Relocation of FIRMR Provisions Relating To GSA's Role in the Disposal of Excess and Exchange/Sale Information Technology (IT) Equipment

GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-43 and 101-46

[FPMR Temp. Reg. H-28]

RIN 3090-AG01

Relocation of FIRMR Provisions Relating To GSA's Role in the

Disposal of Excess and Exchange/Sale Information Technology (IT)

Equipment

AGENCY: Office of Policy Planning and Evaluation, GSA.

ACTION: Temporary regulation.

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SUMMARY: This regulation redesignates certain provisions of the Federal

Information Resources Management Regulation (FIRMR) to the Federal

Property Management Regulation

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(FPMR). The regulation also makes a few changes to existing parts of

the FPMR to update old references to the FIRMR. This change is

necessary because the Information Technology Management Reform Act of

1996, effectively disestablishes the FIRMR. The referenced FIRMR

provisions that apply to the transfer and disposal of excess IT

equipment, will be maintained in the FPMR after August 7, 1996.

DATES: This rule is effective August 8, 1996. Comments are solicited

and are due: October 7, 1996.

Expiration Date: December 31, 1997.

ADDRESSES: Comments may be mailed to General Services Administration,

Office of Policy, Planning and Evaluation, Strategic IT Analysis

Division (MKS), 18th and F Streets, NW., Room 3224, Washington, DC

20405.

FOR FURTHER INFORMATION CONTACT: R. Stewart Randall, GSA, Office of

Policy, Planning and Evaluation, Strategic IT Analysis Division (MKS),

18th and F Streets, NW., Room 3224, Washington, DC 20405, telephone

FTS/Commercial (202) 501-3194 (v) or (202) 501-0657 (tdd), or Internet

([email protected]).

SUPPLEMENTARY INFORMATION: (1) The President signed the National

Defense Authorization Act (NDAA) For Fiscal Year 1996, Pub. L. 104-106,

on February 10, 1996. Included in the NDAA was Division E, the

Information Technology Management Reform Act of 1996. Section 5101 of

the Act repeals section 111 of the Federal Property and Administrative

Services Act of 1949, as amended (the Brooks Act) (40 U.S.C. 759). The

Brooks Act was the authority for many of the provisions in GSA's

Federal Information Resources Management Regulation; its repeal

effectively results in the disestablishment of the FIRMR. Any FIRMR

provisions not affected by the repeal of the Brooks Act, such as Part

201-23--Disposition, concerned with the utilization of excess IT

equipment, are being removed from the FIRMR and reestablished in the

Federal Property Management Regulation or other documents, as

appropriate.

(2) Most of the provisions now contained in part 101-43 of the FPMR

were moved almost verbatim from part 201-23 of the FIRMR except for

changes in terminology, e.g., Federal information processing to

information technology. Such change was needed to make the regulation

consistent with relevant legislation. A few provisions were added to

include essential information from FIRMR Bulletin C-2, which will be

discontinued when the FIRMR is disestablished in August 1996.

Additionally, a few changes were made to existing provisions of part of

101-43 and to part 101-46 to correct or remove out of date references

to FIRMR parts.

(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 101-43 and 101-46

Archives and records, Computer technology, Information technology,

Government procurement, Property management, Records management, and

Telecommunications.

GENERAL SERVICES ADMINISTRATION

Washington, DC 20405

FEDERAL PROPERTY MANAGEMENT REGULATIONS TEMPORARY REGULATION H-28

TO: Heads of Federal agencies

SUBJECT: Relocation of FIRMR provisions relating to GSA's role in

the disposal of excess and exchange/sale information technology (IT)

equipment

1. Purpose. This regulation moves certain provisions in 41 CFR

part 201-23 of the Federal Information Resources Management

Regulation (FIRMR) to 41 CFR Part 101-43.6 of the Federal Property

Management Regulations (FPMR).

2. Effective date. This regulation is effective on August 8,

1996.

3. Expiration date. This regulation expires on December 31,

1997, unless sooner superseded or canceled.

4. Background. The President signed the National Defense

Authorization Act (NDAA) For Fiscal Year 1996, Pub. L. 104-106, on

February 10, 1996. Included in the NDAA was Division E, the

Information Technology Management Reform Act of 1996. Section 5101

of the Act repeals section 111 of the Federal Property and

Administrative Services Act of 1949, as amended (the Brooks Act) (40

U.S.C. 759). The Brooks Act was the authority for many of the

provisions in GSA's FIRMR; its repeal effectively results in the

disestablishment of the FIRMR. Any FIRMR provisions not affected by

the repeal of the Brooks Act, such as Part 201-23--Disposition,

concerned with the disposal of excess IT equipment, are being

removed from the FIRMR and reestablished in the FPMR or other

documents, as appropriate. Most of the provisions now contained in

part 101-43 of the FPMR were moved almost verbatim from part 201-23

of the FIRMR except for changes in terms, i.e., Federal information

processing to information technology. That change was needed to make

the regulation consistent with relevant legislation. A few sentences

were added to include essential information from FIRMR Bulletin C-2,

which will be discontinued when the FIRMR is disestablished in

August 1996. Additionally, changes were made to existing provisions

of part 101-43 and to part 101-46 to correct or remove out of date

FPMR references to FIRMR parts.

5. Agency Comments. Comments concerning this regulation should

be submitted to the General Services Administration, Office of

Policy, Planning and Evaluation, Strategic IT Analysis Division

(MKS), 18th and F Streets, NW., Room 3224, Washington, DC 20405, no

later than October 7, 1996.

6. Explanation of changes.

For the reasons set forth in the preamble, 41 CFR Part 101 is

amended as follows:

PART 101-43--UTILIZATION OF PERSONAL PROPERTY

1. The authority citation for part 101-43 continues to read as

follows:

Authority: 40 U.S.C. 486(c) and 1412.

2. Section 101-43.000 is revised to read as follows:

Sec. 101-43.000 Scope of part.

This part prescribes the policies and methods governing the

economic and efficient utilization of personal property located within

and outside the United States, the District of Columbia, the

Commonwealth of Puerto Rico, American Samoa, Guam, the Commonwealth of

the Northern Mariana Islands, the Trust Territory of the Pacific

Islands, and the Virgin Islands. Section 101-43.6 prescribes the

specific policies and procedures governing the worldwide utilization of

excess information technology resources. Additional guidelines

regarding reutilization of hazardous materials are prescribed in part

101-2.

3. Subpart 101-43.6 is added to read as follows:

Subpart 101-43.6--Diposition of IT Excess Personal Property

101-43.600 Scope of subpart.

101-43.601 General.

101-43.602 Policies.

101-43.603 Procedures.

Subpart 101-43.6--Disposition of IT Excess Personal Property

Sec. 101-43.600 Scope of subpart.

This subpart prescribes policies and procedures to be followed by

agencies for disposing of Government-owned information technology (IT)

equipment

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and software that is no longer needed for the purpose for which it was

acquired. Information technology means any equipment or interconnected

system or subsystem of equipment, that is used in the automatic

acquisition, storage, manipulation, management, movement, control,

display, switching, interchange, transmission, or reception of data or

information by an executive agency. The term includes computers,

ancillary equipment, software, firmware and similar procedures,

services (including support services), and related resources.

Sec. 101-43.601 General.

(a) Government-owned IT 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 IT equipment; or

(4) Declared surplus and made available for donation.

(b) IT 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. 101-43.602 Policies.

Agencies shall--

(a) Use IT equipment or IT 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 IT 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 IT equipment that is not outdated and has an

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

Outdated IT equipment means any IT equipment over six years old, based

on the initial commercial installation date of that model of equipment,

and that is no longer in current production. Interagency transfer of IT

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 IT equipment without GSA approval.

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

IT equipment not exchanged, sold, reassigned or transferred.

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

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

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

(2) Make available for interagency transfer, excess IT 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 IT software);

(3) For excess IT 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. 101-43.603 Procedures.

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

managing the disposition of IT equipment and software. Each agency

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

the General Services Administration/MKS, 18th & F Streets, NW.,

Washington, DC 20405. GSA will maintain a list of these coordinators on

the IT Policy Home Page. The URL is http: //www.itpolicy.gsa.gov.

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

periodically to discuss emerging issues relating to the disposition of

excess IT resources.

(c) Agencies shall--

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

software within the agency; and

(2) Obtain approval from the agency Chief Information Officer

before reassigning outdated IT equipment.

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

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

agencies by:

(1) Notifying other excess IT coordinators of the availability of

the IT equipment;

(2) Fully and accurately describing the IT excess equipment by

providing the following information:

(i) Condition code as defined in 41 CFR 101-43.4801;

(ii) Manufacturer's name;

(iii) Equipment type and model;

(iv) Description, including the supplier's nomenclature for the

component;

(v) List of elements removed from each component, if applicable;

(vi) Description of available software, engineering drawings,

manuals, etc; and

(vii) Contractor-held equipment, if applicable.

(3) Allowing agencies 15 days to assess their need for the excess

IT equipment.

(e) Agencies may conduct exchange/sale transactions of IT equipment

and software not transferred to another agency without GSA approval.

(Exchange/sale transactions for IT 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 IT equipment will be replaced by exchanging or

selling it, the agency shall follow the contracting policies and

procedures in the Federal Acquisition Regulation (FAR) and the policies

and procedures on exchange/sale contained in 41 CFR part 101-46. IT

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 IT equipment not exchanged, sold, reassigned, or transferred.

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

subpart 101-43.6 to IT equipment used by grantees and contractors when

IT 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 IT 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 IT equipment. Requests shall be sent to the General

Services Administration/MKS, 18th & F Streets, NW., Washington, DC

20405.

Sec. 101-43.4801 [Amended]

4. Section 101-43.4801 is amended by removing paragraph (c) and

redesignating existing paragraphs (d), (e) and (f) as paragraphs (c),

(d) and (e), respectively.

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PART 101-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT

TO EXCHANGE/SALE AUTHORITY

5. The authority citation for part 101-46 continues to read as

follows:

Authority: 40 U.S.C. 1412; Sec. 205(c), 63 Stat. 390; (40 U.S.C.

486(c)).

Sec. 101-46.201-2 [Amended]

6. Section 101-46.201-2 is amended in paragraph (a) by removing the

last sentence.

Dated: July 31, 1996.

David J. Barram,

Acting Administator of General Services.

[FR Doc. 96-20292 Filed 8-7-96; 8:45 am]

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