[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Rules and Regulations]
[Pages 63262-63295]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21309]



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Vol. 81

Wednesday,

No. 178

September 14, 2016

Part II





Department of Energy





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41 CFR Chapter 109





Department of Energy Property Management Regulations; Interim Final 
Rule

  Federal Register / Vol. 81 , No. 178 / Wednesday, September 14, 2016 
/ Rules and Regulations  

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DEPARTMENT OF ENERGY

41 CFR Chapter 109

RIN 1991-AB73


Department of Energy Property Management Regulations

AGENCY: Department of Energy.

ACTION: Interim final rule; notice of public meeting.

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SUMMARY: The Department of Energy (DOE) publishes this interim final 
rule to amend the Department of Energy Property Management Regulations 
to conform to the Federal Property Management Regulation/Federal 
Management Regulation (FPMR/FMR), to remove out of date government 
property parameters, and update references. This rule does not alter 
substantive rights or obligations under current law.

DATES: 
    Effective date: This rulemaking is effective October 14, 2016.
    Comment date: Written comments must be received by October 14, 
2016. DOE will hold a public meeting to discuss this rule on September 
22, 2016 from 9 a.m. to 11 a.m. in Warrenville, IL.

ADDRESSES: The public meeting will be held at the U.S. Department of 
Energy, Fermi National Accelerator Laboratory, Outer Ring Rd, 
Warrenville, IL 60555.
    You may submit comments, identified by ``Property Management 
Regulations--RIN 1991-AB73,'' by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email to: [email protected]. Include ``Property 
Management Regulations--RIN 1991-AB73'' in the subject line of the 
message.
     Mail to: U.S. Department of Energy, Office of Acquisition 
Management, MA-611, 1000 Independence Avenue SW., Washington, DC 20585. 
Comments by email are encouraged.

FOR FURTHER INFORMATION CONTACT: Mr. Scott Whiteford, Deputy Director, 
Office of Management, Department of Energy, at 202-287-1563.

SUPPLEMENTARY INFORMATION:

I. Background
II. Section by Section Analysis
III. Procedural Requirements
    A. Review Under Executive Order 12866
    B. Review Under the Regulatory Flexibility Act
    C. Review Under the Paperwork Reduction Act
    D. Review Under the National Environmental Policy Act
    E. Review Under Executive Order 13132
    F. Review Under Executive Order 12988
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under the Treasury and General Government 
Appropriations Act, 2001
    J. Review Under Executive Order 13211
    K. Review Under the Small Business Regulatory Enforcement 
Fairness Act
    L. The Administrative Procedure Act
    M. Approval of the Office of the Secretary of Energy

I. Background

    Management, use and disposal of government property is governed by 
41 CFR Subtitle C, Federal Property Management Regulations System. 
Possession, use, and disposal of DOE owned property is governed by 
Chapter 109 of Subtitle C, Department of Energy Property Management 
Regulation (DOE-PMR) which is the DOE supplement to the Federal 
Property Management Regulation/Federal Management Regulation (FPMR/
FMR). The DOE-PMR provides requirements for assets that are unique to 
DOE.
    The DOE-PMR is currently out of date. It contains citations that 
are no longer accurate, references to regulations in the CFR that no 
longer exist. DOE has attempted to deal with these deficiencies using 
internal directives to address the deficiencies as they arose. At this 
time it is necessary to update the rule to correct the citations and 
references and to remove coverage of property that is no longer 
controlled by DOE.
    This interim final rule updates the DOE-PMR. It removes expired and 
incorrect citations and inserts correct citations where appropriate. It 
clarifies content and realigns sections so that the DOE-PMR sections 
are numbered consistently with the corresponding sections in the FPMR/
FMR. None of these changes add new requirements.

II. Section by Section Analysis

    DOE amends 41 CFR Ch. 109 as follows:
    Section 109-1.100--50 Scope of subpart is amended to remove 
``Federal Property Management Regulation (FPMR)'' and replaces it with 
``Federal Property Management Regulation/Federal Management Regulation 
(FPMR/FMR)'' throughout this chapter.
    Section 109-1.100-51--Definitions and acronyms. The definitions and 
acronyms are amended to be consistent with current personal property 
requirements. In this chapter, the terms personal property and property 
are synonymous.
    Section 109-1.110-50--Deviation procedures, is updated in paragraph 
(b)(1) by amending ``Director, Office of Administrative Services'' and 
adding ``Office of Management.''
    Section 109-1.5100--Scope of subpart. This Section providing 
guidance on DOE standards and practices to be applied in the management 
of personal property is amended to delete outdated citations.
    Section 109-1.5101--(b) is amended by removing ``Director, Office 
of Administrative Services; heads of field organizations'' and adding 
``Office of Management; Program Secretarial Officer (PSO).''
    Section 109-1.5103--Loan of personal property, in paragraph (a) is 
amended by adding the term ``domestic.''
    Section 109-1.5103--Loan of personal property, in paragraph (b) is 
amended by removing ``Deputy Assistant Secretary for International 
Energy Policy, Trade and Investment'' and adding ``Office of 
International Affairs.''
    Section 109-1.5104--Borrowing of personal property is removed. This 
personal property practice is outdated.
    Section 109-1.5105--Identification marking of personal property, is 
removed to eliminate outdated personal property practices.
    Section 109-1.5108-2--Sensitive items is removed to eliminate 
outdated personal property citations].
    Section 109-1.5109--Control of sensitive items is removed to 
eliminate outdated personal property citations.
    Section 109-1.5110--Physical inventories of personal property. 
Paragraph (e) is amended to reflect current personal property practice. 
The DOE capitalization threshold for items acquired prior to October 1, 
2011 is $50,000. For items acquired on or after October 1, 2011, the 
threshold is $500,000.
    Section 109-1.5111--Retirement of property is amended to eliminate 
outdated personal property citations.

Subpart 109-25.1

    Section 109-25.100--Use of Government personal property and 
nonpersonal services is removed toeliminate outdated personal property 
citations.
    Section 109-25.103--Promotional materials, trading stamps, or bonus 
goods is removed to eliminate outdated personal property citations.
    Section 109-25.103-1--General is removed to eliminate outdated 
personal property citations.
    Section 109-25.104--Acquisition of office furniture and office 
machines is removed to eliminate outdated personal property citations.
    Section 109-25.4--Replacement Standards is removed to eliminate 
outdated personal property citations.

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    Section 109-6.400-50--Is amended to add current personal property 
practices. Specifically, new paragraphs (l) and (m) are added as 
follows: (l) The prohibition against text messaging while operating a 
Government vehicle, or any vehicle while on Government business, as set 
forth under Executive Order 13513; and (m) See 31 U.S.C. 1344 and 41 
CFR 301-10.201 for allowable use of Government vehicles while on 
temporary duty or official travel orders.
    Section 109-6.402--Statutory provisions paragraph (c) is removed to 
eliminate outdated personal property citations.
    Subpart 109-6.402--is amended by removing ``Director, Office of 
Administrative Services; heads of field organizations'' and adding in 
its place ``Office of Management; Program Secretarial Officer (PSO)''.

Subpart 109-26-2

    Section 109-26.203--Activity address codes is amended by removing 
``Director, Office of Administrative Services'' and adding in its place 
``Office of Management'' to make it current with FPMR/FMR.

Subpart 109-26.5

    Sections 109-26.501-1; 109-26.501-4; 109-26.501-50; 109-26.501-51; 
109-26.501-52--are amended by removing ``Director, Office of 
Administrative Services''; and adding in its place ``Office of 
Management'' to make it current with FPMR/FMR.

Subpart 109-27.50

    Sections 109-27.5001; 109-27.5002; 109-27.5003; 109-27.5004; 109-
27.5005; 109-27.5007; 109-27.5007-2; 109-27.5009; 109-27.5011; 109-
27.5011-2; 109-27.5104-3--are removed to eliminate outdated personal 
property citations.

Subpart 109-38.8

    Section 109-38.801--is amended by removing ``Obtaining SF 149, U.S. 
Government National Credit Card'' and adding in its place ``Obtaining 
Fleet Credit Card''.
    Subpart 109-40.305-50--is removed to eliminate an outdated personal 
property citation.

Subpart 109-43.3--Utilization of Excess

    Sec.  109-43.304-1.50--DOE reutilization screening is amended by 
removing (a) Prior to reporting excess personal property to GSA, 
reportable personal property shall be screened for reutilization within 
DOE through the Reportable Excess Automated Property System (REAPS) for 
a 30-day period. REAPS also provides for a 15-day expedited screening 
period for certain categories of personal property for economic 
development and to satisfy urgent conditions and replacing it with (a) 
Personal property must be processed through DOE electronic internal 
screening prior to reporting excess personal property to GSA. (D). 
National Utilization Officer (NUO).
    Section 109-43.307-53--is amended by removing ``Automatic data 
processing equipment (ADPE)'' and adding in its place ``Information 
Technology (IT)''.

Subpart 109-45.3

    Section 109-45.309-54--is amended by removing ``Automatic data 
processing equipment (ADPE)'' and adding in its place ``Information 
Technology (IT)''.
    Subpart 109-45.6--Debarred, Suspended, and Ineligible Contractors, 
is removed to eliminate outdated citation.
    Subpart 109-50.1--is amended by removing ``Used Energy-Related 
Laboratory Equipment Grant Program (ERLE)'' and adding in its place 
``Laboratory Equipment Donation Program Grant program (LEDP)''.
    All remaining sections of 41 CFR Chapter 109 will be amended to 
reflect current property management requirements consistent with the 
Federal Property Management Regulation/Federal Management Regulation 
(FPMR/FMR).

III. Procedural Requirements

A. Review Under Executive Order 12866 and 13563.

    This regulatory action has been determined not to be ``a 
significant regulatory action'' under Executive Order 12866, 
``Regulatory Planning and Review,'' 58 FR 51735 (October 4, 1993). 
Accordingly, this action is not subject to review under that Executive 
Order by the Office of Information and Regulatory Affairs (OIRA) of the 
Office of Management and Budget (OMB).
    DOE has also reviewed this regulation pursuant to Executive Order 
13563, issued on January 18, 2011 (76 FR 3281 (Jan. 21, 2011)). 
Executive Order 13563 is supplemental to and explicitly reaffirms the 
principles, structures, and definitions governing regulatory review 
established in Executive Order 12866. To the extent permitted by law, 
agencies are required by Executive Order 13563 to: (1) Propose or adopt 
a regulation only upon a reasoned determination that its benefits 
justify its costs (recognizing that some benefits and costs are 
difficult to quantify); (2) tailor regulations to impose the least 
burden on society, consistent with obtaining regulatory objectives, 
taking into account, among other things, and to the extent practicable, 
the costs of cumulative regulations; (3) select, in choosing among 
alternative regulatory approaches, those approaches that maximize net 
benefits (including potential economic, environmental, public health 
and safety, and other advantages; distributive impacts; and equity); 
(4) to the extent feasible, specify performance objectives, rather than 
specifying the behavior or manner of compliance that regulated entities 
must adopt; and (5) identify and assess available alternatives to 
direct regulation, including providing economic incentives to encourage 
the desired behavior, such as user fees or marketable permits, or 
providing information upon which choices can be made by the public.
    DOE emphasizes as well that Executive Order 13563 requires agencies 
to use the best available techniques to quantify anticipated present 
and future benefits and costs as accurately as possible. In its 
guidance, the Office of Information and Regulatory Affairs has 
emphasized that such techniques may include identifying changing future 
compliance costs that might result from technological innovation or 
anticipated behavioral changes. DOE believes that this interim final 
rule is consistent with these principles, including the requirement 
that, to the extent permitted by law, agencies adopt a regulation only 
upon a reasoned determination that its benefits justify its costs and, 
in choosing among alternative regulatory approaches, those approaches 
maximize net benefits.

B. Review Under Regulatory Flexibility Act of 1980

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires 
preparation of an initial regulatory flexibility analysis for any rule 
that by law must be proposed for public comment, unless the agency 
certifies that the rule, if promulgated, will not have a significant 
economic impact on a substantial number of small entities. As required 
by Executive Order 13272, ``Proper Consideration of Small Entities in 
Agency Rulemaking'' (67 FR 53461, August 16, 2002), DOE published 
procedures and policies to ensure that the potential impacts of its 
draft rules on small entities are properly considered during the 
rulemaking process (68 FR 7990, February 19, 2003), and has made them 
available on the Office of General Counsel's Web site: http://www.energy.gov/gc/office-general-counsel. DOE has reviewed this

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interim final rule under the provisions of the Regulatory Flexibility 
Act and the procedures and policies published on February 19, 2003, to 
ensure that the potential impacts of its rules on small entities are 
properly considered during the rulemaking process.

C. Review Under the Paperwork Reduction Act of 1995

    This regulatory action will not impose any additional reporting or 
recordkeeping requirements subject to approval under the Paperwork 
Reduction Act. This interim final rule does not impose a collection of 
information requirement subject to the Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. Existing burdens associated with the collection of 
certain contractor data under the DEAR have been cleared under OMB 
control number: 1845-0065.

D. Review Under the National Environmental Policy Act

    DOE has concluded that promulgation of this rule falls into a class 
of actions that would not individually or cumulatively have a 
significant impact on the human environment, as determined by DOE's 
regulations implementing the National Environmental Policy Act of 1969 
(42 U.S.C. 4321 et seq.)(NEPA). Specifically, DOE has determined that 
this interim final rule is covered under categorical exclusions found 
in DOE's NEPA regulations at paragraphs A5 and A6 of Appendix A to 
Subpart D, 10 CFR part 1021. Categorical exclusion A5 applies to a 
rulemaking that amends an existing rule or regulation and that does not 
change the environmental effect of the rule or regulation being 
amended. Categorical exclusion A6 applies to rulemakings that are 
strictly procedural. Accordingly, neither an environmental assessment 
nor an environmental impact statement is required.

E. Review Under Executive Order 13132

    Executive Order 13132, 64 FR 43255 (August 4, 1999), imposes 
certain requirements on agencies formulating and implementing policies 
or regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. The Executive Order also requires agencies 
to have an accountable process to ensure meaningful and timely input by 
State and local officials in the development of regulatory policies 
that have federalism implications. On March 14, 2000, DOE published a 
statement of policy describing the intergovernmental consultation 
process it will follow in the development of such regulations (65 FR 
13735). DOE has examined this proposed rule and has determined that it 
does not preempt State law and does not have a substantial direct 
effect on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

F. Review Under Executive Order 12988

    With respect to the review of existing regulations and the 
promulgation of new regulations, section 3(a) of Executive Order 12988, 
``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
Federal agencies the general duty to adhere to the following 
requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
regulations to minimize litigation; and (3) provide a clear legal 
standard for affected conduct rather than a general standard and 
promote simplification and burden reduction. Section 3(b) of Executive 
Order 12988 specifically requires that Executive agencies make every 
reasonable effort to ensure that the regulation: (1) Clearly specifies 
the preemptive effect, if any; (2) clearly specifies any effect on 
existing Federal law or regulation; (3) provides a clear legal standard 
for affected conduct while promoting simplification and burden 
reduction; (4) specifies the retroactive effect, if any; (5) adequately 
defines key terms; and (6) addresses other important issues affecting 
clarity and general draftsmanship under any guidelines issued by the 
Attorney General. Section 3(c) of Executive Order 12988 requires 
Executive agencies to review regulations in light of applicable 
standards in section 3(a) and section 3(b) to determine whether they 
are met or it is unreasonable to meet one or more of them. DOE has 
completed the required review and determined that, to the extent 
permitted by law, this rule meets the relevant standards of Executive 
Order 12988.

G. Review Under the Unfunded Mandates Act of 1995

    This regulatory action does not contain a Federal mandate that will 
result in the expenditure by State, local, and tribal governments, in 
aggregate, or by the private sector of $100 million or more in any one 
year.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277) requires Federal agencies to issue a Family 
Policymaking Assessment for any proposed rule or policy that may affect 
family well-being. This rule would not have any impact on the autonomy 
or integrity of the family as an institution. Accordingly, DOE has 
concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

I. Review Under the Treasury and General Government Appropriations Act, 
2001

    The Treasury and General Government Appropriations Act, 2001, 44 
U.S.C. 3516 note, provides for agencies to review most disseminations 
of information to the public under implementing guidelines established 
by each agency pursuant to general guidelines issued by OMB. OMB's 
guidelines were published at 67 FR 8452 (February 22, 2002), and DOE's 
guidelines were published at 67 FR 62446 (October 7, 2002). DOE has 
reviewed today's notice of proposed rule under the OMB and DOE 
guidelines and has concluded that it is consistent with applicable 
policies in those guidelines.

J. Review Under Executive Order 13211

    Executive Order 13211, Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use, 66 FR 28355 
(May 22, 2001), requires Federal agencies to prepare and submit to OIRA 
a Statement of Energy Effects for any proposed significant energy 
action. A ``significant energy action'' is defined as any action by an 
agency that promulgated or is expected to lead to promulgation of a 
final rule, and that: (1) Is a significant regulatory action under 
Executive Order 12866, or any successor order and (2) is likely to have 
a significant adverse effect on the supply, distribution, or use of 
energy, or (3) is designated by the Administrator of OIRA as a 
significant energy action. For any proposed significant energy action, 
the agency must give a detailed statement of any adverse effects on 
energy supply, distribution, or use should the proposal be implemented, 
and of reasonable alternatives to the action and their expected 
benefits on energy supply, distribution, and use. Today's regulatory 
action is not a significant energy action. Accordingly, DOE has not 
prepared a Statement of Energy Effects.

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K. Review Under the Small Business Regulatory Enforcement Fairness Act

    As required by 5 U.S.C. 801, DOE will report to Congress on the 
promulgation of this rule prior to its effective date. The report will 
state that it has been determined that the rule is not a ``major rule'' 
as defined by 5 U.S.C. 801(2).

L. The Administrative Procedure Act

    In accordance with 5 U.S.C. 553(b), the Administrative Procedure 
Act, DOE generally publishes a rule in a proposed form and solicits 
public comment on it before issuing the rule in final. This rulemaking, 
as a matter relating to public property, is exempt from the requirement 
to publish a notice of proposed rulemaking under 5 U.S.C. 553(a)(2). 
Specifically, this rule is a matter relating to public property. In 
addition, DOE is not obligated to provide an opportunity for comment on 
this rule pursuant to 5 U.S.C. 553(b)(B), which provides an exception 
to the public comment requirement if the agency finds good cause to 
omit advance notice and public participation. Good cause is shown when 
public comment is ``impracticable, unnecessary, or contrary to the 
public interest.'' An opportunity for comment on this rule would be 
unnecessary because DOE is amending this rule only for consistency with 
the Federal property management regulations. DOE, however, is 
publishing this rule as an interim final rule and allowing for public 
comment until October 14, 2016.

M. Approval of the Office of the Secretary of Energy

    The Office of the Secretary has approved the issuance of this 
interim final rule.

List of Subjects in 41 CFR Chapter 109

    Government property management.

    Issued in Washington, DC, on August 30, 2016.
Carmelo Melendez,
Director, Office of Asset Management.
Barbara Stearrett,
Director, Acquisition Management, National Nuclear Security 
Administration.


0
For the reasons stated in the preamble, DOE revises Chapter 109, title 
41 of the Code of Federal Regulations, as set forth below:

CHAPTER 109--DEPARTMENT OF ENERGY PROPERTY MANAGEMENT REGULATIONS

PART 109-1--INTRODUCTION

SUBCHAPTER A--GENERAL

Subpart 109-1.1--Regulation System
Sec.
109-1.100-50 Scope of subpart.
109-1.100-51 Definitions and acronyms.
109-1.101 Federal Property Management Regulations/Federal Management 
Regulation System.
109-1.101-50 DOE-PMR System.
109-1.102 Federal Property Management Regulations/Federal Management 
Regulation.
109-1.101-50 DOE-PMR System.
109.1.102 Federal Property Management Regulations/Federal Management 
Regulation.
109-1.102-50 DOE-PMRs.
109-1.103 FPMR/FMR temporary regulations.
109-1.103-50 DOE-PMR temporary policies and bulletins.
109-1.104 Publication and distribution of FPMR/FMR.
109-1.104-50 Publication and distribution of DOE-PMR.
109-1.106 Applicability of FPMR/FMR.
109-1.106-50 Applicability of FPMR/FMR and DOE-PMR.
109-1.107 Agency consultation regarding FPMR/FMR.
109-1.107-50 Consultation regarding DOE- PMR.
109-1.108 Agency implementation and supplementation of FPMR/FMR.
109-1.110-50 Deviation procedures.
Subpart 109-1.50--Personal Property Management Program
109-1.5000 Scope of subpart.
109-1.5001 Policy.
109-1.5002 Personal property management program objectives.
Subpart 109-1.51--Personal Property Management Standards and Practices
109-1.5100 Scope of subpart.
109-1.5101 Official use of personal property.
109-1.5102 Maximum use of personal property.
109-1.5103 Loan of personal property.
109-1.5105 Identification marking of personal property.
109-1.5106 Segregation of personal property.
109-1.5107 Physical protection of personal property.
109-1.5108 Personal property records requirements.
109-1.5108-1 Equipment.
109-1.5108-3 Stores inventories.
109-1.5108-4 Precious metals.
109-1.5108-5 Administratively controlled items.
109-1.5110 Physical inventories of personal property.
109-1.5112 Loss, damage, or destruction of personal property in 
possession of DOE direct operations.
109-1.5113 Loss, damage, or destruction of personal property in 
possession of designated contractors.
109-1.5114 Use of non-Government-owned property.
109-1.5148 Personal property management reports.
Subpart 109-1.52--Personal Property Management Program for Designated 
Contractors
109-1.5200 Scope of subpart.
109-1.5201 Policy.
109-1.5202 Establishment of a personal property holdings baseline.
109-1.5203 Management of subcontractor held personal property.
109-1.5204 Review and approval of a designated contractor's personal 
property management system.
109-1.5205 Personal property management system changes.
Subpart 109-1.53--Management of High Risk Personal Property
109-1.5300 Scope of subpart.
109-1.5301 Applicability.
109-1.5302 Policies.
109-1.5303 Procedures.
109-1.5304 Deviations.

Subpart 109-1.1--Regulation System


Sec.  109-1.100-50  Scope of subpart.

    This subpart sets forth the Department of Energy (DOE) Property 
Management Regulations (DOE-PMR) which establish uniform DOE property 
management policies, regulations, and procedures that implement and 
supplement the Federal Property Management Regulations/Federal 
Management Regulation. Property management statutory authorities that 
are unique to the Department (e.g., section 161g of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201(g)) and section 3155 of the National 
Defense Authorization Act for Fiscal Year 1994 (42 U.S.C. 72741)) are 
not addressed in these regulations.


Sec.  109-1.100-51  Definitions and acronyms.

    (a) Definitions. As used in this chapter, the terms personal 
property and property are synonymous. In addition, the following 
definitions apply:
    Accountable Personal Property includes nonexpendable personal 
property whose expected useful life is two years or longer and whose 
acquisition value, as determined by the agency, warrants tracking in 
the agency's property records, including capitalized and sensitive 
personal property. 41 CFR 102-35.20.
    Administratively controlled items means personal property 
controlled at the discretion of individual DOE offices, but for which 
there is no DOE requirement to maintain formal records.
    Cannibalization means to remove serviceable parts from one item of 
equipment in order to install them on another item of equipment (48 CFR 
Subpart 45.101).
    Capitalized Personal Property includes property that is entered on 
the

[[Page 63266]]

agency's general ledger records as a major investment or asset. An 
agency must determine its capitalization thresholds as discussed in 
Financial Accounting Standard Advisory Board (FASAB) Statement of 
Federal Financial Accounting Standards No. 6, 41 CFR 102-35.20; DOE 
Financial Management Handbook.
    Controlled Unclassified Information (CUI) means the Unclassified 
information that is controlled within DOE because its release could 
cause damage. CUI within DOE encompasses Official Use Only (OUO) and 
Unclassified Nuclear Information (UCNI). OUO includes information such 
as Personally Identifiable Information, Export Controlled Information, 
proprietary information, and other information not covered by other DOE 
directives. CUI is governed by Executive Order 13556 and is a 
developing Government-wide policy, Controlled Unclassified Information, 
which will mandate uniform standards for the control of unclassified 
information within the Government.
    Designated contractors means those on-site DOE contractors to which 
the DOE-PMR is made applicable when included as a contractual 
requirement. The contractors to which these regulations may be made 
applicable include management and operating (M&O) contractors, 
environmental management, and other major prime contractors located at 
DOE sites.
    Direct operations means operations conducted by DOE personnel.
    Disposal means the process of reutilizing, transferring, donating, 
selling, abandoning, destroying, or other disposition of Government-
owned personal property.
    Dual-Use List means nuclear-related material, equipment, and 
related technology as described in the Nuclear Suppliers Group Dual-Use 
List as published in International Atomic Energy Agency Information 
Circular (INFCIRC) 254 Part 2 and as implemented by the Department of 
Commerce in the U.S. Export Administration Regulations (15 CFR part 
774).
    Equipment means a tangible asset that is functionally complete for 
its intended purpose, durable, nonexpendable, and needed for the 
performance of a contract. Equipment is not intended for sale, and does 
not ordinarily lose its identity or become a component part of another 
article when put into use (48 CFR Subpart 45.101).
    Especially designed or prepared property means equipment and 
material designed or prepared especially for use in the nuclear fuel 
cycle and described in the Nuclear Suppliers Group Trigger List as 
published in International Atomic Energy Agency INFCIRC 254 Part 1 and 
as implemented by the Nuclear Regulatory Commission in 10 CFR part 110.
    Excess Property means property that is no longer required to carry 
out the Department of Energy's needs, but for purposes of this 
regulation, such property has not been reported to the General Services 
Administration as excess property under 41 CFR 102-36.35.
    Export controlled information means unclassified U.S. Government 
information under DOE cognizance that, if proposed for export by the 
private sector, would require a U.S. Department of Commerce or U.S. 
Department of State validated license, or a DOE authorization for 
export, and which, if given uncontrolled release, could reasonably be 
expected to adversely affect U.S. national security or nuclear 
nonproliferation objectives.
    Export controlled property means property the export of which is 
subject to licensing by the U.S. Department of Commerce, the U.S. 
Department of State, the U.S. Nuclear Regulatory Commission, or 
authorized by the U.S. Department of Energy.
    Hazardous personal property means property that is deemed a 
hazardous material, chemical substance or mixture, or hazardous waste 
under the Hazardous Materials Transportation Act (HMTA) (49 U.S.C. 
5101), the Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6901-6981), or the Toxic Substances Control Act (TSCA) (15 U.S.C. 2601-
2609). 41 CFR 102-36.40.
    High risk personal property means property that, because of its 
potential impact on public health and safety, the environment, national 
security interests, or proliferation concerns, must be controlled, and 
disposed of in other than the routine manner. The categories of high 
risk property are automatic data processing equipment, especially 
designed or prepared property, export controlled information, export 
controlled property, hazardous property, nuclear weapon components or 
weapon-like components, proliferation sensitive property, radioactive 
property, special nuclear material, and unclassified controlled nuclear 
information.
    Information Technology. (i) With respect to an executive agency 
means any equipment or interconnected system or subsystem of equipment, 
used in the automatic acquisition, storage, analysis, evaluation, 
manipulation, management, movement, control, display, switching, 
interchange, transmission, or reception of data or information by the 
executive agency, if the equipment is used by the executive agency 
directly or is used by a contractor under a contract with the executive 
agency that requires the use--
    (A) Of that equipment; or
    (B) Of that equipment to a significant extent in the performance of 
a service or the furnishing of a product;
    (ii) Includes computers, ancillary equipment (including imaging 
peripherals, input, output, and storage devices necessary for security 
and surveillance), peripheral equipment designed to be controlled by 
the central processing unit of a computer, software, firmware and 
similar procedures, services (including support services), and related 
resources; but
    (iii) Does not include any equipment acquired by a federal 
contractor incidental to a federal contract. 40 U.S.C. 11101.
    Munitions List Items (MLIs) are commodities (usually defense 
articles/defense services) listed in the International Traffic in Arms 
Regulation (22 CFR part 121), published by the U.S. Department of 
State. 41 CFR 102-36.40.
    Nuclear weapon component or weapon-like component means parts of 
whole war reserve nuclear weapon systems, joint test assemblies, 
trainers, or test devices, including associated testing, maintenance, 
and handling equipment; or items that simulate such parts.
    Organizational Property Management Officers means establish and 
administer personal property management programs within their 
organizations consistent with applicable laws, regulations, practices, 
and standards.
    Personal property means any property, except real property. For 
purposes of this part, the term excludes records of the Federal 
Government, and naval vessels of the following categories: Battleships, 
cruisers, aircraft carriers, destroyers, and submarines. 102-36.40.
    Program Secretarial Officer (PSO) Assistant Secretaries/Program 
Element Heads.
    Proliferation-sensitive property means nuclear-related or dual-use 
equipment, material, or technology as described in the Nuclear 
Suppliers Group Trigger List and Dual-Use List, or equipment, material 
or technology used in the research, design, development, testing, or 
production of nuclear or other weapons.
    Property Administrator means an authorized representative of the 
contracting officer appointed in accordance with agency procedures, 
responsible for administering the contract requirements and obligations

[[Page 63267]]

relating to Government property in the possession of a contractor FAR 
45-101.
    Property management means the system of acquiring, maintaining, 
using and disposing of the personal property of an organization or 
entity. 102-35.20.
    Radioactive property means any item or material that is 
contaminated with radioactivity and which emits ionizing radiation in 
excess of background radiation as measured by appropriate 
instrumentation.
    Sensitive Personal Property includes all items, regardless of 
value, that require special control and accountability due to unusual 
rates of loss, theft or misuse, or due to national security or export 
control considerations. Such property includes weapons, ammunition, 
explosives, information technology equipment with memory capability, 
cameras, and communications equipment. These classifications do not 
preclude agencies from specifying additional personal property 
classifications to effectively manage their programs. 41 CFR 102-35.20.
    Spare equipment/property means items held as replacement spares for 
equipment in current use in DOE program.
    Special nuclear material means plutonium, uranium 233, uranium 
enriched in the isotope 233 or 235, any other materials which the 
Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 
1954, as amended, determines to be special nuclear material, or any 
material artificially enriched by any of the foregoing, but does not 
include source material.
    Trigger List means nuclear material, equipment, and related 
technology as described in International Atomic Energy Agency in 
INFCIRC 254, Part 1 and as implemented by the Nuclear Regulatory 
Commission in 10 CFR part 110.
    Unclassified controlled nuclear information means U.S. Government 
information pertaining to atomic energy defense activities as defined 
in section 148 of the Atomic Energy Act. Such information can relate to 
aspects of nuclear weapons design, development, testing, physical 
security, production, or utilization facilities. 10 CFR part 1017.
    (b) Acronyms. As used in this chapter, the following acronyms 
apply:

    CFR: Code of Federal Regulations
    CSC: Customer Supply Center
    CUI: Controlled Unclassified Information
    DEAR: Department of Energy Acquisition Regulation
    DOD: Department of Defense
    DOE: Department of Energy
    DOE-PMR: Department of Energy Property Management Regulations
    DPMO: Departmental Property Management Officer
    ECCN: Export Control Classification Number
    ECI: Export Controlled Information
    EHFFP: Equipment Held For Future Projects
    EOQ: Economic Order Quantity
    FAR: Federal Acquisition Regulation
    FPMR/FMR: Federal Property Management Regulations/Federal 
Management Regulation
    FSC: Federal Supply Classification
    FSCG: Federal Supply Classification Group
    GAO: General Accounting Office
    GSA: General Services Administration
    GVWR: Gross Vehicle Weight Rating
    INFCIRC: International Atomic Energy Agency Information Circular
    IFMS: Interagency Fleet Management System
    IT: Information Technology
    LEDP: Laboratory Equipment Donation Program
    M&O: Management and Operating
    MCTL: Military Critical Technologies List
    OPMO: Organizational Property Management Officer
    OPSEC: Operations Security
    PA: Property Administrator
    PSO: Program Secretarial Officer (PSO)
    SNM: Special Nuclear Material
    UCNI: Unclassified Controlled Nuclear Information
    U.S.C.: United States Code


Sec.  109-1.101   Federal Property Management Regulations/Federal 
Management Regulation System.


Sec.  109-1.101-50  DOE-PMR System.

    The DOE-PMR system described in this subpart is established to 
provide uniform personal property management policies, standards, and 
practices within the Department.


Sec.  109-1.102  Federal Property Management Regulations/Federal 
Management Regulation.


Sec.  109-1.102-50  DOE-PMRs.

    The DOE-PMRs (41 CFR Ch. 109) implements and supplements the FPMR/
FMR (41 CFR Ch. 101) issued by the General Services Administration 
(GSA), Public Laws, Executive Orders, Office of Management and Budget 
directives, and other agency issuances affecting the Department's 
personal property management program.


Sec.  109-1.103  FPMR/FMR temporary regulations.


Sec.  109-1.103-50  DOE-PMR temporary policies and bulletins.

    (a) Subject to applicable procedural requirements in 41 U.S.C. 
1707, 42 U.S.C 7191 and 5 U.S.C 553, Personal Property Letters are 
authorized for publication of temporary policies that should not be 
codified in the Code of Federal Regulations (CFR).
    (b) DOE-PMR Bulletins are used to disseminate information 
concerning personal property management matters not affecting policy or 
to clarify instructions in actions required by the FPMR/FMR or DOE-PMR.


Sec.  109-1.104  Publication and distribution of FPMR/FMR.


Sec.  109-1.104-50  Publication and distribution of DOE-PMR.

    The DOE-PMR will be published in the Federal Register and will 
appear in the CFR as Chapter 109 of Title 41, Public Contracts and 
Property Management. Written publications of the DOE-PMR will be 
distributed to DOE offices.


Sec.  109-1.106  Applicability of FPMR/FMR.


Sec.  109-1.106-50  Applicability of FPMR/FMR and DOE-PMR.

    (a) The FPMR/FMR and DOE-PMR apply to all direct operations.
    (b) The DOE-PMR does not apply to facilities and activities 
conducted under Executive Order 12344 (Naval Nuclear Propulsion 
Program) and Public Law 98-525.
    (c) Unless otherwise provided in the appropriate part or subpart, 
the FPMR/FMR and DOE-PMR apply to designated contractors.
    (d) The Procurement Executive or head of a contracting activity may 
designate contractors other than designated contractors to which the 
FPMR/FMR and DOE-PMR apply.
    (e) Program Secretarial Officers and other DOE elements are 
responsible to identify the contracts that involve the life-cycle 
management of personal property assets. The respective program's Head 
of Contracting Activity is responsible to issue direction to 
Contracting Officers to incorporate any and all applicable requirements 
of the FPMR/FMR and DOE-PMR and any supplemental Program Office 
guidance into contracts identified with life-cycle management of 
personal property.
    (f) Principal authority and responsibility for the administration 
of DOE personal property in the custody of its contractors rest with 
the responsible Contracting Officer.
    (g) The FPMR/FMR and DOE-PMR shall be used by contracting officers 
in the administration of applicable contracts, and in the review, 
approval, or appraisal of such contractor operations.
    (h) Regulations for the management of Government property in the 
possession of other DOE contractors are contained in the Federal 
Acquisition Regulation (FAR), 48 CFR part 45, and in the DOE 
Acquisition Regulation (DEAR), 48 CFR part 945.
    (i) Regulations for the management of personal property held by 
financial

[[Page 63268]]

assistance recipients are contained in the DOE Financial Assistance 
Rules (10 CFR part 600) 2 CFR parts 200 and 910 and DOE Order 534.1, 
Accounting.


Sec.  109-1.107-50  Consultation regarding DOE-PMR.

    (a) The DOE-PMR shall be fully coordinated with all Departmental 
elements substantively concerned with the subject matter.
    (b) The accountable Under Secretary is responsible for 
implementation of the DOE PMR through their respective DOE elements.
    (c) Program Secretarial Officers and DOE elements with 
responsibility for personal property, as delegated by their cognizant 
Under Secretary, may develop program management plans and issue 
internal program office guidance that is aligned to the requirements in 
the DOE-PMR and as explicitly authorized by their Under Secretary.
    (d) Heads of Contracting Activity designates Organizational 
Property Management Officers (OPMO) to establish and administer 
personal property management programs within their organizations.
    (e) Contracting Officers designates Property Administrators (PA) as 
authorized representatives responsible performing delegated contract 
administration functions for contract and financial assistance 
requirements relating to Government personal property.
    (f) The Office of Management is responsible for Agency-level 
management of the contract property program and provides policy and 
management assistance in support of the policy implementation effort. 
The Office of Management designates an Agency Property Executive to 
serve as National Utilization Officer responsible for promoting 
acquisition and utilization of excess personal property and for 
establishing policies, standards, and guidance in accordance with 
applicable laws, regulations and sound personal property management 
practices and standards.


Sec.  109-1.108   Agency implementation and supplementation of FPMR/
FMR.

    (a) The DOE-PMR includes basic and significant Departmental 
personal property management policies and standards which implement, 
supplement, or deviate from the FPMR/FMR. In the absence of any DOE-PMR 
issuance, the basic FPMR/FMR material shall govern.
    (b) The DOE-PMR shall be consistent with the FPMR/FMR and shall not 
duplicate or paraphrase the FPMR/FMR material.
    (c) Implementing procedures, instructions, and guides which are 
necessary to clarify or to implement the DOE-PMR may be issued by 
Headquarters or field organizations, provided that the implementing 
procedures, instructions and guides:
    (1) Are consistent with the policies and procedures contained in 
this regulation;
    (2) To the extent practicable, follow the format, arrangement, and 
numbering system of this regulation; and
    (3) Contain no material which duplicates, paraphrases, or is 
inconsistent with the contents of this regulation.


Sec.  109-1.110-50  Deviation procedures.

    (a) Each request for deviation shall contain the following:
    (1) A statement of the deviation desired, including identification 
of the specific paragraph number(s) of the DOE-PMR;
    (2) The reason why the deviation is considered necessary or would 
be in the best interest of the Government;
    (3) If applicable, the name of the contractor and identification of 
the contractor affected;
    (4) A statement as to whether the deviation has been requested 
previously and, if so, circumstances of the previous request;
    (5) A description of the intended effect of the deviation;
    (6) A statement of the period of time for which the deviation is 
needed; and
    (7) Any pertinent background information which will contribute to a 
full understanding of the desired deviation.
    (b)(1) Requests for deviations from applicable portions of the 
FPMR/FMR and DOE-PMR (except aviation related portions) shall be 
forwarded with supporting documentation by the Organizational Property 
Management Officer (OPMO) to the Office of Management.
    (2) Requests for deviations from aviation related portions of the 
FPMR/FMR and DOE-PMR concerning aviation operations shall be forwarded 
by the OPMO or on-site DOE Aviation Management Officer with supporting 
documentation to the DOE Senior Aviation Management Official.
    (c) The accountable Under Secretary is authorized to approve 
documented program-specific or location-specific exemptions, 
exclusions, and/or deviations from requirements of the DOE PMR based on 
mission needs, efficiency, and/or efficacy of execution without 
disregarding federal laws and regulations.
    (d) Requests for deviations from the FPMR/FMR will be coordinated 
with GSA by the Office of Management.

Subpart 109-1.50--Personal Property Management Program


Sec.  109-1.5000  Scope of subpart.

    This subpart supplements the FPMR/FMR, states DOE personal property 
management policy and program objectives, and prescribes authorities 
and responsibilities for the conduct of an efficient personal property 
management program in DOE.


Sec.  109-1.5001  Policy.

    It is DOE policy that a program for the management of personal 
property shall be established and maintained to meet program needs. 
Personal property shall be managed efficiently, in accordance with 
Federal statutes and regulations, and in alignment with mission needs. 
Personal property must be managed in a safe and secure manor and ensure 
personal property assets are available to support efficient mission 
execution. Commercial practices may be used (i.e., industry leading 
practices, voluntary consensus standards) that are necessary, 
appropriate, and provide effective and efficient Government property 
management, except where those practices are inconsistent with law, 
regulation or otherwise impractical.


Sec.  109-1.5002  Personal property management program objectives.

    The objectives of the DOE personal property management program are 
to provide:
    (a) A system for efficiently managing personal property in the 
custody or possession of DOE organizations and designated contractors; 
and
    (b) Uniform principles, policies, and standards for efficient 
management of personal property that are sufficiently broad in scope 
and flexible in nature to facilitate adaptation to local needs and 
various kinds of operations.

Subpart 109-1.51--Personal Property Management Standards and 
Practices


Sec.  109-1.5100  Scope of subpart.

    This subpart provides guidance on DOE standards and practices to be 
applied in the management of personal property.


Sec.  109-1.5101  Official use of personal property.

    Personal property shall be used only in the performance of official 
work of the United States Government, except:
    (a) In emergencies threatening loss of life or property as 
authorized by law;
    (b) As otherwise authorized by law and approved by the Office of

[[Page 63269]]

Management; Program Secretarial Officer (PSO) for their respective 
organizations; or a contracting officer for contractor-held property.


Sec.  109-1.5102  Maximum use of personal property.

    Personal property management practices shall assure the best 
possible use of personal property. Supplies and equipment shall be 
generally limited to those items essential for carrying out the 
programs of DOE efficiently.


Sec.  109-1.5103  Loan of personal property.

    (a) Personal property which is not excess and would otherwise be 
out of service for temporary periods may be loaned to other DOE offices 
and contractors, other Federal agencies, and to others for official 
purposes. The loan request shall be in writing, stating the purpose of 
the loan and period of time required. The loan shall be executed on DOE 
Form 4420.2, Personal Property Loan Agreement when approved in writing 
by the OPMO or on-site DOE property administrator. When approved, a 
memorandum transmitting the loan agreement shall be prepared 
identifying the loan period, delivery time, method of payment and 
transportation, and point of delivery and return, to ensure proper 
control and protect DOE's interest. The domestic loan period shall not 
exceed one year, but may be renewed in one year increments. Second 
renewals of loan agreements shall be reviewed and justified at a level 
of management at least two levels above that of the individual making 
the determination to loan the property. Third renewals shall be 
approved by the head of the field organization or designee.
    (b) Requests for loans to foreign Governments and other foreign 
organizations shall be submitted to the Office of International Affairs 
for approval, with a copy to the cognizant Headquarters program office.


Sec.  109-1.5105  Identification marking of personal property.

    (a) Personal property shall be marked ``U.S. Government property'' 
or ``U.S. DOE'') subject to the criteria below. The markings shall be 
securely affixed to the property, legible, and conspicuous. Examples of 
appropriate marking media are bar code labels, decals, and stamping.
    (b) Personal property which by its nature cannot be marked, such as 
stores items, metal stock, etc., is exempted from this requirement.
    (c) To the extent practicable and economical, markings shall be 
removed prior to disposal outside of DOE. 41 CFR 102-35.30.


Sec.  109-1.5106  Segregation of personal property.

    Generally, contractor-owned personal property shall be segregated 
from Government personal property. Commingling of Government and 
contractor-owned personal property may be allowed only when:
    (a) The segregation of the property would materially hinder the 
progress of the work (i.e., segregation is not feasible for reasons 
such as small quantities, lack of space, or increased costs); and
    (b) Control procedures are adequate (i.e., the Government property 
is specifically marked or otherwise identified as Government property).


Sec.  109-1.5107  Physical protection of personal property.

    Controls such as property pass systems, memorandum records, regular 
or intermittent gate checks, and/or perimeter fencing shall be 
established as appropriate to prevent loss, theft, or unauthorized 
removal of property from the premises on which such personal property 
is located.


Sec.  109-1.5108  Personal property records requirements.

    The contractor's property control records shall provide the 
following information for every accountable item of Government personal 
property in the contractor's possession and any other data elements 
required by specific contract provisions:
    (a) Contract number or equivalent code designation.
    (b) Asset type.
    (c) Description of item (name, serial number, national stock number 
(if available)).
    (d) Property control number (Government ownership identity).
    (e) Unit acquisition cost (including delivery and installation 
cost, when appropriate, and unit of measure).
    (f) Acquisition document reference and date.
    (g) Manufacturer's name, model and serial number.
    (h) Quantity received, fabricated, issued or on hand.
    (i) Location (physical area)
    (j) Custodian name and organization code.
    (k) Use status (active, storage, excess, etc.)
    (l) High risk designation.
    (m) Disposition document reference and date.


Sec.  109-1.5108-1  Equipment.

    An individual property record will be developed and maintained for 
each item of equipment.


Sec.  109-1.5108-3  Stores inventories.

    Perpetual inventory records are to be maintained for stores 
inventory items.


Sec.  109-1.5108-4  Precious metals.

    Perpetual inventory records are to be maintained for precious 
metals.


Sec.  109-1.5108-5  Administratively controlled items.

    No formal property management records are required to be maintained 
for this category of personal property, which includes such items as 
those controlled for calibration or maintenance purposes, contaminated 
property, tool crib items, and equipment pool items. Various control 
records can be employed to help safeguard this property against waste 
and abuse, including purchase vs. use information, tool crib check-
outs, loss and theft reports, calibration records, disposal records, 
and other similar records. Control techniques would include physical 
security, custodial responsibility, identification/marking, or other 
locally established control techniques.


Sec.  109-1.5110  Physical inventories of personal property.

    (a) Physical inventories of those categories of personal property 
as specified in paragraph (g) of this section shall be conducted at all 
DOE and designated contractor locations.
    (b) Physical inventories shall be performed by the use of personnel 
other than custodians of the property. Where staffing restraints or 
other considerations apply, the inventory may be performed by the 
custodian with verification by a second party.
    (c) Detailed procedures for the taking of physical inventories 
shall be developed for each DOE office and designated contractor. The 
OPMO/PA shall review and approve the DOE office and contractor 
procedures.
    (d) The conduct of a physical inventory will be observed, or 
follow-on audits made, by independent representatives, e.g., finance, 
audit, or property personnel, to the extent deemed necessary to assure 
that approved procedures are being followed and results are accurate. 
These observations or audits shall be documented and the documentation 
retained in the inventory record file.
    (e) The DOE capitalization threshold for items acquired prior to 
October 1, 2011 is $50,000. For items acquired on or after October 1, 
2011, the threshold is $500,000.
    (f) Procedures that are limited to a check-off of a listing of 
recorded property without actual verification of

[[Page 63270]]

the location and existence of such property do not meet the 
requirements of a physical inventory.
    (g) The frequency of physical inventories of personal property 
shall be as follows:
    (1) Equipment--biennial 98%. Inventory accuracy.
    (2) Sensitive items--annual 100%. Inventory accuracy.
    (3) Stores inventories--annual.
    (4) Precious metals--annual 100% Inventory accuracy.
    (5) HRPP--annual 100% Inventory accuracy.
    (6) All other accountable property every three years 98% Inventory 
accuracy.
    (7) Administratively controlled items--There is no formal 
Department requirement for the performance of physical inventories of 
this property. However, OPMOs/PA's determines inventory requirements 
based on management needs.
    (h) Physical inventories shall be performed at intervals more 
frequently than required when experience at any given location or with 
any given item or items indicates that this action is necessary for 
effective property accounting, utilization, or control as directed by 
OPMO/PA.
    (i) Physical inventories of equipment may be conducted by the 
``inventory by exception'' method. The system and procedures for taking 
physical inventories by this method must be fully documented and 
approved in writing by the OPMO/PA.
    (j) The results of physical inventories shall be reconciled with 
the property records, and with applicable financial control accounts.
    (k) The results of physical inventories shall be reported to the 
OPMO/PA.
    (l) Physical inventories of equipment and stores inventories may be 
conducted using statistical sampling methods in lieu of the normal 
wall-to-wall method. The sampling methods employed must be 
statistically valid and approved in writing by the OPMO. If use of the 
statistical methods of physical inventory does not produce acceptable 
results, the wall-to-wall method shall be used to complete the 
inventories.


Sec.  109-1.5112  Loss, damage, or destruction of personal property in 
possession of DOE direct operations.

    DOE offices shall establish procedures to provide for the 
reporting, documentation, and investigation of instances of loss, 
damage, or destruction of personal property including:
    (a) Notification to appropriate DOE organizations and law 
enforcement offices;
    (b) Determination of cause or origin;
    (c) Liability and responsibility for repair or replacement; and
    (d) Actions taken to prevent further loss, damage, or destruction, 
and to prevent repetition of similar incidents.


Sec.  109-1.5113  Loss, damage, or destruction of personal property in 
possession of designated contractors.

    (a) Designated contractors shall report any loss, damage, or 
destruction of personal property in its possession or control, 
including property in the possession or control of subcontractors, to 
the property administrator as soon as it becomes known.
    (b) When physical inventories, consumption analyses, or other 
actions disclose consumption of property considered unreasonable by the 
property administrator; or loss, damage, or destruction of personal 
property not previously reported by the contractor, the property 
administrator shall require the contractor to investigate the incidents 
and submit written reports.
    (c) Reports of physical inventory results and identified 
discrepancies shall be submitted to the property administrator within 
90 days of completion of physical inventories. An acceptable percentage 
of shrinkage for stores inventories shall be determined by the property 
administrator on a location-by-location basis, based on type and cost 
of materials, historical data, and other site-specific factors. This 
determination shall be in writing and be supported by appropriate 
documentation.
    (d) The contractor's report referenced above shall contain factual 
data as to the circumstances surrounding the loss, damage, destruction 
or excessive consumption, including:
    (1) The contractor's name and contract number;
    (2) A description of the property;
    (3) Cost of the property, and cost of repairs in instances of 
damage (in event actual cost is not known, use reasonable estimate);
    (4) The date, time (if pertinent), and cause or origin; and
    (5) Actions taken by the contractor to prevent further loss, 
damage, destruction, or unreasonable consumption, and to prevent 
repetition of similar incidents.
    (e) The property administrator shall ensure that the corrective 
actions taken by the contractor under paragraph (d)(5) of this section 
satisfactorily address system weaknesses.
    (f) The contracting officer shall make a determination of 
contractor liability with a copy of the determination furnished to the 
contractor and the property administrator. Costs may be assessed 
against a contractor for physical inventory discrepancies or other 
instances of loss of Government property within the terms of the 
contract. Credit should only be applied if specific items reported as 
lost can be uniquely identified. General physical inventory write-ons 
are not to be used as a credit.
    (g) If part of a designated contractor's personal property 
management system is found to be unsatisfactory, the property 
administrator shall increase surveillance of that part to prevent, to 
the extent possible, any loss, damage, destruction or unreasonable 
consumption of personal property. The property administrator shall give 
special attention to reasonably ensuring that any loss, damage, 
destruction or unreasonable consumption occurring during a period when 
a contractor's personal property management system is not approved is 
identified before approval or reinstatement of approval.


Sec.  109-1.5114  Use of non-Government-owned property.

    Non-Government-owned personal property shall not be installed in, 
affixed to, or otherwise made a part of any Government-owned personal 
property when such action will adversely affect the operation or 
condition of the Government property.


Sec.  109-1.5148   Personal property management reports.

    Annual personal property reports as required by 41 CFR 102 35.25 
and internal DOE personal property reports must be submitted to the 
Office of Management at a date determined by the Property Executive.

Subpart 109-1.52--Personal Property Management Program for 
Designated Contractors


Sec.  109-1.5200  Scope of subpart.

    This subpart prescribes policy and responsibilities for the 
establishment, maintenance, and appraisal of designated contractors' 
programs for the management of personal property.


Sec.  109-1.5201  Policy.

    (a) Designated contractors shall establish, implement, and maintain 
a system that provides for an efficient personal property management 
program. The system shall be consistent with the terms of the contract; 
prescribed policies, procedures, regulations, statutes, and 
instructions; and directions from the contracting officer.
    (b) Designated contractors' personal property management systems 
shall not be considered acceptable until reviewed

[[Page 63271]]

and approved in writing by the cognizant DOE contracting office in 
accordance with Sec.  109-1.5205 of this subpart.
    (c) Designated contractors shall maintain their personal property 
management systems in writing. Revisions to the systems shall be 
approved in writing by the cognizant DOE contracting office in 
accordance with Sec.  109-1.5205 of this subpart.
    (d) Designated contractors shall include their personal property 
management system in their management surveillance or internal review 
program in order to identify weaknesses and functions requiring 
corrective action.
    (e) Designated contractors are responsible and accountable for all 
Government personal property in the possession of subcontractors, and 
shall include appropriate provisions in their subcontracts and property 
management systems to assure that subcontractors establish and maintain 
efficient systems for the management of Government personal property in 
their possession in accordance with Sec.  109-1.5204 of this subpart.


Sec.  109-1.5202  Establishment of a personal property holdings 
baseline.

    (a) If the contractor is a new designated contractor, the 
contractor may accept the previous contractor's personal property 
records as a baseline or may perform a complete physical inventory of 
all personal property. This physical inventory is to be performed 
within the time period specified by the contracting officer or the 
contract, but no later than one year after the execution date of the 
contract. If the physical inventory is not accomplished within the 
allotted time frame, the previous contractor's records will be 
considered as the baseline.
    (b) If any required physical inventories have not been accomplished 
within the time periods prescribed in Sec.  109-1.5110(f) of this part, 
the new contractor shall either perform such physical inventories 
within 120 days of contract renegotiation, or accept the existing 
property records as the baseline.


Sec.  109-1.5203  Management of subcontractor-held personal property.

    Designated contractors shall require those subcontractors provided 
Government-owned personal property to establish and maintain a system 
for the management of such property. As a minimum, a subcontractor's 
personal property management system shall provide for the following:
    (a) Adequate records.
    (b) Controls over acquisitions.
    (c) Identification as Government-owned personal property.
    (d) Physical inventories.
    (e) Proper care, maintenance, and protection.
    (f) Controls over personal property requiring special handling 
(i.e., nuclear-related, proliferation-sensitive, hazardous, or 
contaminated property).
    (g) Reporting, redistribution, and disposal of excess and surplus 
personal property.
    (h) Accounting for personal property that is lost, damaged, 
destroyed, stolen, abandoned, or worn out.
    (i) Periodic reports, including physical inventory results and 
total acquisition cost of Government property.
    (j) An internal surveillance program, including periodic reviews, 
to ensure that personal property is being managed in accordance with 
established procedures.


Sec.  109-1.5204  Review and approval of a designated contractor's 
personal property management system.

    (a) An initial review of a designated contractor's personal 
property management system shall be performed by the property 
administrator within one year after the execution date of the contract, 
except for contract extensions or renewals or when an existing 
contractor has been awarded a follow-on contract. The purpose of the 
review is to determine whether the contractor's system provides 
adequate protection, maintenance, utilization, and disposition of 
personal property, and reasonable assurance that the Department's 
personal property is safeguarded against waste, loss, unauthorized use, 
or misappropriation, in accordance with applicable statutes, 
regulations, contract terms and conditions, programmatic needs, and 
good business practices. If circumstances preclude completion of the 
initial review within the ``within one year'' initial review 
requirement, the property administrator shall request a deviation from 
the requirement in accordance with the provisions of Sec.  109-1.110-50 
of this part.
    (b) If a designated contractor is the successor to a previous 
designated contractor and the contract award was based in part on the 
contractor's proposal to overhaul the existing personal property 
management system(s), the ``within one year'' initial review 
requirement may be extended based on:
    (1) The scope of the overhaul; and
    (2) An analysis of the cost to implement the overhaul within a year 
versus a proposed extended period.
    (c) When an existing contract has been extended or renewed, or the 
designated contractor has been awarded a follow-on contract, an initial 
review of the contractor's personal property management system is not 
required. In such cases, the established appraisal schedule will 
continue to be followed as prescribed in paragraph (d) of this section.
    (d) At a minimum of every three years after the date of approval of 
a designated contractor's property management system, the OPMO/PA shall 
make an appraisal of the personal property management operation of the 
contractor. The purpose of the appraisal is to determine if the 
contractor is managing personal property in accordance with its 
previously approved system and procedures, and to establish whether 
such procedures are efficient. The appraisal may be based on a formal 
comprehensive appraisal or a series of formal appraisals of the 
functional segments of the contractor's operation.
    (e) A designated contractor's property management system shall be 
approved, conditionally approved, or disapproved in writing by the head 
of the field organization with advice of the contracting officer, 
property administrator, OPMO, legal counsel, and appropriate program 
officials. Approval authority may be redelegated to the contracting 
officer or OPMO/PA. Conditional approval and disapproval authority 
cannot be redelegated. When a system is conditionally approved or 
disapproved, the property administrator or contracting officer shall 
advise the contractor, in writing, of deficiencies that need to be 
corrected, and a time schedule established for completion of corrective 
actions.
    (f) Appropriate follow-up will be made by the property 
administrator to ensure that corrective actions have been initiated and 
completed.
    (g) When a determination has been made by the property 
administrator that all major system deficiencies identified in the 
review or appraisal have been corrected, the head of the field 
organization shall withdraw the conditional approval or disapproval, 
and approve the system with the concurrence of the OPMO/PA. The 
approval shall be in writing and addressed to appropriate contractor 
management.
    (h) The property administrator shall maintain a copy of all 
designated contractor personal property management system appraisals 
and approvals in such manner as to be readily available to 
investigative and external review teams.

[[Page 63272]]

Sec.  109-1.5205  Personal property management system changes.

    Any proposed significant change to a designated contractor's 
approved personal property management system shall be reviewed by the 
property administrator at the earliest possible time. Such changes 
should then be approved in writing on an interim basis, or disapproved 
in writing, by the property administrator as appropriate.

Subpart 109-1.53--Management of High Risk Personal Property


Sec.  109-1.5300  Scope of subpart.

    (a) This subpart provides identification, accounting, control, and 
disposal policy guidance for the following categories of high risk 
personal property: Especially designed or prepared property, export 
controlled property, nuclear weapon components or weapon-like 
components, and proliferation sensitive property. The guidance is 
intended to ensure that the disposition of these categories of high 
risk personal property does not adversely affect the national security 
or nuclear nonproliferation objectives of the United States.
    (b) The other categories of high risk personal property are 
controlled by other life cycle management programs and procedures 
monitored by other Departmental elements.


Sec.  109-1.5301  Applicability.

    This subpart is applicable to all DOE organizations which purchase, 
manage or dispose of Government personal property, or contract for the 
management of Government facilities, programs, or related services, 
which may directly or indirectly require the purchase, management, or 
disposal of Government-owned personal property. Using the high-risk 
personal property control requirements in this subpart as guidance, 
Program Secretarial Officer (PSO) or OPMOs/PAs shall ensure that 
designated contractors and financial assistance recipients are 
responsible for developing a cost effective high-risk property 
management system, covering all operational responsibilities enumerated 
in this subpart.


Sec.  109-1.5302  Policies.

    (a) It is the responsibility of DOE organizations and designated 
contractors to manage and control Government-owned high risk personal 
property in an efficient manner. High-risk personal property will be 
managed throughout its life cycle so as to protect public and DOE 
personnel safety and to advance the national security and the nuclear 
nonproliferation objectives of the U.S. Government.
    (b) The disposition of high risk property is subject to special 
considerations. Items of high risk property may present significant 
risks to the national security and nuclear nonproliferation objectives 
of the Government which must be evaluated. Organizations will identify 
high risk property and control its disposition to eliminate or mitigate 
such risks. In no case shall property be transferred or disposed unless 
it receives a high risk assessment and is handled accordingly.


Sec.  109-1.5303   Procedures.

    (a) Identification, marking and control. To ensure the appropriate 
treatment of property at its disposal and to prevent inadvertent, 
uncontrolled release of high risk property, property should be assessed 
and evaluated as high risk property as early in its life cycle as 
practical.
    (1) Newly acquired high risk personal property shall be identified 
and tracked during the acquisition process and marked upon receipt.
    (2) All personal property shall be reviewed for high risk 
identification, marking, and database entry during regularly scheduled 
physical inventories, unless access to the property is difficult or 
impractical because the property is a component of a larger assembly, a 
complex operating system, or an older facility. The review of this 
property will be completed, prior to disposition, when replacing 
components or when operating systems and facilities are decommissioned 
and dismantling.
    (3) High risk personal property which by its nature cannot be 
marked, such as stores items and metal stock, is exempt from this 
requirement. However, personal property management programs should 
contain documentation on the characterization of this property as high 
risk.
    (b) Disposition of high risk property. (1) Prior to disposition, 
all personal property, materials or data will be assessed to determine:
    (i) Whether it should be characterized as high risk, and
    (ii) What actions are necessary to ensure compliance with 
applicable national security or nonproliferation controls.
    (2) The DOE or designated contractor property management 
organization may not process high risk personal property into a 
reutilization/disposal program without performing the reviews 
prescribed by the local high risk property management system. The 
reviews must be properly documented, and all appropriate certifications 
and clearances received, in accordance with the approved site or 
facility personal property management program.
    (3) The disposition (including demilitarization of items on the 
Munitions List) and handling of high risk personal property are subject 
to applicable provisions of subchapter H of the FPMR/FMR, subchapter H 
of this chapter, and the DOE Guidelines on Export Control and 
Nonproliferation.
    (4) All applicable documentation, including records concerning the 
property's categorization as high risk, shall be included as part of 
the property transfer. The documentation shall be included with all 
transfers within, or external to, DOE.
    (5) Unless an alternative disposition option appears to be in the 
best interest of the Government, surplus Trigger List components, 
equipment, and materials and nuclear weapon components shall either be 
sold for scrap after being rendered useless for their originally 
intended purpose or destroyed, with the destruction verified and 
documented. Requests for approval of an alternative disposition may be 
made through the cognizant Assistant Secretary to the Director of the 
Office of Nonproliferation and National Security.
    (6) The following Export Restriction Notice, or approved equivalent 
notice, shall be included in all transfers, sales, or other offerings:

Export Restriction Notice

    The use, disposition, export and re-export of this property are 
subject to all applicable U.S. laws and regulations, including the 
Atomic Energy Act of 1954, as amended; the Arms Export Control Act (22 
U.S.C. 2751 et seq.); the Export Administration Act of 1979 as 
continued under the International Emergency Economic Powers Act (Title 
II of Pub. L. 95-223, 91 Stat. 1626, October 28, 1977); Trading with 
the Enemy Act (50 U.S.C. 4305) as amended by the Foreign Assistance Act 
of 1961); Assistance to Foreign Atomic Energy Activities (10 CFR part 
810); Export and Import of Nuclear Equipment and Material (10 CFR part 
110); International Traffic in Arms Regulations (22 CFR parts 120 et 
seq.); Export Administration Regulations (15 CFR part 730 et seq.);.); 
and the Espionage Act (37 U.S.C. 791 et seq.) which among other things, 
prohibit:
    a. The making of false statements and concealment of any material 
information regarding the use or disposition, export or re-export of 
the property; and
    b. Any use or disposition, export or re-export of the property 
which is not authorized in accordance with the provisions of this 
agreement.

[[Page 63273]]

Sec.  109-1.5304   Deviations.

    (a) Life cycle control determinations. When the PSO approves a 
contractor program containing controls, other than life cycle control 
consistent with this subpart, the decision shall be justified in 
writing and a copy sent to the Office of Management. A PSO's decision 
not to provide life-cycle control should take into account:
    (1) The nature and extent of high risk property typically purchased 
or otherwise brought to a DOE or designated contractor facility or 
site;
    (2) The projected stability of DOE and designated contractor 
operations; and
    (3) The degree of confidence in the property control measures 
available at disposition.
    (b) Certain transfers, sales, or other offerings of high risk 
personal property may require special conditions or specific 
restrictions as determined necessary by the property custodian or 
cognizant program office.
    (c) Requests for deviations from the requirements of this subpart 
may be made through the cognizant PSO to the Office of Management.

PART 109-6--MISCELLANEOUS REGULATIONS

Subpart 109-6.4--Official Use of Government Passenger Carriers Between 
Residence and Place of Employment
Sec.
109-6.400 Scope and applicability.
109-6.400-50 Instructions to DOE passenger carrier operators.
109-6.402 Policy.
109-6.450 Statutory provisions.

    Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 121; 31 U.S.C. 
1344(e)(1).

Subpart 109-6.4--Official Use of Government Passenger Carriers 
Between Residence and Place of Employment


Sec.  109-6.400   Scope and applicability.

    (a) With the exception of Sec.  109-6.400-50, the provisions of 
this subpart and 41 CFR part 102-5 do not apply to designated 
contractors. Official use provisions applicable to these contractors 
are contained in Sec.  109-38.3 of this chapter.
    (b) When an employee on temporary duty is authorized to travel by 
Government motor vehicle, and in the interest of the Government, is 
scheduled to depart before the beginning of regular working hours, or 
if there will be a significant savings in time, a Government motor 
vehicle may be issued at the close of the preceding working day. Such 
authorizations must be submitted to the fleet manager to ensure proper 
use of motor vehicles during non-duty hours. Similarly, when scheduled 
to return after the close of working hours, the motor vehicle may be 
returned the next regular working day. This use of a Government motor 
vehicle is not regarded as prohibited by 31 U.S.C. 1344 (25 Comp. Gen. 
844(1946)).


Sec.  109-6.400-50  Instructions to DOE passenger carrier operators.

    DOE offices shall ensure that DOE employees operating Government 
motor vehicles are informed concerning:
    (a) The statutory requirement that Government motor vehicles shall 
be used only for official purposes;
    (b) Personal responsibility for safe driving and operation of 
Government motor vehicles, and for compliance with Federal, state, and 
local laws and regulations, and all accident reporting requirements;
    (c) The need to possess a valid state, District of Columbia, or 
commonwealth operator's license or permit for the type of vehicle to be 
operated and some form of agency identification. Check for specific 
details within your state laws regarding vehicle operator's licenses 
from foreign countries which may be valid in certain States;
    (d) The penalties for unauthorized use of Government motor 
vehicles;
    (e) The prohibition against providing transportation to strangers 
or hitchhikers;
    (f) The proper care, control and use of Government credit card and 
vehicle keys;
    (g) Mandatory use of seat belts by each employee operating or 
riding in a Government motor vehicle;
    (h) The prohibition against the use of tobacco products in GSA-
Interagency Fleet Management System (IFMS) motor vehicles;
    (i) Any other duties and responsibilities assigned to operators 
with regard to the use, care, operation, and maintenance of Government 
motor vehicles;
    (j) The potential income tax liability when they use a Government 
motor vehicle for transportation between residence and place of 
employment; and
    (k) Protection for DOE employees under the Federal Tort Claims Act 
when acting within the scope of their employment.
    (l) The prohibition against text messaging while operating a 
Government vehicle, or any vehicle while on Government business, as set 
forth under Executive Order 13513; and
    (m) See 31 U.S.C. 1344 and 41 CFR 301-10.201 for allowable use of 
Government vehicles while on temporary duty or official travel orders.


Sec.  109-6.402  Policy.

    (a) It is DOE policy that Government motor vehicles operated by DOE 
employees are to be used only for official Government purposes or for 
incidental purposes as prescribed in this section. The Office of 
Management and Program Secretarial Officer (PSO) for their respective 
organizations shall establish appropriate controls to ensure that the 
use of a Government motor vehicle for transportation between an 
employee's residence and place of employment is in accordance with the 
provisions of 41 CFR part 102-5 and this subpart.
    (b) It is DOE policy that space in a Government motor vehicle used 
for home-to-work transportation may be shared with a spouse, relative, 
or friend in accordance with the restrictions contained in 41 CFR 102-
5.105.


Sec.  109-6.450  Statutory provisions.

    (a) In accordance with 31 U.S.C. 1349(b), any officer or employee 
of the Government who willfully uses or authorizes the use of a 
Government passenger motor vehicle for other than official purposes 
shall be suspended from duty by the head of the department concerned, 
without compensation, for not less than one month and shall be 
suspended for a longer period or summarily removed from office if 
circumstances warrant.
    (b) Under the provisions of 18 U.S.C. 641, any person who knowingly 
misuses any Government property (including Government motor vehicles) 
may be subject to criminal prosecution and, upon conviction, to fines 
or imprisonment.

PART 109-25--GENERAL

Subpart 109-25.1--General Policies
Sec.
109-25-109-1 Identification of idle equipment.
109-25-109-2 Equipment pools.
109-25.302 Office furniture, furnishings, and equipment.
109-25.350 Furnishing of Government clothing and individual 
equipment.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

Subpart 109-25.1--General Policies


Sec.  109-25.109-1  Identification of idle equipment.

    At a minimum, management walk-throughs shall be conducted to 
provide for coverage of all operating and storage areas at least once 
every two years to identify idle and unneeded personal property.


Sec.  109-25.109-2   Equipment pools.

    (a)-(c) [Reserved]

[[Page 63274]]

    (d) The report on the use and effectiveness of equipment pools 
shall be submitted to the head of the DOE office at the discretion of 
that official. However, documentation of evaluations of pools shall be 
maintained and made available for review by appropriate contractor 
management, DOE offices, and audit teams.
    (e) Program Secretarial Officer (PSO) shall require periodic 
independent reviews of equipment pool operations.


Sec.  109-25.302   Office furniture, furnishings, and equipment.

    The Director, Office of Management, Program Secretarial Officer 
(PSO), and designated contractors shall establish criteria for the use 
of office furniture, furnishings, and equipment.


Sec.  109-25.350  Furnishing of Government clothing and individual 
equipment.

    (a) Government-owned clothing and individual equipment may be 
furnished to employees:
    (1) For protection from physical injury or occupational disease; or
    (2) When employees could not reasonably be required to furnish them 
as a part of the personal clothing and equipment needed to perform the 
regular duties of the position to which they are assigned or for which 
services were engaged.
    (b) This section does not apply to uniforms or uniform allowances 
under the Federal Employees Uniform Allowance Act of 1954, 84 Public 
Law 37, as amended.

PART 109-26--PROCUREMENT SOURCES AND PROGRAM

Subpart 109-26.2--Federal Requisitioning System
Sec.
109-26.203 Activity address codes.
Subpart 109-26.5--GSA Procurement Programs
109-26.501 Purchase of new motor vehicles.
109-26.501-1 General.
109-26.501-4 Submission of orders.
109-26.501-50 Authority and allocations for the acquisition of 
passenger motor vehicles.
109-26.501-51 Used vehicles.
109-26.501-52 Justification for purchase.
109-26.501-53 Acquisitions by transfer.
109-26.501-54 Communications equipment.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

Subpart 109-26.2--Federal Requisitioning System


Sec.  109-26.203  Activity address codes.

    (a) DOE field organizations designated by the Office of Management 
are responsible for processing routine activity code related 
transactions for specified groupings of field organizations. Each field 
organization in a specified grouping will forward their activity 
address code related transactions to the grouping's lead organization 
for processing. Each lead organization shall designate a point of 
contact who will:
    (1) Verify the need, purpose, and validity of each transaction; and
    (2) Be the specified grouping's authorized point of contact for 
dealing directly with GSA.
    (b) The Office of Management is responsible for:
    (1) All policy matters related to the issuance and control of 
activity address codes within DOE; and
    (2) Furnishing the identity of the lead field organization points 
of contact to GSA.

Subpart 109-26.5--GSA Procurement Programs


Sec.  109-26.501  Purchase of new motor vehicles.


Sec.  109-26.501-1  General.

    (a) GSA is a mandatory source, under FPMR 101-26.501, for purchase 
of new non-tactical vehicles.
    (b) Under unique circumstances which meet the criteria set forth 
under FPMR, motor vehicles may be purchased directly rather than 
through GSA when a waiver has been granted by GSA. The waiver request 
should be submitted directly to GSA and a copy forwarded to the Office 
of Management. GSA will grant waivers on a case-by-case basis, in 
accordance with FPMR 101-26.501(b)(c).


Sec.  109-26.501-4   Submission of orders.

    An original and two copies of requisitions for passenger motor 
vehicles and law enforcement motor vehicles shall be forwarded with 
justification for purchase to the Office of Management, for approval 
and submission to GSA. Requisitions for all other types of motor 
vehicles shall be submitted directly to GSA.


Sec.  109-26.501-50  Authority and allocations for the acquisition of 
passenger motor vehicles.

    (a) Authority for the acquisition of passenger motor vehicles is 
contained in the Department's annual appropriation act.
    (b) DOE offices shall include in their budget submissions the 
number of passenger motor vehicles to be purchased during the fiscal 
year. The procurements will be identified as either additions to the 
motor vehicle fleet or replacement vehicles. A copy of the motor 
vehicle portion of the submission should be submitted to the Office of 
Management.
    (c) To ensure that DOE does not exceed the number of passenger 
motor vehicles authorized to be acquired in any fiscal year, the Office 
of Management or designee shall allocate to and inform the field 
organizations in writing of the number of passenger motor vehicles 
which may be acquired under each appropriation. These allocations and 
the statutory cost limitations imposed on these motor vehicles shall 
not be exceeded.
    (d) The motor vehicle fleet manager shall provide written 
certification to the OPMO that disposition action has been taken on 
replaced passenger motor vehicles. Such certification shall be provided 
no later than 30 days after the disposition of the vehicle. Replaced 
passenger motor vehicles shall not be retained in service after receipt 
of the replacement vehicle.


Sec.  109-26.501-51  Used vehicles.

    Normally, DOE does not purchase or authorize contractors to 
purchase used motor vehicles. However, the Office of Management and 
Program Secretarial Officer (PSO) may authorize the purchase of used 
motor vehicles where justified by special circumstances, e.g., when new 
motor vehicles are in short supply; motor vehicles are to be used for 
experimental or test purposes; or motor vehicles are acquired from 
exchange/sale. The statutory passenger motor vehicle allocation 
requirements shall apply to any purchase of used passenger motor 
vehicles except in the case of motor vehicles to be used exclusively 
for experimental or test purposes.


Sec.  109-26.501-52  Justification for purchase.

    (a) Requisitions for additions to the passenger motor vehicle fleet 
must contain adequate written justification of need. Such 
justifications shall be prepared by the motor vehicle fleet manager and 
approved by the OPMO, and should include:
    (1) A statement as to why the present fleet size is inadequate to 
support requirements;
    (2) Efforts made to achieve maximum use of on-hand motor vehicles 
through pool arrangements, shuttle buses, and taxicabs;
    (3) The programmatic requirement for the motor vehicles and the 
impact on the program/project if the requisitions are not filled;
    (4) The established DOE or local utilization objectives used to 
evaluate the utilization of passenger motor

[[Page 63275]]

vehicles and whether the objectives have been approved by the OPMO; and
    (5) The date of the last utilization review and the number of 
passenger motor vehicles which did not meet the established utilization 
objectives and the anticipated mileage to be achieved by the new motor 
vehicles.
    (b) Requisitions for replacement passenger motor vehicles should 
include a statement that utilization, pools, shuttle buses and taxicabs 
have been considered by the motor vehicle fleet manager and the OPMO. 
Specific information on the identification, age and mileage of the 
motor vehicles should be included. When a passenger motor vehicle being 
replaced does not meet Federal replacement standards, a description of 
the condition of the vehicle should also be provided.


Sec.  109-26.501-53  Acquisitions by transfer.

    (a) The acquisition of passenger motor vehicles by transfer from 
another Government agency or DOE organization shall be within the 
allocations prescribed in Sec.  109-26.501-50 of this subpart.
    (b) Passenger motor vehicles may be acquired by transfer provided 
they are:
    (1) Considered as an addition to the motor vehicle fleet of the 
receiving office;
    (2) Acquired for replacement purposes and an equal number of 
replaced motor vehicles are reported for disposal within 30 days;
    (3) For temporary emergency needs exceeding three months and 
approved in writing by the DPMO; or
    (4) For temporary emergency needs of three months or less in lieu 
of commercial rentals. These transfers will not count toward the 
allocation.


Sec.  109-26.501-54  Communications equipment.

    Communications equipment considered to be essential for the 
accomplishment of security and safety responsibilities is exempt from 
the requirements of 41 CFR 101-26.501. The Fleet Manager shall approve 
the installation of communications equipment in motor vehicles.

PART 109-27--INVENTORY MANAGEMENT

Subpart 109-27.50--Inventory Management Policies, Procedures, and 
Guidelines
Sec.
109-27.5008 Control of drug substances.
Subpart 109-27.51--Management of Precious Metals
109-27.5100 Scope of subpart.
109-27.5101 Definition.
109-27.5102 Policy.
109-27.5103 Precious Metals Control Officer.
109-27.5104 Practices and procedures.
109-27.5104-1 Acquisitions.
109-27.5104-2 Physical protection and storage.
109-27.5104-3 [Reserved]
109-27.5104-4 Physical inventories.
109-27.5104-5 Control and issue of stock.
109-27.5104-6 Control by using organization.
109-27.5105 Management reviews and audits.
109-27.5106 Precious metals pool.
109-27.5106-1 Purpose.
109-27.5106-2 Withdrawals.
109-27.5106-3 Returns.
109-27.5106-4 Withdrawals/returns forecasts.
109-27.5106-5 Assistance.
109-27.5107 Recovery of silver from hypo solution and scrap film.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254).

Subpart 109-27.50--Inventory Management Policies, Procedures, and 
Guidelines


Sec.  109-27.5008  Control of drug substances.

    Effective procedures and practices shall provide for the management 
and physical security of controlled substances from receipt to the 
point of use. Such procedures shall, as a minimum, provide for 
safeguarding, proper use, adequate records, and compliance with 
applicable laws and regulations.

Subpart 109-27.51--Management of Precious Metals


Sec.  109-27.5100  Scope of subpart.

    This subpart provides policies, principles, and guidelines to be 
used in the management of purchased and recovered precious metals used 
to meet research, development, production, and other programmatic 
needs.


Sec.  109-27.5101   Definition.

    Precious metals means uncommon and highly valuable metals 
characterized by their superior resistance to corrosion and oxidation. 
Included are gold, silver, and the platinum group metals--platinum, 
palladium, rhodium, iridium, ruthenium and osmium.


Sec.  109-27.5102  Policy.

    DOE organizations and contractors shall establish effective 
procedures and practices for the administrative and physical control of 
precious metals in accordance with the provisions of this subpart.


Sec.  109-27.5103  Precious Metals Control Officer.

    Each DOE organization and contractor holding precious metals shall 
designate in writing a Precious Metals Control Officer. This individual 
shall be the organization's primary point of contact concerning 
precious metals control and management, and shall be responsible for 
the following:
    (a) Ensuring that the organization's precious metals activities are 
conducted in accordance with Departmental requirements.
    (b) Maintaining an accurate list of the names of precious metals 
custodians.
    (c) Providing instructions and training to precious metals 
custodians and/or users as necessary to assure compliance with 
regulatory responsibilities.
    (d) Ensuring that physical inventories are performed as required 
by, and in accordance with, these regulations.
    (e) Witnessing physical inventories.
    (f) Performing periodic unannounced inspections of a custodian's 
precious metals inventory and records.
    (g) Conducting an annual review of precious metals holdings to 
determine excess quantities.
    (h) Preparing and submitting to the DOE Business Center for 
Precious Metals Sales and Recovery the annual forecast of anticipated 
withdrawals from, and returns to, the DOE precious metals pool.
    (i) Conducting a program for the recovery of silver from used hypo 
solution and scrap film in accordance with 41 CFR 101-45.10 and Sec.  
109-45.10 of this chapter.
    (j) Preparing and submitting of the annual report on recovery of 
silver from used hypo solution and scrap film as required by Sec.  109-
45.1002-2 of this chapter.
    (k) Developing and issuing current authorization lists of persons 
authorized by management to withdraw precious metals from stockrooms.


Sec.  109-27.5104  Practices and procedures.


Sec.  109-27.5104-1  Acquisitions.

    DOE organizations and contractors shall contact the DOE Business 
Center for Precious Metals Sales and Recovery to determine the 
availability of precious metals prior to acquisition on the open 
market.


Sec.  109-27.5104-2  Physical protection and storage.

    Precious metals shall be afforded exceptional physical protection 
from time of receipt until disposition. Precious metals not in use 
shall be stored in a noncombustible combination locked repository with 
access limited to the designated custodian and an alternate. When there 
is a change in custodian or alternate having access to the repository, 
the combination shall be changed immediately.

[[Page 63276]]

Sec.  109-27.5104-3  [Reserved]


Sec.  109-27.5104-4   Physical inventories.

    (a) Physical inventories shall be conducted annually by custodians, 
and witnessed by the Precious Metals Control Officer or his designee in 
accordance with 109-1.5110, Physical inventories frequency 
requirements.
    (b) Precious metals not in use shall be inspected and weighed on 
calibrated scales. The inventoried weight and form shall be recorded on 
the physical inventory sheets by metal content and percent of metal. 
Metals in use in an experimental process or contaminated metals, 
neither of which can be weighed, shall be listed on the physical 
inventory sheet as observed and/or not observed as applicable.
    (c) Any obviously idle or damaged metals should be recorded during 
the physical inventory. Justification for further retention of idle 
metals shall be required from the custodian and approved one level 
above the custodian, or disposed of in accordance with established 
procedures.
    (d) The dollar value of physical inventory results shall be 
reconciled with the financial records. All adjustments shall be 
supported by appropriate adjustment reports, and approved by a 
responsible official.


Sec.  109-27.5104-5  Control and issue of stock.

    Precious metals in stock are metals held in a central location and 
later issued to individuals when authorized requests are received. The 
following control procedures shall be followed for such metals:
    (a) Stocks shall be held to a minimum consistent with efficient 
support to programs.
    (b) The name and organization number of each individual authorized 
to withdraw precious metals, and the type and kind of metals, shall be 
prominently maintained in the stockroom. This authorization shall be 
issued by the Precious Metals Control Officer or his designee and 
updated annually. Issues of metals will be made only to authorized 
persons.
    (c) Accurate records of all receipts, issues, returns, and 
disposals shall be maintained in the stockroom.
    (d) Receipts for metal issues and returns to stock shall be 
provided to users. Such receipts, signed by the authorized requesting 
individual and the stockroom clerk, shall list the requesting 
organization, type and form of metal, quantity, and date of 
transaction.


Sec.  109-27.5104-6  Control by using organization.

    (a) After receipt, the using organization shall provide necessary 
controls for precious metals. Materials shall be stored in a non-
combustible, combination locked repository at all times except for 
quantities at the actual point of use.
    (b) Each using organization shall maintain a log showing the 
individual user, type and form of metal, and the time, place, and 
purpose of each use. The log shall be kept in a locked repository when 
not in use.
    (c) The logs and secured locked storage facilities are subject to 
review by the Precious Metals Control Officer and other audit or review 
staffs as required.
    (d) Cognizant Departmental managers are responsible for assuring 
that minimum quantities of precious metals are withdrawn consistent 
with work requirements and that quantities excess to requirements are 
promptly returned to the stockroom.


Sec.  109-27.5105  Management reviews and audits.

    (a) Unannounced inspections of custodian's precious metals 
inventory and records may be conducted between scheduled inventories.
    (b) DOE organizations and contractors holding precious metals shall 
annually review the quantity of precious metals on hand to determine if 
the quantity is in excess of program requirements. Precious metals 
which are not needed for current or foreseeable requirements shall be 
promptly reported to the DOE precious metals pool. The results of this 
annual review are to be documented and entered into the precious metals 
inventory records.


Sec.  109-27.5106   Precious metals pool.


Sec.  109-27.5106-1   Purpose.

    The purpose of the precious metals pool is to recycle, at a minimum 
cost to pool participants, DOE-owned precious metals within the 
Department and to dispose of DOE-owned precious metals that are excess 
to DOE needs. However, if the pool is unable to accept any potential 
precious metal return, the using activity will dispose of the precious 
metals through the disposal process specified in subchapter H of the 
FPMR/FMR and this regulation.


Sec.  109-27.5106-2  Withdrawals.

    Pure metals are available through the Business Center for either 
direct shipment to DOE contractors or facilities to fulfill fabrication 
requirements. Contact the Business Center for available forms and 
quantity (https://www.y12.doe.gov/missions/pmetal/).


Sec.  109-27.5106-3  Returns.

    All excess precious metals must be returned to the precious metals 
pool except as noted in Sec.  109-27.5106-1 of this subpart. The pool 
is entirely dependent on metal returns; therefore, metal inventories 
should be maintained on an as-needed basis, and any excess metals must 
be returned to the pool for recycling. This includes precious metals in 
any form, including shapes, and scraps. Procedures have been developed 
by the precious metals pool contractor for metal returns, including 
storing, packaging, shipping, and security.


Sec.  109-27.5106-4  Withdrawals/returns forecasts.

    The Business Center for Precious Metals Sales and Recovery will 
request annually from each DOE field organization its long-range 
forecast of anticipated withdrawals from the pool and returns to the 
pool.


Sec.  109-27.5106-5  Assistance.

    The Business Center for Precious Metals Sales and Recovery operates 
the precious metals pool. DOE organizations and contractors may obtain 
specific information regarding the operation of the precious metals 
pool (operating contractor's name, address, and telephone number; 
processing charges; etc.) by contacting the Chief, Property Management 
Branch.


Sec.  109-27.5107   Recovery of silver from used hypo solution and 
scrap film.

    The requirements for the recovery of silver from used hypo solution 
and scrap film are contained in Sec.  109-45.1003 of this chapter.

PART 109-28--STORAGE AND DISTRIBUTION

Sec.
109-28.000-50 Policy.
109-28.000-51 Storage guidelines.
Subpart 109-28.3--Customer Supply Centers
109-28.306 Customer supply center (CSC) accounts and related 
controls.
109-28.306-3 Limitations on use.
109-28.306-5 Safeguards.
Subpart 109-28.50--Management of Equipment Held for Future Projects
109-28.5000 Scope of subpart.
1109-28.5001 Definition.
109-28.5002 Objective.
109-28.5003 Records.
109-28.5004 Justification and review procedures.
109-28.5005 EHFFP program review.
109-28.5006 Utilization.

[[Page 63277]]

Subpart 109-28.51--Management of Spare Equipment/Property
109-28.5100 Scope of subpart.
109-28.5101 Definition.
109-28.5102 Exclusions.
109-28.5103 Management policy.

    Authority: 42 U.S.C. 7254.


Sec.  109-28.000-50  Policy.

    DOE offices and designated contractors shall:
    (a) Establish storage space and warehousing services for the 
receipt, storage, issue, safekeeping and protection of Government 
property;
    (b) Provide storage space and warehousing services in the most 
efficient manner consistent with program requirements; and
    (c) Operate warehouses in accordance with generally accepted 
industrial management practices and principles.


Sec.  109-28.000-51  Storage guidelines.

    (a) Indoor storage areas should be arranged to obtain proper stock 
protection and maximum utilization of space within established floor 
load capacities.
    (b) Storage yards for items not requiring covered protection shall 
be protected by locked fenced enclosures to the extent necessary to 
protect the Government's interest.
    (c) Storage areas shall be prominently posted to clearly indicate 
that the property stored therein is U.S. Government property, with 
entrance to such areas restricted to authorized personnel only.
    (d) Property in storage must be protected from fire, theft, 
deterioration, or destruction. In addition certain items require 
protection from dampness, heat, freezing, or extreme temperature 
changes. Other items must be stored away from light and odors, 
protected from vermin infestation, or stored separately because of 
their hazardous characteristics.
    (e) Hazardous or contaminated property, including property having a 
history of use in an area where exposure to contaminated property may 
have occurred, shall not be commingled with non-contaminated property, 
but stored separately in accordance with instructions from the 
environmental, safety, and health officials.
    (f) Unless inappropriate or impractical until declared excess, 
nuclear-related and proliferation-sensitive property shall be 
identified as such by use of a certification tag signed by an 
authorized program official (designated in writing with signature cards 
on file in the personal property management office). Such personal 
property shall not be commingled with other personal property, but 
stored separately in accordance with instructions from the cognizant 
program office.

Subpart 109-28.3--Customer Supply Centers


Sec.  109-28.306  Customer supply center (CSC) accounts and related 
controls.


Sec.  109-28.306-3   Limitations on use.

    DOE offices and designated contractors shall establish internal 
controls for ensuring that the use of CSC accounts is limited to the 
purchase of items for official Government use.


Sec.  109-28.306-5  Safeguards.

    DOE offices and designated contractors shall establish internal 
controls for ensuring that the customer access codes assigned for their 
accounts are properly protected.

Subpart 109-28.50--Management of Equipment Held for Future Projects


Sec.  109-28.5000  Scope of subpart.

    This subpart provides policies, principles, and guidelines to be 
used in the management of equipment held for future projects (EHFFP).


Sec.  109-28.5001  Definition.

    Equipment held for future projects means items being retained, 
based on approved justifications, for a known future use, or for a 
potential use in planned projects.


Sec.  109-28.5002  Objective.

    The objective of the EHFFP program is to enable DOE offices and 
contractors to retain equipment not in use in current programs but 
which has a known or potential use in future DOE programs, while 
providing visibility on the types and amounts of equipment so retained 
through review and reporting procedures. It is intended that equipment 
be retained where economically justifiable for retention, considering 
cost of maintenance, replacement, obsolescence, storage, deterioration, 
or future availability; made available for use by others; and promptly 
excessed when no longer needed.


Sec.  109-28.5003  Records.

    Records of all EHFFP shall be maintained by the holding 
organization, including a listing of items with original date of 
classification as EHFFP; initial justifications for retaining EHFFP; 
rejustifications for retention; and documentation of reviews made by 
higher levels of management.


Sec.  109-28.5004  Justification and review procedures.

    Procedures shall provide for the following:
    (a) The original decision to classify and retain equipment as EHFFP 
shall be justified in writing, providing sufficient detail to support 
the need for retention of the equipment. This justification will cite 
the project for which retained, the potential use to be made of the 
equipment, or other reasons for retention.
    (b) The validity of the initial classification EHFFP shall be 
reviewed by management at a level above that of the individual making 
the initial determination.
    (c) Retention of equipment as EHFFP must be rejustified annually to 
ensure that original justifications remain valid. The rejustifications 
will contain sufficient detail to support retention.
    (d) When equipment is retained as EHFFP for longer than one year, 
the annual rejustification shall be reviewed at a level of management 
at least two levels above that of the individual making the 
determination to retain the EHFFP. Equipment retained as EHFFP for 
longer than three years should be approved by the head of the DOE field 
organization.


Sec.  109-28.5005  EHFFP program review.

    OPMOs or on-site DOE property administrators shall conduct periodic 
reviews in accordance 109-1.5110 Physical inventories of personal 
property frequency requirement to ensure that the EHFFP program is 
being conducted in accordance with established procedures DOE-FMR. 
Included in the review will be proper determinations of property as 
EHFFP, the validity of justifications for retaining EHFFP.


Sec.  109-28.5006  Utilization.

    It is DOE policy that, where practicable and consistent with 
program needs, EHFFP be considered as a source of supply to avoid or 
postpone acquisition.

Subpart 109-28.51--Management of Spare Equipment/Property


Sec.  109-28.5100  Scope of subpart.

    This subpart provides policy guidance to be used in the management 
of spare equipment.


Sec.  109-28.5101  Definition.

    Spare equipment/property means items held as replacement spares for 
equipment in current use in DOE program.

[[Page 63278]]

Sec.  109-28.5102  Exclusions.

    The following categories of equipment will not be considered spare 
equipment:
    (a) Equipment/Property installed for emergency backup, e.g., an 
emergency power facility, or an electric motor or a pump, any of which 
is in place and electrically connected.
    (b) Equipment items properly classified as stores inventory.


Sec.  109-28.5103  Management policy.

    (a) Procedures shall require the maintenance of records for spare 
equipment/property, cross-referenced to the location in the facility 
and the engineering drawing number. The purpose for retention shall be 
in the records.
    (b) Reviews shall be made based on technical evaluations of the 
continued need for the equipment. The reviews should be held 
biennially. In addition, individual item levels shall be reviewed when 
spare equipment/Property is installed for use, the basic equipment is 
removed from service, or the process supported is changed.
    (c) Procedures shall be established to provide for the 
identification and reporting of unneeded spare equipment/property as 
excess property.

PART 109-30--FEDERAL CATALOG SYSTEM

Sec.
109-30.001-50 Applicability.

    Authority: 42 U.S.C. 7254.


Sec.  109-30.001-50   Applicability.

    The provisions of 41 CFR part 101-30 do not apply to designated 
contractors.

PART 109-38--MOTOR EQUIPMENT MANAGEMENT

Sec.
109-38.000 Scope of part.
109-38.000-50 Policy.
Subpart 109-38.0--Definition of Terms
109-38.001 Definitions.
Subpart 109-38.1--Fuel Efficient Motor Vehicles
109-38.104 Fuel efficient passenger automobiles and light trucks.
109-38.105 Agency purchase and lease of motor vehicles.
Subpart 109-38.2--Registration, Identification, and Exemptions
109-38.200 General requirements.
109-38.201 Registration and inspection.
109-38.201-50 Registration in foreign countries.
109-38.202 Tags.
109-38.202-2 Outside the District of Columbia.
109-38.202-3 Records.
109-38.202-50 Security.
109-38.203 Agency identification.
109-38.204 Exemptions.
109-38.204-1 Unlimited exemptions.
109-38.204-3 Requests for exempted motor vehicles in the District of 
Columbia.
109-38.204-4 Report of exempted motor vehicles.
109-38.204-50 Records of exempted motor vehicles.
Subpart 109-38.3--Official Use of Government Motor Vehicles
109-38.300 Scope.
109-38.301 Authorized use.
109-38.301-1 Contractors' use.
109-38.301-1.50 Authorization for transportation between residence 
and place of employment.
109-38.301-1.51 Emergency use.
109-38.301-1.52 Maintenance of records.
109-38.301-1.53 Responsibilities of motor vehicle operators.
Subpart 109-38.4--Use and Replacement Standards
109-38.401 Use standards.
109-38.401-2 Use of self-service pumps.
109-38.402 Replacement standards.
109-38.402-50 Prompt disposal of replaced motor vehicles.
109-38.403 Responsibility for damages.
109-38.403-1 Policy.
109-38.403-2 Responsibility.
109-38.403-3 Exceptions.
Subpart 109-38.5--Scheduled Maintenance
109-38.502 Guidelines.
109-38.502-50 DOE guidelines.
Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles
109-38.701 Transfer of title for Government-owned motor vehicles.
109-38.701-50 Authority to sign Standard Form 97, The United States 
Government Certificate to Obtain Title to a Vehicle.
Subpart 109-38.8--Fleet Credit Card
109-38.800 General.
109-38.801 Obtaining fleet credit card.
Subpart 109-38.9--Federal Motor Vehicle Fleet Report
109-38.902 Records.
109-38.903 Reporting of data.
109-38.903-50 Reporting DOE motor vehicle data.
Subpart 109-38.51--Utilization of Motor Equipment
109-38.5100 Scope of subpart.
109-38.5101 Policy.
109-38.5102 Utilization controls and practices.
109-38.5103 Motor vehicle utilization standards.
109-38.5104 Other motor equipment utilization standards.
109-38.5105 Motor vehicle local use objectives.
109-38.5106 Application of motor vehicle use goals.
Subpart 109-38.52--Watercraft
109-38.5200 Scope of subpart.
109-38.5201 Definition.
109-38.5202 Watercraft operations.
109-38.5203 Watercraft identification and numbers.

    Authority: 42 U.S.C. 7254.


Sec.  109-38.000  Scope of part.


Sec.  109-38.000-50  Policy.

    Motor vehicles and watercraft shall be acquired, maintained, and 
utilized in support of DOE programs in the minimum quantity required 
and in the most efficient manner consistent with program requirements, 
safety considerations, fuel economy, and applicable laws and 
regulations.

Subpart 109-38.0--Definition of Terms


Sec.  109-38.001  Definitions.

    Experimental vehicles means vehicles acquired solely for testing 
and research purposes or otherwise designated for experimental 
purposes. Such vehicles are to be the object of testing and research as 
differentiated from those used as vehicular support to testing and 
research. Experimental vehicles are not to be used for passenger 
carrying services unless required as part of a testing/evaluation 
program, and they are not subject to statutory price limitations or 
authorization limitations.
    Motor equipment means any item of equipment which is self-propelled 
or drawn by mechanical power, including motor vehicles, motorcycles and 
scooters, construction and maintenance equipment, materials handling 
equipment, and watercraft.
    Motor vehicle means any equipment, self-propelled or drawn by 
mechanical power, designed to be operated principally on highways in 
the transportation of property or passengers.
    Special purpose vehicles means vehicles which are used or designed 
for specialized functions. These vehicles include, but are not limited 
to: Trailers, semi-trailers, other types of trailing equipment; trucks 
with permanently mounted equipment (such as aerial ladders); 
construction and other types of equipment set forth in Federal Supply 
Classification Group (FSCG) 38; material handling equipment set forth 
in FSCG 39; and firefighting equipment set forth in FSCG 42. For 
reporting purposes within DOE, motorcycles, motor scooters and all-
terrain vehicles will also be reported as special purpose vehicles.

Subpart 109-38.1--Fuel Efficient Motor Vehicles


Sec.  109-38.104   Fuel efficient passenger automobiles and light 
trucks.

    (a) What size motor vehicles may we obtain? (See 41 CFR 102-34.50).
    (b) All requests to obtain passenger automobiles larger than class 
IA, IB, or II (small, subcompact, or compact) shall

[[Page 63279]]

be forwarded with justification to the DPMO for approval and 
certification for compliance with the fuel economy objectives listed in 
41 CFR 102-34 Subpart B.
    (c) Requests to exempt certain light trucks from the fleet average 
fuel economy calculations shall be forwarded with justification to the 
Office of Management for approval.


Sec.  109-38.105  Agency purchase and lease of motor vehicles.

    (a) DOE activities shall submit a copy of all motor vehicle leases 
and purchases not procured through the GSA Automotive Commodity Center 
to GSA.
    (b)-(c) [Reserved]
    (d) DOE activities desiring to renew a commercial lease shall 
submit the requirement in writing to the Office of Management for 
approval prior to submission by field offices to GSA.
    (e) DOE activities shall submit a copy of all lease agreements to 
GSA.

Subpart 109-38.2--Registration, Identification, and Exemptions


Sec.  109-38.200  General requirements.

    (a)-(e) [Reserved]
    (f) Requests made pursuant to 41 CFR 102-34.155 through 102-34.170 
for limited exemption from the requirement for displaying U.S. 
Government tags and other identification on motor vehicles, except for 
those vehicles exempted in accordance with 41 CFR 102-34.175 and Sec.  
109-38.204-1 of this subpart, shall be submitted to the Office of 
Management for approval. Each approved exemption must be renewed 
annually, and the Office of Management shall be notified promptly when 
the need for a previously authorized exemption no longer exists. Copies 
of certifications and cancellation notices required to be furnished to 
GSA pursuant to 41 CFR 102-34.160 will be transmitted to GSA.
    (g) Requests for temporary removal and substitution of Government 
markings shall be submitted with justification to the DPMO for review 
and approval. Copies of the determination and justification required to 
be furnished to GSA will be transmitted to GSA by the DPMO.


Sec.  109-38.201  Registration and inspection.


Sec.  109-38.201-50  Registration in foreign countries.

    Motor vehicles used in foreign countries are to be registered and 
carry license tags in accordance with the existing motor vehicle 
regulations of the country concerned. The person responsible for a 
motor vehicle in a foreign country shall make inquiry at the United 
States Embassy, Legation, or Consulate concerning the regulations that 
apply to registration, licensing, and operation of motor vehicles and 
shall be guided accordingly.


Sec.  109-38.202  Tags.


Sec.  109-38.202-2   Outside the District of Columbia.

    The Office of Management and Program Secretarial Officer (PSO) 
shall make the determination concerning the use of tags outside the 
District of Columbia.


Sec.  109-38.202-3  Records.

    (a) The Office of Management assigns ``blocks'' of U.S. Government 
license tag numbers to DOE organizations and maintains a current record 
of such assignments. Additional ``blocks'' will be assigned upon 
request.
    (b) Each DOE direct operation and designated contractor shall 
maintain a current record of individual assignments of license tags to 
the motor vehicles under their jurisdiction.


Sec.  109-38.202-50  Security.

    Unissued license tags shall be stored in a locked drawer, cabinet, 
or storage area with restricted access to prevent possible fraud or 
misuse. Tags which are damaged or unusable will be safeguarded until 
destroyed.


Sec.  109-38.203  Agency identification.

    Standard DOE motor vehicle window decals (DOE Form 1530.1), and 
door decals to be used only on vehicles without windows (DOE Form 
1530.2), are available from the Office of Administrative Services, 
Logistics Management Division, Headquarters, using DOE Form 4250.2, 
``Requisition for Supplies, Equipment or Services'', or as directed by 
that office.


Sec.  109-38.204  Exemptions.


Sec.  109-38.204-1   Unlimited exemptions.

    (a)-(f) [Reserved]
    (g) The Office of Management and Program Secretarial Officer (PSO) 
for their respective organizations may approve exemptions from the 
requirement for the display of U.S. Government license tags and other 
official identification for motor vehicles used for security or 
investigative purposes.


Sec.  109-38.204-3  Requests for exempted motor vehicles in the 
District of Columbia.

    The Director, Office of Administrative Services is designated to 
approve requests for regular District of Columbia license tags, and 
furnishes annually the name and specimen signature of each 
representative authorized to approve such requests to the District of 
Columbia Department of Transportation.


Sec.  109-38.204-4  Report of exempted motor vehicles.

    DOE offices shall provide upon request the necessary information to 
the DPMO to enable that office to submit a report of exempted vehicles.


Sec.  109-38.204-50  Records of exempted motor vehicles.

    The Office of Management and Program Secretarial Officer (PSO) 
shall maintain records of motor vehicles exempted from displaying U.S. 
Government license tags and other identification. The records shall 
contain a listing, by type, of each exempted motor vehicle operated 
during the previous fiscal year, giving information for each motor 
vehicle on hand at the beginning of the year and each of those newly 
authorized during the year, including:
    (a) Name and title of authorizing official (including any 
authorization by Headquarters and GSA);
    (b) Date exemption was authorized;
    (c) Justification for exemption and limitation on use of the 
exempted motor vehicle;
    (d) Date of discontinuance for any exemption discontinued during 
the year; and
    (e) Probable duration of exemptions for motor vehicles continuing 
in use.

Subpart 109-38.3--Official Use of Government Motor Vehicles


Sec.  109-38.300  Scope.

    This subpart prescribes the requirements governing the use of 
Government motor vehicles for official purposes by designated 
contractors.


Sec.  109-38.301  Authorized use.

    The use of Government motor vehicles by officers and employees of 
the Government is governed by the provisions of 41 CFR 102-34 Subpart D 
and section 109-6.4 of this chapter.


Sec.  109-38.301-1  Contractors' use.

    Program Secretarial Officer (PSO) shall ensure that provisions of 
the FPMR/FMR concerning contractor use of Government motor vehicles are 
complied with by their designated contractors.


Sec.  109-38.301-1.50  Authorization for transportation between 
residence and place of employment.

    (a) Government motor vehicles shall not be used for transportation 
between residence and place of employment by designated contractor 
personnel except

[[Page 63280]]

under extenuating circumstances specifically provided for under the 
terms of the contract. Examples of circumstances eligible for prior 
approval of home-to-work motor vehicle use which would be appropriate 
to include in the terms of the contract include: Use related to safety 
or security operations, use related to compelling operational 
considerations, and use determined as cost effective to DOE's interest. 
Under no circumstances shall the comfort and convenience, or managerial 
position, of contractor employees be considered justification for 
authorization of use.
    (b) The use of Government motor vehicles for transportation between 
residence and place of employment (including sporadic use) by 
designated contractor personnel shall be approved in writing by the 
Head of the field organization or designee, with delegation no lower 
than the Director, Office of Management and Program Secretarial Officer 
(PSO) or the equivalent position at other DOE contracting activities 
provided that the individual is a warranted contracting officer. The 
contractor's request for approval shall include the name and title of 
the employee, the reason for the use, and the expected duration of the 
use. Each authorization is limited to one year, but can be extended for 
an unlimited number of additional one-year periods.


Sec.  109-38.301-1.51  Emergency use.

    (a) Procedures for authorization of designated contractor use of 
Government motor vehicles in emergencies, including unscheduled 
overtime situations at remote sites where prior approval is not 
possible, shall be included in a contractor's approved property 
management procedures. The procedures shall include examples of 
emergency situations warranting such use. Records detailing instances 
of emergency use shall be maintained and review of all such emergency 
or overtime use must be certified through established audit procedures 
on at least an annual basis by the OPMO.
    (b) In limiting the use of Government motor vehicles to official 
purposes, it is not intended to preclude their use in emergencies 
threatening loss of life or property. Such use shall be documented and 
the documentation retained for three years.


Sec.  109-38.301-1.52  Maintenance of records.

    Designated contractors shall maintain logs or other records on the 
use of a Government motor vehicle for transportation between an 
employee's residence and place of employment. As a minimum, these logs 
shall indicate the employee's name, date of use, time of departure and 
arrival, miles driven, and names of other passengers. Cognizant finance 
offices shall be provided with applicable data on employees who utilize 
Government motor vehicles for such transportation for purposes of the 
Deficit Reduction Act of 1984 concerning the taxation of fringe 
benefits.


Sec.  109-38.301-1.53  Responsibilities of motor vehicle operators.

    Designated contractors shall assure that their employees are aware 
of their responsibilities, identical to those listed in Sec.  109-
6.400-50 of this chapter for DOE employees, concerning the use and 
operation of Government motor vehicles.

Subpart 109-38.4--Use and Replacement Standards


Sec.  109-38.401  Use standards.


Sec.  109-38.401-2  Use of self-service pumps.

    It is DOE policy that motor vehicle operators shall use self-
service pumps in accordance with the provisions of 41 CFR 101-38.401-2.


Sec.  109-38.402  Replacement standards.

    (a) [Reserved]
    (b) Motor vehicles may be replaced without regard to the 
replacement standards in 41 CFR 102-34 Subpart E only after 
certification by the Office of Management or the Head of the field 
organization for their respective organizations that a motor vehicle is 
beyond economical repair due to accident damage or wear caused by 
abnormal operating conditions.


Sec.  109-38.402-50  Prompt disposal of replaced motor vehicles.

    A replaced motor vehicle shall be removed from service and disposed 
of prior to or as soon as practicable after delivery of the replacement 
motor vehicle to avoid concurrent operation of both motor vehicles.


Sec.  109-38.403  Responsibility for damages.


Sec.  109-38.403-1   Policy.

    The policy for assigning responsibility for vehicle damage is to 
recover from users the costs for damages which would adversely affect 
the vehicle's resale.


Sec.  109-38.403-2  Responsibility.

    The designated contractor will charge the using organization all 
costs resulting from damage, including vandalism, theft and parking lot 
damage to a DOE vehicle which occurs during the period that the vehicle 
is assigned to an employee of that organization. The charges recovered 
by the designated maintenance operation will be used to repair the 
vehicle. Other examples for which organizations will be charged are as 
follows:
    (a) Damage caused by misuse or abuse inconsistent with normal 
operation and local conditions; or
    (b) Repair costs which are incurred as a result of user's failure 
to obtain required preventative maintenance; or
    (c) Unauthorized purchases or repairs, including credit card 
misuse, provided there is a clear, flagrant, and documented pattern of 
such occurrences.


Sec.  109-38.403-3  Exceptions.

    Exceptions to Sec.  109-38.403-2 of this subpart are as follows:
    (a) As a result of the negligent or willful act of a party other 
than the organization or its employee, and the responsible party can be 
determined; or
    (b) As a result of mechanical failure and the employee was not 
otherwise negligent. Proof of the failure must be provided; or
    (c) As a result of normal wear comparable to similar vehicles.

Subpart 109-38.5--Scheduled Maintenance


Sec.  109-38.502  Guidelines.


Sec.  109-38.502-50  DOE guidelines.

    (a) Whenever practicable and cost effective, commercial service 
facilities shall be utilized for the maintenance of motor vehicles.
    (b) Individual vehicle maintenance records shall be kept to provide 
records of past repairs, as a control against unnecessary repairs and 
excessive maintenance, and as an aid in determining the most economical 
time for replacement.
    (c) One-time maintenance and repair limitations shall be 
established by the motor equipment fleet manager. To exceed repair 
limitations, approval of the motor equipment fleet manager is required.
    (d)(1) Motor vehicles under manufacturer's warranty shall be 
repaired under the terms of the warranty.
    (2) When motor vehicles are maintained in Government repair 
facilities in isolated locations that are distant from franchised 
dealer facilities, or when it is not practical to return the vehicles 
to a dealer, a billback agreement shall be sought from manufacturers to 
permit warranty work to be performed on a reimbursable basis.

[[Page 63281]]

Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles


Sec.  109-38.701   Transfer of title for Government-owned motor 
vehicles.


Sec.  109-38.701-50  Authority to sign Standard Form 97, The United 
States Government Certificate to Obtain Title to a Vehicle.

    The Standard Form (SF) 97 shall be signed by an appropriate 
contracting officer. The Director, Office of Management and Program 
Secretarial Officer (PSO) for their respective organizations may 
delegate the authority to sign SF 97 to responsible DOE personnel under 
their jurisdiction.

Subpart 109-38.8--Fleet Credit Card


Sec.  109-38.800  General.

    (a)-(c) [Reserved]
    (d) The Office of Management and Program Secretarial Officer (PSO) 
for their respective organizations shall be responsible for 
establishing procedures to provide for the administrative control of 
fleet credit cards. Administrative control shall include, as a minimum:
    (1) A reconciliation of on-hand credit cards with the inventory 
list provided by GSA,
    (2) Providing motor vehicle operators with appropriate instructions 
regarding the use and protection of credit cards against theft and 
misuse,
    (3) The taking of reasonable precautions in the event a fleet 
credit card is lost or stolen to minimize the opportunity of purchases 
being made by unauthorized persons, including notification to the 
paying office of the loss or theft,
    (4) Validation of credit card charges to ensure they are for 
official use only items, and


Sec.  109-38.801  Obtaining fleet credit card.

    A dedicated fleet credit card is issued with each GSA-leased motor 
vehicle. DOE offices electing to use fleet credit cards for agency-
owned vehicles and motor equipment shall request the assignment of new 
accounts from the Office of Management. Following the assignment, DOE 
organizations shall submit orders for issuance of fleet credit cards in 
accordance with the instructions provided by GSA.

Subpart 109-38.9--Federal Motor Vehicle Fleet Report


Sec.  109-38.902  Records.

    The Office of Management and OPMOs for their respective 
organizations shall establish adequate records for accounting and 
reporting purposes.


Sec.  109-38.903  Reporting of data.


Sec.  109-38.903-50  Reporting DOE motor vehicle data.

    See 41 CFR 102-34 Subpart J.

Subpart 109-38.51--Utilization of Motor Equipment


Sec.  109-38.5100  Scope of subpart.

    This subpart prescribes policies and procedures concerning the 
utilization of motor equipment.


Sec.  109-38.5101  Policy.

    It is DOE policy to keep the number of motor vehicles and other 
motor equipment at the minimum needed to satisfy programmatic 
requirements. To attain this goal, controls and practices shall be 
established which will achieve the most practical and economical 
utilization of motor equipment. These controls and practices apply to 
all DOE-owned and commercially leased motor equipment and to GSA 
Interagency Fleet Management System motor vehicles.


Sec.  109-38.5102  Utilization controls and practices.

    Controls and practices to be used by DOE organizations and 
designated contractors for achieving maximum economical utilization of 
motor equipment shall include, but not be limited to:
    (a) The maximum use of motor equipment pools, taxicabs, shuttle 
buses, or other common service arrangements;
    (b) The minimum, practicable assignment of motor equipment to 
individuals, groups, or specific organizational components;
    (c) The maintenance of individual motor equipment use records, such 
as trip tickets or vehicle logs, or hours of use, as appropriate, 
showing sufficiently detailed information to evaluate appropriateness 
of assignment and adequacy of use being made. If one-time use of a 
motor vehicle is involved, such as assignments from motor pools, the 
individual's trip records must, as a minimum, identify the motor 
vehicle and show the name of the operator, dates, destination, time of 
departure and return, and mileage;
    (d) The rotation of motor vehicles between high and low mileage 
assignments where practicable to maintain the fleet in the best overall 
replacement age and mileage balance and operating economy;
    (e) The charging, if considered feasible, to the user organization 
for the cost of operating and maintaining motor vehicles assigned to 
groups or organizational components. These charge-back costs should 
include all direct and indirect costs of the motor vehicle fleet 
operation as determined by the field organization and contractor 
finance and accounting functions;
    (f) The use of dual-purpose motor vehicles capable of hauling both 
personnel and light cargo whenever appropriate to avoid the need for 
two motor vehicles when one can serve both purposes. However, truck-
type or van vehicles shall not be acquired for passenger use merely to 
avoid statutory limitations on the number of passenger motor vehicles 
which may be acquired;
    (g) The use of motor scooters and motorcycles in place of higher 
cost motor vehicles for certain applications within plant areas, such 
as mail and messenger service and small parts and tool delivery. Their 
advantage, however, should be weighed carefully from the standpoint of 
overall economy (comparison with cost for other types of motor 
vehicles) and increased safety hazards, particularly when mingled with 
other motor vehicle traffic; and
    (h) The use of electric vehicles for certain applications. The use 
of these vehicles is encouraged wherever it is feasible to use them to 
further the goal of fuel conservation.


Sec.  109-38.5103   Motor vehicle utilization standards.

    (a) The following average utilization standards are established for 
DOE as objectives for those motor vehicles operated generally for those 
purposes for which acquired:
    (1) Sedans and station wagons, general purpose use--12,000 miles 
per year.
    (2) Light trucks (4 x 2's) and general purpose vehicles, one ton 
and under (less than 12,500 GVWR)--10,000 miles per year.
    (3) Medium trucks and general purpose vehicles, 1\1/2\ ton through 
2\1/2\ ton (12,500 to 23,999 GVWR)--7,500 miles per year.
    (4) Heavy trucks and general purpose vehicles, three ton and over 
(24,000 GVWR and over)--7,500 miles per year.
    (5) Truck tractors--10,000 miles per year.
    (6) All-wheel-drive vehicles--7,500 miles per year.
    (7) Other motor vehicles--No utilization standards are established 
for other trucks, ambulances, buses, law enforcement motor vehicles, 
and special purpose vehicles. The use of these motor vehicles shall be 
reviewed at least annually by the motor equipment fleet manager and 
action shall be taken and documented to verify that the motor vehicles 
are required to meet programmatic, health, safety, or security 
requirements.

[[Page 63282]]

    (b) When operating circumstances prevent the above motor vehicle 
utilization standards from being met, local use objectives must be 
established and met as prescribed in Sec.  109-38.5105 of this subpart.


Sec.  109-38.5104  Other motor equipment utilization standards.

    No utilization standards are established for motor equipment other 
than motor vehicles. Each DOE office should establish through an 
agreement between the fleet manager and the OPMO utilization criteria 
for other motor equipment including heavy mobile equipment and review, 
adjust, and approve such criteria annually. Utilization of various 
classifications of other motor equipment can be measured through 
various statistics including miles, hours of use, number of trips, and 
fuel consumption. A utilization review of other motor equipment shall 
be performed at least annually by the motor equipment fleet manager to 
justify retainment or disposition of excess equipment not needed to 
fulfill Departmental, programmatic, health, safety, or security 
requirements.


Sec.  109-38.5105  Motor vehicle local use objectives.

    (a) Individual motor vehicle utilization cannot always be measured 
or evaluated strictly on the basis of miles operated or against any 
Department-wide mileage standard. For example, light trucks 
specifically fitted for use by a plumber, welder, etc., in the 
performance of daily work assignments, would have uniquely tailored use 
objectives, different from those set forth for a truck used for general 
purposes. Accordingly, efficient local use objectives, which represent 
practical units of measurement for motor vehicle utilization and for 
planning and evaluating future motor vehicle requirements, must be 
established and documented by the Organizational Motor Equipment Fleet 
Manager. The objectives should take into consideration past 
performance, future requirements, geographical disbursement, and 
special operating requirements.
    (b) These objectives shall be reviewed and adjusted as appropriate, 
but not less often than annually, by the motor equipment fleet manager. 
The reviews shall be documented. The Organizational Motor Equipment 
Fleet Manager is responsible for reviewing and approving in writing all 
proposed local use objectives.


Sec.  109-38.5106   Application of motor vehicle use goals.

    (a) At least annually, the motor equipment fleet manager will 
review motor vehicle utilization statistics and all motor vehicles 
failing to meet the applicable DOE utilization standard or local use 
objective must be identified.
    (b) Prompt action must be initiated to:
    (1) Reassign the underutilized motor vehicles;
    (2) Dispose of the underutilized motor vehicles; or
    (3) Obtain a special justification from users documenting their 
continued requirement for the motor vehicle and any proposed actions to 
improve utilization. Any requirement for underutilized motor vehicles 
which the motor equipment fleet manager proposes to continue in its 
assignment, must be submitted in writing to the Organizational Motor 
Equipment Fleet Manager for approval.
    (c) Both Department-wide standards and local use objectives should 
be applied in such a manner that their application does not stimulate 
motor vehicle use for the purpose of meeting the objective. The 
ultimate standard against which motor vehicle use must be measured is 
that the minimum number of motor vehicles will be retained to satisfy 
program requirements.

Subpart 109-38.52--Watercraft


Sec.  109-38.5200  Scope of subpart.

    This subpart establishes basic policies and procedures that apply 
to the management of watercraft operated by DOE organizations and 
designated contractors. The head of each Departmental organization 
operating watercraft shall issue such supplemental instructions as may 
be needed to ensure the efficient use and management of watercraft.


Sec.  109-38.5201  Definition.

    As used in this subpart the following definition applies:
    Watercraft means any vessel used to transport persons or material 
on water.


Sec.  109-38.5202  Watercraft operations.

    (a) No person may operate a watercraft on a waterway until skill of 
operation and basic watercraft knowledge have been demonstrated.
    (b) Operators of watercraft shall check the vessel to ensure that 
necessary equipment required by laws applicable to the area of 
operation are present, properly stowed, and in proper working order.
    (c) Operators shall comply with all applicable Federal, state, and 
local laws pertaining to the operation of watercraft.
    (d) Operators shall not use watercraft or carry passengers except 
in the performance of official Departmental assignments.


Sec.  109-38.5203  Watercraft identification and numbers.

    Watercraft in the custody of DOE or designated contractors shall 
display identifying numbers, whether issued by the U.S. Coast Guard, 
State, or local field organization, in accordance with applicable 
requirements.

PART 109-39--INTERAGENCY FLEET MANAGEMENT SYSTEMS

Subpart 109-39.1--Establishment, Modification, and Discontinuance of 
Interagency Fleet Management Systems
Sec.
109-39.101 Notice of intention to begin a study.
109-39.101-1 Agency cooperation.
109-39.103 Agency appeals.
109-39.105 Discontinuance or curtailment of service.
109-39.105-2 Agency requests to withdraw participation.
109-39.106 Unlimited exemptions.
109-39.107 Limited exemptions.
Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
System Vehicles
109-39.300 General.
109-39.301 Utilization guidelines.

    Authority: 42 U.S.C. 7254.

Subpart 109-39.1--Establishment, Modification, and Discontinuance 
of Interagency Fleet Management Systems


Sec.  109-39.101   Notice of intention to begin a study.


Sec.  109-39.101-1  Agency cooperation.

    The Office of Management and Program Secretarial Officer (PSO) for 
their respective organizations shall designate representatives to 
coordinate with GSA concerning the establishment of a GSA fleet 
management system to serve their organization.


Sec.  109-39.103  Agency appeals.

    The Office of Management and Program Secretarial Officer (PSO) for 
their respective organizations may appeal, or request exemption from, a 
determination made by GSA concerning the establishment of a fleet 
management system. A copy of the appeal or request shall be forwarded 
to the DPMO.


Sec.  109-39.105  Discontinuance or curtailment of service.


Sec.  109-39.105-2  Agency requests to withdraw participation.

    Should circumstances arise that would tend to justify 
discontinuance or

[[Page 63283]]

curtailment of participation by a DOE organization of a given 
interagency fleet management system, the participating organization 
should forward complete details to the DPMO for consideration and 
possible referral to the Administrator of General Services.


Sec.  109-39.106  Unlimited exemptions.

    The Office of Management and Program Secretarial Officer (PSO) for 
their respective organizations shall make the determination that an 
unlimited exemption from inclusion of a motor vehicle in a fleet 
management system is warranted. A copy of the determination shall be 
forwarded to GSA and to the Office of Management.


Sec.  109-39.107  Limited exemptions.

    The Office of Management and Program Secretarial Officer (PSO) for 
their respective organizations shall seek limited exemptions from the 
fleet management system.

Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
System Vehicles


Sec.  109-39.300  General.

    (a)-(c) [Reserved]
    (d) Motor equipment fleet managers shall ensure that operators and 
passengers in GSA Interagency Fleet Management System (IFMS), agency-
owned and agency commercially-leased motor vehicles are aware of the 
prohibition against the use of tobacco products in these vehicles.


Sec.  109-39.301  Utilization guidelines.

    DOE activities utilizing GSA IFMS motor vehicles will receive and 
review vehicle utilization statistics in order to determine if miles 
traveled justify vehicle inventory levels. Activities should retain 
justification for the retention of vehicles not meeting DOE utilization 
guidelines or established local use objectives, as appropriate. Those 
vehicles not justified for retention shall be returned to the issuing 
GSA interagency fleet management center.

PART 109-40--TRANSPORTATION AND TRAFFIC MANAGEMENT

Subpart 109-40.1--General Provisions
Sec.
109-40.000 Scope of part.
109-40.000-50 Applicability to contractors.
109-40.102 Representation before regulatory bodies.
109-40.103 Selection of carriers.
109-40.103-1 Domestic transportation.
109-40.103-2 Disqualification and suspension of carriers.
109-40.103-3 International transportation.
109-40.104 Use of Government-owned transportation equipment.
109-40.109 Utilization of special contracts and agreements.
109-40.110 Assistance to economically disadvantaged transportation 
businesses.
109-40.110-1 Small business assistance.
109-40.110-2 Minority business enterprises.
109-40.112 Transportation factors in the location of Government 
facilities.
109-40.113 Insurance against transportation hazards.
Subpart 109-40.3--Traffic Management
109-40.301 Traffic management functions administration.
109-40.302 Standard routing principle.
109-40.303-3 Most fuel efficient carrier/mode.
109-40.304 Rate tenders to the Government.
109-40.305-50 [Reserved].
109-40.305-50 Negotiations involving national security.
109-40.306-1 Recommended rate tender format.
109-40.306-2 Required shipping documents and annotations.
109-40.306-3 Distribution.
Subpart 109-40.50--Bills of Lading
109-40.5000 Scope of subpart.
109-40.5001 Policy.
109-40.5002 Applicability.
109-40.5003 Commercial bills of lading.
109-40.5004 Government bills of lading.
109-40.5005 Description of property for shipment.
Subpart 109-40.51--Price-Anderson Coverage Certifications for Nuclear 
Shipments
109-40.5100 Scope of subpart.
109-40.5101 Policy.

    Authority: Sec. 161, as amended, 68 Stat. 948; 42 U.S.C. 2201; 
sec. 205, as amended, 63 Stat. 390; 40 U.S.C. 121; sec. 644, 91 
Stat. 585, 42 U.S.C. 7254.

Subpart 109-40.1--General Provisions


Sec.  109-40.000  Scope of part.

    This part describes DOE regulations governing transportation and 
traffic management activities. It also covers arrangements for 
transportation and related services by bill of lading. These 
regulations are designed to ensure that all transportation and traffic 
management activities will be carried out in the manner most 
advantageous to the Government in terms of economy, efficiency, 
service, environment, safety and security.


Sec.  109-40.000-50  Applicability to contractors.

    DOE-PMR 109-40, Transportation and Traffic Management, should be 
applied to cost-type contractors' transportation and traffic management 
activities. Departure by cost-type contractors from the provisions of 
these regulations may be authorized by the contracting officer provided 
the practices and procedures followed are consistent with the basic 
policy objectives in these regulations and DOE Order 460.2, 
Departmental Materials Transportation and Packaging Management, except 
to the extent such departure is prohibited by statute or executive 
order.


Sec.  109-40.102  Representation before regulatory bodies.

    Participation in proceedings related to carrier applications to 
regulatory bodies for temporary or permanent authority to operate in 
specified geographical locations shall be confined to statements or 
testimony in support of a need for service and shall not extend to 
support of individual carriers or groups of carriers.


Sec.  109-40.103  Selection of carriers.


Sec.  109-40.103-1  Domestic transportation.

    (a) Preferential treatment, normally, shall not be accorded to any 
mode of transportation (motor, rail, air, water) or to any particular 
carrier when arranging for domestic transportation services. However 
where, for valid reasons, a particular mode of transportation or a 
particular carrier within that mode must be used to meet specific 
program requirements and/or limitations, only that mode or carrier 
shall be considered. Examples of valid reasons for considering only a 
particular mode or carrier are:
    (1) Where only a certain mode of transportation or individual 
carrier is able to provide the needed service or is able to meet the 
required delivery date; and
    (2) Where the consignee's installation and related facilities 
preclude or are not conducive to service by all modes of 
transportation.
    (b) The following factors are considered in determining whether a 
carrier or mode of transportation can meet DOE's transportation service 
requirements for each individual shipment:
    (1) Availability and suitability of carrier equipment;
    (2) Carrier terminal facilities at origin and destination;
    (3) Pickup and delivery service, if required;
    (4) Availability of required or accessorial and special services, 
if needed;
    (5) Estimated time in transit;
    (6) Record of past performance of the carrier; and
    (7) Availability and suitability of transit privileges.

[[Page 63284]]

Sec.  109-40.103-2  Disqualification and suspension of carriers.

    Disqualification and suspension are measures which exclude carriers 
from participation, for temporary periods of time, in DOE traffic. To 
ensure that the Government derives the benefits of full and free 
competition of interested carriers, disqualification and suspension 
shall not apply for any period of time longer than necessary to protect 
the interests of the Government.


Sec.  109-40.103-3   International transportation.

    See 49 U.S.C. 41102 for a certificate required in nonuse of U.S. 
flag vessels or U.S. flag certificated air carriers.
    (a) U.S.-flag ocean carriers. Arrangements for international ocean 
transportation services shall be made in accordance with the provisions 
of section 901(b) of the Merchant Marine Act of 1936, as amended (46 
U.S.C. 1241(b)) concerning the use of privately owned U.S.-flag 
vessels.
    (b) U.S.-flag certificated air carriers. Arrangements for 
international air transportation services shall be made in accordance 
with the provisions of section 5(a) of the International Air 
Transportation Fair Competition Practices Act of 1974 (49 U.S.C. 
40118), which requires the use of U.S.-flag certificated air carriers 
for international travel of persons or property to the extent that 
services by these carriers is available.


Sec.  109-40.104  Use of Government-owned transportation equipment.

    The preferred method of transporting property for the Government is 
through use of the facilities and services of commercial carriers. 
However, Government vehicles may be used when they are available to 
meet emergencies and accomplish program objectives which cannot be 
attained through use of commercial carriers.


Sec.  109-40.109  Utilization of special contracts and agreements.

    From time to time special transportation agreements are entered 
into on a Government-wide or DOE-wide basis and are applicable, 
generally, to DOE shipments. The HQ DOE Manager, Transportation 
Operations and Traffic, will distribute information on such agreements 
to field offices as it becomes available.


Sec.  109-40.110  Assistance to economically disadvantaged 
transportation businesses.


Sec.  109-40.110-1  Small business assistance.

    Consistent with the policies of the Government with respect to 
small businesses, DOE shall place with small business concerns a fair 
proportion of the total purchases and contracts for transportation and 
related services such as packing and crating, loading and unloading, 
and local drayage.


Sec.  109-40.110-2  Minority business enterprises.

    Minority business enterprises shall have the maximum practical 
opportunity to participate in the performance of Government contracts. 
DOE shall identify transportation-related minority enterprises and 
encourage them to provide services that will support DOE's 
transportation requirements.


Sec.  109-40.112  Transportation factors in the location of Government 
facilities.

    Transportation rate, charges, and commercial carrier transportation 
services shall be considered and evaluated prior to the selection of 
new site locations and during the planning and construction phases in 
the establishment of leased or relocated Government installations or 
facilities to ensure that consideration is given to the various 
transportation factors that may be involved in this relocation or 
deactivation.


Sec.  109-40.113  Insurance against transportation hazards.

    The policy of the Government with respect to insurance of its 
property while in the possession of commercial carriers is set forth in 
41 CFR 1-19.107.

Subpart 109-40.3--Traffic Management


Sec.  109-40.301  Traffic management functions administration.

    The DOE traffic management functions are accomplished by 
established field traffic offices under provisions of appropriate 
Departmental directives and Headquarters' staff traffic management 
supervision.


Sec.  109-40.302  Standard routing principle.

    (a) Shipments shall be routed using the mode of transportation, or 
individual carriers within the mode, that can provide the required 
service at the lowest overall delivered cost to the Government.
    (b) When more than one mode of transportation, or more than one 
carrier within a mode, can provide equally satisfactory service at the 
same overall cost the traffic shall be distributed as equitably as 
practicable among the modes and among the carriers within the modes.


Sec.  109-40.303-3  Most fuel efficient carrier/mode.

    When more than one mode, or more than one carrier within a mode, 
can satisfy the service requirements of a specific shipment at the same 
lowest aggregate delivered cost, the carrier/mode determined to be the 
most fuel efficient will be selected. In determining the most fuel 
efficient carrier/mode, consideration will be given to such factors as 
use of the carrier's equipment in ``turn around'' service, proximity of 
carrier equipment to the shipping activity, and ability of the carrier 
to provide the most direct service to the destination points.


Sec.  109-40.304  Rate tenders to the Government.

    Under the provisions of the Interstate Commerce Act (49 U.S.C. 
10721), common carriers are permitted to submit to the Government 
tenders which contain rates lower than published tariff rates available 
to the general public. In addition, rates tenders may be applied to 
shipments other than those made by the Government provided the total 
benefits accrue to the Government; that is, provided the Government 
pays the charges or directly and completely reimburses the party that 
initially bears the freight charges (323 ICC 347 and 332 ICC 161).


Sec.  109-40.305-50   [Reserved]


Sec.  109-40.306-1  Recommended rate tender format.

    Only those rate tenders which have been submitted by the carriers 
in writing shall be considered for use. Carriers should be encouraged 
to use the format ``Uniform Tender of Rates and/or Charges for 
Transportation Services'' when preparing and submitting rate tenders to 
the Government. Rate tenders that are ambiguous in meaning shall be 
resolved in favor of the Government.


Sec.  109-40.306-2  Required shipping documents and annotations.

    (a) To qualify for transportation under section 10721 rates, 
property must be shipped by or for the Government on:
    (1) Government bills of lading;
    (2) Commercial bills of lading endorsed to show that these bills of 
lading are to be converted to Government bills of lading after delivery 
to the consignee;
    (3) Commercial bills of lading showing that the Government is 
either the consignor or the consignee and endorsed with the following 
statement:
    Transportation hereunder is for the U.S. Department of Energy, and 
the actual total transportation charges paid to the carrier(s) by the 
consignor or

[[Page 63285]]

consignee are assignable to, and are to be reimbursed by, the 
Government.
    (b) When a rate tender is used for transportation furnished under a 
cost-reimbursable contract, the following endorsement shall be used on 
covering commercial bills of lading:
    Transportation hereunder is for the U.S. Department of Energy, and 
the actual total transportation charges paid to the carrier(s) by the 
consignor or consignee are to be reimbursed by the Government, pursuant 
to cost-reimbursable contract number (insert contract number). This may 
be confirmed by contacting the agency representative at (name and 
telephone number).
    See 332 ICC 161.
    (c) To ensure proper application of a Government rate tender on all 
shipments qualifying for their use, the issuing officer shall show on 
the bills of lading covering such shipments the applicable rate tender 
number and carrier identification, such as: ``Section 10721 tender, ABC 
Transportation Company, ICC No. 374.'' In addition, if commercial bills 
of lading are used, they shall be endorsed as specified above.


Sec.  109-40.306-3  Distribution.

    Each agency receiving rate tenders shall promptly submit one signed 
copy to the Transportation and Public Utilities Service (WIT), General 
Services Administration, Washington, DC 20407. Also, two copies 
(including at least one signed copy) shall be promptly submitted to the 
General Services Administration (TA), Chester A. Arthur Building, 
Washington, DC 20406.

Subpart 109-40.50--Bills of Lading


Sec.  109-40.5000  Scope of subpart.

    This subpart sets forth the requirements under which commercial or 
Government bills of lading may be used.


Sec.  109-40.5001  Policy.

    Generally DOE cost-type contractors will use commercial bills of 
lading in making shipments for the account of DOE. Cost-type 
contractors may be authorized by the contracting officer to use 
Government bills of lading if such use will be advantageous to the 
Government. Such authorizations shall be coordinated with the HQ DOE 
Manager, Transportation Operations and Traffic.


Sec.  109-40.5002  Applicability.

    The policy and procedures set forth in this subpart shall be 
applied when DOE's cost-type contractors use commercial bills of 
lading.


Sec.  109-40.5003  Commercial bills of lading.

    (a) DOE's cost-type contractors using commercial bills of lading in 
making shipments for the account of DOE shall include the following 
statement on all commercial bills of lading:
    This shipment is for the account of the U.S. Government which will 
assume the freight charges and is subject to the terms and conditions 
set forth in the standard form of the U.S. Government bills of lading 
and to any available special rates or charges.
    (b) The language in paragraph (a) of this section may be varied 
without materially changing its substance to satisfy the needs of 
particular cost-type contractors for the purpose of obtaining the 
benefit of the lowest available rates for the account of the 
Government.
    (c) Where practicable, commercial bills of lading shall provide for 
consignment of a shipment to DOE c/o the cost-type contractor or by the 
contractor ``for the DOE.''
    (d) Commercial bills of lading exceeding $10,000 issued by cost-
type contractors shall be annotated with a typewritten, rubber stamp, 
or similar impression containing the following wording:
    Equal Employment Opportunity. All provisions of Executive Order 
11246, as amended by Executive Order 11375, and of the rules, 
regulations, and relevant orders of the Secretary of Labor are 
incorporated herein.


Sec.  109-40.5004  Government bills of lading.

    In those instances where DOE cost-type contractors are authorized 
to use Government bills of lading, specific employees of cost-type 
contractors will be authorized by the contracting officer to issue such 
Government bills of lading (see Title V, U.S. Government Accounting 
Office Policy and Procedures Manual for Guidance of Federal Agencies).


Sec.  109-40.5005  Description of property for shipment.

    (a) Each shipment shall be described on the bill of lading or other 
shipping document as specified by the governing freight classification, 
carrier's tariff, or rate tender. Shipments shall be described as 
specifically as possible. Trade names such as ``Foamite'' or 
``Formica,'' or general terms such as ``vehicles,'' ``furniture,'' or 
``Government supplies,'' shall not be used as bill of lading 
descriptions.
    (b) A shipment containing hazardous materials, such as explosives, 
radioactive materials, flammable liquids, flammable solids, oxidizers, 
or poison A or poison B, shall be prepared for shipment and described 
on bills of lading or other shipping documents in accordance with the 
Department of Transportation Hazardous Materials Regulation, 49 CFR, 
subchapter C.

Subpart 109-40.51--Price-Anderson Coverage Certifications for 
Nuclear Shipments


Sec.  109-40.5100  Scope of subpart.

    This subpart sets forth the policy for issuance of certifications 
regarding Price-Anderson coverage of particular shipments of nuclear 
materials.


Sec.  109-40.5101  Policy.

    Upon request of a carrier, an appropriate certification will be 
issued by an authorized representative of the DOE to the carrier 
regarding the applicability of Price-Anderson indemnity to a particular 
shipment. Copies of such certifications, if performed by a Field 
Manager or a DOE cost-type contractor, shall be provided to the HQ DOE 
Manager, Transportation Operations and Traffic.

SUBCHAPTER H--UTILIZATION AND DISPOSAL

PART 109-42--UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND 
CERTAIN CATEGORIES OF PROPERTY

Subpart 109-42.11--Special Types of Hazardous Material and Certain 
Categories of Property
Sec.
109-42.1100.50 Scope of subpart.
109-42.1100.51 Policy.
109-42.1102-8 United States Munitions List items which require 
demilitarization.
109-42.1102-51 Suspect personal property.
109-42.1102-52 Low level contaminated personal property.

    Authority: 40 U.S.C. 121.

Subpart 109-42.11--Special Types of Hazardous Material and Certain 
Categories of Property


Sec.  109-42.1100.50  Scope of subpart.

    This subpart sets forth policies and procedures for the utilization 
and disposal outside of DOE of excess and surplus personal property 
which has been radioactively or chemically contaminated.


Sec.  109-42.1100.51  Policy.

    When the holding organization determines it is appropriate to 
dispose of contaminated personal property, it shall be disposed of by 
DOE in accordance with appropriate Federal regulations governing 
radiation/chemical exposure and environmental contamination. In special 
cases where Federal regulations do not exist or

[[Page 63286]]

apply, appropriate state and local regulations shall be followed.


Sec.  109-42.1102-8   United States Munitions List items which require 
demilitarization.

    Program Secretarial Officer (PSO) shall determine demilitarization 
requirements regarding combat material and military personal property 
using DoD 4160.21-M-1, Defense Demilitarization Manual as a guide.


Sec.  109-42.1102-51   Suspect personal property.

    (a) Excess personal property (including scrap) having a history of 
use in an area where radioactive or chemical contamination may occur 
shall be considered suspect and shall be monitored using appropriate 
instruments and techniques by qualified personnel of the DOE office or 
contractor generating the excess.
    (b) With due consideration to the economic factors involved, every 
effort shall be made to reduce the level of contamination of excess or 
surplus personal property to the lowest practicable level. Contaminated 
personal property that exceeds applicable contamination standards shall 
not be utilized or disposed outside DOE.
    (c) If contamination is suspected and the property is of such size, 
construction, or location as to make testing for contamination 
impossible, the property shall not be utilized or disposed outside of 
DOE.


Sec.  109-42.1102-52  Low level contaminated personal property.

    If monitoring of suspect personal property indicates that 
contamination does not exceed applicable standards, it may be utilized 
and disposed of in the same manner as uncontaminated personal property, 
provided the guidance in Sec.  109-45.5005-1(a) of this chapter has 
been considered. However, recipients shall be advised where levels of 
radioactive contamination require specific controls for shipment as 
provided in Department of Transportation Regulations (49 CFR parts 171-
179) for shipment of radioactive personal property. In addition, when 
any contaminated personal property is screened within DOE, reported to 
GSA, or otherwise disposed of, the kind and degree of contamination 
must be plainly indicated on all pertinent documents.

PART 109-43--UTILIZATION OF PERSONAL PROPERTY

Sec.
109-43.001 Definition.
Subpart 109-43.1--General Provisions
109-43.101 Agency utilization reviews.
109-43.103 Agency utilization officials.
Subpart 109-43.3--Utilization of Excess
109-43.302 Agency responsibility.
109-43.302-50 Utilization by designated contractors.
109-43.304 Reporting requirements.
109-43.304-1 Reporting.
109-43.304-1.50 DOE reutilization screening.
109-43.304-1.51 [Reserved]
109-43.304-2 [Reserved]
109-43.304-4 [Reserved]
109-43.305 [Reserved]
109-43.305-50 Nuclear-related and proliferation-sensitive personal 
property.
109-43.307 Items requiring special handling.
109-43.307-2 Hazardous materials.
109-43.307-2.50 Monitoring of hazardous personal property.
109-43.307-2.51 Holding hazardous personal property.
109-43.307-50 Export controlled personal property.
109-43.307-51 Classified personal property.
109-43.307-52 Nuclear-related or proliferation-sensitive personal 
property.
109-43.307-53 Information Technology (IT).
109-43.307-54 Unsafe personal property.
109-43.312 Use of excess personal property on cost-reimbursement 
contracts.
109-43.313 Use of excess personal property on cooperative 
agreements.
109-43.314 Use of excess personal property on grants.
Subpart 109-43.5--Utilization of Foreign Excess Personal Property
109-43.502 Holding agency responsibilities.
Subpart 109-43.47--Reports
109-43.4701 Performance reports.
Subpart 109-43.50--Utilization of Personal Property Held for Facilities 
in Standby
109-43.5000 Scope of subpart.
109-43.5001 Definition.
109-43.5002 Reviews to determine need for retaining items.

    Authority: 40 U.S.C. 121.


Sec.  109-43.001  Definition.

    DOE screening period means the period of time that reportable 
existing personal property is screened throughout DOE for reutilization 
purposes and, for selected items, through the Used Laboratory Equipment 
Donation Program (LEDP).

Subpart 109-43.1--General Provisions


Sec.  109-43.101  Agency utilization reviews.

    DOE offices and designated contractors are responsible for 
continuously surveying property under their control to assure maximum 
use, and shall promptly identify property that is excess to their needs 
and make it available for use elsewhere.


Sec.  109-43.103  Agency utilization officials.

    The Property Executive is designated as the DOE National 
Utilization Officer.


Sec.  109-43.302  Agency responsibility.


Sec.  109-43.302-50  Utilization by designated contractors.

    Program Secretarial Officer (PSO) may authorize designated 
contractors to perform the functions pertaining to the utilization of 
excess personal property normally performed by a Federal agency, 
provided the designated contractors have written policies and 
procedures.


Sec.  109-43.304  Reporting requirements.


Sec.  109-43.304-1  Reporting.


Sec.  109-43.304-1.50  DOE reutilization screening.

    (a) Personal property must be processed through DOE electronic 
internal screening prior to reporting excess personal property to GSA.
    (b) An additional 30-day screening period shall be allocated for 
items eligible for screening by educational institutions through LEDP.
    (c) Items in FSCG 66 (Instruments and Laboratory Equipment), 70 
(General Purpose Information Processing Equipment (including 
firmware)), and 99 (Miscellaneous) are reportable.
    (d) The Department of Energy National Utilization Officer (NUO) may 
authorize in exceptional or unusual cases when time is critical, 
screening of excess property may be accomplished by with due 
consideration given to the additional costs involved. Examples of 
situations when this method of screening would be used are when there 
is a requirement for quick disposal actions due to unplanned contract 
terminations or facilities closing; to alleviate the paying of storage 
costs; when storage space is critical; to process exchange/sale 
transactions; property dangerous to public health and safety; property 
determined to be classified or otherwise sensitive for reasons of 
national security (when classified communications facilities are used); 
or for hazardous materials which may not be disposed of outside of the 
Department.
    (e) Concurrent DOE and Federal agency screening shall not be 
conducted.

[[Page 63287]]

Sec.  109-43.304-1.51   [Reserved]


Sec.  109-43.304-2  [Reserved]


Sec.  109-43.304-4  [Reserved]


Sec.  109-43.305  [Reserved]


Sec.  109-43.305-50  Nuclear-related and proliferation-sensitive 
personal property.

    Nuclear-related and proliferation-sensitive property is not 
reportable and shall not be formally screened within DOE or reported to 
GSA.


Sec.  109-43.307  Items requiring special handling.


Sec.  109-43.307-2  Hazardous materials.


Sec.  109-43.307-2.50  Monitoring of hazardous personal property.

    To provide assurance that hazardous personal property is not being 
inadvertently released from the site by transfer or sale to the public, 
all hazardous or suspected hazardous personal property shall be checked 
for contamination by environmental, safety, and health officials. 
Contamination-free personal property will be tagged with a 
certification tag authorizing release for transfer or sale. 
Contaminated personal property will be referred back to the program 
office for appropriate action.


Sec.  109-43.307-2.51   Holding hazardous personal property.

    Excess or surplus hazardous personal property shall not be 
commingled with non-hazardous personal property while waiting 
disposition action.


Sec.  109-43.307-50  Export controlled personal property.

    (a) When personal property that is subject to export controls is 
being exported directly by DOE (e.g., a transfer of nuclear equipment 
or materials as part of a program of cooperation with another country), 
DOE or the DOE contractor must obtain the necessary export license.
    (b) When personal property subject to export controls is 
transferred under work-for-others agreements, co-operative agreements, 
or technical programs, the recipients will be informed in writing that:
    (1) The property is subject to export controls;
    (2) They are responsible for obtaining export licenses or 
authorizations prior to transferring or moving the property to another 
country; and
    (3) They are required to pass on export control guidance if they 
transfer the property to another domestic or foreign recipient.


Sec.  109-43.307-51  Classified personal property.

    Classified personal property which is excess to DOE needs shall be 
stripped of all characteristics which cause it to be classified, or 
otherwise rendered unclassified, as determined by the cognizant program 
office, prior to any disposition action. The cognizant program office 
shall certify that appropriate action has been taken to declassify the 
personal property as required. Declassification shall be accomplished 
in a manner which will preserve, so far as practicable, any civilian 
utility or commercial value of the personal property.


Sec.  109-43.307-52  Nuclear-related or proliferation-sensitive 
personal property.

    (a) Recognizing that property disposal officials will not have the 
technical knowledge to identify nuclear-related and proliferation-
sensitive personal property, all such personal property shall be 
physically tagged with a certification signed by an authorized program 
official at time of determination by the program office of the personal 
property as excess. Such an authorized official should be designated in 
writing with signature cards on file in the property office.
    (b) Nuclear-related and proliferation-sensitive personal property 
which is excess to DOE needs shall be stripped of all characteristics 
which cause it to be nuclear-related or proliferation-sensitive 
personal property, as determined by the cognizant program office, prior 
to disposal. The cognizant program office shall certify that 
appropriate actions have been taken to strip the personal property as 
required, or shall provide the property disposal office with adequate 
instructions for stripping the items. Such action shall be accomplished 
in a manner which will preserve, so far as practicable, any civilian 
utility or commercial value of the personal property.


Sec.  109-43.307-53   Information Technology (IT).

    All IT shall be sanitized before being transferred into excess to 
ensure that all data, information, and software has been removed from 
the equipment. Designated computer support personnel must indicate that 
the equipment has been sanitized by attaching a certification tag to 
the item. Sanitized IT will be utilized and disposed in accordance with 
the provisions of the FPMR/FMR.


Sec.  109-43.307-54  Unsafe personal property.

    Personal property that is considered defective or unsafe must be 
mutilated prior to shipment for disposal.


Sec.  109-43.312  Use of excess personal property on cost-reimbursement 
contracts.

    (a) [Reserved]
    (b) It is DOE policy for designated contractors to use Government 
excess personal property to the maximum extent possible to reduce 
contract costs. However, the determination required in 41 CFR 101-
43.312(b) does not apply to such contracts, and a DOE official is not 
required to execute transfer orders for authorized designated 
contractors. The procedures prescribed in 41 CFR 101-43.309-5 for 
execution of transfer orders apply.


Sec.  109-43.313  Use of excess personal property on cooperative 
agreements.

    (a)-(c) [Reserved]
    (d) Program Secretarial Officer (PSO) shall ensure that required 
records are maintained in a current status.


Sec.  109-43.314  Use of excess personal property on grants.

    (a)-(e) [Reserved]
    (f) Program Secretarial Officer (PSO) shall ensure that the records 
required by 41 CFR 101-43.314(f) are maintained.

Subpart 109-43.5--Utilization of Foreign Excess Personal Property


Sec.  109-43.502  Holding agency responsibilities.

    (a) [Reserved]
    (b) Property which remains excess after utilization screening 
within the general foreign geographical area where the property is 
located shall be reported to the accountable field office or 
Headquarters program organization for consideration for return to the 
United States for further DOE or other Federal utilization. The 
decision to return property will be based on such factors as 
acquisition cost, residual value, condition, usefulness, and cost of 
transportation.

Subpart 109-43.47--Reports


Sec.  109-43.4701  Performance reports.

    (a)-(b) [Reserved]
    (c) The annual report of personal property furnished (e.g., 
transfers, gifts, loans, leases, license agreements, and sales) to non-
Federal recipients, including elementary and secondary schools, is 
furnished to GSA in accordance with 41 CFR 102-38. Internal DOE 
personal property reports must be submitted to the Office of Management 
at the date determined by the Property Executive.

[[Page 63288]]

Subpart 109-43.50--Utilization of Personal Property Held for 
Facilities in Standby


Sec.  109-43.5000  Scope of subpart.

    This subpart supplements 41 CFR part 101-43 by providing policies 
and procedures for the economic and efficient utilization of personal 
property associated with facilities placed in standby status.


Sec.  109-43.5001  Definition.

    Facility in standby means a complete plant or section of a plant, 
which is neither in service or declared excess.


Sec.  109-43.5002  Reviews to determine need for retaining items.

    Procedures and practices shall require an initial review at the 
time the plant is placed in standby to determine which items can be 
made available for use elsewhere within the established start-up 
criteria; periodic reviews (no less than biennially) to determine need 
for continued retention of property; and special reviews when a change 
in start-up time is made or when circumstances warrant. Such procedures 
should recognize that:
    (a) Equipment, spares, stores items, and materials peculiar to a 
plant should be retained for possible future operation of the plant;
    (b) Where practicable, common-use stores should be removed and used 
elsewhere; and
    (c) Uninstalled equipment and other personal property not required 
should be utilized elsewhere on-site or be disposed of as excess.

PART 109-44--DONATION OF PERSONAL PROPERTY

Subpart 109-44.7--Donations of Property to Public Bodies
Sec.
109-44.701 Findings justifying donation to public bodies.
109-44.702 Donations to public bodies.
109-44.702-3 Hazardous materials.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 121.

Subpart 109-44.7--Donations of Property to Public Bodies


Sec.  109-44.701  Findings justifying donation to public bodies.

    The Office of Management and Program Secretarial Officer (PSO) 
shall appoint officials to make required findings and reviews.


Sec.  109-44.702  Donations to public bodies.


Sec.  109-44.702-3  Hazardous materials.

    The Office of Management and Heads of field organizations) shall be 
responsible for the safeguards, notifications, and certifications 
required by 41 CFR part 101-42 and part 109-42 of this chapter, as well 
as compliance with all other requirements therein.

PART 109-45--SALE, ABANDONMENT, OR DESTRUCTION OF PERSONAL PROPERTY

Subpart 109-45.1--General
Sec.
109-45.105 Exclusions and exemptions.
109-45.105-3 Exemptions.
Subpart 109-45.3--Sale of Personal Property
109-45.300-50 Sales by designated contractors.
109-45.301-51 Export/import clause.
109-45.302 Sale to Government employees.
109-45.302-50 Sales to DOE employees and designated contractor 
employees.
109-45.303 Reporting property for sale.
109-45.303-3 Delivery.
109-45.304 Sales methods and procedures.
109-45.304-2 Negotiated sales and negotiated sales at fixed prices.
109-45.304-2.50 Negotiated sales and negotiated sales at fixed 
prices by designated contractors.
109-45.304-6 Reviewing authority.
109-45.304-50 Processing bids and awarding of contracts.
109-45.304-51 Documentation.
109-45.309 Special classes of property.
109-45.309-2.50 Hazardous property.
109-45.309-51 Export controlled property.
109-45.309-52 Classified property.
109-45.309-53 Nuclear-related or proliferation-sensitive property.
109-45.309-54 Information Technology (IT).
109-45.310 Antitrust laws.
109-45.317 Noncollusive bids and proposals.
Subpart 109-45.9--Abandonment or Destruction of Personal Property
109-45.901 Authority to abandon or destroy.
109-45.902 Findings justifying abandonment or destruction.
109-45.902-2 Abandonment or destruction without notice.
Subpart 109-45.10--Recovery of Precious Metals
109-45.1002 Agency responsibilities.
109-45.1002-3 Precious metals recovery program monitor.
109-45.1003 Recovery of silver from precious metals bearing 
materials.
109-45.1004 Recovery and use of precious metals through the DOD 
Precious Metals Recovery Program.
Subpart 109-45.47--Reports
109-45.4702 Negotiated sales reports.
Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
Contaminated Personal Property
109-45.5005 Disposal.
109-45.5005-1 General.
Subpart 109-45.51--Disposal of Excess and Surplus Personal Property in 
Foreign Areas
109-45.5100 Scope of subpart.
109-45.5101 Authority.
109-45.5102 General.
109-45.5103 Definitions.
109-45.5104 Disposal.
109-45.5104-1 General.
109-45.5104-2 Methods of disposal.
109-45.5105 Reports.

Subpart 109-45.1--General


Sec.  109-45.105  Exclusions and exemptions.


Sec.  109-45.105-3  Exemptions.

    GSA, by letter dated May 28, 1965, exempted contractor inventory 
held by DOE designated contractors from the GSA conducted sales 
provisions of 41 CFR 101-45.

Subpart 109-45.3--Sale of Personal Property


Sec.  109-45.300-50  Sales by designated contractors.

    Sales of surplus contractor inventory will be conducted by 
designated contractors when Program Secretarial Officer (PSO) determine 
that it is in the best interest of the Government. OPMOs and 
appropriate program officials shall perform sufficient oversight over 
these sales to ensure that personal property requiring special handling 
or program office certification is sold in accordance with regulatory 
requirements.


Sec.  109-45.301-51  Export/import clause.

    The following clause shall be included in all sales invitations for 
bid:
    Personal property purchased from the U.S. Government may or may not 
be authorized for export/import from/into the country where the 
personal property is located. If export/import is allowed, the 
purchaser is solely responsible for obtaining required clearances or 
approvals. The purchaser also is required to provide to the appropriate 
party DOE's export control guidance if the property is resold or 
otherwise disposed.


Sec.  109-45.302  Sale to Government employees.


Sec.  109-45.302-50   Sales to DOE employees and designated contractor 
employees.

    (a) DOE employees and employees of designated contractors shall be 
given the same opportunity to acquire Government personal property as 
is given to the general public, provided the employees warrant in 
writing prior to award that they have not either directly or 
indirectly:
    (1) Obtained information not otherwise available to the general 
public regarding usage, condition, quality, or value of the personal 
property, or

[[Page 63289]]

    (2) Participated in:
    (i) The determination to dispose of the personal property;
    (ii) The preparation of the personal property for sale; and
    (iii) Determining the method of sale.
    (b) Excess or otherwise unusable special, fitted clothing and other 
articles of personal property, acquired for the exclusive use of an 
individual employee, may be sold to the employee for the best price 
obtainable when the property is no longer required by the holding 
organization or the employee is terminated.


Sec.  109-45.303  Reporting property for sale.


Sec.  109-45.303-3  Delivery.

    (a)-(b) [Reserved]
    (c) Guidelines for signature authorization and control of blank 
copies of Standard Form 97, United States Government Certificate to 
Obtain Title to a Vehicle are contained in subpart 109-38.7 of this 
chapter.


Sec.  109-45.304  Sales methods and procedures.


Sec.  109-45.304-2  Negotiated sales and negotiated sales at fixed 
prices.

    (a)(1) [Reserved]
    (2) The head of each field organization shall designate a 
responsible person to approve negotiated sales by DOE direct 
operations.
    (3) Requests for prior approval of negotiated sales by DOE direct 
operations shall be submitted with justification to the OPMO for review 
and forwarding to GSA for approval.
    (b) [Reserved]


Sec.  109-45.304-2.50   Negotiated sales and negotiated sales at fixed 
prices by designated contractors.

    (a) Negotiated sales by designated contractors of surplus 
contractor inventory may be made when the DOE contracting officer 
determines and documents prior to the sale that the use of this method 
of sale is justified on the basis of the circumstances enumerated 
below, provided that the Government's interests are adequately 
protected. These sales shall be at prices which are fair and reasonable 
and not less than the proceeds which could reasonably be expected to be 
obtained if the personal property was offered for competitive sale. 
Specific conditions justifying negotiated sales include:
    (1) No acceptable bids have been received as a result of 
competitive bidding under a suitable advertised sale;
    (2) Personal property is of such small value that the proceeds to 
be derived would not warrant the expense of a formal competitive sale;
    (3) The disposal will be to a state, territory, possession, 
political subdivision thereof, or tax-supported agency therein, and the 
estimated fair market value of the personal property and other 
satisfactory terms of disposal are obtained by negotiation;
    (4) The specialized nature and limited use potential of the 
personal property would create negligible bidder interest;
    (5) Removal of the personal property would result in a significant 
reduction in value, or the accrual of disproportionate expense in 
handling; or
    (6) It can be clearly established that such action is in the best 
interests of the Government.
    (b) When determined to be in the best interests of the Government, 
Program Secretarial Officer (PSO) may authorize fixed-price sales of 
surplus contractor inventory by designated contractors provided:
    (1) The fair market value of the item to be sold does not exceed 
$15,000;
    (2) Adequate procedures for publicizing such sales have been 
established;
    (3) The sales prices are not less than could reasonably be expected 
if competitive bid sales methods were employed and the prices have been 
approved by a reviewing authority designated by the head of the field 
organization; and
    (4) The warranty prescribed in Sec.  109-45.302-50(a) of this 
subpart is obtained when sales are made to employees.


Sec.  109-45.304-6  Reviewing authority.

    The reviewing authority may consist of one or more persons 
designated by the head of the field organization.


Sec.  109-45.304-50  Processing bids and awarding of contracts.

    The procedures established in 48 CFR 14.4 and 48 CFR 914.4 shall be 
made applicable to the execution, receipt, safeguarding, opening, 
abstraction, and evaluation of bids and awarding contracts, except that 
in evaluating bids and awarding contracts, disposal under conditions 
most advantageous to the Government based on high bids received shall 
be the determining factor.


Sec.  109-45.304-51  Documentation.

    Files pertaining to surplus property sales shall contain copies of 
all documents necessary to provide a complete record of the sales 
transactions and shall include the following as appropriate:
    (a) A copy of the request/invitation for bids if a written request/
invitation for bids is employed. A list of items or lots sold, 
indicating acquisition cost, upset price and sales price indicated.
    (b) A copy of the advertising literature distributed to prospective 
bidders.
    (c) A list of prospective bidders solicited.
    (d) An abstract of bids received.
    (e) Copies of bids received, including Standard Form 119, 
Contractor's Statement of Contingent or Other Fees, together with other 
relevant information.
    (f) A statement concerning the basis for determination that 
proceeds constitute a reasonable return for property sold.
    (g) When appropriate, full and adequate justification for not 
advertising the sale when the fair market value of property sold in 
this manner in any one case exceeds $1,000.
    (h) A justification concerning any award made to other than the 
high bidder.
    (i) The approval of the reviewing authority when required.
    (j) A copy of the notice of award.
    (k) All related correspondence.
    (l) In the case of auction or spot bid sales, the following 
additional information should be included:
    (1) A summary listing of the advertising used (e.g., newspapers, 
radio, television, and public postings).
    (2) The names of the prospective bidders who attended the sale.
    (3) A copy of any pertinent contract for auctioneering services and 
related documents.
    (4) A reference to files containing record of deposits and 
payments.


Sec.  109-45.309  Special classes of property.


Sec.  109-45.309-2.50  Hazardous property.

    Hazardous property shall be made available for sale only after the 
review and certification requirements of Sec.  109-43.307-2.50 of this 
subpart have been met.


Sec.  109-45.309-51  Export controlled property.

    Export controlled property shall be made available for sale only 
after the export license requirements of Sec.  109-43.307-50 of this 
subpart have been met.


Sec.  109-45.309-52  Classified property.

    Classified property shall be made available for sale only after the 
declassification requirements of Sec.  109-43.307-51 of this subpart 
have been met.


Sec.  109-45.309-53  Nuclear-related or proliferation sensitive 
property.

    Nuclear-related or proliferation-sensitive property shall be made 
available for sale only after the stripping and certification 
requirements of Sec.  109-

[[Page 63290]]

43.307-52 of this subpart have been met.


Sec.  109-45.309-54  Information Technology (IT).

    IT shall be made available for sale only after the sanitizing and 
certification requirements of Sec.  109-43.307-53 of this subpart have 
been met.


Sec.  109-45.310  Antitrust laws.

    DOE offices shall submit to the Office of Management any request 
for a proposed sale of a patent, process, technique, or invention, 
regardless of cost; or of surplus personal property with a fair market 
value of $3,000,000 or more.


Sec.  109-45.317   Noncollusive bids and proposals.

    (a) [Reserved]
    (b) The head of the field organization shall make the determination 
required in 41 CFR 101-45.317(b). This authority cannot be redelegated.

Subpart 109-45.9--Abandonment or Destruction of Personal Property


Sec.  109-45.901  Authority to abandon or destroy.

    Personal property in the possession of DOE offices or designated 
contractors may be abandoned or destroyed provided that a written 
determination has been made by the OPMO/PA that property has no 
commercial value or the estimated cost of its continued care and 
handling would exceed the estimated proceeds from its sale.


Sec.  109-45.902  Findings justifying abandonment or destruction.


Sec.  109-45.902-2  Abandonment or destruction without notice.

    The head of the field organization shall designate an official to 
make the findings justifying abandonment or destruction without public 
notice of personal property. The OPMO/PA shall review and coordinate on 
the findings.

Subpart 109-45.10--Recovery of Precious Metals


Sec.  109-45.1002  Agency responsibilities.

    The Office of Management and Program Secretarial Officer (PSO) are 
responsible for establishing a program for the recovery of precious 
metals.


Sec.  109-45.1002-3  Precious metals recovery program monitor.

    The Office of Management shall be the precious metals recovery 
program monitor.


Sec.  109-45.1003  Recovery of silver from precious metals bearing 
materials.

    The Office of Management and Program Secretarial Officer (PSO) are 
responsible for the establishment and maintenance of a program for 
silver recovery from used hypo solution and scrap film.


Sec.  109-45.1004   Recovery and use of precious metals through the DOD 
Precious Metals Recovery Program.

    DOE operates its own precious metals pool and therefore does not 
participate in the DOD Precious Metals Recovery Program. See Sec.  109-
27.5106 of this chapter for guidance on operation of the DOE precious 
metals pool.

Subpart 109-45.47--Reports


Sec.  109-45.4702  Negotiated sales reports.

    The report of negotiated sales shall be submitted by DOE offices to 
GSA, in accordance with 41 CFR 102-38.

Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
Contaminated Personal Property


Sec.  109-45.5005  Disposal.


Sec.  109-45.5005-1   General.

    (a) Nuclear-related, proliferation-sensitive, low level 
contaminated property, and classified personal property shall not be 
transferred, sold, exchanged, leased, donated, abandoned, or destroyed 
without approval of the cognizant program office. Disposal of this 
personal property is subject to the restrictions contained in 
applicable sections of part 109-42 and Sec. Sec.  109-43.307-50, 109-
43.307-51, and 109-43.307-52 of this chapter, and applicable sections 
of 41 CFR part 101-42.
    (b) Personal property that is considered defective or unsafe must 
be mutilated prior to shipment for disposal.

Subpart 109-45.51--Disposal of Excess and Surplus Personal Property 
in Foreign Areas


Sec.  109-45.5100  Scope of subpart.

    This subpart sets forth policies and procedures governing the 
disposal of DOE-owned foreign excess and surplus personal property.


Sec.  109-45.5101  Authority.

    The policies and procedures contained in this subpart are issued 
pursuant to the provisions of the Federal Property and Administrative 
Services Act of 1949, former 40 U.S.C. et seq., as amended. Title IV of 
the Act entitled ``Foreign Excess Property'' provides that, except 
where commitments exist under previous agreements, all excess personal 
property located in foreign areas shall be disposed of by the owning 
agency, and directs that the head of the agency conform to the foreign 
policy of the United States in making such disposals in accordance 41 
CFR 102-36.


Sec.  109-45.5102  General.

    Disposal of Government-owned personal property in the custody of 
DOE organizations or its contractors in foreign areas shall be made in 
an efficient and economical manner, and in conformance with the foreign 
policy of the United States.


Sec.  109-45.5103   Definitions.

    As used in this subpart, the following definitions apply:
    Foreign means outside the United States, Puerto Rico, American 
Samoa, Guam, the Trust Territory of the Pacific Islands, and the Virgin 
Islands.
    Foreign service post means the local diplomatic or consular post in 
the area where the excess personal property is located.


Sec.  109-45.5104  Disposal.


Sec.  109-45.5104-1  General.

    Foreign excess personal property which is not required for transfer 
within DOE or to other U.S. Government agencies, except for the 
personal property identified in Sec.  109-45.5005-1(a) of this part, 
shall be considered surplus and may be disposed of by transfer, sale, 
exchange, or lease, for cash, credit, or other property and upon such 
other terms and conditions as may be deemed proper. Such personal 
property may also be donated, abandoned, or destroyed under the 
conditions specified in Sec.  109-45.5105-2 of this subpart. Most 
foreign governments have indicated to the U.S. State Department that 
they wish to be consulted before U.S. Government property is disposed 
of in their countries (except in the case of transfers to other U.S. 
Government agencies). Matters concerning customs duties and taxes, or 
similar charges, may require prior agreement with the foreign 
government involved. The State Department shall be contacted in regard 
to these issues. Whenever advice or approval of the State Department is 
required by this subpart, it may be obtained either through the foreign 
service post in the foreign area involved or from the State Department 
in Washington, DC. If the issue is to be presented to the State 
Department in Washington, DC, it shall be referred through appropriate 
administrative channels to the Office of International

[[Page 63291]]

Affairs for review, coordination, and handling.


Sec.  109-45.5104-2  Methods of disposal.

    (a) Sales of foreign surplus personal property shall be conducted 
in accordance with the following guidelines:
    (1) Generally, all sales of foreign surplus personal property shall 
be conducted under the competitive bid process unless it is 
advantageous and more practicable to the Government not to do so. When 
competitive bids are not solicited, reasonable inquiry of prospective 
purchasers shall be made in order that sales may be made on terms most 
advantageous to the U.S. Government.
    (2) In no event shall any personal property be sold in foreign 
areas without a condition which states that its importation into the 
United States is forbidden unless the U.S. Secretary of Agriculture (in 
the case of any agricultural commodity, food, cotton, or woolen goods), 
or the U.S. Secretary of Commerce (in the case of any other property), 
has determined that the importation of such property would relieve 
domestic shortages or otherwise be beneficial to the economy of the 
United States.
    (3) Sales documents shall provide that the purchaser must pay any 
import duties or taxes levied against personal property sold in the 
country involved and further provide that the amount of this duty or 
tax shall not be included as a part of the price paid the U.S. 
Government for the personal property. In the event the levy is placed 
upon the seller by law, the buyer will be required to pay all such 
duties or taxes and furnish the seller copies of his receipts prior to 
the release of the personal property to him. However, if the foreign 
government involved will not accept payment from the buyer, the seller 
will collect the duties or taxes and turn the amounts collected over to 
the foreign government. Accounting for the amounts collected shall be 
coordinated with the disbursing officer of the nearest United States 
foreign service post. The property shall not be released to the 
purchaser until the disposal officer is satisfied that there is no 
responsibility for payment by the United States (as contrasted to 
collection by the United States) of taxes, duties, excises, etc.
    (4) Advance approval must be obtained from the State Department for 
the sale of certain categories of personal property, including small 
arms and machine guns; artillery and projectiles; ammunition, bombs, 
torpedoes, rockets and guided missiles; fire control equipment and 
range finders; tanks and ordnance vehicles; chemical and biological 
agents, propellants and explosives; vessels of war and special naval 
equipment; aircraft and all components, parts and accessories for 
aircraft; military electronic equipment; aerial cameras, military 
photo-interpretation, stereoscopic plotting and photogrammetry 
equipment; and all material not enumerated which is included in the 
United States Munitions List, 22 CFR 121.01, and is subject to disposal 
restrictions. Therefore, prior to the sale of any of the articles 
enumerated in the U.S. Munitions List, the foreign service post in the 
area shall be consulted.
    (5) All proposed sales, regardless of the total acquisition cost of 
personal property involved, which the head of the DOE foreign office 
believes might have a significant economic or political impact in a 
particular area, shall be discussed with the foreign service post.
    (b) While there is authority for exchange or lease of foreign 
surplus personal property, such authority shall be exercised only when 
such action is clearly in the best interests of the U.S. Government. 
Disposals by exchange are subject to the same requirements as disposals 
by sale under Sec.  109-45.5105-2 of this subpart.
    (c)(1) Foreign excess or surplus personal property (including 
salvage and scrap) may be donated, abandoned, or destroyed provided:
    (i) The property has no commercial value or the estimated cost of 
its care and handling would exceed the estimated proceeds from its 
sale; and
    (ii) A written finding to that effect is made and approved by the 
Office of International Affairs.
    (2) No personal property shall be abandoned or destroyed if 
donation is feasible. Donations under these conditions may be made to 
any agency of the U.S. Government, or to educational, public health, or 
charitable nonprofit organizations.
    (3) Foreign excess personal property may also be abandoned or 
destroyed when such action is required by military necessity, safety, 
or considerations of health or security. A written statement explaining 
the basis for disposal by these means and approval by the Office of 
International Affairs.
    (4) Property shall not be abandoned or destroyed in a manner which 
is detrimental or dangerous to public health and safety, or which will 
cause infringement on the rights of other persons.


Sec.  109-45.5105  Reports.

    (a) Proposed sales of foreign surplus personal property shall 
include all pertinent data, including the following:
    (1) The description of personal property to be sold, including:
    (i) Identification of personal property (description should be in 
terms understandable to persons not expert in technical nomenclature). 
Personal property covered by the U.S. Munitions List and regulations 
pertaining thereto (as published in 22 CFR 121.1) should be clearly 
identified;
    (ii) Quantity;
    (iii) Condition; and
    (iv) Acquisition cost.
    (2) The proposed method of sale (e.g., sealed bid, negotiated sale, 
etc.)
    (3) Any currency to be received and payment provisions (i.e., U.S. 
dollars, foreign currency, or credit, including terms of the proposed 
sale).
    (4) Any restrictions on use of personal property to be sold (such 
as resale of property, disposal as scrap, demilitarization, etc.).
    (5) Any special terms or conditions of sale.
    (6) The categories of prospective purchasers (e.g., host country, 
other foreign countries, special qualifications, etc.).
    (7) How taxes, excises, duties, etc., will be handled.

PART 109-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT 
TO EXCHANGE/SALE AUTHORITY

Sec.
109-46.000 Scope of part.
109-46.000-50 Applicability.
Subpart 109-46.2--Authorization
109-46.202 Restrictions and limitations.
109-46.203 Special authorizations.

    Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).


Sec.  109-46.000   Scope of part.


Sec.  109-46.000-50  Applicability.

    (a) Except as set forth in paragraphs (a)(1) through (5) of this 
section, the requirements of FPMR/FMR part 101-46 and this part are not 
applicable to designated contractors. Designated contractors shall 
comply with the following FPMR/FMR requirements:
    (1) 101-46.200;
    (2) 101-46.201-1;
    (3) 101-46.202(b)(2), (3), (4), (5), (6), and (7);
    (4) 101-46.202(c)(1), (2), (4), (5), (6), (7), (10), (11), and 
(12);
    (5) 101-46.202(d).
    (b) Items in the following Federal Supply Classification Groups 
(FSCG) are

[[Page 63292]]

not eligible for processing under the exchange/sale provision. Requests 
for waivers must be processed through the DPMO to GSA.

Description

FSCG

10 Weapons
11 Nuclear ordnance
12 Fire control equipment
14 Guided missiles
15 Aircraft and airframe structural components (except FSC Class 1560, 
Airframe structural components)
20 Ship and marine equipment
22 Railway equipment
41 Firefighting, rescue, and safety equipment

Subpart 109-46.2--Authorization


Sec.  109-46.202  Restrictions and limitations.

    (a)-(c)(9) [Reserved]
    (10) The Office of Management and Program Secretarial Officer (PSO) 
for their respective organizations shall designate an official to make 
the certification that a continuing valid requirement exists for excess 
personal property acquired and placed in official use for less than one 
year but no longer required and is to be disposed of under the 
exchange/sale provisions.
    (11) [Reserved]
    (12) Program Secretarial Officer (PSO) shall make the determination 
concerning demilitarization of combat material.


Sec.  109-46.203   Special authorizations.

    (a) [Reserved]
    (b) The Office of Management and Program Secretarial Officer (PSO) 
for their respective organizations shall designate an official to make 
the certification concerning the exchange of historic items for 
historical preservation or display.

PART 109-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND 
FORFEITED PERSONAL PROPERTY

Sec.
109-48.000 Scope of part.
109-48.000-50 Applicability.
Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
Property
109-48.101 Forfeited or voluntarily abandoned property.
109-48.101-6 Transfer to other Federal agencies.

    Authority: 40 U.S.C. 121.


Sec.  109-48.000   Scope of part.


Sec.  109-48.000-50  Applicability.

    This part is applicable to contractor operations where the 
abandoned or forfeited personal property is found on premises owned or 
leased by the Government that are managed and operated by designated 
contractors.

Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
Property


Sec.  109-48.101  Forfeited or voluntarily abandoned property.


Sec.  109-48.101-6  Transfer to other Federal agencies.

    (a)-(c) [Reserved]
    (d) Transfer orders for forfeited or voluntarily abandoned 
distilled spirits, wine, and malt beverages for medicinal, scientific, 
or mechanical purposes or any other official purposes for which 
appropriated funds may be expended by a Government agency shall be 
forwarded through normal administrative channels for signature by the 
DPMO and for subsequent forwarding to GSA for release.
    (e) [Reserved]
    (f) Transfer orders for reportable forfeited drug paraphernalia 
shall be forwarded through normal administrative channels for signature 
by the Property Executive and for subsequent forwarding to GSA for 
approval.

PART 109-50--SPECIAL DOE DISPOSAL AUTHORITIES

Sec.
109-50.000 Scope of part.
109-50.001 Applicability.
Subpart 109-50.1--Laboratory Equipment Donation Program Grant Program
109-50.100 Scope of subpart.
109-50.101 Applicability.
109-50.102 General.
109-50.103 Definitions.
109-50.104 Equipment which may be granted.
109-50.105 Equipment which may not be granted.
109-50.106 Procedure.
109-50.107 Reporting.
Subpart 109-50.2--Math and Science Equipment Gift Program
109-50.200 Scope of subpart.
109-50.201 Applicability.
109-50.202 Definitions.
109-50.203 Eligible equipment.
109-50.204 Limitations.
109-50.205 Procedure.
109-50.206 Reporting.
Subpart 109-50.3--[Reserved]
Subpart 109-50.4--Programmatic Disposal to Contractors of DOE Property 
in a Mixed Facility
109-50.400 Scope of subpart.
109-50.401 Definitions.
109-50.402 Submission of proposals.
109-50.403 Need to establish DOE program benefit.
Subpart 109-50.48--Exhibits
109-50.4800 Scope of subpart.
109-50.4801 Equipment Gift Agreement.

    Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
7254); sec. 31, Atomic Energy Act, as amended; Energy Reorganization 
Act of 1974, secs. 103 and 107; Title III, Department of Energy 
Organization Act; E.O. 12999; sec. 3710(i), Stevenson-Wydler 
Technology Innovation Act, as amended (15 U.S.C. 3710(i)); Pub. L. 
101-510, Department of Energy Science Education Enhancement Act; 
Pub. L. 102-245, American Technologies Preeminence Act of 1991 (15 
U.S.C. 3701); Office of Science Financial Assistance Program (10 CFR 
part 605).


Sec.  109-50.000  Scope of part.

    This part provides guidance on the policies, practices, and 
procedures for the disposal of DOE property under special legislative 
authorities.


Sec.  109-50.001  Applicability.

    The provisions of this part apply to direct DOE operations and to 
designated contractors only when specifically provided for in the 
appropriate subpart.

Subpart 109-50.1--Laboratory Equipment Donation Program Grant 
Program


Sec.  109-50.100  Scope of subpart.

    This subpart provides guidance on the granting of Laboratory 
Equipment Donation Program in the LEDP is limited to accredited, post 
graduate, degree granting institutions including universities, 
colleges, junior colleges, technical institutes, museums, or hospitals, 
located in the U.S. and interested in establishing or upgrading energy-
oriented educational programs in the life, physical, and environmental 
sciences and in engineering is eligible to apply. An energy-oriented 
program is defined as an academic research activity dealing primarily 
or entirely in energy-related topics.


Sec.  109-50.101   Applicability.

    This subpart is applicable to DOE offices and designated 
contractors.


Sec.  109-50.102  General.

    DOE, to encourage research and development in the field of energy, 
awards grants of excess Laboratory Equipment Donation Program to 
eligible institutions for use in energy-oriented educational programs. 
Under the Used Laboratory Equipment Donation Program (LEDP) Grant 
Program, grants of used energy-related equipment excess to the 
requirements of DOE offices and designated contractors may be made to 
eligible institutions prior to reporting the equipment to GSA for 
reutilization screening.

[[Page 63293]]

Sec.  109-50.103  Definitions.

    As used in this subpart the following definitions apply: Book value 
means acquisition cost less depreciation. DOE Financial Assistance 
Rules (10 CFR part 600) means the DOE regulation which establishes a 
uniform administrative system for application, award, and 
administration of assistance awards, including grants and cooperative 
agreements.
    Eligible institution means any nonprofit educational institution of 
higher learning, such as universities, colleges, junior colleges, 
hospitals, and technical institutes or museums located in the United 
States and interested in establishing or upgrading energy-oriented 
education programs.
    Energy-oriented education program means one that deals partially or 
entirely in energy or energy-related topics.


Sec.  109-50.104  Equipment which may be granted.

    Generally, equipment items classified in FSCG 66, Instruments and 
Laboratory Equipment, are eligible for granting under this program. 
Other selected items designated by the Office of Workforce Development 
for Teachers and Scientists (WDTS) and approved by the OPMO, are made 
available under the program.


Sec.  109-50.105  Equipment which may not be granted.

    Equipment which will not be granted include:
    (a) Equipment intended by the DOE institution for use in 
contractual research projects.
    (b) Furniture, such as desks, tables, chairs, typewriters, etc. 
(exception is such equipment that may be an essential component of and 
physically attached to an energy-related laboratory equipment system);
    (c) General supplies.


Sec.  109-50.106   Procedure.

    (a) After DOE utilization screening through EADS, items eligible 
for LEDP grants are extracted from the EADS system and Office of 
Workforce Development for Teachers and Scientists (WDTS).
    (b) Office of Workforce Development for Teachers and Scientists 
(WDTS) to prospective grantees through an automated system.
    (c) The following periods have been established during which time 
equipment will remain available to this program prior to reporting it 
to GSA for reutilization by other Federal agencies:
    (1) Thirty days from the date DOE utilization screening is 
completed to permit suitable time for eligible institutions to review 
and earmark the desired equipment.
    (2) An additional thirty days after the equipment is earmarked to 
permit the eligible institutions to prepare and submit an equipment 
proposal request and to provide time for field organizations to review 
and evaluate the proposal and take appropriate action.
    (d) Upon approval of the proposal, a grant will be issued to the 
institution upon completion.
    (e) A copy of the completed grant, shall be used to transfer title 
and drop accountability of the granted equipment from the financial 
records.
    (f) The cost of care and handling of personal property incident to 
the grant shall be charged to the receiving institution. Such costs may 
consist of packing, crating, shipping and insurance, and are limited to 
actual costs. In addition, where appropriate, the cost of any repair 
and/or modification to any equipment shall be borne by the recipient 
institution.


Sec.  109-50.107  Reporting.

    (a) Gifts made under this program shall be included in the annual 
report of property transferred to non-Federal recipients, as required 
by 41 CFR 101-43.4701(c) and 109-43.4701(c).
    (b) A copy of each equipment agreement shall be forwarded to the 
Director, Office of Laboratory Policy and Infrastructure Management.

Subpart 109-50.2--Math and Science Equipment Gift Program


Sec.  109-50.200  Scope of subpart.

    This subpart provides guidance on providing gifts of excess and/or 
surplus education related and Federal research equipment to elementary 
and secondary educational institutions or nonprofit organizations for 
the purpose of improving math and science curricula or conducting of 
technical and scientific education and research activities.


Sec.  109-50.201  Applicability.

    The provisions of this subpart are applicable to DOE offices and 
designated contractors.


Sec.  109-50.202  Definitions.

    As used in this subpart the following definitions apply:
    DOE Field Organizations means the DOE Federal management 
activities, including Operations Offices, Field Offices, Area Offices, 
Site Offices, Energy Technology Centers, and Project Offices staffed by 
Federal employees.
    Education-related and Federal research equipment includes but is 
not limited to DOE-owned property in FSCG 34, 36, 41, 52, 60, 61, 66, 
67, 70, and 74 (See 41 CFR 101-43.4801(d)), and other related 
equipment, which is deemed appropriate for use in improving math and 
science curricula or activities for elementary and secondary school 
education, or for the conduct of technical and scientific education and 
research activities.
    Eligible recipient means local elementary and secondary schools and 
nonprofit organizations.
    Elementary and secondary schools means individual public or private 
educational institutions encompassing kindergarten through twelfth 
grade, as well as public school districts.
    Facilities under DOE Field Organization cognizance means national 
laboratories, production plants, and project sites managed and operated 
by DOE contractors or subcontractors.


Sec.  109-50.203  Eligible equipment.

    (a) Education-related and research equipment will include, but is 
not limited to the following FSCGs:

FSCG and Description

34 Metalworking Machinery
36 Special Industry Machinery
41 Refrigeration, Air Conditioning and Air Circulating Equipment
52 Measuring Tools
60 Fiber Optics Materials, Components, Assemblies and Accessories
61 Electric Wire, and Power and Distribution Equipment
66 Instruments and Laboratory Equipment
67 Photographic Equipment
70 General Purpose Automatic Data Processing Equipment (Including 
Firmware), Software, Supplies and Support Equipment
74 Office Machines, Text Processing Systems and Visible Record 
Equipment

    (b) Other related equipment may be provided if deemed appropriate 
and approved by the Director, Office of Laboratory Policy and 
Infrastructure Management.


Sec.  109-50.204  Limitations.

    (a) Excess and/or surplus education-related and Federal research 
equipment at DOE Field Organizations and cognizant facilities is 
eligible for transfer as a gift under this program. However, safety, 
environmental, and health matters must be considered.
    (b) Title to the equipment will transfer upon the recipient's 
written acknowledgement of receipt.
    (c) The Office of Workforce Development for Teachers and Scientists 
(WDTS) may authorize gifts of

[[Page 63294]]

excess and/or surplus education-related and Federal research equipment 
by signature on the appropriate gift instrument where the book value of 
an item of equipment exceeds $25,000 or the cumulative book value of 
the gifts under this program to any one institution exceeds $25,000. 
HCA or designee may authorize gifts of excess and/or surplus education-
related and Federal research equipment of lesser individual and 
cumulative book value by signature on the appropriate gift instrument. 
Delegations by the HCA to authorize gifts of excess and/or surplus 
education-related and Federal research equipment shall be in writing to 
a specific individual, for a specified period of time, and for a 
specified (or unlimited) level of authority.
    (d) Gifts shall be serviceable and in working order. Disposal 
Condition Codes 1 and 4, as defined in 41 CFR 101-43.4801(e), meet this 
criteria. Serviceability of equipment should be verified before the 
gift is made to the eligible recipient.


Sec.  109-50.205  Procedure.

    (a) The DOE facility will set aside an appropriate amount of excess 
and/or surplus education-related and Federal research equipment for 
transfer under this program.
    (b) A list of available education-related and Federal research 
equipment will be prepared and distributed to eligible recipients and 
the chief State School Board Officer.
    (c) Precollege institutions with partnership arrangements with the 
DOE or its facilities (e.g., an adopted school) may receive gifts of 
equipment in support of the partnership.
    (d) Precollege institutions not in a partnership with DOE may 
receive equipment at the recommendation of the chief State School Board 
Officer. The Chief State School Board Officer will determine which 
schools within the state will receive which equipment. Consideration 
for placement of the equipment should be based on:
    (1) The elementary or secondary schools determined to have the 
greatest need; or
    (2) Recipients of federally funded math and science projects where 
the equipment would further enhance the progress of the project.
    (e) Eligible recipients will have 30 days to select and freeze, on 
a first come, first serve basis, the items desired and submit a request 
for selected items stating:
    (1) Why the gift is needed; and
    (2) How the gift will be used to improve math and science curricula 
or in the conduct of technical and scientific education and research 
activities.
    (f) The cost of shipping should be minimal and not more than the 
actual equipment value.
    (g) An Equipment Gift Agreement will be prepared and used to 
provide the gift to eligible recipients. The gift agreement will be in 
the format provided in section 109-50.4801 of this subchapter. The 
agreement shall be numbered for control purposes, and signed by the 
Office of Science's Office of Workforce Development for Teachers and 
Scientists (WDTS) or the HCA or designee, as appropriate, and an 
appropriate official representing the eligible recipient.


Sec.  109-50.206   Reporting.

    (a) Gifts made under this program shall be included in the annual 
report of property transferred to non-Federal recipients, as required 
by 41 CFR 101-43.4701(c) and Sec.  109-43.4701(c) of this chapter.
    (b) A copy of each equipment agreement shall be forwarded to the 
Office of Workforce Development for Teachers and Scientists (WDTS).

Subpart 109-50.3--[Reserved]

Subpart 109-50.4--Programmatic Disposal to Contractors of DOE 
Property in a Mixed Facility


Sec.  109-50.400  Scope of subpart.

    This subpart contains policy to be followed when it is proposed to 
sell or otherwise transfer DOE personal property located in a mixed 
facility to the contractor who is the operator of that facility.


Sec.  109-50.401  Definitions.

    As used in this subpart, the following definitions apply;
    Contractor means the operator of the mixed facility.
    DOE property means DOE-owned personal property located in a mixed 
facility.
    Mixed facility means a partly DOE-owned and partly contractor-owned 
facility. For purposes of this subpart, however, this definition does 
not apply to such a facility operated by an educational or other 
nonprofit institution under a basic research contract with DOE.


Sec.  109-50.402  Submission of proposals.

    Proposals involving programmatic disposals of DOE personal property 
located in mixed facilities to contractors operating that facility 
shall be forwarded through the appropriate program organization to the 
Property Executive, for review and processing for approval. Each such 
request shall include all information necessary for a proper evaluation 
of the proposal. The proposal shall include, as a minimum:
    (a) The purpose of the mixed facility;
    (b) The description, condition, acquisition cost, and present use 
of the DOE personal property involved.
    (c) The programmatic benefits which could accrue to DOE from the 
disposal to the contractor (including the considerations which become 
important if the disposal is not made);
    (d) The appraised value of the DOE personal property (preferably by 
independent appraisers); and
    (e) The proposed terms and conditions of disposal including:
    (1) Price;
    (2) Priority to be given work for DOE requiring the use of the 
transferred property, and including the basis for any proposed charge 
to DOE for amortizing the cost of plant and equipment items;
    (3) Recapture of the property if DOE foresees a possible future 
urgent need; and
    (4) Delivery of the property, whether ``as is-where is,'' etc.


Sec.  109-50.403  Need to establish DOE program benefit.

    When approval for a proposed programmatic disposal of DOE personal 
property in a mixed facility is being sought, it must be established 
that the disposal will benefit a DOE program. For example, approval 
might be contingent on showing that:
    (a) The entry of the contractor as a private concern into the 
energy program is important and significant from a programmatic 
standpoint; and
    (b) The sale of property to the contractor will remove obstacles 
which otherwise discourage entry into the field.

Subpart 109-50.48--Exhibits


Sec.  109-50.4800   Scope of subpart.

    This subpart exhibits information referenced in the text of part 
109-50 of this chapter that is not suitable for inclusion elsewhere in 
that part.


Sec.  109-50.4801  Equipment Gift Agreement.

    (a) The following Equipment Gift Agreement format will be used to 
provide gifts of excess and/or surplus equipment to eligible recipients 
under the Math and Science Equipment Gift Program (see subpart 109-50.2 
of this chapter).

Equipment Gift Agreement

(Reference Number)

[[Page 63295]]

Between The U.S. Department of Energy and

(Name of Eligible Recipient)

I. Purpose

    The Department of Energy shall provide as a gift, excess and/or 
surplus education-related and Federal research equipment to (Name of 
Eligible Recipient), hereafter referred to as the Recipient, for the 
purpose of improving the Recipient's math and science education 
curricula or for the Recipient's conduct of technical and scientific 
education and research activities.

II. Authority

    Federal agencies have been directed, to the maximum extent 
permitted by law, to give highest preference to elementary and 
secondary schools in the transfer or donation of education-related 
Federal equipment, at the lowest cost permitted by law. Furthermore, 
subsection 11(i) of the Stevenson Wydler Technology Innovation Act of 
1980, as amended (15 U.S.C. 3710 (i)), authorizes the Director of a 
laboratory, or the head of any Federal agency or department to give 
excess research equipment to an educational institution or nonprofit 
organization for the conduct of technical and scientific education and 
research activities.

III. Agreement

    A. The Department of Energy agrees to provide the equipment 
identified in the attached equipment gift list, as a gift for the 
purpose of improving the Recipient's math and science curricula or for 
the Recipient's conduct of technical and scientific education and 
research activities.
    B. Title to the education-related and Federal research equipment, 
provided as a gift under this agreement, shall vest with the Recipient 
upon the Recipient's written acknowledgement of receipt of the 
equipment. The acknowledgement shall be provided to (Name of the DOE 
signatory) at (address).
    C. The Recipient will be responsible for any repair and 
modification costs to any equipment received under this gift.
    D. The Recipient hereby releases and agrees to hold the Government, 
the Department of Energy, or any person acting on behalf of the 
Department of Energy harmless, to the extent allowable by State law, 
for any and all liability of every kind and nature whatsoever resulting 
from the receipt, shipping, installation, operation, handling, use, and 
maintenance of the education-related and Federal Research equipment 
provided as a gift under this agreement.
    E. The Recipient agrees to use the gift provided herein for the 
primary purpose of improving the math and science curricula or for the 
conduct of technical and scientific education and research activities.
    F. The Recipient agrees to provide for the return of the equipment 
if such equipment, while still usable, has not been placed in use for 
its intended purpose within one year after receipt from the Department 
of Energy.

(U.S. Department of Energy Office)

(Name and Address of Recipient)

(Signature of HCA or Designee)

(Signature of Official)

(Typed Name)

(Typed Name)

(Typed Title)

(Typed Title)

(Date)

(Date)

    (b) The list of gifts that accompanies the Equipment Gift Agreement 
shall contain the Gift Agreement reference number, name of the eligible 
recipient, and the name of the DOE office. In addition, the following 
information shall be provided for each line item provided as a gift: 
DOE ID number, description (name, manufacturer, model number, serial 
number, etc.), FSC code, quantity, location, acquisition date, and 
acquisition cost.

[FR Doc. 2016-21309 Filed 9-9-16; 11:15 am]
 BILLING CODE 6450-01-P