamation is preferable prior 
to disposition (e.g., DLA Disposition Services site turn-in), but end 
items or assemblies may be withdrawn from DLA Disposition Services site 
for reclamation purposes.
    Responsibility criteria. The situations outlined in 41 CFR chapter 
102 that require some certifications from buyers; either that the buyer 
knows they need to take care of the property because of its 
characteristics, or because the buyer must meet certain professional or 
licensing criteria.
    Responsive bid. A bid that meets all the terms, conditions, and 
specifications necessary.
    Restricted parties. Those countries or entities that the Department 
of State (DoS), Department of Commerce (DOC), or Treasury have 
determined to be prohibited or sanctioned for the purpose of export, 
sale, transfer, or resale of items controlled on the United States 
Munitions List (USML) or CCL. A consolidated list of prohibited 
entities or destinations for which transfers may be limited or barred, 
may be found at: http://export.gov/ecr/eg_main_023148.asp.
    Reutilization. The act of re-issuing FEPP and excess property to 
DoD Components. Also includes qualified special programs (e.g., LEA, 
Humanitarian Assistance Program (HAP), Military Affiliate Radio System 
(MARS)) pursuant to applicable enabling statutes.
    Reutilization screening. The act of reviewing, either by automated 
or physical means, available FEPP, excess or surplus personal property 
to meet known or anticipated requirements.
    Sales contract. An agreement between two parties, binding upon 
both, to transfer title of specified property for a consideration.
    Sales contracting officer (SCO). An individual who has been duly 
appointed and granted the authority conferred by law according to the 
procedures in this part to sell surplus and FEPP by any of the 
authorized and prescribed methods of sale. Also referred to as the SAR.
    Scrap. Recyclable waste and discarded materials derived from items 
that have been rendered useless beyond repair, rehabilitation, or 
restoration such that the item's original identity, utility, form, fit 
and function have been destroyed. Items can be classified as scrap if 
processed by cutting, tearing, crushing, mangling, shredding, or 
melting. Intact or recognizable USML or CCL items, components, and 
parts are not scrap. 41 CFR 102-36.40 provides additional information 
on scrap.
    Screening. The process of physically inspecting property or 
reviewing lists or reports of property to determine whether it is 
usable or needed.
    Screening period. The period in which excess and surplus personal 
property is made available for reutilization, transfer, or surplus 
donation to eligible recipients.
    Security assistance. A group of programs, authorized by law, that 
allows the transfer of military articles and services to friendly 
foreign governments.
    Small arms and light weapons. Man-portable weapons made or modified 
to military specifications for use as lethal instruments of war that 
expel a shot, bullet, or projectile by action of an explosive. Small 
arms are broadly categorized as those weapons intended for use by 
individual members of armed or security forces. They include handguns; 
rifles and carbines; sub-machine guns; and light machine guns. Light 
weapons are broadly categorized as those weapons designed for use by 
two or three members of armed or security forces serving as a crew,

[[Page 68204]]

although some may be used by a single person. They include heavy 
machine guns; hand-held under-barrel and mounted grenade launchers; 
portable anti-aircraft guns; portable anti-tank guns; recoilless 
rifles; man-portable launchers of missile and rocket systems; and 
mortars.
    Solid waste. Includes garbage, refuse, and other discarded 
materials, including solid waste materials resulting from industrial, 
commercial, and agricultural operations, and from community activities. 
Includes solids, liquid, semi-solid or contained gaseous material which 
is discarded and not otherwise excluded by statute or regulation. 
Mining and agricultural solid wastes, hazardous wastes (HW), sludge, 
construction and demolition wastes, and infectious wastes are not 
included in this category.
    Special programs. Programs specified by legislative approval, such 
as FMS, LEAs and fire fighters, identified on DLA Disposition Services 
Web site (https://www.dispositionservices.dla.mil/rtd03/miscprograms.shtml).
    State agency for surplus property (SASP). The agency designated 
under State law to receive Federal surplus personal property for 
distribution to eligible donation recipients within the States as 
provided for in 40 U.S.C. 549.
    State or local government. A State, territory, or possession of the 
United States, the District of Columbia, and any political subdivision 
or instrumentality thereof.
    Transfer. The act of providing FEPP and excess personal property to 
FCAs as stipulated in the FMR. Property is allocated by the GSA.
    Transfer order. Document (SF 122 and SF 123) issued by DLA 
Disposition Services or the headquarters or regional office of GSA 
directing issue of excess personal property.
    Trade security control (TSCs). Policy and procedures, in accordance 
with DoD Instruction 2030.08, designed to prevent the sale or shipment 
of USG materiel to any person, organization, or country whose interests 
are unfriendly or hostile to those of the United States and to ensure 
that the disposal of DoD personal property is performed in compliance 
with U.S. export control laws and regulations, the International 
Traffic in Arms Regulations (ITAR) in 22 CFR parts 120 through 130, and 
the EAR in 15 CFR parts 730 through 774.
    Unique item identifier (UII). A set of data elements marked on an 
item that is globally unique and unambiguous. The term includes a 
concatenated UII or a DoD recognized unique identification equivalent.
    Usable property. Commercial and military type property other than 
scrap and waste.
    Wash-post. A methodology for transfer of accountability to the DLA 
Disposition Services site whereby the DLA Disposition Services site 
only accepts accountability at the time they also document a release 
from the account, through reutilization, transfer, donation, sales, or 
disposal.
    Zone of interior (ZI). The United States and its territories and 
possessions, applicable to areas covered by GSA and where excess 
property is considered domestic excess. Includes the 50 States, 
District of Columbia, Puerto Rico, American Samoa, Guam, Northern 
Mariana Islands, and the U.S. Virgin Islands.


Sec.  273.13  Policy.

    It is DoD policy consistent with 41 CFR chapters 101 and 102 that 
excess DoD property must be screened and redistributed among the DoD 
Components, and reported as excess to the GSA. Pursuant to 40 U.S.C. 
701, DoD will efficiently and economically dispose DoD FEPP.


Sec.  273.14  Responsibilities.

    (a) The Assistant Secretary of Defense for Logistics and Materiel 
Readiness (ASD(L&MR)), under the authority, direction, and control of 
the USD(AT&L), and in accordance with DoD Directive 5134.12:
    (1) Develops DoD materiel disposition policies, including policies 
for FEPP.
    (2) Oversees the effective implementation of the DoD materiel 
disposition program.
    (3) Approves changes to FEPP procedures as appropriate to support 
contingency operations.
    (b) The Director, Defense Logistics Agency (DLA), under the 
authority, direction, and control of the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, through the Assistant Secretary 
of Defense for Logistics and Materiel Readiness (ASD(L&MR)):
    (1) Administers the worldwide Defense Materiel Disposition Program 
for the reutilization, transfer, screening, issue, and sale of FEPP, 
excess, and surplus personal property.
    (2) Implements guidance issued by the ASD(L&MR) or other 
organizational elements of the OSD and establishes system concepts and 
requirements, resource management, program guidance, budgeting and 
funding, training and career development, management review and 
analysis, internal control measures, and crime prevention for the 
Defense Materiel Disposition Program.
    (3) Annually provides to ASD(L&MR) a summary of sales proceeds from 
recycling transactions in accordance with 10 U.S.C. 2577.
    (4) Ensures prompt processing of monthly sales proceeds under the 
QRP to DoD Components for reconciliation of sales proceeds and 
transactions.
    (c) The DoD Component Heads:
    (1) Implement the procedures prescribed in this subpart and ensure 
that supplemental guidance and procedures are in accordance with 41 CFR 
chapters 101 and 102.
    (2) Reutilize, transfer, screen, issue and sell FEPP, excess and 
surplus personal property according to the procedures in Sec.  
273.15(a) and (c).
    (3) Treat the disposal of DoD property as an integral part of DoD 
Supply Chain Management; ensure that disposal actions and costs are a 
part of ``end-to-end'' management of items and that disposal of 
property is a planned event at all levels of their organizations.
    (4) Furnish the Director, DLA, with mutually agreed-upon data 
necessary to administer the Defense Materiel Disposition Program.
    (5) Provide administrative and logistics support, including 
appropriate facilities, for the operations of tenant and related off-
site DLA Disposition Services field activities under inter-Service 
support agreements (ISSAs).
    (6) Dispose HP specifically designated as requiring Military 
Department processing.
    (7) Request DLA Disposition Services provide sales services, as 
needed, for recyclable marketable materials generated as a result of 
resource recovery programs.
    (8) Monitor, with DLA Disposition Services Site personnel, all 
property sent to landfills to ensure no economically salable property 
is discarded.
    (9) Report, accurately identify on approved turn in documents, and 
turn in all authorized scrap generations to servicing DLA Disposition 
Services Sites.
    (10) Authorize installation commanders, as appropriate, to sell 
directly recyclable and other QRP materials, or to consign them to the 
DLA Disposition Services for sale.


Sec.  273.15  Procedures.

    (a) Sale of surplus and FEPP, scrap generated from QRPS, and non-
QRP scrap--(1) Authority and scope--(i) FPMR and FMR. The provisions of 
this section are pursuant to 41 CFR chapters 101 and 102, also known as 
the FPMR and FMR, respectively.

[[Page 68205]]

    (ii) Additional guidance. (A) Policy and procedures for the control 
of MLIs and Commerce Control List (CCL) items are contained in DoD 
Instruction 4160.28, DoD 4160.28-M Volumes 1-3, DoD Instruction 
4140.62, ``Materiel Potentially Presenting an Explosive Hazard'' 
(available at http://www.dtic.mil/whs/directives/corres/pdf/414062p.pdf), the International Traffic in Arms Regulations (ITAR) in 
22 CFR parts 120 through 130, and the EAR in 15 CFR parts 730 through 
774, and incorporated in the provisions of DoD Instruction 2030.08.
    (B) 31 U.S.C. 3711-3720E provides an additional statutory 
requirement applicable to the sale of personal property.
    (C) 48 CFR part 33 provide additional guidance on handling disputes 
from the sale of personal property.
    (D) 48 CFR subpart 9.4 of the Federal Acquisition Regulation (FAR), 
current edition, provides direction on the debarment or suspension of 
individuals or entities.
    (E) Sales of FEPP, although briefly addressed in the FMR, are 
managed by the agency head and must be in compliance with foreign 
policy of the United States and the terms and conditions of any 
applicable host-nation agreement. For additional information on 
processing FEPP, see Enclosure 4 to DoD Manual 4160.21, Volume 2.
    (F) DoD Directive 3230.3, ``DoD Support for Commercial Space Launch 
Activities'' (available at http://www.dtic.mil/whs/directives/corres/pdf/323003p.pdf) allows the sale of dedicated expendable launch vehicle 
(ELV) equipment directly to commercial ELV vendors in consultation with 
the Secretary of Transportation.
    (2) Exclusions. This subpart does not govern the sale of property 
that is regulated by the laws or agencies identified in paragraphs 
(a)(2)(i) through (iv) of this section. The information in paragraphs 
(a)(2)(i) through (iv) is included for the DoD Components to reference 
when commodities in their possession become excess and disposal 
requires compliance with this part.
    (i) The Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98 et seq.) provides for the acquisition, disposal (sale) and 
retention of stocks of certain strategic and critical materials and 
encourages the conservation and development of sources of such 
materials within the United States. These materials when acquired and 
stored constitute and are collectively known as the National Defense 
Stockpile (NDS) or the ``stockpile.''
    (ii) The Department of Transportation Maritime Administration has 
jurisdiction over the disposal of vessels of 1,500 gross tons or more 
that the Secretary of Transportation determines to be merchant vessels 
or capable of conversion to merchant use, excluding specified combatant 
vessels.
    (iii) Under the provisions of 10 U.S.C. 2576, the Secretary of 
Defense may sell designated items (such as pistols, revolvers, 
shotguns, rifles of a caliber not exceeding .30, ammunition for such 
firearms, and other appropriate equipment) to State and local law 
enforcement, firefighting, homeland security, and emergency management 
agencies, at fair market value if the designated items:
    (A) Have been determined to be surplus property.
    (B) Are certified as being necessary and suitable for the operation 
and exclusive use of such agency by the Governor (or such State 
official as he or she may designate) of the State in which such agency 
is located.
    (C) Do not include used gas masks and any protective body armor.
    (iv) DLA Disposition Services provides a sales service to the DoD 
pursuant to the exchange or sale according to the procedures in DoD 
Manual 4140.01 that implement the authority in 41 CFR part 102-39; 
however, general and specific provisions through this method of sale 
are not addressed in this subpart. More information may be obtained 
from the DLA Disposition Services Exchange Sale Web site at http://www.dispositionservices.dla.mil/sales/typesale.shtml.
    (3) Sales of surplus property, FEPP, scrap generated by QRPs, and 
other scrap. (i) DLA Disposition Services is the primary agency for 
managing surplus and FEPP sales, to include sales of scrap released by 
Military Department QRPs and non-QRP scrap.
    (ii) DoD Components are responsible for disposing of surplus 
property, FEPP, scrap released by QRPs, and other scrap through sales 
to the general public and State and local governments through execution 
of an awarded contract.
    (iii) The Military Departments are authorized to sell eligible 
scrap released by their respective QRPs and non-excess property 
eligible for exchange or sale without the involvement of DLA 
Disposition Services in accordance with their internal operating 
guidance, DoD Manual 4140.01, and 41 CFR chapters 101 and 102.
    (iv) DoD Components advertise excess and surplus personal property 
for sale only after all prescribed screening actions are taken, unless 
screening is not required. See DoD Manual 4160.21 Volume 4 for exempt 
items.
    (v) Sales actions include planning, merchandising, pre-award 
reviews, bid evaluation and award, contract administration, proceeds 
receipt and disbursement, and releasing the property.
    (vi) Information on surplus and FEPP sales can be obtained from the 
DLA Customer Contact Center, accessible 24 hours a day, 7 days a week 
on the DLA Disposition Services Government Sales Web site at https://www.dispositionservices.dla.mil/sales/index.shtml.
    (vii) Within the CONUS, DLA Disposition Services has partnered with 
a commercial firm to sell usable, non-hazardous surplus 
demilitarization (DEMIL) Code A and safe to sell Q property that is not 
reutilized, transferred, or donated. The commercial venture partner 
schedules and holds sales of property released to it by DLA Disposition 
Services. DLA Disposition Services has partnered with a commercial firm 
to sell scrap property. The scrap venture partner schedules and holds 
sales of scrap property released to it by DLA Disposition Services.
    (viii) DLA Disposition Services conducts the balance of surplus and 
FEPP sales. This includes hazardous and chemical sales and DEMIL- and 
mutilation-required property and scrap sales in controlled property 
groups.
    (A) DoD Components implement controls to mitigate security risks 
associated with the release or disposition of DEMIL Code B MLI and 
DEMIL Code Q CCL items that are sensitive for reasons of national 
security. Certain categories of DEMIL Q items that pose no risk to 
national security will be available for reutilization, transfer, or 
donation (RTD) and sales following normal procedures. However, only 
FEPP with DEMIL Code A (no export license requirements except to 
restricted parties) may be sold in foreign countries that are not 
restricted parties, in accordance with 15 CFR parts 730 through 774. 
DEMIL B and DEMIL Q items, including those posing no risk to national 
security are not permitted for sale.
    (1) DEMIL B and sensitive DEMIL Q property can only be reutilized 
by authorized DoD Components, and approved Special Programs (FMS, law 
enforcement agencies (LEAs) and fire fighters).
    (2) After DLA Disposition Services conducts initial screening, 
serviceable DEMIL B and sensitive DEMIL Q property will be transferred 
to a long term storage (LTS) facility and will remain available for 
reutilization

[[Page 68206]]

screening by DoD and approved Special Programs customers.
    (3) LTS property can be screened electronically on the DLA 
Disposition Services Web site at https://www.DispositionServices.dla.mil/asset/govegeo1.html. No physical 
screening is permitted at the LTS facility.
    (B) DoD Components may offer for sale any property designated as 
unsafe for use as originally intended, with mutilation as a condition 
of sale. DoD Components incorporate the method and degree of mutilation 
into the sales offering, as required by an official notification of the 
safety defects. The sales offering must include a condition of sale 
stipulating that title of the property cannot pass from the Government 
to the purchaser until DoD representatives have certified and verified 
the mutilation has been satisfactorily accomplished and have documented 
this certification.
    (C) SCC Q materiel with Management Code S (as defined in DLM 
4000.25-1 is hazardous to public health, safety, or national security. 
If sold, it must require mutilation as a condition of sale. Property 
assigned SCC Q with Management Code O may be offered for sale without 
mutilation as a condition of sale, but the seller must ensure that all 
sales include a restrictive resale provision. In addition, any sales 
offerings must indicate that the restrictive resale provision is to be 
perpetuated to all future sales to deter reentry of the materiel to the 
DoD supply system.
    (D) Hazardous property may be offered for sale with appropriate 
terms and conditions. Prior to award, DoD Components conduct a pre-
award review to determine whether the prospective purchaser meets the 
responsibility criteria in 41 CFR chapter 102. The prospective 
purchaser must display the ability to comply with applicable laws and 
regulations before the DoD Components can make an award.
    (E) Only FEPP with DEMIL Code A (no export control requirements 
except to restricted parties) may be offered for sale in foreign 
countries that are not restricted parties in accordance with 15 CFR 
parts 730 through 774 and with additional DoD guidance in DoD 4160.28-M 
Volumes 1-3. The sales offering must include terms and conditions 
relating to taxes and duties, import stipulations, and compliance with 
international and local laws and regulations. See Enclosure 4 to DoD 
Manual 4160.21, Volume 2 for additional information.
    (F) Other types of sales offerings for property requiring special 
handling must include applicable terms and conditions.
    (ix) All persons or organizations are entitled to purchase property 
offered by DLA Disposition Services except for:
    (A) Anyone under contract to conduct a specific sale, their agents 
or employees, and immediate members of their households.
    (B) DoD military and civilian personnel and military and civilian 
personnel of the United States Coast Guard (USCG) whose duties include 
any functional or supervisory responsibilities for or within the 
Defense Materiel Disposition Program, their agents, employees, and 
immediate members of their households.
    (C) Any persons or organizations intending to ship FEPP, excess and 
surplus personal property to restrictedparties. See http://pmddtc.state.gov/embargoed_csuountries/index.html or https://demil.osd.mil/ or http://treas.gov/offices/enforcement/ofac/programs 
for additional information on shipments to restricted parties.
    (D) Persons under 18 years of age.
    (E) Individuals or firms who are ineligible to be awarded 
government contracts due to suspension or debarment. See the GSA 
Excluded Parties List at http://epls.gov or  https://demil.osd.mil/ or 
http://treas.gov/offices/enforcement/ofac/sdn/ or http://bis.doc.gov/complianceandenforcement/liststocheck.htm.
    (F) Persons or entities who wish to purchase MLI or CCL items who 
do not meet the requirements to receive an end user certificate (EUC) 
as specified in 22 U.S.C. 2778 et seq., also known as the Arms Export 
Control Act, and the implementing regulations 22 CFR parts 120 through 
130, also known as the International Traffic In Arms Regulations and 15 
CFR parts 730 through 774, also known as the Export Administration 
Regulations. Information on demilitarized materiel is provided at 
https://demil.osd.mil/. A consolidated list of prohibited entities or 
destinations may be found at http://export.gov/ecr/eg_main_023148.asp.
    (x) Disposable assets (FEPP, scrap, NAF property, disposable (MAP 
property, etc.) may not be sold directly or indirectly to restricted 
parties or any other areas designated by DoD 4160.28-M Volumes 1-3.
    (xi) DoD Components will update the DoD IUID Registry when an item 
of personal property with a UII is declared FEPP, excess and surplus 
personal property and is subject to reutilization, transfer, or sale. 
The procedures required to update the DoD IUID Registry are in Sec.  
273.9.
    (4) Responsibilities in selling personal property--(i) Selling 
agencies. Selling agencies:
    (A) Determine whether to sell as the holding agency or request 
another agency to sell on behalf of the holding agency.
    (B) Ensure the sale complies with the provisions of 40 U.S.C. 549, 
and any other applicable laws.
    (C) Issue internal guidance for utilizing methods of sale 
stipulated in subchapter B of 41 CFR chapter 102, and promote 
uniformity of sales procedures.
    (D) Obtain appropriate authorization to conduct sales of certain 
property or under certain conditions (e.g., approval by the agency head 
to use the negotiation method of sale).
    (E) Ensure that all sales are made after publicly advertising for 
bids, except as provided for negotiated sales in 41 CFR 102-38.100 
through 102-38.125.
    (F) Document the required terms and conditions of each sale, 
including but not limited to those terms and conditions specified in 41 
CFR 102-38.75.
    (G) Sell personal property upon such terms and conditions as the 
head of the agency deems appropriate to promote fairness, openness, and 
timeliness. Standard Government forms (e.g., the Standard Form (SF) 114 
series, ``Sale of Government Property'') are no longer mandatory, but 
may be used to document terms and conditions of the sale.
    (H) Assure that only representatives designated in writing by the 
selling agency as selling agent representatives (SARs) are appointed to 
approve the sale and bind the United States in a written contractual 
sales agreement. The DLA Disposition Services equivalent of SARs are 
SCOs. The selling agency determines the requirements for approval 
(e.g., select the monetary thresholds for awarding sales contracts).
    (I) Adequately train SARs in regulatory requirements and 
limitations of authority. Ensure SARs are cognizant in identifying and 
referring matters relating to fraud, bribery, or criminal collusion to 
the proper authorities in accordance with 41CFR 102-38.50 and 102-
38.225.
    (J) Obtain approvals as necessary prior to award of the property 
(e.g., an approval by the Attorney General of the United States to 
award property with a fair market value of $3 million or more or if it 
involves a patent, process, technique, or invention) as specified in 41 
CFR 102-38.325.
    (K) Be accountable for the care, handling, and associated costs of 
the

[[Page 68207]]

personal property prior to its removal by the buyer.
    (L) Reconcile property and financial records to reflect the final 
disposition.
    (M) Make the property available to FCAs when a bona fide need 
exists and when no like items are located elsewhere prior to transfer 
of title to the property, to the maximum extent practicable.
    (N) Subject small quantities of low dollar value property in poor 
condition to the A/D Economy Formula (see Enclosure 3 to DoD Manual 
4160.21, Volume 2). If there is no reasonable prospect of disposing of 
the property by sale (including a scrap sale), dispose of the property 
with the A/D processes.
    (O) Ensure that the DoD IUID Registry is updated for DoD personal 
property items marked with a UII in accordance with Sec.  273.6.
    (ii) Sales conducted by DLA Disposition Services. As the major 
selling agency for the Department of Defense and an approved GSA 
Personal Property Sales Center, DLA Disposition Services must, in 
compliance with requirements in paragraph (a)(4)(i) of this section:
    (A) Carefully consider all factors and determine the best method of 
sale for personal property utilizing identification, segregation, 
merchandising, advertising, bid evaluation, and award principles to 
protect the integrity of the sales process.
    (B) Utilize any publicly accessible electronic media for providing 
information regarding upcoming sales, invitations for bid (including 
sales terms and conditions), acceptance of bids, and bid results.
    (C) Provide direction to the DLA Disposition Services site through 
its internal operating procedures and automated systems.
    (D) Verify that personal property items marked with a UII and 
offered for sale have been updated in the DoD IUID Registry.
    (iii) Authorized methods of sale--(A) General. Sale of personal 
property is authorized in 41 CFR part 102-38 by the methods of sale 
identified in paragraphs (a)(4)(iii)(A)(1) through (4) of this section. 
(See Sec.  273.12 for definitions.)
    (1) Sealed bid.
    (2) Spot bid.
    (3) Auction.
    (4) Negotiated sale. Criteria for negotiated sales include:
    (i) The estimated fair market value is not in excess of $15,000 and 
the sale is considered to be in the best interest of the USG. Large 
quantities of materiel were not divided nor disposed through multiple 
sales in order to avoid these requirements.
    (ii) For FEPP, the estimated fair market value is less than 
$250,000; sale is managed by DLA Disposition Services and authorized by 
DLA Disposition Services Director or designee.
    (iii) Disposal is to a State, territory, possession, political 
subdivision thereof, or tax-supported agency therein, and the estimated 
fair market value of the property and other satisfactory terms of 
disposal are obtained by negotiation.
    (iv) Bid prices after advertising are not reasonable and re-
advertising would serve no useful purpose.
    (v) Public exigency does not permit delay, such as that caused by 
the time required to advertise a sale (e.g., disposal of perishable 
food or other property that may spoil or deteriorate rapidly).
    (vi) The sale promotes public health, safety, or national security.
    (vii) The sale is in the public interest in a national emergency 
declared by the President or Congress. This authority may be used only 
with specific lots of property or for categories determined by the GSA 
Administrator for a designated period but not more than 3 months.
    (viii) Selling the property competitively (sealed bid) would have 
an adverse impact on the national economy, provided that the estimated 
fair market value of the property and other satisfactory terms of 
disposal can be obtained by negotiation (e.g., sale of large quantities 
of an agricultural product that impacts domestic markets).
    (ix) The sale is otherwise authorized by 41 CFR chapter 102 or 
other law.
    (5) Negotiated fixed price.
    (i) The head of the selling agency or designee must determine and 
document that this method of sale serves the best interest of the 
government.
    (ii) This type of sale must include appropriate terms and 
conditions; must be publicized consistent with the nature and value of 
the property involved; and be awarded on a first-come, first-served 
basis.
    (B) Sales of surplus, foreign excess, and other categories of 
property. Within the constraints of the FMR-authorized methods of sale 
in paragraphs (a)(4)(iii)(A)(1) through (5) of this section, the types 
of sales that may be conducted for surplus, foreign excess, and other 
categories of property sold in the DoD Defense Materiel Disposition 
Program are:
    (1) One-time sales for disposal of property already generated. 
Actual deliveries may comprise several release transactions.
    (2) Term sales for the disposal of property generated over a period 
of time and in quantities that can be reasonably estimated for a 
specific period of time or are offered with minimum and maximum 
quantity provisions.
    (iv) Negotiated sales reporting. Negotiated sales reports are 
required by GSA within 60 calendar days after the close of each fiscal 
year. DoD Components include in the report a listing and description of 
all negotiated sales with an estimated fair market value in excess of 
$5,000. For each sale negotiated, the report must provide:
    (A) A description of the property.
    (B) The acquisition cost and date. If not known, an estimate of the 
acquisition cost, identified as such.
    (C) The estimated fair market value, including the date of the 
estimate and name of the estimator.
    (D) The name and address of purchaser.
    (E) The date of sale.
    (F) The gross and net sales proceeds.
    (G) A justification for conducting the negotiated sale.
    (v) GSA or DoD-authorized retail method of sale. Sales of small 
quantity, consumer-oriented property at negotiated, auction, or bid 
prices that are conducted on a first-come; first-served; and as-is, 
where-is basis are considered retail sales. Credit or debit cards are 
the only authorized payment methods. Property having a fair market 
value exceeding $15,000 is subject to the limitations applicable to 
negotiated sales of surplus personal property.
    (A) Retail sales of surplus, FEPP, and abandoned privately owned 
property may be conducted whenever such a program can effectively and 
economically be used to supplement other methods of sale. Retail sales 
must be approved in writing at an agency level on a case-by-case basis, 
and the approval must specify the quantities and types of property and 
time period covered. These authorizations are limited to specific 
situations and types of property for which deviation can be fully 
justified. In addition:
    (1) All items must undergo screening, as appropriate, before being 
offered for retail sale.
    (2) Each item being sold must have a fair market value of less than 
$15,000.
    (3) All property received as items, if offered for sale by retail, 
must be sold as items and not by weight or lot, with the exception of 
scrap authorized for retail sale.
    (4) Prices established must reflect the estimated fair market value 
of the property and must be publicized to the extent consistent with 
the nature and value of the property.
    (5) Retail sales are limited to the Federal Supply Classification 
Codes (FSCs), according to the DEMIL code

[[Page 68208]]

assigned and GSA approval, which are in 41 CFR chapter 102.
    (6) Property must be DEMIL Code A and have a DEMIL Integrity Code 
1, 7, or 9.
    (7) The retail selling price of the property, based on the 
condition, may not be set below the price it would bring from a 
commercial vendor.
    (B) Approval in accordance with 41 CFR chapters 101 and 102 is 
required to sell scrap by the retail sale method.
    (C) Only trained cashiers are authorized to collect and deposit 
proceeds received from a retail sale. Retail sales are open to the 
public and all USG personnel except:
    (1) DoD military and civilian personnel and contractors and 
military and civilian personnel and contractors of the USCG whose 
duties at the installation where the property is sold include any 
functional or supervisory responsibility for or within the DoD Materiel 
Disposition Program.
    (2) An agent, employee, or immediate member of the household of 
personnel in paragraph (a)(4)(v)(C)(1) of this section.
    (vi) Market impact. (A) DoD Components will give careful 
consideration to the adverse market impact that may result from the 
untimely sale of large quantities of certain surplus items. Where 
applicable, the selling agency or partner organizations consult with 
organizations associated with the commodity proposed for sale to obtain 
advice on the market impact.
    (B) Property reporting and sale schedules are developed to ensure 
expeditious property disposal, maximum competition, maximum sale 
proceeds, good public relations, and uniform workload.
    (C) The selling agency will provide advance notice of all proposed 
or scheduled competitive bid sales (except negotiated) of surplus 
usable property. This includes property:
    (1) Located in the 50 United States, the District of Columbia, 
Puerto Rico, American Samoa, Guam, the Federated States of Micronesia, 
the Northern Mariana Islands, Palau, and the U.S. Virgin Islands.
    (2) With a total acquisition cost of $250,000 or more per sale.
    (3) With a minimum potential return of $5,000 per sale of scrap and 
recyclable material.
    (5) Advertising to promote free and open competition. DoD 
Components will:
    (i) Bring property offered for sale to the attention of the buying 
public by free publicity and paid advertising.
    (ii) Make every effort to obtain maximum free publicity through 
sites such as a Government-wide point of entry, https://www.fedbizopps.gov.
    (iii) Employ the amount of paid advertising commensurate with the 
type and value of property being sold.
    (iv) Distribute sale offerings to prospective purchasers before the 
first day of the inspection period.
    (6) Pre-sale activities--(i) Preparation and distribution of sale 
offerings--(A) Include in the offer to sell sale date and time, method 
of sale, description of the property being offered, selling agency, 
location of property, time and place for receipt of bids, acceptable 
forms of bid deposits and payments, and general and special terms and 
conditions of sale. DLA Disposition Services sale offerings are 
available on the DLA Disposition Services Web site 
(www.dispositionservices.dla.mil).
    (B) Establish a sales offering file that contains information about 
the property offered for sale from initiation to bid opening (e.g., 
sale catalog, withdrawals prior to bid opening, agreements with holding 
activities).
    (C) Prepare sale offerings to provide prospective purchasers with 
general information and instructions.
    (D) Include in each offering the specific conditions of sale, the 
contents of which are determined by the selling agency. The SF 114 
series may be used to document the terms and conditions of a sale, but 
their use is not mandatory. Conditions of sale include, but are not 
limited to:
    (1) Inspection results.
    (2) Condition and location of property.
    (3) Eligibility of bidders.
    (4) Consideration of bids.
    (5) Bid deposits and payments.
    (6) Submission of bids.
    (7) Bid price determination.
    (8) Legal title of ownership.
    (9) Delivery, loading, and removal of property.
    (10) Default, returns, or refunds.
    (11) Modifications, withdrawals, or late bids.
    (12) Requirements to comply with applicable laws and regulations.
    (13) Certificate of independent price determination.
    (14) Covenant against contingent fees.
    (15) Limitation of government liability.
    (16) Award of contract.
    (E) DEMIL-required MLI property may not be sold unless DEMIL has 
been accomplished or it is offered for sale with DEMIL as a condition 
of sale. Incorporate the method and degree of DEMIL into the sales 
offering.
    (1) If DEMIL is a condition of sale, the sales offering must 
include a condition of sale stipulating that title of the property will 
not pass from the government to the purchaser until the property has 
been satisfactorily DEMIL and has been certified and verified in 
accordance with DoD 4160.28-M Volumes 1-3.
    (2) The sales offering must also include a requirement for the 
bidder to provide an EUC to the selling agency specifying the intended 
use and disposition of the property. The sales offering will also 
include an agreement by the buyer that they will obtain appropriate 
export authorizations from the Departments of Commerce or State prior 
to any export of the item. DLA Disposition Services uses DLA Form 1822, 
``End-Use Certificate.'' The EUC must be processed through designated 
approval channels prior to award of the property to the prospective 
customer.
    (3) The EUC for scrap mutilation residue must be incorporated into 
the sales offering for all MLI and CCL items property, including 
mutilation residue that may still be classified as DEMIL Code B or Q.
    (ii) Inspections. Each sales offering will include an electronic or 
physical inspection period of at least 7 calendar days before the bid 
opening.
    (iii) Bid deposits. The selling agency may incorporate a 
requirement for bidders to provide or post a bid deposit or a bid 
deposit bond in lieu of cash or other acceptable forms of deposit to 
protect the government's interest.
    (iv) PM bid deposits. PM offerings will include a 20 percent bid 
deposit. A deposit bond may be used in lieu of cash or other acceptable 
form of deposit when permitted by the sales offering. If awarded, the 
bid deposit will be applied to the total contract price. Unsuccessful 
bid deposits will be returned. Bid deposit bonds will be returned to 
the bidder when no longer needed to secure the property.
    (v) Payments. (A) Selling agencies will implement a payment policy, 
pursuant to 41 CFR chapter 102 that protects the government against 
fraud.
    (B) Acceptable forms of payment include but are not limited to:
    (1) Guaranteed negotiable instruments made payable to or endorsed 
to the U.S. Treasury in any form (e.g., cashier's check, certified 
check, traveler's check, bank draft, or postal or telegraphic money 
order).
    (2) Canadian postal money orders designed for payment in the United 
States must state specifically that they are payable in U.S. dollars in 
the United States.
    (3) Electronic funds transfer. Special instructions are available 
through the DLA Disposition Services Web site and

[[Page 68209]]

must be followed if this option is chosen.
    (4) Credit or debit cards.
    (5) Combinations of payment methods in paragraphs (a)(6)(v)(B)(1) 
through (5) of this section.
    (6) Other acceptable forms of payment include:
    (i) Uncertified personal or company check for amounts over $25.00 
accompanied by an irrevocable commercial letter of credit issued by a 
U.S. bank, payable to the Treasurer of the United States or to the 
selling agency. The check may not exceed the amount of the letter of 
credit. Each letter of credit must be an original or clearly state on 
its face that reproductions of the original document may be considered 
as an original document, and clearly state that requests for payment 
will be honored at any time they are presented by the selling agency. 
Selling agents will reject letters of credit with an expiration date. 
In addition, the minimum criteria required for acceptance of letters of 
credit are to state clearly that it is a commercial letter of credit 
(it need not say it is irrevocable, but it cannot say it is revocable); 
be on bank stationery; state the maximum amount guaranteed; state the 
name and address of the company or individual submitting the bid; state 
the sales offering number and opening date; and be signed by the issuer 
(authorized signature of bank official).
    (ii) Uncertified personal or company checks in the amount of $25.00 
or less when submitted for ancillary charges (e.g., debt payment, 
storage charge, liquidated damages, interest).
    (iii) Any form of payment received from a NAF instrumentality or a 
State or local government.
    (7) Acceptable country currencies and information on exchange rates 
used must be provided in the sales offering and be incorporated into 
the sales offering. Generally, the exchange rate for receipt of monies 
or payments in designated currencies is established on the date of the 
deposit, which is generally the date of receipt.
    (8) FEPP buyers must pay in U.S. dollars or the equivalent in 
foreign currency that is readily convertible into U.S. dollars. Where 
U.S. dollars are not available, the acceptance of foreign currency is 
authorized subject to these conditions:
    (i) Payments exceeding the equivalent of $5,000 U.S. in individual 
sale transactions (that is, for the total of all items offered in a 
single sale, not for individual items included in a sale) may be 
accepted only after obtaining prior approval from the Defense Finance 
and Accounting Service (DFAS). When required, DFAS will submit the 
requests through the chain of command to DoS and Department of Treasury 
for approval. In countries where a considerable amount of FEPP may be 
available for sale and it may be necessary to accept foreign currency, 
the selling agency will request from DFAS an annual authorization, on a 
calendar year basis, to accept foreign currency.
    (ii) Payments of up to the equivalent of $5,000 U.S. for individual 
transactions, at the rate of exchange applicable to the USG, may be 
accepted without further consultation if assurance has been obtained 
through the local DoS representative that such currency may be used in 
payment of any or all USG expenditures in the country whose currency is 
accepted. This provision is applicable only when annual authorizations 
have not been received; it is not feasible to sell for U.S. dollars or 
to ship the property to a country (other than the United States, except 
where property is a type authorized for return) where it may be sold 
for U.S. dollars or a freely convertible foreign currency; the currency 
is not that of a country whose assets in the United States are blocked 
by Department of Treasury regulations; the currency is that of a 
country with which the United States maintains diplomatic relations; 
and foreign currency accepted need not be the currency of the country 
of sale if the currency offered is otherwise acceptable to DoS and 
Department of Treasury and can be accepted pursuant to U.S. and host 
government agreements governing the sale of FEPP. In this connection, 
the sales offerings will indicate the foreign currencies that will be 
accepted for a particular sale.
    (vi) Transfer of title. Selling agencies must document the transfer 
of title of the property from the government to the purchaser:
    (A) By providing to the purchaser a bill of sale.
    (B) By notification within a contract clause stipulating when the 
transfer is affected. For instance:
    (1) Upon removal from the exact location specified in the sales 
offering.
    (2) Upon certification and signature by the government that all 
required demilitarization has been accomplished in accordance with DoD 
Instruction 4160.28.
    (C) By providing certifications required from the buyer prior to a 
transfer of title. An SF 97, ``Certificate of Release of a Motor 
Vehicle,'' (available at http://www.gsa.gov/forms) is required for the 
sale of vehicles. Selling agencies must provide internal guidance on 
how the transfer will occur and what documentation is required.
    (vii) Defaults. If a purchaser breaches a contract by failure to 
make payment within the time allowed or by failure to remove the 
property as required, or breaches other contractual provisions, the 
purchaser is in default. The selling agency representative will give 
the purchaser a written notice of default and a period of time to cure 
the default.
    (A) If the purchaser fails to cure the default, the selling agency 
is entitled to collect or retain liquidated damages as specified in the 
sales offer or contract.
    (B) If a bid deposit was required and the bidder secured the 
deposit with a deposit bond, the selling agency must issue the notice 
of default to the bidder and the surety company.
    (viii) Disputes. All sales offers will include the disputes clause 
contained in 48 CFR 52.233-1 of the FAR.
    (7) Bidder eligibility criteria. (i) As a rule, selling agencies 
may accept bids from any person, representative, or agent from any 
entity. To be considered eligible for award of a sales contract, the 
bidder must be of legal age and not be debarred, suspended, or indebted 
to the USG, or from a restricted party. Any exceptions must be 
authorized by the selling agency head, who has determined that there is 
a compelling reason to make the award. A list of parties excluded from 
federal procurement and non-procurement programs can be obtained on the 
GSA Excluded Parties List System Web site at http://epls.gov or the OSD 
DEMIL Web site at https://demil.osd.mil/.
    (ii) Personal property may be sold to a federal employee whose 
agency does not prohibit the employees from purchasing such property. 
Unless allowed by a federal or agency regulation, employees having non-
public information regarding property offered for sale may not 
participate in that sale. This applies to an immediate member of the 
employee's household.
    (8) Suspension and debarment of bidders. (i) 41 CFR 102-38.170, 31 
U.S.C. 6101 note, Executive Order 12549, ``Debarment and Suspension'' 
(February 18, 1986), and Executive Order 12689, ``Debarment and 
Suspension'' (August 16, 1989) provide the authority for the suspension 
or debarment of bidders or contractors purchasing personal property 
from the government. The selling agent must follow the procedures 
described in 48 CFR subpart 9.4 of the FAR to debar or suspend a person 
or entity from the purchase of personal property. The debarring 
official for DLA Disposition Services sales is the DLA Special 
Assistant for Contracting Integrity.

[[Page 68210]]

    (ii) Appointed SARs and SCOs will:
    (A) Prepare recommendations for suspension or debarment from the 
sale of Federal property and acquisition contracts.
    (B) Forward them to their respective servicing legal offices.
    (C) Prepare reports recommending suspension or debarment using the 
procedures described in 48 CFR subpart 209.4 of the Defense FAR 
Supplement, current edition, in all cases where purchasers are 
recommended for suspension or debarment.
    (iii) In addition to applicable guidance in 48 CFR subpart 9.4 and 
48 CFR 45.602-1, 52.233-1, and 14.407 of the FAR and 48 CFR subpart 
209.4 of the Defense FAR Supplement, current edition, contractors who 
are suspended, debarred, or proposed for debarment are also excluded 
from conducting business with the government as agents or 
representatives of another contractor. Firms or individuals who submit 
bids on sale solicitations on behalf of suspended or debarred 
contractors, or who in any other manner conduct business with the 
government as agents or representatives of suspended or debarred 
contractors, may be treated as affiliates as described in 48 CFR 9.403 
of the FAR, and may be suspended or debarred.
    (iv) Parties who violate trade security control (TSC) policies may 
be recommended for debarment or suspension.
    (9) Indebted bidders and purchasers. (i) No awards may be made to 
bidders indebted to the government. Selling agencies will coordinate 
with DFAS to determine if a bidder is indebted to DoD and maintain 
local listings containing bidder name, address, sales contract 
information, amount of indebtedness, and date indebted.
    (ii) Circumstances where the SAR or SCO must initiate action 
include:
    (A) At bid opening. Bidders can bid if they cure the debt prior to 
the opening.
    (B) As the result of monies owed the contractor as a refund.
    (C) As a result of monies received for bid deposit.
    (D) As a result of failure to make payment for overages, ancillary 
charges, etc.
    (E) As a result of affiliation with suspended bidder.
    (iii) Checks received for debts will be deposited immediately and 
the bidder will not be notified until the check has cleared its bank. 
Cash or negotiable instruments will be deposited immediately.
    (iv) SARs or SCOs will contact the bidder and advise that the 
monies have been deposited to offset the specific indebtedness.
    (v) If a SAR or SCO suspects affiliation, the SAR or SCO will 
contact the bidder and advise that the monies have been deposited 
according to the procedures in 31 U.S.C. 3711-3720E for the collection 
of debts owed to the United States.
    (10) Bid evaluation--(i) Responsive bids and responsible bidders. 
(A) Only responsive bids (as defined in the Sec.  273.12) may be 
considered for award.
    (B) Bidders do not have to use authorized bid forms. The bid may be 
considered when the bidder agrees to all of the terms and conditions 
and acknowledges that the offer may result in a binding contract award.
    (C) The selling agency must determine that the bidder is a 
responsible person or represents a responsible entity.
    (ii) Late bids. The selling agency will consider late bids for 
award if the bid was delivered in a timely fashion to the address 
specified in the sales offering but did not reach the official 
designated to accept the bid by the bid opening time due to a 
government delay.
    (iii) Bid modification or withdrawal. (A) A bidder may modify or 
withdraw its bid prior to the start of the bid opening. After the start 
of the sale, the bidder will not be allowed to modify or withdraw its 
bid.
    (B) The selling agency representative may consider late bid 
modifications to an otherwise successful bid at any time, but only when 
it makes the terms of the bid more favorable to the government.
    (iv) Mistakes in bids prior to award. (A) The administrative 
procedures for handling mistakes in bids (prior to or after award) are 
contained in 41 CFR 102-38.260, which utilizes the processes of 48 CFR 
14.407 of the FAR for federal property sales.
    (B) The selling agency head or designee may delegate the authority 
to make administrative decisions regarding mistakes in bid to a central 
authority or alternate. This delegation may not be re-delegated by the 
authority or alternate.
    (C) A signed copy of the administrative determination must be 
included in the contract file and provided to the Government 
Accountability Office, when requested.
    (v) Bid rejections. In the event a bid is rejected, the next most 
advantageous bid may be considered. If an entire sales offering is 
rejected, all items within that sale may be reoffered on another sale.
    (vi) Identical bids. If there are multiple high bids of the same 
amount, the SAR or SCO must consider other factors of the sale (e.g., 
payment arrangements, estimated removal time) that would make one offer 
more advantageous to the government. Otherwise, the SAR or SCO may use 
random tie breakers to avoid expense of reselling or reoffering the 
property.
    (vii) Suspected collusion. The SAR or SCO must refer any suspicion 
of collusion to the agency's Office of the Inspector General or the 
Department of Justice (DOJ) through its legal counsel.
    (viii) Protests. Protests by bidders regarding validity of 
determinations made on the sale of personal property may be submitted 
to the DLA Disposition Services Comptroller General or comptroller 
general for the selling agent.
    (11) Awarding sales contracts--(i) Selling agents. SARs or SCOs 
will:
    (A) Be appointed by agency heads or their designees to act as 
selling agents for the USG.
    (B) Enter into and administer contracts for the sale of government 
property pursuant to the provisions of 40 U.S.C. 101 et seq. and other 
applicable statutes and regulations.
    (C) Award and distribute contracts to responsible bidders whose 
bids conform to the sales offering and are the most advantageous to the 
government.
    (D) Be authorized to reject bids in accordance with paragraph 
(a)(10)(v) of this section.
    (E) Sign under the title of ``Sales Agency Representative'' or 
``Sales Contracting Officer.''
    (F) Sign all contracting documentation on behalf of the USG.
    (G) Be responsible for the proper distribution of sales proceeds.
    (ii) Approvals required for sales and awards. (A) Selling agencies 
will designate the dollar limitations of authority of their appointed 
SARs or SCOs. DLA Disposition Services SCOs may make awards of 
contracts on sales of usable property having a fair market value of 
less than $100,000. Except for antitrust advice limitations, awards of 
scrap property do not require approval by higher authority.
    (B) Selling agencies will notify the U.S. Attorney General whenever 
an award is proposed for personal property with an estimated fair 
market value of $3 million or more or if the sale involves a patent, 
process, technique, or invention per 41 CFR 102-38.325. Selling 
agencies will otherwise comply with all requirements of 41 CFR chapter 
102 including but not limited to the prohibition to dispose any such 
item until confirmation from the U.S. Attorney General that the 
proposed transaction would not violate antitrust laws.
    (C) The head of a selling agency or designee must approve all 
negotiated sales of personal property. Selling

[[Page 68211]]

agencies must submit explanatory statements for each sale by 
negotiation of any personal property with an estimated fair market 
value in excess of $15,000 through GSA to the House and Senate 
Oversight Committee to obtain approval for the sale in accordance with 
40 U.S.C. 549.
    (iii) Processing mistakes in bid after award, claims, disputes, and 
appeals. Keeping the interests of the government in the forefront, SARs 
or SCOs will process these actions expeditiously and fairly, in 
accordance with established internal and external regulations and laws. 
SARs or SCOs will respond to each issue pertaining to mistakes in bids, 
claims, disputes, or appeals until it is resolved and provide a written 
final decision to the claimant or adjudicating agency, as appropriate, 
until the issue is closed. Retain any decisions made or actions taken 
in regard to these issues as official records, as required by agency or 
higher authority directives.
    (12) Notification process for dissemination of awards information. 
(i) The selling agency may only disclose bid results after the award of 
any item or lot of property has been made. No information other than 
names may be disclosed regarding the bidder(s).
    (ii) Bids are disclosed as they are submitted on spot bids or 
auctions.
    (13) Contract administration. Selling agencies will prescribe 
contract administration procedures for the various methods of sale, to 
include procedures for:
    (i) Disseminating award information.
    (ii) Billing.
    (iii) Default and liquidation.
    (iv) Establishing contract folders, including file maintenance and 
disposition.
    (A) Contract administration files will consist of a sale folder, 
financial folder, individual contract folder(s), and an unsuccessful 
bids folder for each sale.
    (B) Selling agencies will develop procedures for maintaining, 
completing, reviewing, and auditing these files. All pertinent 
documentation, including EUC, licenses, pre-award reviews, etc., must 
be included in the files.
    (C) Documentation found in these files may be subject to 5 U.S.C. 
552, also known as the Freedom of Information Act. All Privacy Act, 
privileged, exempt, classified, For Official Use Only, or sensitive 
information must be obliterated prior to release to the public.
    (v) Collection and distribution of sales proceeds.
    (vi) Ensuring all requirements of the contract (e.g., non-payment, 
required licenses) are met prior to releasing the property.
    (vii) Making modifications to contracts resulting from changes to 
the original contract.
    (viii) Handling public requests for information.
    (ix) Timely review and closure of each contract.
    (x) Timely review and closure of each sale.
    (14) Cashier functions and SAR or SCO responsibilities. (i) 
Cashiers must be duly trained in the handling and processing of monies 
collected as payment on sales.
    (ii) Cashiers must credit sales proceeds in accordance with chapter 
5 of Volume 11A of DoD 7000.14-R, ``Department of Defense Financial 
Management Regulations (FMRs)'' (available at http://comptroller.defense.gov/fmr/current/11a/11a_05.pdf).
    (15) Inquiries regarding suspended or debarred bidders. Refer all 
inquiries regarding suspended or debarred bidders to the office 
effecting the action.
    (16) Release requirements following sales. (i) Removal of property 
is subject to general and special conditions of sale and the loading 
table as set forth in the sale offering and resulting contract.
    (ii) Prior to releasing sold property, assigned personnel will:
    (A) Verify the sale items to be delivered or shipped to purchasers 
against the sale documents to prevent theft, fraud, or inappropriate 
release of property.
    (B) When DLA Disposition Services is managing the sale and where an 
in-place receipt memorandum of understanding (MOU) has been executed, 
installation commanders will provide, by letter designation and upon 
request from DLA Disposition Services site, the names, telephone 
numbers, and titles of those non-DLA Disposition Services site 
personnel authorized to release property located at their activities. 
As changes occur, installation commanders will provide additions, 
deletions, and revisions in writing to DLA Disposition Services.
    (C) Weigh property sold by weight at the time of delivery to the 
purchaser.
    (D) Count or measure property sold by unit at the time of delivery.
    (iii) Purchasers are required to pay, before delivery, the purchase 
price of item(s) to be removed, based upon the quantity or weight as 
set forth in the sale offering, except for term sales. If prepayment of 
an overage quantity is not practicable or possible, payment will be due 
upon issuance of a statement of account after release of property. 
Sales of property to State and local governments do not require payment 
prior to removal. The DLA Disposition Services contract with its sales 
partners does not require payment prior to delivery of property to 
State and local governments only.
    (17) Withdrawal from sale. (i) Property that has been physically 
inspected, determined to be usable or needed, and thereby has survived 
screening is eligible for sale and may be requested to satisfy valid 
requirements within limitations specified in this paragraph. Generally, 
property past the screening cycle may not be withdrawn from sale. 
However, circumstances may require the withdrawal of property from sale 
to satisfy valid needs within the Department of Defense or FCAs. 
Donation recipients are not eligible to withdraw property from the sale 
unless they can provide DLA Disposition Services with documentation 
that an error was made by DLA Disposition Services and they should have 
been issued the property or the property was never available for 
electronic screening in GSA personal property database 
GSAXcess[supreg].
    (ii) In many instances, the property remains at a DLA Disposition 
Services site after the title has been transferred. This property is 
ineligible for withdrawal to satisfy DoD needs. If the DoD Component 
intends to pursue purchasing the property from the commercial partner, 
transactions must be handled between the partner and the DoD Component 
without intervention from the DLA Disposition Services.
    (iii) Pursuant to 41 CFR chapter 102, due to the potential for 
adverse public relations, every effort will be made to keep withdrawals 
from sales to a minimum. These efforts will include searching for 
assets elsewhere in the disposal process. Exceptions to this policy 
will be implemented only when all efforts to otherwise satisfy a valid 
need have been exhausted and the withdrawal action is determined to be 
cost effective and in the best interest of the government. DoD 
Component heads will ensure that withdrawal authority is stringently 
controlled and applied.
    (iv) Make requests to the selling agency by the most expeditious 
means. With the exception of ICP or IMM and NMCS orders, requests will 
provide full justification including a statement that the property is 
needed to satisfy a valid requirement.
    (v) Withdrawals may not be processed subject to property inspection 
for acceptability. Inspect property before requesting withdrawal.
    (vi) Orders submitted by ICPs or IMMs do not require justification 
statements before award.
    (vii) With the exception of ICPs and IMMs, minimum written 
information

[[Page 68212]]

required in the package for withdrawal requests includes:
    (A) Detailed justification as to why the property is required, 
including how the property will be used; such as applicability of 
materiel to active weapons systems.
    (B) Mission impact statement from a support, procurement, and 
funding standpoint if property is not withdrawn from sale (e.g., the 
effect on operational readiness requirements within a specified period 
of time).
    (C) A summary of efforts made to find assets meeting the 
requirement from other sources, including consideration of substitute 
items.
    (viii) When the DLA Office of Investigations, TSC Assessment 
Office, determines that property was incorrectly described, and that 
TSC or DEMIL requirements are applicable, property will either be 
withdrawn or a provision made to accomplish TSC or DEMIL, as 
appropriate. The TSC Assessment Office may request withdrawal of 
property and suspend further action regarding the property until the 
matter is resolved in accordance with the procedures in DoD Instruction 
2030.08.
    (ix) As property moves through the sales cycle, constraints are 
placed on requests for withdrawals from sale.
    (A) The area manager can approve requests for withdrawal during the 
period between the end of screening and the date the property is 
referred to DLA Disposition Services for sale cataloging or until a 
delivery order is signed by the commercial venture partner. The area 
manager can also approve withdrawals prior to bid opening for items on 
authorized local sales.
    (B) DLA Disposition Services can approve withdrawal requests from 
date of referral until the property is awarded. DLA Disposition 
Services can also return requests for withdrawal after award that do 
not include the required written information.
    (x) DLA approval, with DLA legal concurrence, is required on any 
withdrawal request after the award but before removal.
    (xi) When title has passed to the purchaser, the requestor must 
work directly with the purchaser. This includes commercial venture 
property. The SAR or SCO will provide contract information when 
requested.
    (18) Reporting requirement. (i) In accordance with 10 U.S.C. 2583, 
the Secretary of Defense will prepare an annual report identifying each 
public sale conducted (including property offered for sale and property 
awarded) by a DoD Component of military items that are controlled on 
the U.S. Munitions List pursuant to 22 U.S.C. 121 and assigned a DEMIL 
Code of B in accordance with DoD 4160.28-M Volumes 1-3. For each sale, 
the report will specify:
    (A) The date of the sale.
    (B) The DoD Component conducting the sale.
    (C) The manner in which the sale was conducted (method of sale).
    (D) Description of the military items that were sold or offered for 
sale.
    (E) The purchaser of each item, if awarded.
    (F) The stated end-use of each item sold.
    (ii) The report is submitted not later than March 31 of each year. 
The Secretary of Defense is required to submit to the Committee on 
Armed Services of the House of Representatives and the Committee on 
Armed Services of the Senate the report required by this section for 
the preceding fiscal year. DLA Disposition Services includes shipments 
made during the reporting period to its business partner.
    (19) Special program sales--(i) Resource recovery and recycling 
program. (A) All DoD installations worldwide will have recycling 
programs as required by DoD Instruction 4715.4 with goals for recycling 
as outlined in Executive Order 13514.
    (1) Pursuant to 10 U.S.C. 2577 and 48 CFR subpart 209.4 of the 
DFARS, each installation worldwide will have or be associated with a 
QRP or recycling program available to the installation to appropriately 
dispose of all recyclable materials for all activities. This includes 
all DoD facilities not on a military installation, tenant, leased, and 
government owned-contractor operated (GOCO) space.
    (2) Installations having several recycling programs will 
incorporate them into the single installation QRP if possible, however 
a separate recycling program may be established to appropriately 
dispose of recyclable materials that cannot be recycled through the 
QRP.
    (3) Each DoD Component will designate a coordinator for each QRP 
and ensure the GOCO facilities participate in QRP.
    (B) Recyclable material includes material diverted from the solid 
waste stream and the beneficial use of such material. It may be 
beneficial to use waste material as a substitute for a virgin material 
in a manufacturing process, as a fuel, or as a secondary material. 
Examples of material that can be recycled through QRP are provided in 
Table 1 of this section and those that cannot be recycled through QRP 
are provided in Table 2 of this section, both from the complete list in 
DoD Instruction 4715.4.
    (C) Continually review each QRP to identify material appropriate 
for waste stream diversion, explore recycling methods, and identify 
potential markets. Additional recyclable material includes not only 
material generating profit, but material whose diversion from the waste 
stream generate a savings to the Department of Defense in disposal 
costs, or when diversion is required by State or local law or 
regulation. Material generated from nonappropriated or personal funds 
(e.g., post consumer wastes from installation housing, and installation 
concessions) may be included.

     Table 1--Examples of Material That Can Be Recycled Through QRP
------------------------------------------------------------------------
 
------------------------------------------------------------------------
          EXAMPLES OF MATERIAL THAT CAN BE RECYCLED THROUGH QRP
------------------------------------------------------------------------
1...........................  Typical recyclable material found in the
                               municipal solid waste stream (glass,
                               plastic, aluminum, newspaper, cardboard,
                               etc.).
2...........................  Scrap metal from non-defense working
                               capital fund activities.
3...........................  Expended small arms cartridge cases that
                               are 50-caliber (12.7 mm) and smaller not
                               suitable for reloading that have been
                               mutilated or otherwise rendered unusable
                               and gleanings made unusable for military
                               firing e.g., crushed, shredded, annealed,
                               or otherwise rendered unusable as
                               originally intended prior to recycling in
                               accordance with DoD Instruction 4715.4,
                               except overseas.
4...........................  Storage and beverage containers (metal,
                               glass, and plastic).
5...........................  Office paper (high-quality, bond,
                               computer, mixed, telephone books, and
                               Federal Registers).
6...........................  Commissary store cardboard and exchange
                               store wastes (cardboard), if the
                               commissary or exchange chooses to use the
                               QRP.
7...........................  Scrap wood and unusable pallets.
8...........................  Rags and textile wastes that have not been
                               contaminated with hazardous material or
                               HW.
9...........................  Automotive and light truck-type tires.
10..........................  Used motor oil.

[[Page 68213]]

 
11..........................  Food wastes from dining facilities.
12..........................  Office-type furniture that is broken or
                               too costly to repair.
13..........................  Donated privately owned personal property.
------------------------------------------------------------------------


    Table 2--Examples of Material That Cannot Be Recycled Through QRP
------------------------------------------------------------------------
 
------------------------------------------------------------------------
        EXAMPLES OF MATERIAL THAT CANNOT BE RECYCLED THROUGH QRP
------------------------------------------------------------------------
1...........................  PM-bearing scrap.
2...........................  Scrap metal generated from a defense
                               working capital fund activity.
3...........................  Items, such as MLI indicated in item 10 of
                               this table, that must be demilitarized
                               (DEMIL) at any time during their life
                               cycle, except for small arms and light
                               weapons brass and gleanings as described
                               in item 3 of Table 1.
4...........................  Hazardous materials and waste.
5...........................  Material that can be reused by the
                               government for their original purpose
                               without special processing. These items
                               may or may not be MLI or CCL items.
6...........................  Repairable items (e.g., used vehicles,
                               vehicle or machine parts).
7...........................  Unopened containers of oil, paints, or
                               solvents.
8...........................  Fuels (uncontaminated and contaminated).
9...........................  MLI or CCL items (Only DEMIL Code A items
                               may be candidates for recycling.).
10..........................  Printed circuit boards containing
                               hazardous materials.
11..........................  Items required to be mutilated prior to
                               sale or release to the public.
12..........................  Ammunition cans, unless certified as MPPEH
                               Designated as Safe in accordance with DoD
                               4160.28-M Volumes 1-3 and DoDI 4140.62.
13..........................  Usable pallets, unless DLA Disposition
                               Services states otherwise.
14..........................  Electrical and electronic components
                               (These may be MLI or CCL items eligible
                               only for Electronics Demanufacturing and
                               DEMIL or mutilation.).
------------------------------------------------------------------------

    (D) Installation commanders authorized by their DoD Component head, 
as appropriate, may sell directly recyclable and other QRP materials, 
or consign them to the DLA Disposition Services for sale. If selling 
directly, installations will:
    (1) Maintain operational records for annual reporting requirements, 
review, and program evaluation purposes.
    (2) Manage processes, reports, and proceeds distribution in 
accordance with 41 CFR chapters 101 and 102 and DoD 7000.14-R.
    (E) Excluded material is identified in Attachment 2 to DoD 
Instruction 4715.4, which provides a guide of eligible and ineligible 
materials.
    (F) Although scrap recyclable materials do not require formal 
screening, those purchased with appropriated funds, as surplus property 
under the FPMR and FMR, are available to meet RTD requirements.
    (G) When sold directly by the installation, use proceeds to 
reimburse the installation level costs incurred in operating the 
recycling program. After reimbursement of the costs incurred by the 
installation for operations (e.g., operation and maintenance and 
overhead), installation commanders may use the remaining proceeds as 
authorized by DoD Instruction 4715.4.
    (ii) Commercial Space Launch Act (CSLA). (A) The purpose of the 
CSLA, 51 U.S.C. Chapter 509, is to promote economic growth and 
entrepreneurial activity through the utilization of the space 
environment for peaceful purposes; encourage the private sector to 
provide launch vehicles and associated launch services; and to 
facilitate and encourage the acquisition (sale, lease, transaction in 
lieu of sale, or otherwise) by the private sector of launch property of 
the United States that is excess or otherwise not needed for public 
use, in consultation with Secretary of Transportation. Donation 
screening is not required prior to sale.
    (B) The DoD Chief Information Officer (DoD CIO) has the primary 
responsibility for coordinating DoD issues or views with the Department 
of Treasury, other Executive department organizations, and the Congress 
on matters arising from private sector commercial space activities, 
particularly the operations of commercial ELVs and national security 
interests.
    (C) The DLA Disposition Services is the primary office to conduct 
CSLA sales following the direction for pricing and disposition as 
specified in DoD Directive 3230.3 Sales will be by competitive bid to 
U.S. firms or persons having demonstrated action toward becoming a 
commercial launch provider. The DoD CIO and the Secretary of the U.S. 
Air Force (USAF) designated representative will support DLA Disposition 
Services, as necessary, in the sale or transfer of excess and surplus 
personal property to the private sector, including the identification 
of potential bidders and any special sales terms and conditions. The 
generating activity will assist, as necessary, in completing sales 
transactions.
    (b) Security assistance or FMS--(1) Statutory authority. Authority 
for security assistance is provided primarily under 22 U.S.C. 2751 et 
seq. (also known as the Arms Export Control Act) and annual 
appropriation acts for foreign operations, export financing, and 
related programs.
    (2) Security assistance program requirements. (i) Security 
assistance transfers are authorized under the premise that if these 
transfers are essential to the security and economic well-being of 
friendly governments and international organizations, they are equally 
vital to the security and economic well-being of the United States. 
Security assistance programs support U.S. national security and foreign 
policy objectives.
    (ii) In coordination and cooperation with DOS, the Defense Security 
Cooperation Agency (DSCA) directs, administers, and provides overall 
procedural guidance for the execution of security cooperation and 
additional DoD programs in support of U.S. national security and 
foreign policy objectives; and promotes stable security relationships 
with friends and allies through military assistance, in accordance with 
DoD 5105.38-M.
    (3) Foreign purchased property. Disposal initiatives and actions 
will be in accordance with DoD 5105.38-M or guidance provided by 
security assistance implementing agencies on a case-by-case basis.
    (4) FMS disposal process summary--(i) Defense disposal services. 
(A) FEPP,

[[Page 68214]]

excess, and surplus personal property may be made available to foreign 
countries and international organizations designated as eligible to 
purchase property or services in accordance with 22 U.S.C. 2151, 2321b, 
2321j, 2443, 2751, and 2778 et seq. Such defense articles may be made 
available for sale under the FMS Program. Transactions under this 
authority are reimbursable.
    (B) FMS transactions are completed by use of letters of offer and 
acceptance and the procedures specified in DoD 5105.38-M.
    (ii) Grant transfer of excess defense articles (EDAs). 22 U.S.C. 
2321j authorizes the U.S. Government to grant transfer of EDA to 
eligible foreign governments. For a transfer under this authority, DoD 
funds may not be used for packing, crating, handling, and 
transportation except under certain circumstances consistent with the 
guidance in 22 U.S.C. 2321j(e).
    (iii) FMS transportation. (A) As a general rule, FMS customers are 
responsible for all transportation costs.
    (1) The transportation costs can be written into the letters of 
agreement or the items can be shipped on a collect commercial basis. 
The implementing DoD Component or DLA Disposition Services will 
identify exceptions to this rule.
    (2) Sensitive and some other FMS shipments may be made via the 
Defense Transportation System (DTS).
    (i) Sensitive shipments not going through the DTS must be routed 
through a DoD-controlled port (Delivery Term Codes 8, B, or C). See 
Appendix E, paragraph H.1, Part II of the Defense Transportation 
Regulations 4500.9-R, ``Defense Transportation Regulations'', current 
edition (available at http://www.transcom.mil/dtr/part-ii/dtr_part_ii_app_e.pdf).
    (ii) For these shipments, the implementing agency will provide 
separate instructions and funds citations. Transportation arrangements 
may be made by the supporting Transportation Office or DLA Disposition 
Services.
    (B) Unless otherwise directed by the implementing agency or DLA 
Disposition Services FMS Office:
    (1) Send small items collect via Federal Express or other parcel 
service to designated freight forwarder.
    (2) Send less than truckload shipments collect via common carrier 
to designated freight forwarder.
    (3) Prepare and send DD Form 1348-5, ``Notice of Availability/
Shipment,'' for larger than truckload shipments to freight forwarder or 
other designated address. Upon receipt of DD Form 1348-5, the recipient 
will provide shipping instructions or advise of pick-up date. If 
shipping instructions are not received within 15 days after DD Form 
1348-5 is issued, follow up with freight forwarder and notify DLA 
Disposition Services if they are the implementing agency.
    (4) For sensitive Delivery Term Code 8 property, in accordance with 
Part II of the Defense Transportation Regulation 4500.9-R, and 
hazardous material property, the supporting transportation office must 
ensure that the property is released in accordance with all applicable 
regulatory requirements. The preferred option is to let the supporting 
transportation office accomplish notice of availability and property 
shipment processes.
    (5) On rare occasions, property may be transferred on a no-fee 
basis. The implementing agency or DLA Disposition Services will provide 
appropriate instructions on a case-by-case basis.
    (C) In accordance with 22 U.S.C. 2403, construction equipment, 
including but not limited to tractors, scrapers, loaders, graders, 
bulldozers, dump trucks, generators, and compressors are not considered 
EDA for purposes of this section.
    (iv) FMS eligibility. Eligibility for FMS is listed in Table C4.T2 
of DoD 5105.38-M. Eligibility to receive excess property as a grant 
pursuant to 22 U.S.C. 2151, 2321, 2751, 2778 et seq. is established by 
the DOS and provided to DSCA. DoD Components will follow the latest 
guidance from DSCA showing which countries are eligible under the 
various authorities.
    (v) Controlled assets. (A) Foreign countries and international 
organizations may screen and request DLA Disposition Services assets 
during DLA Disposition Services reutilization screening periods.
    (B) 10 U.S.C. 2562 prohibits the sale or transfer of fire equipment 
to foreign countries and international organizations until RTD has been 
accomplished. Fire equipment remaining after these periods may be made 
available to security assistance customers with a certification to DSCA 
that the property is not defective and has completed all required 
excess property processes.
    (C) DSCA will provide guidance for the transfer of items.
    (D) Pricing of FMS is governed by DoD 7000.14-R.
    (c) Reutilization or transfer, excess screening, and issue 
(includes donation of DLA Disposition Services assets)--(1) Authority 
and scope. (i) The provisions of this section are based on the 
guidelines of 41 CFR chapters 101 and 102.
    (ii) The scope of this section includes the RTD screening, 
ordering, issuing, and shipment of DoD FEPP, excess, and surplus 
personal property.
    (A) These procedures apply to the Military Departments, FCAs, 
donees, eligible foreign governments and international agencies, and 
any other activities authorized to screen and order FEPP, excess, and 
surplus personal property.
    (B) See Sec.  273.8 for additional guidance on the DoD HAP, LEAs, 
DoD or Service museums, National Guard units, Senior Reserve Officer 
Training Corps (ROTC) units, morale, welfare, recreational activities 
(MWRAs), the MARS, Civil Air Patrol (CAP), and DoD contractors.
    (C) See Sec.  273.8 and paragraph (b) of this section for 
additional information on foreign governments and international 
organizations.
    (2) General. (i) DoD policy, in accordance with 41 CFR chapters 101 
and 102, is to reutilize DoD excess property and FEPP to the maximum 
extent feasible to fill existing needs before initiating new 
procurement or repair. All DoD activities will shop for available 
excess assets and review referrals for assets to satisfy valid needs. 
DLA Disposition Services provide asset referrals via front end 
screening to ICPs daily. See individual Military Department guidance 
regarding eligibility and authority to withdraw excess property from 
DLA Disposition Services.
    (ii) Customers can electronically request specific NSNs for orders, 
whether DLA Disposition Services assets are available at the time the 
need arises. When an asset becomes available in the DLA Disposition 
Services inventory, an electronic notification will be sent to the 
customer for initiating an official order. See paragraph (c)(3)(vii) of 
this section for procedures on the automated want lists.
    (iii) The UII mark, if applicable, will not be removed from a 
personal property item offered for RTD.
    (3) Screening for personal property--(i) Screening. (A) DoD 
reutilization is accomplished electronically via MILSTRIP and DLA 
Transaction Services, through the DLA Disposition Services Web site.
    (B) At the end of the DoD exclusive internal screening cycle, DoD 
excess property (excluding FEPP, scrap and HW) is transmitted to the 
GSAXcess[supreg], and GSA assumes control of federal agency transfer 
and donation screening. The property remains in DLA

[[Page 68215]]

Disposition Services accounts and can be viewed on their Web site.
    (C) GSA federal screening is accomplished through the 
GSAXcess[supreg] platform that is a customer interface to the Federal 
Disposal System (FEDS). DoD personnel may shop in GSAXcess[supreg] at 
any time and search and select property from DoD and other FCAs. 
Transportation costs for other FCA property are borne by the DoD 
screener. DLA Disposition Services makes shipping arrangements for DoD 
orders in GSAXcess[supreg] and includes the transportation costs in the 
cost of the item.
    (D) Enclosure 7 to DoD Manual 4160.21, Volume 2 and Enclosure 3 to 
DoD Manual 4160.21, Volume 4 provides additional information on 
screening for excess personal property by category.
    (E) All references to days are calendar days unless otherwise 
specified.
    (F) With electronic screening, physical tagging of property at a 
DLA Disposition Services site to place a ``hold'' until an order has 
been submitted is no longer authorized.
    (G) DLA Disposition Services provides reasonable access to 
authorized personnel for inspection and removal of excess personal 
property.
    (ii) CONUS screening timeline for excess personal property--(A) 
Accumulation period. DLA Disposition Services accumulates property 
throughout the week as it is inspected and added to the inventory 
system. As property is added to the inventory system, it is visible for 
ordering by DoD customers only. This accumulation period ends each 
Friday, prior to the start of the official 42 day screening timeline.
    (B) DoD and Special Programs screening Cycle (14 days). DoD and the 
Special Programs identified in Sec.  273.8 have exclusive ordering 
authority during the first 14 days of the screening timeline. DoD 
reutilization requirements have priority during this cycle, and 
property will not be issued to Special Programs until the end of this 
cycle.
    (C) FCA and donees screening cycle (21 days). FCAs and GSA-
authorized donees screen property in GSAXcess[supreg] during the 
following 21 days. FCA requirements have priority during this cycle, 
and property will not be issued to donees until the end of this cycle. 
During this cycle, DoD will search and select property in 
GSAXcess[supreg] rather than submit MILSTRIP orders, with the exception 
of priority designator (PD) 01-03 and NMCS requisitions. DoD customers 
will submit PD 01-03 and NMCS requisitions to DLA Disposition Services, 
who will immediately fill these orders and notify GSA to make the 
record adjustment in GSAXcess[supreg].
    (D) GSA allocation to donees (5 days). The following 5 days are set 
aside for GSA to allocate assets to fill donee requests. During this 
allocation period, no GSAXcess[supreg] ordering can be made.
    (E) Final reutilization/transfer/donation (RTD2) screening (2 
days). The final 2 days of screening are available to all RTD customers 
for any remaining property on a first come, first served basis.
    (F) Table 3 of this section summarizes the priority of issue and 
the timelines associated with screening and issue of property.

                  Table 3--Summary of Screening and Issue Timelines in Order of Issue Priority
----------------------------------------------------------------------------------------------------------------
            RTD Method                  Eligibility            Screening period             Issuing period
----------------------------------------------------------------------------------------------------------------
Reutilization....................  DoD.................  Days 1-14..................  Days 1-42.
Reutilization....................  Special Programs....  Days 1-14..................  Days 15-42.
Transfer.........................  All Federal Agencies  Days 15-35.................  Days 15-42.
Donation.........................  Authorized GSA        Days 15-35.................  Days 36-42.
                                    Donees.
RTD2.............................  All RTD Customers...  Days 41-42.................  Days 41-42.
Sale.............................  General Public......  N/A........................  N/A.
----------------------------------------------------------------------------------------------------------------

    (iii) FEPP screening timeline. (A) Screening timeline and 
procedures for FEPP will generally follow those listed in paragraph 
(c)(3)(ii) of this section.
    (B) During contingency operations, the ASD (L&MR) may approve 
expedited screening timelines and changes to issue priorities.
    (iv) DoD screening methods. (A) DoD reutilization screening is 
accomplished electronically via MILSTRIP and DLA Transaction Services 
through the DLA Disposition Services Web site. If the electronic method 
is unsuccessful, please fax the following on agency letterhead: Name, 
phone number, point of contact, internet provider (IP) address, and two 
signatures of authorized individuals to DLA Disposition Services 
Reutilization Office at fax commercial 269-961-7348 or DSN 661-7348.
    (B) Local screening at the DLA Disposition Services sites is on-
site (visual) viewing of excess property. Physical inspection of 
property may not be possible for assets at depot recycling control 
points (RCPs), receipts in-place, or remote locations.
    (v) GSAXcess[supreg] screening. (A) Users must obtain an access 
code from GSA to screen through GSAXcess[supreg]. To learn about 
GSAXcess[supreg] and obtain access code information, see: http://apps.fss.gsa.gov/Manuals/Feds_Users_guide.
    (B) DoD customers must obtain access from GSAXcess[supreg] to 
search and select property. The DoD Accountable (Supply) Property 
Officer must provide GSA a letter (on official letterhead) or email 
(from a ``.mil'' address) requesting access for their representatives 
and include addresses, phone numbers, email addresses, and DoDAAC of 
those authorized to select property from GSAXcess[supreg]. Customers 
may select items once the access is granted.
    (C) DoD customers who only want to search for available property in 
GSAXcess[supreg] can also register for search only access at 
www.gsaxcess.gov.
    (vi) Screening exceptions. Generally, property cannot be screened 
before it is entered on DLA Disposition Services site's accountable 
records. However, instances where screening prior to entry may be 
justified include:
    (A) Property needed to fulfill emergency orders, (e.g., PD 01-03, 
NMCS, disaster relief) and which may be processed as a ``wash-post'' 
transaction. The DLA Disposition Services site must be able to fully 
justify these actions and ensure a signed receipt copy of the DTID is 
returned to the generating activity.
    (B) Backlog situations where usable property is in danger of being 
damaged by the elements due to a lack of adequate storage and an 
authorized customer is on location.
    (vii) Automated want lists. (A) Customers may use the automated 
pre-receipt information to flag desired NSNs. Use of this tool does not 
guarantee the items will become available. If notified that the item is 
in the excess inventory, customers must use standard MILSTRIP order 
procedures. For more guidance, see

[[Page 68216]]

https://www.dispositionservices.dla.mil/rtd03/index.shtml.
    (B) Customers may submit automated searches for recurring NSNs 
through the DoD Property Search Web site at https://www.dispositionservices.dla.mil/rtd03/index.shtml. Results are emailed 
to the customer.
    (C) Customers may also submit a ``Want List'' in GSAXcess[supreg], 
which can help them locate excess property from civilian agencies.
    (viii) Specialized screening for ICPs. (A) DLA Disposition Services 
will electronically report to designated ICPs those assets with valid 
NSNs meeting dollar value and condition code criteria established by 
each DoD Component. The notification will be sent electronically to the 
recorded DoD wholesale manager (ICP or IMM) concurrently with recording 
the excess in the DLA Disposition Services system for accounting for 
excess property in DoD. Component IMMs may view the NSNs they requested 
during the first 5 days of the accumulation period before the items 
become available to other DoD activities. The ICPs must send their 
request to: DLA Disposition Services, Hart-Dole-Inouye Federal Center, 
74 North Washington Avenue, Suite 2429, Battle Creek, Michigan 49037.
    (B) The DoD ICP or IMM will screen these notifications to determine 
if needs exist. DLA Disposition Services site excesses will be 
reutilized to satisfy known or projected buy and repair needs.
    (C) Orders for property during the internal screening periods will 
be prepared according to MILSTRIP and submitted to DLA Disposition 
Services.
    (ix) Issues to and turn-ins by special programs and activities--(A) 
DoD HAP. (1) The DoD HAP is authorized to dispose excess property 
through DoD DLA Disposition Services site channels.
    (2) Providing non-lethal DoD excess personal property for 
humanitarian purposes is authorized pursuant to 10 U.S.C. 2557. 
Preparation and transportation of this property is carried out in 
accordance with 10 U.S.C. 2661. HAP allows DoD to make available, 
prepare, and transport non-lethal, excess DoD property for distribution 
by DOS for humanitarian reasons. The program is managed by the DSCA 
Office of Humanitarian Assistance and Demining.
    (3) In most instances, property issues will be from DLA Disposition 
Services inventories. The most commonly requested types of property are 
medical equipment, field gear, tools, clothing, rations, light 
vehicles, construction, and engineering equipment. DLA Disposition 
Services sites will issue all property destined for the HAP, with the 
exception of drugs and biologicals (Federal Supply Classification Code 
(FSC) 6505), which may be issued directly by the Military Departments. 
HAP orders and issues will be documented on DD Form 1348-1A ``Issue 
Release/Receipt Document.''
    (B) LEAs. In accordance with 10 U.S.C. 2576a, DLA has established 
an office to permit civil police authority to acquire excess DoD 
property, and the Web site https://www.dispositionservices.dla.mil/rtd03/leso/index.shtml provides information to assist with the process. 
LEAs can contact DLA Disposition Services at: DLA Disposition Services, 
Hart-Dole-Inouye Federal Center, 74 North Washington Avenue, Suite 
2429, Battle Creek, Michigan 49037, Toll free: 1-877-DLA-CALL, DSN: 
661-7766, Commercial/FTS 269-961-7766.
    (1) 10 U.S.C. 2576a authorizes the Secretary of Defense, in 
consultation with the Director, Office of National Drug Control Policy, 
and DOJ, to transfer excess DoD property, including small arms, light 
weapons, and ammunition, to federal and State LEAs, including 
counterdrug and counterterrorism activities. The federal program is 
known as the 1033 Program. The DLA Disposition Services has managerial 
responsibilities in support of such transfers and will establish 
business relationships with participating States by memorandum of 
agreement (MOA).
    (2) LEAs will return sensitive or controlled DEMIL-required 
property originally ordered from DLA Disposition Services when no 
longer needed. DEMIL-required equipment that is the responsibility of 
the LEA must be demilitarized in accordance with DoD 4160.28-M Volumes 
1-3. Due to constant changes and development of new technology, Table 4 
of this section is only a partial list of NSNs that may contain 
radioactive components as identified for Army Navy (AN) night vision 
equipment codes in DoD 4160.28-M, Volume 2. These NSNs and many others 
should not be transferred to DLA Disposition Services sites. The turn-
in activity will verify with the DLA Disposition Services site whether 
equipment contains radioactive components before turning in any night 
vision equipment.

                Table 4--NSNs With Radioactive Components
------------------------------------------------------------------------
                NSN No.                       Radioactive component
------------------------------------------------------------------------
5855-00-053-3142.......................  AN/TVS-4 (prototype)
5855-00-087-2942.......................  AN/PVS-1
5855-00-087-2947.......................  AN/PVS-2
5855-00-087-2974.......................  AN/PVS-1
5855-00-087-3114.......................  AN/TVS-2
5855-00-113-5680.......................  MX-8201
5855-00-156-4992.......................  AN/PVS-3A
5855-00-156-4993.......................  MX-8201A
5855-00-179-3708.......................  AN/PVS-2A
5855-00-179-3709.......................  MX-7833
5855-00-400-2619.......................  MX-7833A
5855-00-484-8638.......................  AN/TVS-2B
5855-00-688-9956.......................  AN/TVS-4
5855-00-688-9957.......................  AN/TVS-4
5855-00-760-3869.......................  AN/PVS-2B
5855-00-760-3870.......................  AN/TVS-4A
5855-00-791-3358.......................  AN/TVS-2A
5855-00-832-9223.......................  MX-7833
5855-00-832-9341.......................  AN/PVS-3
5855-00-906-0994.......................  AN/TVS-4
5855-00-911-1370.......................  AN/TVS-2
5855-01-093-3080.......................  AN/PAS-7A
5855-00-087-3144.......................  AN/TVS-2
------------------------------------------------------------------------

    (C) DoD or service museums. (1) Legal authority is provided by 10 
U.S.C. 2572, which allows the loan, gift, or exchange of specified 
historic or obsolete or condemned military property. Approval authority 
for museum acquisitions from DLA Disposition Services sites expressly 
for the purpose of exchange must be granted by the activity having 
staff supervision over the museum. Approval authority includes:
    (i) U.S. Army: Chief of Military History (DAMH-MD), 1099 14th 
Street NW., Washington, DC 20005-3402.
    (ii) U.S. Navy: Curator for the Navy, Naval Historical Center, 
Building 108, Washington Navy Yard, Washington, DC 20374-0571.
    (iii) U.S. Air Force: Director, National Museum of the United 
States Air Force, HQAFMC, 1100 Spaatz Street, Wright-Patterson AFB, 
Ohio 45433-7102.
    (iv) U.S. Marine Corps: Marine Corps History Division, 3079 Moreel 
Avenue, Quantico, Virginia 22134.
    (v) U.S. Coast Guard: Coast Guard Historian, Commandant (CG-09224), 
U.S. Coast Guard Headquarters, Douglas A. Munro Building, 2703 Martin 
Luther King Jr., Avenue, South East Stop 7031, Washington, DC 20593-
7031.
    (2) The DoD or Military Department museums will use standard DoD 
processes to dispose excess property using DoDAACs.
    (3) The DoD and Military Department museums may obtain property 
from DLA Disposition Services sites for use, display, or exchange. With 
the exception of historical artifacts,

[[Page 68217]]

stockpiling of property obtained from DLA Disposition Services sources 
for future exchange is prohibited.
    (4) The normal ordering procedures apply. The DD Form 1348-1A, in 
addition to routine information, will include:
    (i) The museum's individual DoDAAC or the DoDAAC of the Service 
headquarters with central responsibility for historical property.
    (ii) A statement if the property is to be used for display, 
exchange, or use (e.g., property needed to maintain the museums' 
buildings and grounds, for day-to-day housekeeping operations, or to 
maintain displays).
    (iii) Only DEMIL Code ``A'' property is requested. Examples of 
DEMIL Code A items suitable for housekeeping purposes by DoD museums 
may include: Federal Supply Classification Groups (FSGs) 52--hand 
tools; 53--hardware; 55--lumber; 56--construction materials; 61--
electric wire; 62--lighting fixtures; 71--furniture; 72--furnishings; 
75--office supplies; 79--cleaning equipment; 80--brushes and paints. 
Orders of property for exchange will reflect the DoDAAC of the DoD 
Military Department museums. An exception to this procedure applies to 
M151 series, M561, and M792 (Gamma Goat) vehicles. Although coded as 
DEMIL Code A, exchange of the vehicles is prohibited.
    (5) DLA Disposition Services sites will:
    (i) Ensure DEMIL Code A property ordered by a museum for exchange 
purposes has no current challenges to that code. This applies to all 
items whether recorded in the DLA Logistic Information Service Federal 
Logistics Information System Master Item File or not, including scrap 
and captured military items. Excluded are the M151 series vehicles, 
hazardous property, and MLI and CCL items, which are not authorized for 
museum exchanges.
    (ii) Ensure authorized property ordered by museums for exchange is 
released to the ordering museum personnel only. Identification of the 
individual is required. These personnel must be military or civilian 
employees of the museum, not volunteers or members of the museums' 
private supporting organizations.
    (6) The DoD operating activities and Military Departments will:
    (i) Maintain accountable records according to appropriate DoD and 
Service regulations of all items withdrawn from DLA Disposition 
Services sites, to include all materiel transactions, receipts from the 
DLA Disposition Services site, and transfer and exchange documents.
    (ii) Provide to DLA Disposition Services a list of all the DoD 
museums and Service museums authorized to negotiate with DLA 
Disposition Services sites, including the name of the institution, 
address, telephone number, and the DoDAAC of the museum.
    (D) National Guard units. (1) National Guard Units will use the 
standard DoD processes to dispose excess DoD property through the use 
of DoDAACs.
    (2) Issues of excess DoD property and FEPP to National Guard units 
must be approved by the National Guard Bureau or the U.S. Property and 
Fiscal Officer (USP&FO), or their authorized representative, for the 
State in which the National Guard unit is located. Requests received 
from National Guard units that do not contain the signature of the 
USP&FO, their authorized representative, or the National Guard Bureau, 
will not be honored.
    (E) Senior ROTC units. (1) Senior ROTCs will use standard DoD 
processes to dispose excess DoD property using DoDAACs.
    (2) Military Departments' Senior ROTC units may obtain excess DoD 
property and FEPP from DLA Disposition Services sites to support 
supplemental proficiency training programs. Orders to DLA Disposition 
Services sites must be approved by the installation commander or 
designee, normally responsible for providing logistical support to the 
instructors group. Property will be issued to the accountable officer 
of the school concerned.
    (F) USCG. As a recognized military service and a branch of the U.S. 
Armed Forces, and due to the association of the USCG to the U.S. Navy, 
DLA Disposition Services will accept USCG (DHS) excess property, USCG 
excess DoD property and FEPP for disposal. The principles outlined in 
paragraph (c)(3)(i) through (viii) of this section apply.
    (1) USCG excess DoD property may be transferred to the nearest DLA 
Disposition Services site after internal USCG screening. Physical 
retention of the property by the USCG is preferred, especially if size 
or economics prevent physical transfer.
    (2) Property physically turned in to the DLA Disposition Services 
site does not qualify for reimbursement.
    (3) After the USCG completes all RTD screening for aircraft and 
vessels, DLA Disposition Services may provide sales services through an 
in-place MOU that outlines all USCG and DLA Disposition Services 
responsibilities.
    (4) USCG aircraft may be transferred to the Aerospace Maintenance 
and Regeneration Group (AMARG), Davis-Monthan Air Force Base, Arizona, 
according to the ISSA between the USCG and the USAF.
    (5) USCG orders must include a citation as to the USCG directive 
authorizing the unit to obtain the property listed on the order. In 
addition, the fund citation for transportation must be included on the 
DTID. Individual floating and shore units of the USCG may be delegated 
authority to order excess DoD property without Commandant, USCG 
approval. Indicate the delegating authority on all orders. The DLA 
Disposition Services site need not validate the authenticity of the 
authority, but only the fact that such authorization appears on the 
order.
    (G) U.S. Army Corps of Engineers (COE) civil works property. (1) 
Based on the association of Civil Works with the U.S. Army, the COE 
will use Department of the Army DoDAACs to transfer personal property 
through DLA Disposition Services for disposal, including hazardous 
property through a service contract.
    (2) COE civil works activities may order property through DLA 
Disposition Services as a DoD activity, using an assigned Army DoDAAC 
or as an FCA, using an address activity code through GSAXcess[supreg].
    (H) MAP Property and Property for FMS. DoD Directive 5105.22 and 
paragraph (b) of this section provide additional procedures for MAP 
property or for property that can be purchased by eligible 
organizations through FMS.
    (1) Following the country decision to dispose through DLA 
Disposition Services, the country and Security Assistance Office will 
determine, in coordination with DLA Disposition Services, the proper 
disposal method (e.g., DEMIL or mutilation requirements, security 
classification, reimbursement decisions).
    (2) DLA Disposition Services, in coordination with the country and 
Security Assistance Office will make provision for in-country U.S. 
personnel, with assistance from local personnel, as appropriate, to act 
as DLA Disposition Services agent where turn-in by the generating 
activity and physical handling by the DLA Disposition Services site is 
impractical. In addition to MILSTRIP documentation requirements of DLM 
4000.25-1, the generating activity will include the following data on 
the electronic turn-in document or DTID for MAP items.
    (i) Country.
    (ii) DTID number, to include at a minimum, in the first position, a 
service code (B, D, K, P, or T); in the second position, a country or 
activity code in accordance with DoD Directive 5230.20,

[[Page 68218]]

and in the third position, the Julian date.
    (iii) Identification of MAP Address Directory Security Assistance 
Offices initiating turn-in.
    (iv) MAP account fund citation.
    (3) Screen disposable MAP property for reutilization, FMS, and 
transfer to fill known federal needs. Process disposable MAP property 
surviving reutilization, FMS screening, and other transfers to sale.
    (4) Process MAP property used for any purpose other than to meet 
approved DoD needs for RTD or sale on a reimbursable basis.
    (5) The allocation of weapons, ammunition, flyable aircraft (rotary 
and fixed-wing) and selected property will be accomplished by DLA, as 
coordinated with the Office of Deputy Assistant Secretary of Defense 
for Supply Chain Integration.
    (6) All other excess DoD property will be processed through DLA 
Disposition Services on a first-come, first-served basis.
    (I) DoD contractors and contractor inventory. (1) The disposal of 
DoD contractor inventory is generally the contractor's responsibility 
in accordance with 48 CFR 45.602-1 of the Federal Acquisition 
Regulation, unless the contract specifies that excess DoD property be 
returned to the government, as a result of a determination by the CO at 
contract expiration that DLA Disposition Services disposal would be in 
the best interests of the government. Property physically turned in to 
the DLA Disposition Services site does not qualify for reimbursement to 
the generating activity.
    (2) If property is purchased and retained by a DoD contractor, net 
proceeds from the sale of the property will be deposited into the 
generating activity's suspense account.
    (3) DLM 4000.25-1 permits the Military Department or Defense Agency 
management control activity (MCA) to withdraw or authorize the 
withdrawal of specified excess DoD property from DLA Disposition 
Services sites for use as government-furnished material or government-
furnished equipment to support contractual requirements.
    (4) Orders will be completed in accordance with Chapter 11 of DLM 
4000.25-1 and include the DoDAAC assigned to the contractor. These 
orders must be processed by the MCA having cognizance of the applicable 
contract.
    (5) Property ordered must be authorized and listed in the DoD 
contract(s) for which the property will be used, recorded in the ICP's 
MCA responsible for the contract, and the use of the ordered property 
approved by the CO or CO's representative (COR) for such contract(s). 
Each electronic or manual order (DD Form 1348-1A) must contain the 
signature and title of the CO or COR authorizing the withdrawal of 
excess DoD property from the disposal system. Each order must also 
contain the certification: ``For use under Contract No(s).___.'' The 
certification should be signed by an authorized official and should 
indicate his or her official title.
    (6) DLA Disposition Services sites cannot guarantee the property 
withdrawn meets minimum specifications and standards in terms of 
quality, condition, and safety.
    (J) NAF activities. (1) Includes expense items and NAF resale goods 
procured by NAF activities such as military exchanges and MWRAs or 
Services, but excludes commissary store trust fund account equipment.
    (2) DLA Disposition Services will not process property typically 
reclaimed from customers by the military exchanges such as used 
batteries, tires, oils, etc., as a part of their normal business. The 
NAF must process property in accordance with the guidance shown under 
Army and Air Force Exchange Service in DoD Manual 4160.21, Volume 4 for 
disposal of these assets.
    (3) Acceptable types of property will be processed for federal 
screening only and are not eligible for donation. They are eligible for 
reutilization or transfer provided the generating NAF activities waive 
reimbursement or negotiate reimbursement with the ordering activity.
    (i) The generating activity will provide a statement on the DTID 
that the property was purchased with NAF to obtain appropriate 
reimbursement. If the DTID does not contain this citation, the property 
will be processed as normal excess DoD property.
    (ii) In addition to standard entries, documentation will contain 
the unit cost (in lieu of the Federal Logistics Data acquisition cost) 
recorded in the financial and accounting records of the NAF activity. 
DLA Disposition Services sites will use this value for inventory, 
reporting, reutilization, transfer, and sale purposes.
    (iii) Reimbursement will be completed between the generating 
activity and the order for property reutilized or transferred. Sales 
proceeds will be deposited in accordance with Volume 11a, chapter 5 of 
DoD 7000.14-R (unless otherwise directed or superseded).
    (4) DoD MWRAs or Services may order excess DoD property and FEPP 
through the MWRAs/Services that have a DoDAAC on file with the DAAS. 
Requests for small arms or light weapons must be ordered by servicing 
accountable officers only and be approved by the designated DoD focal 
point as identified in Table 4 of this subpart. See DoD Manual 4160.21 
Volume 4 for guidelines on reutilization of small arms and light 
weapons.
    (5) NAF property ordered by or through a servicing accountable 
officer will be used and accounted for the same as all procurements, 
according to applicable Military Department or Defense Agency 
procedures.
    (6) Orders received by DLA Disposition Services sites directly from 
an MWRA or Military Department accountable officer will be for 
administrative and other purposes from which individuals will realize 
no direct benefits.
    (7) Orders will contain the MWRA or Service account number, the 
signature of the MWRA or Service Accountable Officer, and a statement 
that the property obtained without reimbursement will be identified 
separately in accounting records from property for which reimbursement 
was made. The order will include the statement that, when such property 
is obtained without reimbursement is no longer needed, it will be 
turned in to the nearest DLA Disposition Services site and that no part 
of the proceeds from sale or other disposition will be returned to the 
MWRAs or Services. Perpetuate this information from the order in 
follow-on documentation.
    (8) If the property is not reutilized, transferred, or sold, DLA 
Disposition Services will notify the NAF activity that accountability 
will revert to the NAF activity and further disposal processing will be 
the responsibility of the NAF activity. If the DLA Disposition Services 
site has taken physical custody, the NAF activity will be responsible 
for retrieving the property.
    (K) MARS. (1) MARS is an appropriated fund activity that operates 
under the jurisdiction of the Military Departments and is an integral 
part of the DoD communication system. MARS units will use standard DoD 
processes to dispose excess DoD property using DoDAACs.
    (2) The Military Departments responsible for MARS are authorized to 
order excess DoD property and FEPP through their respective accountable 
officers. The following ordering stipulations apply:
    (i) Designation of accountable officers and representatives 
authorized to screen and obtain excess DoD property and FEPP at DLA 
Disposition Services sites is described in this section.

[[Page 68219]]

    (ii) The property ordered is for immediate use by a MARS member or 
member station for its intended purpose; property may not be acquired 
for storage. When property requested is to be used for reclamation, 
written approval for such action must be obtained in advance from the 
Military Department MARS chief in coordination with the accountable 
officer. Property ordered for reclamation is limited to materiel in DCC 
X or S.
    (iii) Excess DoD property and FEPP ordered from a DLA Disposition 
Services site for MARS may be shipped to a DoD activity or picked up at 
a DLA Disposition Services site by personnel who are appropriately 
identified and approved. Property ordered for reclamation is designated 
for local pickup only at the DLA Disposition Services site. Maintain 
accountability of residue in accordance with Military Department 
directives.
    (3) The accountable officer will maintain accountability for all 
property acquired and issued to MARS members and MARS member stations. 
The property remains government property.
    (4) When the property is no longer needed for use by the MARS, the 
accountable officer arranges for the equipment to be turned in to the 
nearest DLA Disposition Services site, if economically feasible. If it 
is not economically feasible to turn in the property, the accountable 
officer will employ A/D procedures according to Enclosure 4 of DoD 
Manual 4160.21, Volume 2.
    (5) The respective Military Department may limit MARS orders to 
selected FSCs.
    (6) The release of property to MARS activities is governed by the 
following procedures:
    (i) Army MARS. In CONUS, the authority to order and obtain excess 
DoD property and FEPP to fill valid requirements is vested in the 
accountable MARS Program Manager (MPM) appointed by the Chief, Army 
MARS. Outside the CONUS, the authority to order and obtain excess DoD 
property and FEPP for the Army MARS program is vested in the 5th Signal 
Command MARS Director (Europe); 1st Signal Brigade U.S. Army 
Information System Command (USAISC) (Korea); USAISC Japan; and USAISC 
Western Command (Hawaii). The MPM who is the accountable officer 
appointed by the Chief, Army MARS will originate and sign all orders. 
Process orders through the applicable accountable officer for MARS 
equipment.
    (ii) Navy/Marine Corps MARS (NAVMARCORMARS). In CONUS, the 
authority to originate orders for excess DoD property and FEPP to fill 
valid requirements in the NAVMARCORMARS program is vested in the Chief, 
NAVMARCORMARS; Deputy Chief, NAVMARCORMARS; Directors of the 1st, 2nd, 
3rd, 4th, 5th, and 7th MARS Regions; and the Officer in Charge, 
Headquarters Radio Station. All orders must be signed by the Chief, 
NAVMARCORMARS, or the Deputy Chief, NAVMARCORMARS. Process orders 
through the applicable accountable officer. Outside the CONUS, the 
authority to originate orders comes from Chief, NAVMARCORMARS; the 
Deputy Chief, NAVMARCORMARS; or a regional director or a specific 
designee of the Chief, NAVMARCORMARS. Process orders through the 
applicable accountable officer.
    (iii) USAF MARS. The Office of the Chief, USAF MARS, and staff, 
active duty Installation MARS Directors (IMDs), and active MARS 
affiliates are authorized to screen and identify property for USAF MARS 
use. MARS affiliates are identified by a valid AF Form 3666, ``Military 
Affiliate Radio System Station License and Identification Card,'' 
signed by the Chief, USAF MARS. The IMD is appointed in writing by the 
installation commander or a designated representative; this appointment 
constitutes authority for screening and identification of property. 
Orders for property for MARS reutilization must be approved by the 
Chief, USAF MARS, or designated representative; this approval authority 
cannot be delegated. All approved orders will be processed through the 
USAF MARS Accountable Property Officer or designated alternate, who 
will initiate and sign a DD Form 1348-1A to authorize release of 
identified property. Authority to sign release documents will not be 
delegated. The accountable officer maintains current and valid 
identification of their MARS members to prevent unauthorized screening 
by MARS members or former members.
    (L) CAP. (1) The CAP is the official auxiliary of the USAF and is 
eligible to receive excess DoD property and FEPP without reimbursement 
subject to the approval of the Headquarters USAF, CAP (HQ CAP-USAF). 
Title to the property is transferred to the CAP upon the condition that 
the property be used by the CAP to support valid mission requirements. 
Authority for the CAP members to screen and obtain excess DoD property 
will be in writing and signed by an authorized official of the CAP-
USAF. HQ CAP-USAF retains the authority to approve and control the 
types and amounts of items obtained by the CAP.
    (2) The CAP will remain accountable for all property acquired from 
the DoD disposal system and will maintain and safeguard the property 
from loss or damage. The CAP and its members are strictly prohibited 
from selling, donating, or bartering property previously obtained from 
the DoD disposal system under any circumstances.
    (3) The CAP is not eligible to screen or receive AMARG aircraft 
reported by the Military Departments and other governmental agencies. 
If flyable non-AMARG category ``A'' aircraft made available for 
screening by an owning Military Department are selected for issue and 
approved by the HQ CAP-USAF to fulfill valid CAP mission needs, the 
following procedures apply:
    (i) Flyable aircraft. The head of the owning Military Department 
will issue the aircraft to the accounts specified by the HQ CAP-USAF, 
ensuring that data plates and all available historical and modification 
records accompany the aircraft. The aircraft will be issued to the CAP 
upon condition that it be used by the CAP to support valid mission 
requirements. Prior to issuance, the appropriate CAP corporate officer 
(wing commander or higher) will execute a conditional gift agreement 
that specifies that the aircraft (parts, etc.) be issued and delivered 
to AMARG when it becomes excess to CAP's mission needs. When the 
aircraft is no longer needed by the CAP, or as otherwise directed by 
the HQ CAP-USAF, the CAP will make arrangements through the HQ CAP-USAF 
for issue and delivery of the aircraft, data plates, and historical and 
modification records to AMARG.
    (ii) Reclamation of parts. If the HQ CAP-USAF elects to allow the 
CAP to use the aircraft for parts reclamation, the HQ CAP-USAF will 
contact the owning Military Department to make arrangements concerning 
reclamation of parts by the CAP. If the CAP declines to reclaim parts 
and components from the aircraft, the CAP will arrange through the HQ 
CAP-USAF for issue and delivery of the aircraft, data plates, and 
historical and modification records to AMARG.
    (iii) CAP aircraft. All CAP aircraft delivered to AMARG will be 
reported to the GSA for use by FCAs and authorized donees. The CAP and 
its members are strictly prohibited from selling, donating, or 
bartering aircraft obtained from a Military Department under any 
circumstances.
    (4) The CAP units will use assigned DoDAACs beginning in ``FG'' to 
transfer and order excess personal property.

[[Page 68220]]

    (5) CAP members will identify themselves for pickup of property as 
stated in this section.
    (M) Federal Civilian Agencies (FCAs). (1) These organizations 
include any non-defense executive agency or any member of the 
legislative or judicial branch of the government.
    (2) The processes discussed in this section apply to FCAs 
transferring to and ordering excess DoD property from DLA Disposition 
Services sites.
    (3) FCAs that want to use DLA Disposition Services for disposition 
management instead of GSA are required to review and follow 
instructions provided on the DLA Disposition Services Web site and to:
    (i) Comply with 31 U.S.C. 1535 (also known as the Economy Act).
    (ii) Initiate an Economy Act Order with DLA Disposition Services 
Comptroller for establishing financial transactions. Final acceptance 
of the Economy Act Order constitutes authority for FCAs to use DLA 
Disposition Services. The Economy Act Order must be renewed on October 
1 of each year. DLA Disposition Services transaction activity billing 
(TAB) rates, sales rates, and actual disposal rates are used for 
billing FCAs. TAB rates are available on the DLA Disposition Services 
Web site. DLA Disposition Services will bill and the FCA will pay all 
costs for services rendered. Billing documentation will include 
contract line item number, administrative, and services costs, and will 
be processed quarterly.
    (iii) Ensure all laws and regulations are properly met prior to 
initiating a transfer transaction. Use DoD Instruction 4160.28; 41 CFR 
chapters 101 and 102; 48 CFR subpart 9.4 and 48 CFR 45.602-1, 52.233-1, 
and 14.407 of the FAR, current edition; and 5 U.S.C. 552, Volume 11a, 
Chapter 5 of DoD 7000.14-R, and Office of Management and Budget 
Circular A-76, ``Performance of Commercial Activities'' (available at 
http://www.whitehouse.gov/omb/circulars_a076_a76_incl_tech_correction) 
as governing documents.
    (iv) Comply with DLM 4000.25-1, since in-transit control 
requirements are not applicable to FCA turn-ins.
    (v) Comply with Sec.  273.7(d), (e), and (f) for transferring 
excess DoD property, using DD Form 1348-1A or DD Form 1348-2, ``Issue 
Release/Receipt Document with Address Label,'' as DTIDs. Schedule turn-
ins with the DLA Disposition Services site and assume responsibility 
for delivering usable and scrap property to DLA Disposition Services 
sites. Non-hazardous property may be received in-place using the 
standard DoD receipt in-place processes. Hazardous property cannot be 
physically accepted at the DLA Disposition Services site and will be 
processed in-place only, in accordance with paragraphs 
(c)(3)(viii)(M)(3)(vi) and (vii) of this section. Property will 
normally be turned in as individual line items; however, batchlotting 
by FSC of non-hazardous items with a combined acquisition value of up 
to $800 is permitted. Identify the transaction by using their 
officially assigned FCA activity address code (AAC). The first position 
of the AAC begins with 1 through 9. Annotate ``XP'' funding code in 
blocks 52 and 53 and a disposal authority code of ``F'' in position 64 
of the DTID. Annotate the DLA Disposition Services Economy Act Order 
Assigned Number in block 27. Include appropriate hazardous property 
documents containing the required information found in Volume 4 of DoD 
4160.21-M. Ensure that no radioactive material, waste, or other 
excluded hazardous property is turned in to the DLA Disposition 
Services site. Cover costs associated with substantiated sale contracts 
claims, if negligence or fault is established. Contact the appropriate 
DLA Disposition Services site for procedures to use when inventory 
discrepancies surface for property that the FCA is designated the 
custodian. The FCA will research and provide a report of the lost, 
damaged, or destroyed property. Procedures are contained in accordance 
with Volume 12, Chapter 7 of DoD 7000.14-R.
    (vi) Work with DLA Disposition Services to obtain HW disposal 
contract support, pursuant to the provisions of the FAR; for hazardous 
property, FCAs will define disposal service requirements for HW 
disposal and provide a yearly estimate of HW streams that may be 
generated and placed on DLA Disposition Services disposal service 
contracts; cover costs associated with substantiated contracts claims, 
if negligence or fault is established; maintain physical custody of 
hazardous property; provide a designated FCA representative to act as a 
CO's technical representative during pickup of hazardous property, and 
identify who will be trained and authorized to release the property for 
shipment, including signing shipping documents according to the 
procedures provided in 49 CFR part 172, subpart H.
    (vii) Comply with the following liability provisions. Should any 
DLA HW disposal contractors' actions on behalf of the FCA result in a 
notice of potential liability to DLA or the FCA under 42 U.S.C. 9601 et 
seq. (also known as the Comprehensive Environmental Response, 
Compensation and Liability Act), 42 U.S.C. 6901 et seq. (also known as 
the Resource Conservation and Recovery Act), or any other provision of 
federal or State law, immediate notification will be provided to DLA 
Disposition Services or the FCA. The FCA retains ultimate liability for 
hazardous property; FCAs will be responsible for environmental response 
costs attributable to their generated hazardous property. FCA is 
considered the generator for reporting purposes in accordance with 42 
U.S.C. 6901 et seq. and 9601 et seq.; According to the terms of DLA 
Disposition Services HW disposal contracts, DLA Disposition Services 
disposal contractors are responsible for spills or leaks during the 
performance of their contracts, which result from the actions of the 
contractors' agents or employees; At no time will the DLA Disposition 
Services site dispose FCA excess DoD property or any provision of a HW 
contract for FCA property be interpreted or construed to require that 
funds be obligated or paid in violation of 31 U.S.C. 1341 or any other 
provisions of law.
    (4) FCAs will:
    (i) Work with DLA Disposition Services for DEMIL-required disposal 
support in accordance with the provisions of DoD Instruction 4160.28.
    (ii) Reimburse DLA Disposition Services for A/D-related services.
    (iii) Continue to turn in PM-bearing property at no charge in 
support of the DoD PMRP according to the procedures in Enclosure 5 to 
DoD Manual 4160.21, Volume 2. These transactions are accomplished 
through an ISSA.
    (iv) Pay for all services rendered, according to established 
requirements and fees.
    (5) Two months prior to the Economy Act Order's expiration, the FCA 
will notify the DLA Disposition Services Comptroller whether continued 
services are desired.
    (i) If the Economy Act Order has not been re-established, DLA 
Disposition Services will continue to receive property for 60 days.
    (ii) FCAs will continue payments until all property that was 
received within the fiscal year has been processed, even if the Economy 
Act Order has expired.
    (iii) FCAs will pay at the rates established or re-established and 
maintain internal procedures to track DTIDs against billings for 
reconciliation.
    (6) The policies in 41 CFR chapter 101 will be implemented when:
    (i) An official Economy Act Order is finalized and the DLA 
Disposition Services Finance Office ensures that an officially assigned 
FCA AAC is in the

[[Page 68221]]

DLA Disposition Services Accounting System. (This will indicate to DLA 
Disposition Services sites that receipt of excess property from the 
requesting FCA is authorized.)
    (ii) A provisional copy or signed copy of a DD Form 1348-1A is the 
instant at which accountability for the FCA property (non-hazardous or 
hazardous) is transferred to a DLA Disposition Services site.
    (7) If at any time any issue requires resolution, a team approach 
will be used at the turn-in activity and DLA Disposition Services site 
level. Disputes that cannot be resolved will be elevated to the next 
corresponding level of the FCA and the DLA Disposition Services. If 
necessary, alternative dispute resolution will be used.
    (8) DLA Disposition Services sites will:
    (i) Reserve the right to refuse any turn-in due to workload or 
resource constraints if support would seriously impair the DLA mission 
for the DoD.
    (ii) Receive and screen FCA property using the same method used for 
excess DoD property, except property will not be made available to 
those special program organizations who, because of enabling 
legislation, may only obtain excess DoD property; e.g., HAP, law 
enforcement support offices, and SEAs.
    (9) Sales proceeds, if any, will be deposited into the U.S. 
Treasury as miscellaneous receipts, unless otherwise specified by law. 
No reimbursement of proceeds will be made to the FCA. Contract claims 
resulting from the sale of federal property may be the responsibility 
of the FCA.
    (10) For hazardous property, DLA Disposition Services will notify 
FCAs of any:
    (i) New procedures pertaining to the disposal process or funding 
changes. HW contracts may be modified by mutual written consent of the 
parties. Modifications requiring resource changes may be given with 
enough advance notification for revisions or adjustments to be made 
during the budget formulation process and the hazardous disposal 
service contract process.
    (ii) Proposed changes to administrative support costs at least 60 
days in advance of a change.
    (11) DLA Disposition Services will ensure DEMIL-required property 
and property that may require export controls are processed 
appropriately. Property requiring DEMIL may be shipped to an alternate 
location either by DLA Disposition Services or by an FCA. These charges 
are included in the TAB rates.
    (12) FCAs desiring to order excess DoD property from DLA 
Disposition Services sites will follow the GSA procedures for acquiring 
property through GSAXcess[supreg]. Once excess DoD property is 
physically obtained from DLA Disposition Services, the property belongs 
to and must be disposed by the FCA. This includes property that is 
DEMIL or mutilation required. Turn-in of previously ordered property 
from the DLA Disposition Services will be accepted from only those FCAs 
that have established an Economy Act Order.
    (13) FCAs may continue to participate in the DoD PMRP at no charge, 
in accordance with Enclosure 5 to DoD Manual 4160.21, Volume 2. These 
transactions are accomplished via an ISSA between DLA Disposition 
Services and FCAs.
    (O) U.S. Postal Service (USPS). (1) USPS is not authorized to 
dispose excess DoD property through DLA Disposition Services without an 
FCA intragovernmental agreement.
    (2) If such an agreement is executed:
    (i) Items of a strictly postal nature, such as a carrier satchel 
embossed ``U.S. Mail,'' postal scales, or other equipment so similar in 
nature or design to official USPS equipment as to cause confusion may 
not be turned in to DLA Disposition Services sites, sold, or disposed 
to the general public until the USPS has been notified of the intended 
disposition and offered an opportunity to inspect the equipment. DLA 
Disposition Services sites will notify local post office inspectors of 
the existence of this property and arrange for its inspection if the 
USPS wants to prevent it from falling into the hands of unauthorized 
persons.
    (ii) DoD purchased or owned postal equipment with official postal 
identification markings may be transferred to the USPS through DLA 
Disposition Services site processing, under the standard transfer 
policies in 41 CFR chapter 101. If transferred from DoD Components 
without going through an official DLA Disposition Services site, the 
DoD activity will negotiate with USPS for fair market reimbursement.
    (iii) Property not transferred that contains markings that would 
tend to confuse this property with official USPS equipment will have 
the markings removed before release for DLA Disposition Services site 
processing.
    (iv) Excess DoD postal equipment loaned to DoD Components by the 
USPS will be returned to the USPS.
    (P) American National Red Cross. Property that was processed or 
donated by the American National Red Cross to a Military Department and 
becomes excess DoD property may not be disposed without notice to and 
consultation with the American National Red Cross. This property will 
be returned without reimbursement to the American National Red Cross 
upon request, if that organization pays packing and shipping costs.
    (Q) DoD Computers for Learning (CFL). The DoD CFL program 
implements Executive Order 12999, ``Educational Technology: Ensuring 
Opportunity for All Children in the Next Century'' and enables DoD to 
transfer excess IT equipment to pre-kindergarten through grade 12 
schools and educational non-profit organizations through a DLA 
Disposition Services web-based program. The DLA Disposition Services 
program replaces the DoD Computers for School, Educational Institution 
Partnership Program that was overseen by the Defense Information 
Systems Agency.
    (1) Eligible educational organizations serve pre-kindergarten 
through grade 12 students and are public, private, or parochial schools 
or educational nonprofits classified as tax-exempt under section 501c 
of the United States tax code. Schools and educational nonprofits must 
be located within the United States and its territories.
    (i) Schools must register in the DLA Disposition Services web-based 
CFL program and complete all point of contact and profile information.
    (ii) Schools must ensure that IT equipment transferred will be used 
for student and faculty training to augment existing IT equipment, to 
strengthen their infrastructure, or for other academic-related 
programs.
    (iii) All costs incurred in connection with the transfer of 
equipment through the CFL will be the responsibility of the school and 
include: Expenses in connection with the school's inspection of the IT 
equipment at DoD sites; cost of packing, crating, marking, and loading 
the equipment on the carrier's conveyance for transportation; and cost 
of transportation from DoD sites.
    (2) DoD IT equipment FSG 70 with a DEMIL Code of A and DEMIL Code 
of Q with an Integrity Code of 6 that is located in CONUS and has been 
accepted to a DLA Disposition Services site's accountability records is 
eligible for transfer within DoD CFL once DoD screening is complete and 
the inventory is not requisitioned by DoD.
    (3) IT equipment is available on an ``as-is'' basis, without 
warranties from DoD as to the condition of the equipment. Eligible 
equipment includes mainframes, minicomputers, microcomputers, modems, 
disk drives, printers, and items that are defined

[[Page 68222]]

within the FSG 70 and are appropriate for use in CFL.
    (4) After the DoD excess screening is completed, providing there 
are no DoD requests, DLA Disposition Services will:
    (i) Make provisions for schools to receive information concerning 
DoD IT equipment that is available for transfer.
    (ii) Notify the schools of available equipment that matches the 
profile submitted by the school.
    (iii) ``Freeze'' the equipment when the school verifies a need so 
that other schools cannot be offered the same equipment.
    (iv) Review, approve, and notify generating activities to transfer 
to a school by generating a MRO from DLA Disposition Services system 
for accounting for excess surplus property in DoD to decrement quantity 
and preclude transmission to the FEDS.
    (v) While holding for transfer to schools, the following applies: 
7-day accumulation (DoD can order anytime) and 14-day DoD screening 
(DoD can order anytime).
    (vi) On day 14, if still available, DLA Disposition Services will 
freeze the property and create a MILSTRIP initiating a transfer to 
school transaction. DLA Disposition Services will send MILSTRIP to the 
generating activity, who will arrange for the school to remove the 
item. Schools authorized a transfer are responsible for arranging the 
pickup or shipping of IT equipment.
    (vii) The IT equipment not designated to schools during the DoD CFL 
timeframe will be transmitted to GSAXcess[supreg] for FCAs and donees.
    (viii) Generating activities can specify a school for intended 
transfer once DLA Disposition Services has accountability of the 
equipment, through the DLA Disposition Services web-based CFL program. 
From the DLA Disposition Services Home Page, the user may click on 
Property Search for Military, Federal, State, and Special Programs, 
then click on ``Computers for Learning.'' The CFL Program enables the 
generating activity to view the IT equipment that was turned in under 
their DoDAAC and then designate that equipment to approved schools. The 
generating activity has 7 days to make this selection; otherwise, the 
equipment can be viewed by any eligible educational activity.
    (ix) Equipment not identified by a generating activity for a 
specific school will be made available to schools and educational non-
profit organizations that are approved within CFL.
    (x) The authorized school is responsible for coordinating with the 
generating activity for the removal of equipment.
    (xi) The authorized school has 14 days after receipt of 
authorization to remove the equipment.
    (xii) If the school does not remove the equipment within the 14 
days, the generating activity will notify the DLA Disposition Services 
site of the non-removal.
    (xiii) Upon receipt of notification, the DLA Disposition Services 
site will notify DLA Disposition Services to cancel the order.
    (R) Firefighter Transfer Program. The DoD has authorized the U.S. 
Department of Agriculture Forestry Service (USDA FS) to manage DoD 
firefighting property transfers provided for in accordance with 10 
U.S.C. 2576b. Title to all Firefighter Property Transfer Program 
property will pass to the State upon:
    (1) The State taking possession of the equipment (such as removing 
or having the equipment removed from a DLA Disposition Services site).
    (2) The State receiving a DD 1348, ``DoD Single Line Item 
Requisition System Document (Manual),'' or SF 97 or both for the 
equipment. The DD Form 1348 or SF 97 will indicate which property 
requires DEMIL (DEMIL Codes C, D, and F).
    (3) The USDA FS will track all equipment requiring DEMIL until 
final disposition and require the State to ensure that such equipment 
is either transferred to another DoD agency authorized to receive it or 
is returned to a DLA Disposition Services site when no longer required. 
USDA FS will require the State coordinate any such transfers and 
returns with the Distribution Reutilization Policy Directorate at DLA 
prior to the transfer. The recipients are responsible for funding 
shipment or removal.
    (x) Expedited processing (EP). (A) EP is the approved reduction of 
screening timeframes. In the zone of interior (ZI), EP may be used on a 
case-by-case basis. Situations where EP may be considered include 
backlog situations, potential deterioration from outside storage, or 
other compelling reasons.
    (B) GSA is the approving authority for EP for non-DEMIL required 
property within the ZI. DLA Disposition Services is the approving 
authority for DEMIL-required property within the ZI.
    (C) Current automation technology allows items going through EP to 
be visible on the DLA Disposition Services Web site and 
GSAXcess[supreg].
    (D) In contingency operations the supported Combatant Command has 
the authority to accelerate screening timelines based on mission 
requirements and operational tempo.
    (xi) Screener identification and authorization. (A) Individuals 
visiting DLA Disposition Services sites to view, order, or remove 
property or for any other reason are required to provide proper 
identification as authorized representatives of a valid recipient 
activity.
    (1) Upon arrival at the DLA Disposition Services site, the 
individuals will sign the vehicle or visitor register indicating the 
vehicle registration number and the purpose of their visit.
    (2) Visitors representing donation recipients will only be allowed 
to complete the tasks identified under ``purpose of visit'' on the 
vehicle or visitor register.
    (3) All screeners will specify the DoDAAC or AAC for which they are 
inspecting.
    (B) DoD screeners will further identify themselves as authorized 
representatives of a DoD Component by means of a current employee or 
Military personnel identification issued by the DoD activity.
    (C) FCA screeners will present current employee identification as 
valid authorization. This also applies to screeners representing mixed-
ownership USG corporations.
    (D) Non-federal screeners will present an authorization on the 
letterhead of the sponsoring activity, identifying the bearer and 
indicating the nature of the authorization. This letter of 
authorization will be updated at least annually or as changes occur.
    (E) All SEA screeners will present a valid driver's license or 
other State-approved picture identification or the letter of 
authorization.
    (F) DLA Disposition Services sites will refer problems in 
identifying screeners to the activity commander. For FCA and donation 
screeners, refer to the proper GSA regional office.
    (xii) Screening for property at DLA Disposition Services sites. (A) 
DLA Disposition Services sites will assist customers interested in 
obtaining property by referring them to the DLA Disposition Services 
Web site or by providing guidance for physical inspection and location 
of property. Assistance may also include use of a customer-designated 
personal computer to screen assets worldwide and establish a pre-
defined customer want list.
    (B) When a prospective donation recipient contacts a DLA 
Disposition Services site or military installation regarding possible 
acquisition of surplus property, the individual or organization will be 
advised to contact the applicable SASP for determination of eligibility 
and procedures.
    (4) Orders for FEPP, excess, and surplus property from DLA 
Disposition

[[Page 68223]]

Services and GSA--(i) General. (A) DoD activities, FCAs, and other 
authorized activities are permitted to order DoD FEPP, excess, and 
surplus personal property based on the property status at the time the 
authorized screener identifies its availability from the DLA 
Disposition Services Web site. This property may be ordered through DLA 
Disposition Services or GSA.
    (B) DLM 4000.25-1 requires orders for property on the DLA 
Disposition Services site's accountable records to be prepared on DD 
Forms 1348-1A or 1348-2. The use of the DLA Disposition Services Web 
site allows orders to be processed without hard copies of DD Forms 
1348-1A or 1348-2. A separate order is required for each line item on a 
DLA Disposition Services site's inventory (except batchlots that are 
grouped together). The shopper will furnish the appropriate information 
either electronically or by hard copy.
    (C) Orders for property in the GSA screening cycle will be 
submitted through GSAXcess[supreg]. Customers are required to complete 
and submit the SF 122 ``Transfer Order Excess Personal Property'' to 
GSA. GSA will then transmit the order to DLA Disposition Services.
    (D) DoD activities (other than MWRAs or Services, which are covered 
in Sec.  273.6) must request Military Department or Defense Agency 
excess and FEPP through servicing accountable officers or their 
designated representatives.
    (E) See Sec.  273.6 for special guidance affecting USCG ordering.
    (F) U.S. Army accountable supply officers should check with their 
finance accounting office prior to requesting items from DLA 
Disposition Services. Often, Army customers are billed internally for 
the items they have ordered from DLA Disposition Services.
    (G) The following principles apply to acquiring property from these 
sources, including Federal regulations, which apply to the Department 
of Defense, special programs and activities, FCAs, and donees when 
acquiring excess or surplus personal property:
    (1) There must be an authorized requirement.
    (2) The cost of acquiring and maintaining the excess personal 
property (including packaging, shipping, pickup, and necessary repairs) 
does not exceed the cost of purchasing and maintaining new materiel and 
does not exceed the value of property requested.
    (3) The sources of spare parts or repair and maintenance services 
to support the acquired item are readily accessible.
    (4) The supply of excess parts acquired must not exceed the life 
expectancy of the equipment supported.
    (5) The excess personal property will fulfill the required need 
with reasonable certainty without sacrificing mission or schedule.
    (6) Excess personal property must NOT be acquired with the intent 
to sell or trade for other assets.
    (7) DoD activities will request only that property that is 
authorized by the parent HQ or command. Activities may not request 
quantities of property exceeding authorized retention limits.
    (H) The special screening programs will request only property that 
is authorized by the program or activity accountable officer or program 
manager, whichever is applicable. If the special screening programs 
want DLA Disposition Services site to verify the FSC has been 
authorized before release, the accountable officer or program manager 
must provide a current authorized FSC list to the DLA Disposition 
Services site. The removal agent must sign any certification required, 
acknowledging understanding of rules of disposal, prior to removal of 
the property.
    (I) The Military Department accountable officer who designates DoD 
individuals to sign orders on their behalf must provide DLA Disposition 
Services sites with an electronic letter of authorization, identifying 
those individuals. The template for the letter is on the DLA 
Disposition Services Web site. It will include the full name, activity, 
DoDAAC, telephone number, address, and signature of the individuals 
authorized to sign and authenticate MROs. These individuals may be 
different from those who are the initial shoppers or those picking up 
the property.
    (ii) Emergency requests. (A) Telephone requests during non-duty 
hours may be made by contacting the DLA Disposition Services staff duty 
officer (SDO) (DSN 661-4233; Commercial, 269-961-4233). Under these 
circumstances, the SDO will record the request and will contact the DLA 
Disposition Services program manager to initiate proper action.
    (B) If a DoD activity has an emergency need for a surplus DoD item 
in the possession of a SASP, it may be requested from that SASP. The 
acquiring DoD activity must pay any costs of care, handling, and 
transportation that were incurred by the SASP in acquiring this 
property.
    (C) For requests for property to fill training aid and target need 
orders, see ``Training Aids and Target Requirements'' in paragraph 147 
of Enclosure 3 of DoD Manual 4160.21, Volume 4.
    (iii) Late orders. (A) If a DoD order is received after the 
screening timeline has expired, the customer will provide justification 
as to the true necessity for the property requested, indicating why 
other comparable property in the DLA Disposition Services inventory 
does not satisfy the need. See paragraph (a) of this section for more 
guidance if the property needs to be withdrawn from sale.
    (B) Orders for property received during the GSAXcess[supreg] 
screening period must be submitted according to GSA ordering 
procedures.
    (iv) Requests for small arms and light weapons. Small arms and 
light weapons (see Sec.  273.12) will be processed according to the 
guidance in DoD Manual 4160.21, Volume 4. Table 5 of this section 
contains a list of Military Department and Defense Agency designated 
control points authorized to initiate orders or through which orders 
must be routed for review and approval before issue can be effected.

 Table 5--DoD Designated Control Points for Small Arms and Light Weapons
                   Ordering, Reviewing, and Approving
------------------------------------------------------------------------
          Service/Agency                        Control point
------------------------------------------------------------------------
Army..............................  Director of Armament and Logistics
                                     Activity, Chemical Acquisition,
                                     ATTN: AMSTA-AC-ASI, Rock Island, IL
                                     61299-7630, Telephone: DSN 793-
                                     7531, Commercial: (309) 782-7531.
Air Force.........................  WR-ALC/GHGAM, 460 Richard Ray Blvd.
                                     Suite 221, Robins AFB, GA 31098-
                                     1640, Telephone: DSN 497-2877,
                                     Commercial: (478) 327-2877.
Marine Corps......................  Commandant of the Marine Corps,
                                     ATTN: LPC, Headquarters, U.S.
                                     Marine Corps, 3000 Marine Corps,
                                     Pentagon, RM 2E211, Washington, DC
                                     20350, Telephone: DSN 225-8900,
                                     Commercial: (703) 695-8900.

[[Page 68224]]

 
Coast Guard.......................  Commandant, ATTN: CG-7211,
                                     Commandant (CG-7211), U. S. Coast
                                     Guard HQ, Douglas A. Munro Bldg.,
                                     2703 Martin Luther King Jr. Ave,
                                     SE, Stop 7331, Washington, DC 20593-
                                     7331, (202) 372-2030.
National Security Agency..........  National Security Agency, Item
                                     Accounting Branch, ATTN: L112, Fort
                                     George Meade, MD 20755 6000.
Defense Intelligence Agency.......  Defense Intelligence Agency, ATTN:
                                     RLE 2, Washington, DC 20340 3205.
Defense Threat Reduction Agency...  Headquarters, Defense Threat
                                     Reduction Agency, 8725 John J.
                                     Kingman Road MSC 6201, Fort
                                     Belvoir, VA 22060-6201, ATTN: BDLL,
                                     Telephone: DSN 427-0785, Commercial
                                     (703) 767-0785.
------------------------------------------------------------------------

    (5) Condition of property ordered. Orders authorized by DLA 
Disposition Services or GSA regional offices will be processed as 
expeditiously as possible and according to the Uniform Materiel 
Movement and Issue Priority System priority on the requisition.
    (i) DLA Disposition Services sites will determine the property 
requested is in as good a condition as it was during screening.
    (ii) If the ordered property has materially deteriorated from 
screening or receipt to inspection for shipment, the DLA Disposition 
Services site will advise the customer before shipment. The shipment 
will be suspended pending agreement by the customer that the property 
will be accepted in its present condition.
    (iii) Once ordered, and pending receipt of an approved transfer 
document or removal of the property, no parts may be removed without 
prior approval of DLA Disposition Services (for DoD orders) or GSA (for 
transfers and donations), and agreement by the customer that the 
property will be accepted in its altered condition.
    (6) Reimbursement requirements. (i) The generating activity will 
identify reimbursement requirements on the DTID when transferring 
property to the DLA Disposition Services site. Although not 
specifically a DLA Disposition Services responsibility, DLA Disposition 
Services sites may contact the generating activity when they suspect 
the generator may be eligible for reimbursement but has not noted it on 
the DTID.
    (ii) Issue of declared Military Department or Defense Agency FEPP, 
excess and surplus personal property to DoD users will be on a non-
reimbursable basis except when the customer is prohibited by law from 
acquiring FEPP, excess and surplus property without reimbursement or 
where reimbursement is required by annotations on the receipt DTID. 
Issues to the USPS require fair-market value reimbursement.
    (iii) The requester will transfer funds to the generating activity 
without DLA Disposition Services site involvement.
    (iv) The DLA Disposition Services site will provide the name of the 
property requiring reimbursement when it is requested by the DoD or an 
FCA. The requesting activity and the generating activity must agree on 
the appropriate amount of funds, and how they will be transferred. When 
this is accomplished, the generating activity must give the DLA 
Disposition Services site a letter indicating what property is to be 
transferred and to whom. The DLA Disposition Services site will file a 
copy of this letter with the issue document to create an audit trail.
    (v) Issues of DoD FEPP, excess, and surplus personal property, 
other than foreign purchased property and other property identified as 
reimbursable, will be at no cost to FCAs and to SASPs.
    (A) Property purchased with working capital funds is not eligible 
for reimbursement in the transfer or donation program. GSA may direct 
transfers be made with reimbursement at fair market value.
    (B) Public law may prohibit FCAs from obtaining certain property.
    (C) FCAs, for the purpose of issue of excess property, include 
federal executive agencies other than the DoD; wholly owned government 
corporations; the Senate; the House of Representatives; the Architect 
of the Capitol and any activities under their direction; the municipal 
government of the District of Columbia; or non-federal agencies for 
whom GSA procures.
    (vi) Foreign purchased property reimbursements will be at the 
acquisition value.
    (vii) For special programs and activities, DLA Disposition Services 
sales to special account fund citations may be required in accordance 
with Volume 11a, Chapter 5 of DoD 7000.14-R. For DLA Disposition 
Services to provide timely and accurate reimbursements, the 
transportation account code address in DLA Transaction Services must be 
correct and current.
    (A) In accordance with DoD 4160.28-M Volumes 1-3, all DoD MLI and 
Commerce Control List (CCL) personal property, whether located within 
or outside the United States, will be transferred in accordance with 22 
CFR parts 120 through 130 and 15 CFR parts 730 through 774.
    (1) DoD MLI or CCL personal property will not be transferred to any 
foreign person or entity without DoS or DOC approval, authorization, 
license, license exception, exemption, or other authorization for the 
transfer.
    (2) Such property will not be transferred to prohibited or 
sanctioned entities identified by the Departments of State, Commerce, 
and Treasury. A consolidated list of prohibited entities by these 
Departments may be found at http://export.gov/ecr/eg_main_023148.asp.
    (3) Property will not be transferred to persons or entities from 
countries proscribed from trade under regulations maintained by the 
Office of Foreign Assets Control. The agency (e.g., GSA or USAF CAP 
Program Manager) approving the transaction must determine recipient 
eligibility prior to issuing the requisition to DLA Disposition 
Services.
    (4) If the agency approving the requisition cannot determine that a 
U.S. person or entity is involved with the property transaction, the 
recipient must obtain and provide the appropriate license or approval 
to the agency approving the transaction.
    (5) Approving agencies must be involved in any subsequent re-
transfer requests by the recipient. The recipient must request the 
agency's permission prior to taking any disposition action. If the 
approving agency authorizes the potential transfer, the recipient must 
then comply with 22 CFR parts 120 through 130, also known as the 
International Traffic in Arms Regulations (ITAR), or 15 CFR parts 730 
through 780, also known as the Export Administration Regulations (EAR), 
as appropriate.
    (B) For USML and CCL property, DLA Disposition Services sites will 
require recipients to sign a statement acknowledging their 
responsibility to comply with U.S. export laws and regarding 
regulations. The statement must be signed prior to the release of the

[[Page 68225]]

property according to the DEMIL procedures in DoD 4160.28-M Volumes 1-
3. If property is destined for export, the recipient must get 
appropriate export authorizations from the DoS or DOC in accordance 
with DoD Instruction 2030.08.
    (C) DLA Disposition Services sites may issue DEMIL-required 
property to approved special programs or GSA eligibility-approved FCAs 
without DEMIL being accomplished.
    (1) Prior to release from DoD control, DLA Disposition Services 
sites must obtain a written agreement (see Appendixes 1 and 2 of this 
section) from the requesting special program or FCA.
    (2) This agreement acknowledges that the recipient will DEMIL the 
USML property in accordance with DoD 4160.28-M Volumes 1-3, when the 
property is no longer needed.
    (3) The agreement further states that if the property is to be re-
transferred, the recipient must obtain approval from its program 
manager (approving agency) and in coordination with the DoD DEMIL 
program manager prior to further disposition or before releasing the 
USML property outside their control. The representative of the 
recipient is required to sign the DEMIL agreement before release of any 
USML property.
    (4) If the recipient requests DLA Disposition Services to perform 
final disposition, an MOA must be executed or in place with DLA 
Disposition Services for such services.
    (5) The DLA Disposition Services site will provide a completed copy 
of the certification to the GSA and retain a copy with the issue 
documentation.
    (D) DLA Disposition Services sites may transfer CCL (DEMIL Code Q) 
and non-DEMIL-required USML (DEMIL Code B) property that may have 
import and export controls to approved special programs or FCAs. Prior 
to release of such CCL and non-DEMIL-required USML property, the 
requesting special program or FCA must provide written notification to 
the DLA Disposition Services site (see Appendixes 3 and 4 of this 
section). This notification confirms recipient's understanding that 
export or import of the CCL or non-DEMIL-required USML property is 
regulated by the USG and in many cases cannot be transferred (exported, 
imported, sold, etc.) to a foreign person, entity or foreign country 
without valid USG license or other authorization.
    (viii) GSA reviews and approves each order, each in its respective 
screening cycle (transfer or donation).
    (7) Shipment or pick-up elections by customers--(i) Criteria for 
non-RCP property. (A) DLA Disposition Services will make arrangements 
for shipment of non-RCP property from Military Department orders unless 
notified by the DoD Component of the intent to physically pick up the 
property. DLA Disposition Services has been authorized to use ground 
services for the movement of reutilization property. The DLA 
Disposition Services Transportation Office will notify DLA Disposition 
Services sites of the authorized carrier.
    (B) The DoD Component and special programs have 14 calendar days 
(15 days from the date on the order) to remove the non-RCP property 
ordered during the DoD screening cycles.
    (C) Transfer (FCA) and donee (State agency) customers are always 
required to make their own pickup and shipment arrangements for non-RCP 
property orders and have 21 calendar days to remove non-RCP property 
ordered during the GSAXcess[supreg] screening cycle.
    (D) Standard transportation or preferred pick up of the property 
requested by DoD customers who are allocated property by GSA apply.
    (1) If DoD transfers customers order from the GSAXcess[supreg], 
they also have 21 days to remove the non-RCP property.
    (2) Customers required to pick up or arrange direct pickup must do 
so within the allotted standard removal time period unless it is 
extended by the DLA Disposition Services site chief. An example of 
justification for extended removal time would be as a result of a 
natural disaster (flood, snow, etc.). DLA Disposition Services site 
personnel may refuse MILSTRIPs or walk-in removals for customers who 
fail to pick up their property within the removal period and request 
cancellation of the order.
    (ii) Criteria for RCP property. (A) DLA Disposition Services will 
arrange for shipment of RCP property from Military Department and 
special program orders.
    (B) FCAs will designate the method of transportation for RCP 
property ordered using one of the following options:
    (1) The FCA arrange with carriers of their choice to remove the 
property from a designated staging area at the depot; or
    (2) The FCAs requests the DLA Disposition Services RCP Office to 
use an approved carrier under the DoD blanket purchase agreement 
awarded carrier for Domestic Express Small Package Service under the 
GSA Multiple Award Schedule for shipments of 150 pounds or less at 
http://private.amc.af.mil/a4/domexpress/spsindex.html. Use of this 
option for the smaller shipments requires a one-time notification to 
DLA Disposition Services of the preferred carrier and account number in 
the format.
    (C) FCAs must arrange with the carriers of their choice for 
shipments in excess of 150 pounds.
    (D) Donee (State agency) customers are always required to make 
their own pickup or shipment arrangements for RCP property orders from 
designated staging areas.
    (8) Packing, crating, and handling. See Sec.  273.7.
    (9) Shipment and removals (transportation).--(i) DoD and designated 
DoD-supported customers. (A) Prudence in transportation services 
benefits the Military Departments, Defense Agencies, MARS, CAP, 
National Aeronautics and Space Administration (Space Shuttle Support), 
National Guard Units, Reserve Units, DoD contractor when approved by 
the CO, Senior ROTC, and MWRA/Services when ordered through the 
Military Department accountable officer and DLA Disposition Services.
    (B) In cases where the cost of the transportation exceeds the 
acquisition value of the property, DLA Disposition Services sites will 
evaluate the commodity and its actual value; make a judgment as to its 
true condition and the priority of the order.
    (1) The DLA Disposition Services site will contact the customer and 
provide the property's estimated value and transportation cost to ship 
the property.
    (2) If a lower cost transportation mode is available, meets the 
requirements of the order, and the customer and DLA Disposition 
Services site agree, the DLA Disposition Services site will arrange for 
the alternate shipment mode. If it would not be cost effective to ship 
the property as requested, the customer will be asked to cancel the 
order.
    (3) If the customer reconfirms the need for the property, the 
following certification information will be provided to a DLA 
Disposition Services site along with the customer reconfirmation 
statement found in Appendix 5 of this section. DoD activities must 
prepare, sign, and submit a justification statement for property where 
the transportation costs exceed 50 percent of the acquisition value of 
the property. The justification statement will be signed by the 
Property Book Officer or designated representative and will state:
    (i) The purpose for which the item is to be used and whether the 
item is mission-essential to the operation of the requestor's activity.
    (ii) Any additional information deemed necessary to show 
criticality of the requisition. The statement should be included with 
the DD Form 1348. Failure to provide a statement may result in the 
requisition being canceled.

[[Page 68226]]

    (C) If the customer determines the shipment is not needed, the 
customer will initiate cancellation action according to the procedures 
in DLM 4000.25-1.
    (D) The shipper will finance parcel post shipments between DoD 
agencies without reimbursement.
    (ii) Other customers (excluding transfer and donation customers). 
(A) LEAs are responsible for removing or making arrangements for 
shipments.
    (B) MWRAs not ordering property through a military accountable 
supply officer, DoD museums, academic institutions, and non-profit 
organizations for educational purposes, Senior ROTC units and FCAs must 
pay for transportation costs and must provide a fund citation prior to 
shipment or pick up of the property.
    (C) Only one carrier is authorized per agency, and once the agency 
has designated a carrier, 30 days notice is required to change a 
carrier.
    (D) FMS customers are responsible for most transportation costs 
associated with the movement of ordered property.
    (1) The DLA Disposition Services FMS Office will identify 
exceptions to this rule. Transportation of sensitive and other critical 
FMS shipments will be coordinated between the DLA Disposition Services 
FMS Office, the purchasing country, and other DoD agencies, as 
required. For these shipments, the DLA Disposition Services FMS Office 
will provide separate instructions and fund citations.
    (2) Transportation arrangements will be made by the DLA Disposition 
Services site or by the supporting transportation office.
    (E) HAP orders are shipped by DLA Disposition Services by surface 
to the central point using the most cost-effective mode (and must 
remain within the assigned theater). At no time will HAP property be 
shipped by air unless directed by DLA Disposition Services.
    (10) Shipment or denial notifications. (i) DLA Disposition Services 
sites will use the guidance in DLM 4000.25-1 to prepare materiel 
release confirmations in response to MROs received from DLA Disposition 
Services.
    (ii) When shipments are complete, DLA Disposition Services sites 
will furnish a copy of the shipping document to the customer. This 
document confirms shipment. The customer will notify the DLA 
Disposition Services site if the property is not received within a 
reasonable period of time. FCAs will only be provided a copy of the SF 
122, with annotation of the transportation data, when arrangements for 
DLA Disposition Services sites to ship the property have been made in 
advance.
    (iii) DLA Disposition Services sites will:
    (A) Advise the customer if the property requested is no longer 
available or of acceptable condition.
    (B) Document non-availability by a materiel release denial prepared 
in accordance with DLM 4000.25-1, if item(s) for an MRO are not 
available.
    (C) Issue a letter for all other non-availability notifications, 
with a copy to GSA if they approved the order. The letter will contain 
the following data at a minimum:
    (1) NSN.
    (2) Order number.
    (3) Quantity not available.
    (11) Customer removal of ordered property--(i) Identification 
requirements. When a customer (DoD election to pick up property ordered 
from the DLA Disposition Services site or an FCA or donee) makes 
removal arrangements, the individuals removing the property must be 
properly identified. Coordinate with DLA Disposition Services prior to 
arrival to complete and transmit documents for identification.
    (A) Upon arrival at the DLA Disposition Services site, the 
individuals will identify themselves, sign a DLA Disposition Services 
visitor and vehicle register and indicate on the register the DoDAAC 
represented (for DoD activities) or AAC represented (for non-DoD 
activities), and the purpose of the visit.
    (B) Visitor and vehicle registers will be readily accessible (see 
paragraph (c) of this section).
    (ii) Documentation requirements. (A) Customers will:
    (1) Present an approved and authenticated DD Form 1348-1A, SF 122, 
or 123 ``Transfer Order Surplus Personal Property,'' as appropriate, 
for specific property. The accountable officer or authorized 
individual(s) listed in the previously provided authentication letter 
must sign the DD Form 1348-1A, SF 122, or SF 123.
    (2) Provide designated carrier or removal agents with a copy of DD 
Form 1348-1A or SFs 122 or 123, as appropriate, indicating removal 
authority.
    (i) DoD customers must have a hard copy of the electronically 
transmitted letter of authorization prior to removal, and an email 
response from DLA Disposition Services with verification of personnel 
authorized to remove property.
    (ii) Transfer and donation customers must provide a completed 
letter of authorization to remove property to the DLA Disposition 
Services site prior to removal for verification purposes.
    (B) DLA Disposition Services sites will:
    (1) Ensure the visitor and vehicle register for each direct issue 
includes:
    (i) Name of the individual receiving the property.
    (ii) DoDAAC or AAC or physical location address.
    (iii) Activity of the individual receiving the property.
    (2) Ensure each customer is issued a badge when signing in.
    (3) Ensure that DD Form 1348-1A or SF 122 or 123 is complete 
according to MILSTRIP and disposal requirements and is signed by the 
applicable accountable officer or authorized representative.
    (4) For DoD walk-in customers, ensure a current letter is on file 
at the DLA Disposition Services site identifying the accountable 
officer and authorized individual(s) signing and approving the order.
    (5) Fill the order.
    (6) Provide any appropriate disclaimers or certifications of usage 
or disposal to the customer for signature prior to releasing the 
property.
    (7) Furnish a copy of the completed shipping document to the 
respective accountable officer (record positions 30-35 of DD Form 1348-
1A).
    (8) If being removed by anyone other than the customer, verify that 
the carrier has valid documentation (a copy of DD Form 1348-1A or SFs 
122 or 123, as appropriate) indicating removal authority. Arrange for 
completion of any disclaimers or certifications of usage or disposal 
with the customer, prior to releasing the property to the carrier.
    (9) In case of doubt as to the validity of pickup representatives, 
DLA Disposition Services sites should contact the accountable officer 
who prepared the order for DoD activities, or DLA Disposition Services 
for activities authorized to order as DoD special programs, or the GSA 
regional office for other FCAs or donees.

Appendix 1 to Sec.  273.15

DEMIL Agreement for DEMIL-Required USML Property to FCAs (DEMIL Codes 
C, D, E, OR F)

BILLING CODE 5001-06-P

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[[Page 68228]]


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Appendix 2 to Sec.  273.15

DEMIL Agreement for DEMIL-Required USML Property to Special Programs 
(DEMIL Codes C, D, E, or F)
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[[Page 68229]]


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Appendix 3 to Sec.  273.15

Notification for CCL and Non-DEMIL-Required USML Property to FCAS 
(DEMIL Codes B and Q)

[[Page 68230]]

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[[Page 68231]]


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Appendix 4 to Sec.  273.15

Notification for CCL and Non-DEMIL-Required USML Property to Special 
Programs (DEMIL Codes B and Q)

[[Page 68232]]

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[[Page 68233]]


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Appendix 5 to Sec.  273.15

Customer Reconfirmation
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    Dated: October 22, 2015.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2015-27397 Filed 11-2-15; 8:45 am]
 BILLING CODE 5001-06-C