DATE: June 6, 2002

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

SOURCE: Federal Register, July 19, 2002, Vol. 67, No. 139, page 47494

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

ACTION: Proposed Rule

SYNOPSIS: GSA is proposing to update, streamline, and clarify Federal Property Management Regulations (FPMR) Part 101-45, Sale, Abandonment, or Destruction of Personal Property, then moving it to the Federal Management Regulation (FMR) as Part 102-38, Sale of 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. Both the FPMR and the FMR are available at http://policyworks.gov/org/main/mv/fmr/index.htm.

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.

DATES: Comments must be submitted by August 19, 2002.

ADDRESSES: Comments should be submitted to Rodney Lantier, Regulatory Secretariat (MVP), Office of Governmentwide Policy, General Services Administration, 1800 F Street, NW, Washington, DC 20405. Address e-mail comments to: RIN.3090-AH10@gsa.gov.

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

SUPPLEMENTAL INFORMATION: The following are the major changes that would be made by this proposed rule to the FPMR and the FMR:

Subpart A - General Provisions
     102-38.5What does this part cover?
     102-38.10What is the governing authority for this part?
     102-38.15Who must comply with these sales provisions?
     102-38.20Must we follow the regulations of this part when selling all personal property?
     102-38.25To whom do "we", "you", and their variants refer?
     102-38.30How do we request a deviation from the provisions of this part?
     102-38.35What definitions apply to this part?
     102-38.40Who may sell personal property?
     102-38.45What are our responsibilities in selling personal property?
     102-38.50What must we do when we suspect non-compliance with the provisions of this part?
     102-38.55What must we do when selling personal property?
     102-38.60Who is responsible for the costs of care and handling of the personal property before it is sold?
     102-38.65What if we are notified of a Federal requirement for surplus personal property before the sale is complete?
     102-38.70May we abandon, destroy, or donate personal property either prior to or after trying to sell it?
Subpart B - Sales Process
     Methods of Sale
     102-38.75How may we sell personal property?
     102-38.80Which method of sale should we use?
     Competitive Sales
     102-38.85What is a sealed bid sale?
     102-38.90What is a spot bid sale?
     102-38.95What is an auction?
     Negotiated Sales
     102-38.100What is a negotiated sale?
     102-38.105Under what conditions may we negotiate sales of personal property?
     102-38.110Who approves our determinations to conduct negotiated sales?
     102-38.115What are the specific reporting requirements for negotiated sales?
     102-38.120When may we sell personal property at fixed prices (fixed price sale)?
     102-38.125May we sell personal property at fixed prices to State agencies?
     102-38.130Must we publicly advertise sales of Federal personal property?
     102-38.135What constitutes a public advertisement?
     102-38.140What must we include in the public notice on sale of personal property?
     Pre-Sale Activities
     102-38.145Must we allow for inspection of the personal property to be sold?
     102-38.150How long is the inspection period?
     Offer To Sell
     102-38.155What is an offer to sell?
     102-38.160What must be included in the offer to sell?
     102-38.165Are the terms and conditions in the offer to sell binding?
Subpart C - Bids
     Buyer Eligibility
     102-38.170May we sell Federal personal property to anyone?
     102-38.175How do we find out if a person or entity has been suspended or debarred from doing business with the Government?
     102-38.180May we sell Federal personal property to a Federal employee?
     102-38.185May we sell Federal personal property to State or local governments?
     Acceptance of Bids
     102-38.190What is considered a responsive bid?
     102-38.195Must bidders use authorized bid forms?
     102-38.200Who may accept bids?
     102-38.205Must we accept all bids?
     102-38.210What happens when bids have been rejected?
     102-38.215When may we disclose the bid results to the public?
     102-38.220What must we do when the highest bids received have the same bid amount?
     102-38.225What are the additional requirements in the bid process?
     Bid Deposits
     102-38.230Is a bid deposit required to buy personal property?
     102-38.235What types of payment may we accept as bid deposits?
     102-38.240What happens to the deposit bond if the bidder defaults or wants to withdraw his/her bid?
     Late Bids
     102-38.245Do we consider late bids for award?
     102-38.250How do we handle late bids that are not considered?
     Modification or Withdrawal of Bids
     102-38.255May we allow a bidder to modify or withdraw a bid?
     Mistakes in Bids
     102-38.260Who makes the administrative determinations regarding mistakes in bids?
     102-38.265Must we keep records on administrative determinations?
     102-38.270May a bidder protest the determinations made on sales of personal property?
Subpart D - Completion of Sale
     102-38.275To whom do we award the sales contract?
     102-38.280What happens when there is no award?
     Transfer of Title
     102-38.285How do we transfer title from the Government to the buyer for personal property sold?
     102-38.290What types of payment may we accept?
     Disposition of Proceeds
     102-38.295May we retain sales proceeds?
     102-38.300What happens to the remaining portion of the proceeds if we are authorized to retain only a portion of the proceeds from the sale of personal property?
     102-38.305How do we handle disputes involved in the sale of Federal personal property?
     102-38.310Are we required to use the Disputes clause in the sale of personal property?
     102-38.315Are we required to use the Alternative Disputes Resolution for sales contracts?
Subpart E - Other Governing Statutes
     102-38.320Are there other statutory requirements governing the sale of Federal personal property?
     Antitrust Requirements
     102-38.325What are the requirements pertaining to antitrust laws?
Subpart F - Reporting Requirements
     102-38.330Are there any reports that we must submit to GSA?
     102-38.335Is there any additional personal property sales information that we must submit to GSA?
Subpart G - Sales to State and Local Governments
     102-38.340How may we sell personal property to State and local governments?
     102-38.345Do we have to withdraw personal property advertised for public sale if a State Agency for Surplus Property (SASP) wants to buy it?
     102-38.350Are State and local governments subject to the same payment requirements as public buyers?
     102-38.355Do the regulations of this part apply to SASPs?

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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