Amendment of FIRMR Provisions Relating to GSA's Role in Screening Excess and Exchange/Sale Federal Information Processing (FIP) Equipment

GENERAL SERVICES ADMINISTRATION

41 CFR Parts 201-23 and 201-24

Amendment of FIRMR Provisions Relating to GSA's Role in Screening

Excess and Exchange/Sale Federal Information Processing (FIP) Equipment

AGENCY: Information Technology Service, GSA.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This notice proposes to amend the Federal Information

Resources Management Regulation (FIRMR) to allow Federal agencies to

screen and transfer excess and exchange/sale FIP equipment.

DATES: Comments are due: July 3, 1995.

ADDRESSES: Comments may be mailed to GSA/KAR, 18th and F Streets NW.,

Room 3224, Washington, DC 20405, Attn: R. Stewart Randall, or delivered

to that address between 8 a.m. and 4:30 p.m.

FOR FURTHER INFORMATION CONTACT:

R. Stewart Randall, GSA, Office of Information Technology (IT) Policy

and Leadership, Regulations Analysis Division (KAR), 18th and F Streets

NW., Room 3224, Washington, DC 20405, telephone FTS/Commercial (202)

501-4469 (v) or (202) 501-4469 (tdd).

SUPPLEMENTARY INFORMATION: (1) Part 201-23 is being amended to delegate

authority and responsibility to agencies regarding the screening and

transfer of excess FIP equipment. Currently, the FIRMR requires Federal

agencies to request GSA to interagency screen and transfer excess FIP

equipment that is not outdated and has an original acquisition cost

(OAC) per component of $1 million or more. It is not necessary for GSA

to continue to operate this program on a centralized basis.

Accordingly, the requirement for GSA to be directly involved in

interagency screening and transfer of excess FIP equipment will be

removed from the FIRMR.

(2) Explanation of the changes being made in this issuance are

shown below:

(a) Section 201-23.000 ``Scope of part'' is revised by removing

paragraphs (b), (c), and (d) to more succinctly describe the entire

contents of this revised part.

(b) Section 201-23.001 paragraph (a)(2) is revised and paragraph

(a)(4) is deleted to remove the references to the GSA Excess FIP

Equipment Program. Agencies will no longer be required to submit to GSA

information about their excess FIP equipment with the OAC above $1

million for GSA to do interagency screening.

(c) Section 201-23.001 paragraph (b) is deleted. Section 201-23.001

paragraph (c) is redesignated as paragraph (b).

(d) Section 201-23.002 paragraph (c) the sentence ``Agencies may

interagency screen and transfer excess FIP equipment without GSA

approval'' is added at the end of the paragraph.

(e) Paragraph (b) of section 201-23.003 is redesignated as (c) and

a new paragraph (b) is added. In the newly designated section 201-

23.003 paragraph (c)(1), the work ``internal'' will be removed because

it is redundant in this context. The words ``within the agency'' are

added at the end of the paragraph to distinguish these procedures for

interagency screening from those GSA will require.

(f) Section 201-23.003(c) is redesignated as paragraph (d) and is

completely revised to remove the mandatory reporting requirement for

agencies to submit equipment with an OAC of $1 million or more to GSA

for interagency screening purposes. The section will now show that

agencies must offer to other Federal agencies excess FIP equipment with

an OAC of $1 million or more in accordance with guidelines in FIRMR

Bulletin C-2.

(g) Section 201-23.003(d) is redesignated as paragraph (e) and is

revised to remove words indicating GSA's former role in interagency

screening of agencies' excess FIP equipment.

(h) Paragraph (h) is added to Sec. 201-23.003 to show that an

agency may request GSA to review another agency's decision to transfer

excess FIP equipment.

(i) Section 201-24.202 referencing the GSA Excess FIP Program as a

mandatory for consideration program will be removed because changes to

part 201- [[Page 22020]] 23 and FIRMR Bulletin C-2 will make the

references no longer valid.

(3) GSA has determined that this rule is not a significant rule for

the purposes of Executive Order 12866 of September 30, 1993, because it

is not likely to result in any of the impacts noted in Executive Order

12866, affect the rights of specified individuals, or raise issues

arising from the policies of the Administration. GSA has based all

administrative decisions underlying this rule on adequate information

concerning the need for and consequences of this rule; has determined

that the potential benefits to society from this rule outweigh the

potential costs; has maximized the net benefits; and has chosen the

alternative approach involving the least net cost to society.

List of Subjects in 41 CFR Parts 201-23 and 201-24

Archives and records, Computer technology, Federal information

processing resources activities, Government procurement, Property

management, Records management, and Telecommunications.

Accordingly 41 CFR Ch. 201 is proposed to be amended as follows:

PART 201-23--DISPOSITION

Part 201-23 is revised to read as follows:

Authority: 40 U.S.C. 486(c) and 751(f).

Sec.

201-23.000 Scope of part.

201-23.001 General.

201-23.002 Policies.

201-23.003 Procedures.

Sec. 201-23.000 Scope of part.

This part prescribes policies and procedures to be followed by

agencies for disposing of Government-owned Federal information

processing (FIP) equipment and software that is no longer needed for

the purpose for which it was acquired.

Sec. 201-23.001 General.

(a) Government-owned FIP equipment that is no longer needed for the

purpose for which it was acquired is either--

(1) Reassigned within the agency;

(2) Declared excess to the agency's needs and made available for

transfer to another agency;

(3) Exchanged or sold as part of a transaction to acquire

replacement FIP equipment; or

(4) Declared surplus and made available for donation.

(b) FIP software that is no longer needed for the purpose for which

it was acquired is either--

(1) Reassigned within the agency consistent with the limitations of

any applicable license; or

(2) Otherwise disposed of consistent with the limitations of any

applicable license.

Sec. 201-23.002 Policies.

Agencies shall--

(a) Use FIP equipment of FIP software that is available for

reassignment within the agency or by transfer from another agency when

such use is the most advantageous alternative to satisfy the agency's

requirements.

(b) Make available for reassignment within the agency FIP equipment

that is not outdated and that is no longer needed for the purpose for

which it was acquired.

(c) Make available for interagency screening and transfer to

another agency, excess FIP equipment that is not outdated and has an

original acquisition cost (OAC) per component of $1 million or more.

Interagency transfer of FIP equipment that is not outdated with an OAC

per component of less than $1 million, is permitted if the holding

agency learns of a potential user outside of the screening process.

Agencies may interagency screen and transfer excess FIP equipment

without GSA approval.

(d) Make available for surplus donation or subsequent sale, excess

FIP equipment not exchanged, sold, reassigned or transferred.

(e) Consistent with the limitations of any applicable license--

(1) Make available for reassignment within the agency FIP software

that is no longer needed for the purpose for which it was acquired;

(2) Make available for interagency transfer, excess FIP software

not exchanged or sold, if the holding agency learns of a potential user

outside of the screening process (GSA does not require interagency

screening of FIP software);

(3) For excess FIP software not reassigned, transferred, exchanged,

or sold, either:

(i) Return it to the licensor, or

(ii) Destroy it after a duly authorized agency official determines

in writing that destruction is the most cost-effective disposal

approach.

Sec. 201-23.003 Procedures.

(a) Each agency head shall designate an agency point of contact of

managing the disposition of FIP equipment and software. Each agency

shall submit the name, address, and phone number of this individual to

the General Services Administration, Acquisition Reviews Division

(KAA), 18th & F Streets, NW., Washington, DC 20405.

(b) GSA will convene meetings with agency points of contacts

periodically to discuss emerging issues relating to the disposition of

excess FIP resources.

(c) Agencies shall--

(1) Establish procedures for the reassignment of FIP equipment and

software within the agency; and

(2) Obtain approval from the agency DSO before reassigning outdated

FIP equipment.

(d) Agencies shall offer excess FIP equipment that is not outdated

and has an OAC per component of $1 million or more to other Federal

agencies in accordance with FIRMR Bulletin C-2.

(e) Agencies may conduct exchange/sale transactions of FIP

equipment and software not transferred to another agency without GSA

approval. (Exchange/sale transactions for FIP equipment may be

initiated in parallel with interagency screening, but screening of

exchange/sale transactions with an OAC per component of $1 million or

more shall be completed prior to concluding an exchange/sale

transaction.) When an agency determines that FIP equipment will be

replaced by exchanging or selling it, the agency shall follow the

contracting policies and procedures in part 201-39 and the Federal

Acquisition Regulation (FAR) and the policies and procedures on

exchange/sale contained in 41 CFR part 101-46. FIP software

transactions must be consistent with the limitations of any applicable

license.

(f) Agencies shall make available for surplus donation or

subsequent sale, in accordance with 41 CFR parts 101-44 and 101-45,

excess FIP equipment not exchanged, sold, reassigned, or transferred.

(g) Agencies shall apply the policies and procedures of this part

201-23 to FIP equipment used by grantees and contractors when FIP

equipment is--

(1) Acquired by the contractor or grantee under a contract or grant

and the terms vest title in the Government or the Government is

obligated or has the option to take over title;

(2) Furnished to the grantee or contractor by the Government

(Transfer of excess FIP equipment to agency project grantees shall be

conducted in accordance with 41 CFR 101-43.314.); or

(3) Operated by the grantee or contractor as part of a Government-

owned or Government-controlled facility.

(h) Agencies may request GSA to review another agency's decision to

transfer excess FIP equipment. Requests shall be sent to the General

Services Administration, Acquisition Reviews Division, (KAA), 18th & F

Streets, NW., Washington, DC 20405. [[Page 22021]]

PART 201-24--GSA SERVICES AND ASSISTANCE

2. The authority citation for part 201-24 continues to read as

follows:

Authority: 40 U.S.C. 486(c) and 751(f).

Sec. 201-24.202 [Reserved]

3. Section 201-24.202 is removed and reserved.

Dated: March 22, 1995.

Francis A. McDonough,

Acting Deputy Commissioner for Information Technology (IT) Policy and

Leadership.

[FR Doc. 95-10999 Filed 5-3-95; 8:45 am]

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