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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: May 16, 2000

FROM: Barry McVay, CPCM

SUBJECT: Federal Management Regulation (FMR); Disposition of Excess Personal Property

SOURCE: Federal Register, May 16, 2000, Vol. 65, No. 95, page 31217

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

ACTION: Final Rule

SYNOPSIS: GSA is updating, streamlining, and clarifying Federal Property Management Regulations (FPMR) Part 101-43, Utilization of Personal Property, and then moving it into the new Federal Management Regulation (FMR) as Part 102-36, Transfer of Excess Personal Property.

EDITOR'S NOTE: The FPMR is Chapter 101 of Title 41 of the Code of Federal Regulations (CFR). The FMR is Chapter 102 of Title 41 of the CFR.

GSA is in the process of updating, reorganizing, streamlining, simplifying, and clarifying the contents of the FPMR, then transferring the contents to the Federal Management Regulations (FMR), which was established on July 21, 1999, as Chapter 102 of Title 41 of the CFR. When the transfer is complete, the FMR will contain a refined set of policies and regulatory requirements on managing property and administrative services. Non-regulatory materials (such as guidance, procedures, information and standards) will be available in separate documents, such as customer service guides, handbooks, brochures, Internet websites, and FMR bulletins.

The FMR is written in the "plain language" regulatory style. This style is directed at the reader and uses a question and answer format, active voice, shorter sentences, and pronouns such as "we", "you", and "I".

The conversion from the FPMR to the FMR will take some time, so it will occur incrementally as the regulations are rewritten. Because of this, both the FPMR and the FMR will exist concurrently, and readers will need to refer to both documents to obtain all the related material -- the same content will not appear in both regulations.

EFFECTIVE DATE: May 30, 2000.

FOR FURTHER INFORMATION CONTACT: Martha Caswell, Director, Personal Property Management Policy Division (MTP), 202-501-3828.

SUPPLEMENTAL INFORMATION: On November 16, 1999, GSA proposed to completely revise FPMR Part 101-43, Utilization of Personal Property, and redesignate it as FMR Part 102-36, Transfer of Excess Personal Property. Besides rewriting and reorganizing FPMR Part 101-43, the most significant difference between the old FPMR Part 101-43 and the proposed FMR Part 102-36 was the removal of the term "Trust Territory of the Pacific Islands" from the definition of "foreign excess personal property" because there are no longer any entities in the Trust Territory of the Pacific Islands (as of October 1, 1994, Palau, the last remaining entity in the Trust Territory, became a self-governing sovereign state in free association with the United States).

Based on comments received, portions of the new FMR Part 102-36 have been revised (such as providing additional explanation of whom "we" and "you" are, and separating single sections into two sections), but no significant policy changes have been made as the proposed rule is finalized.

As proposed, all that remains of FPMR 101-43 would Section 101-43.000, Cross-Reference to the Federal Management Regulation (FMR) (41 CFR Chapter 102, Parts 102-1 Through 102-220), which states: "For information previously contained in this part, see FMR Part 102-36 (41 CFR 102-36)."

The following are the contents of the new FMR Part 102-36:

Subpart A -- General Provisions
102-36.5What is the governing authority for this part?
102-36.10What does this part cover?
102-36.15Who must comply with the provisions of this part?
102-36.20To whom do "we", "you", and their variants refer?
102-36.25How do we request a deviation from these requirements and who can approve it?
102-36.30When is personal property excess?
102-36.35What is the typical process for disposing of excess personal property?
Definitions
102-36.40What definitions apply to this part?
Responsibility
102-36.45What are our responsibilities in the management of excess personal property?
102-36.50May we use a contractor to perform the functions of excess personal property disposal?
102-36.55What is GSA's role in the disposition of excess personal property?


Subpart B -- Acquiring Excess Personal Property For Our Agency
Acquiring Excess
102-36.60Who is eligible to acquire excess personal property as authorized by the Property Act?
102-36.65Why must we use excess personal property instead of buying new property?
102-36.70What must we consider when acquiring excess personal property?
102-36.75Do we pay for excess personal property we acquire from another Federal agency under a transfer?
102-36.80How much do we pay for excess personal property on a transfer with reimbursement?
102-36.85Do we pay for personal property we acquire when it is disposed of by another agency under the exchange/sale authority, and how much do we pay?
Screening of Excess
102-36.90How do we find out what personal property is available as excess?
102-36.95How long is excess personal property available for screening?
102-36.100When does the screening period start for excess personal property?
102-36.105Who is authorized to screen and where do we go to screen excess personal property on-site?
102-36.110Do we need authorization to screen excess personal property?
102-36.115What information must we include in the authorization form for non-Federal persons to screen excess personal property?
102-36.120What are our responsibilities in authorizing a non-Federal individual to screen excess personal property?
Processing Transfers
102-36.125How do we process a Standard Form 122 (SF 122), Transfer Order Excess Personal Property, through GSA?
102-36.130What are our responsibilities in processing transfer orders of excess personal property?
102-36.135How much time do we have to pick up excess personal property that has been approved for transfer?
102-36.140May we arrange to have the excess personal property shipped to its final destination?
Direct Transfers
102-36.145May we obtain excess personal property directly from another Federal agency without GSA approval?


Subpart C -- Acquiring Excess Personal Property for Non-Federal
Recipients
102-36.150For which non-Federal activities may we acquire excess personal property?
102-36.155What are our responsibilities when acquiring excess personal property for use by a non-Federal recipient?
102-36.160What additional information must we provide on the SF 122 when acquiring excess personal property for non-Federal recipients?
Nonappropriated Fund Activities
102-36.165Do we retain title to excess personal property furnished to a nonappropriated fund activity within our agency?
102-36.170May we transfer personal property owned by one of our nonappropriated fund activities?
Contractors
102-36.175Are there restrictions to acquiring excess personal property for use by our contractors?
Cooperatives
102-36.180Is there any limitation/condition to acquiring excess personal property for use by cooperatives?
Project Grantees
102-36.185What are the requirements for acquiring excess personal property for use by our grantees?
102-36.190Must we always pay 25 percent of the original acquisition cost when furnishing excess personal property to project grantees?
102-36.195What type of excess personal property may we furnish to our project grantees?
102-36.200May we acquire excess personal property for cannibalization purposes by the grantee?
102-36.205Is there a limit to how much excess personal property we may furnish to our grantees?


Subpart D -- Disposition of Excess Personal Property
102-36.210Why must we report excess personal property to GSA?
Reporting Excess Personal Property
102-36.215How do we report excess personal property?
102-36.220Must we report all excess personal property to GSA?
102-36.225Must we report excess related personal property?
102-36.230Where do we send the reports of excess personal property?
102-36.235What information do we provide when reporting excess personal property?
102-36.240What are the disposal condition codes?
Disposing of Excess Personal Property
02-36.245Are we accountable for the personal property that has been reported excess, and who is responsible for the care and handling costs?
102-36.250Does GSA ever take physical custody of excess personal property?
102-36.255What options do we have when unusual circumstances do not allow adequate time for disposal through GSA?
102-36.260How do we promote the expeditious transfer of excess personal property?
102-36.265What if there are competing requests for the same excess personal property?
102-36.270What if a Federal agency requests personal property that is undergoing donation screening or in the sales process?
102-36.275May we dispose of excess personal property without GSA approval?
102-36.280May we withdraw from the disposal process excess personal property that we have reported to GSA?
Transfers With Reimbursement
102-36.285May we charge for personal property transferred to another Federal agency?
102-36.290How much do we charge for excess personal property on a transfer with reimbursement?
Report of Disposal Activity
102-36.295Is there any reporting requirement on the disposition of excess personal property?
102-36.300How do we report the furnishing of personal property to non-Federal recipients?
Abandonment/Destruction
102-36.305May we abandon or destroy excess personal property without reporting it to GSA?
102-36.310Who makes the determination to abandon or destroy excess personal property?
102-36.315Are there any restrictions to the use of the abandonment/destruction authority?
102-36.320May we transfer or donate excess personal property that has been determined appropriate for abandonment/destruction without GSA approval?
102-36.325What must be done before the abandonment/destruction of excess personal property?
102-36.330Are there occasions when public notice is not needed regarding abandonment/destruction of excess personal property?


Subpart E -- Personal Property Whose Disposal Requires Special Handling
102-36.335Are there certain types of excess personal property that must be disposed of differently from normal disposal procedures?
Aircraft and Aircraft Parts
102-36.340What must we do when disposing of excess aircraft?
102-36.345May we dispose of excess Flight Safety Critical Aircraft Parts (FSCAP)?
102-36.350How do we identify a FSCAP?
102-36.355What are the FSCAP Criticality Codes?
102-36.360How do we dispose of aircraft parts that are life-limited but have no FSCAP designation?
Canines, Law Enforcement
102-36.365May we transfer or donate canines that have been used in the performance of law enforcement duties?
Disaster Relief Property
102-36.370Are there special requirements concerning the use of excess personal property for disaster relief?
Firearms
102-36.375May we dispose of excess firearms?
Foreign Excess Personal Property
102-36.380Who is responsible for disposing of foreign excess personal property?
102-36.385What are our responsibilities in the disposal of foreign excess personal property?
102-36.390How may we dispose of foreign excess personal property?
102-36.395How may GSA assist us in disposing of foreign excess personal property?
102-36.400Who pays for the transportation costs when foreign excess personal property is returned to the United States?
Gifts
102-36.405May we keep gifts given to us from the public?
102-36.410How do we dispose of a gift in the form of money or intangible personal property?
102-36.415How do we dispose of gifts other than intangible personal property?
102-36.420How do we dispose of gifts from foreign governments or entities?
Hazardous Personal Property
102-36.425May we dispose of excess hazardous personal property?
Munitions List Items/Commerce Control List Items (MLIs/CCLIs)
102-36.430May we dispose of excess Munitions List Items (MLIs)/Commerce Control List Items (CCLIs)?
102-36.435How do we identify Munitions List Items (MLIs)/Commerce Control List Items (CCLIs) requiring demilitarization?
Printing Equipment and Supplies
102-36.440Are there special procedures for reporting excess printing and binding equipment and supplies?
Red Cross Property
102-36.445Do we report excess personal property originally acquired from or through the American National Red Cross?
Shelf-Life Items
102-36.450Do we report excess shelf-life items?
102-36.455How do we report excess shelf-life items?
102-36.460Do we report excess medical shelf-life items held for national emergency purposes?
102-36.465May we transfer or exchange excess medical shelf-life items with other Federal agencies?
Vessels
102-36.470What must we do when disposing of excess vessels?


Subpart F -- Miscellaneous Disposition
102-36.475What is the authority for transfers under "Computers for Learning"?

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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