# Department of Energy Property Management Regulations

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A96-21922

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** September 11, 1996
- **Citation:** 61 FR 48006

## Text

SUMMARY: The Department of Energy (DOE) is publishing a Notice of
Proposed Rulemaking to reissue the Department of Energy Property
Management Regulation (DOE-PMR) in its entirety. This action is being
taken to update the DOE-PMR by deleting obsolete/unnecessary material
and incorporating policy and procedure changes issued previously by the
Department through Personal Property Letters and DOE-PMR Bulletins.
This action will provide DOE organizations and DOE contractors an up-
to-date, single source for guidance on personal property matters
peculiar to the Department.

DATES: Written comments on the proposed rulemaking must be received on
or before November 12, 1996.

ADDRESSES: Comments (3 copies) on the proposed rulemaking should be
addressed to the U.S. Department of Energy, Office of Contractor
Management & Administration (HR-55), Attention: Julia Harman, 1000
Independence Avenue, SW., Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Julia Harman, Office of Contractor
Management & Administration (HR-55), U.S. Department of Energy, 1000
Independence Avenue, SW., Washington, DC 20585; telephone 202-586-1435.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.
II. Section-by-Section Analysis.
III. Public Comments.
IV. Procedural Requirements.
A. Review Under Executive Order 12866.
B. Review Under the National Environmental Policy Act.
C. Review Under the Paperwork Reduction Act.
D. Review Under the Regulatory Flexibility Act.
E. Review Under Executive Order 12612.
F. Review Under Executive Order 12988.
G. Public Hearing Determination.

I. Background.

The DOE-PMR published at 41 CFR ch. 109 has not been updated since
1984 and consequently does not fully reflect interim changes in policy
and procedures that were issued in Personal Property Letters and DOE-
PMR Bulletins affecting the Department's direct operations and its
contractors. These changes, made to comply with Executive Orders,
statutory requirements, and commitments made to Congress regarding
weaknesses identified the Department's personal property management
practices, are being incorporated to bring the DOE-PMR up to date.
While the Department firmly supports the President's initiative to
bring about significant regulatory reform and reduction, the DOE-PMR
presents a unique challenge because it has not been attended to for
years. In tackling that challenge, the Department has committed to a
two-stage approach:
1. Bring the DOE-PMR up to date, thereby creating a baseline for
regulatory reform. That is being done by this rulemaking.
2. Significantly reduce the baseline DOE-PMR over the next eighteen
months. Because the DOE-PMR deals primarily with internal property
management matters and has limited public impact, we intend to use
other internal mechanisms to disseminate future Departmental personal
property management direction.

II. Section-by-Section Analysis

The following is an analysis of the sections being added, deleted,
or changed under this proposed rule:

A. Subchapter A--General

1. Section 109-1.100-51 ``Definitions and Acronyms'' is moved from
Sec. 109-1.5101 and adds definitions for administratively controlled
items, designated contractors, and high-risk property; replaces
Sec. 109-1.103-50 on Bulletins with an explanation on the use of
Personal Property Letters and Bulletins; and contains a list of
frequently used acronyms.
2. Section 109-1.5103 ``Loan of personal property'' requires use of
the DOE loan form for all loans.
3. Section 109-1.5108 ``Personal property records requirements''
and subsections are added.
4. Section 109-1.5110 ``Physical inventories of personal property''
designates the Organizational Property Management Officer (OPMO), in
lieu of the Director of Administration and heads of field offices, as
the reviewing and approving official for physical inventory methods
(statistical sampling and inventory by exception) and procedures;
changes the requirement for precious metals physical inventories from
semiannual to annual; and adds requirements for administratively
controlled items.
5. Section 109-1.5148 ``Personal property management reports'' is
revised to reflect new reporting requirements.
6. Section 109-1.5202 ``Establishment of a personal property
holdings baseline'' is added to establish a personal property baseline
for new contractors through the use of the previous contractors'
property records or by performing complete physical inventories.
7. Section 109-1.5203 ``Management of subcontractor-held personal
property'' is added to establish requirements for subcontractor
property management systems.
8. Section 109-1.5204 ``Review and approval of a designated
contractor's personal property management system'' is added, setting
follow-up appraisals at three-year intervals after system approval in
lieu of contract execution date; stating that contracting officers
shall approve, conditionally approve, or disapprove a system; requiring
the maintenance and ready availability of copies of appraisals and
approvals; and removing the requirement for another initial review on
extended contracts.
9. Section 109-1.5205 ``Property management system changes'' is
added, requiring property administrators to review and approve all
proposed changes to a contractor's approved system.
10. Section 109-1.5205 ``Reporting'' is deleted, considered not
required.
11. Subpart 109-1.53 ``Management of high risk personal property''
is added, based on interim guidance issued in Personal Property Letter
970-3, dated March 25, 1996.
12. Subpart 109-6.4 ``Official Use of Government Passenger Carriers
Between Residence and Place of Employment'' contains information
formerly found in subpart 109-38.54.
13. Section 109-6.400-50 ``Instructions to DOE passenger carrier
operators'' adds use of seat belts and income tax liability and
prohibits smoking in GSA-IFMS vehicles.
14. Section 109-6.402 ``Policy'' clarifies the authority for home-
to-work use by DOE officials and employees and adds sharing of space in
vehicles.

B. Subchapter C--Defense Materials

15. Part 109-14 ``National Defense Stockpile'' is deleted as a
result of the discontinuance of FPMR Part 101-14, National Defense
Stockpile

[[Page 48007]]

C. Subchapter E--Supply and Procurement

16. Section 109-25.101-1-50 ``Definitions'' is deleted.
17. Section 109-25.103 ``Promotional materials, trading stamps, and
bonus goods'' adds new requirement for establishing procedures for
receipt and disposition of this property.
18. Section 109-25.109 ``Laboratory and research equipment'' is
modified to limit controls to equipment directly associated with the
conduct of laboratory research, development, and testing.
19. Section 109-25.109-1 ``Identification of idle equipment'' no
longer requires a report of walk-throughs to be submitted to the head
of the facility; requires the maintenance of documentation on walk-
throughs; and designates the OPMO, in lieu of heads of field offices
and contracting officers, as the individual who reviews walk-throughs
and practices.
20. Section 109-25.302-6 ``Electronic office machines'' requires
DOE offices and designated contractors, in lieu of the Director of
Administration and heads of field offices, to establish utilization
procedures and standards.
21. Subpart 109-25.48 ``Reports'' is deleted. The Supply Activity
Report is no longer required to be submitted by those offices not
reporting under the DOE financial reporting system.
22. Section 109-26.501 ``Purchase of new motor vehicles'' requires
that the acquisitions of motor vehicles be accomplished in accordance
with this section. The requirements were removed from the DOE
Acquisition Regulation Part 908.
23. Section 109-26.501-50 ``Authority and allocations for the
acquisition of passenger motor vehicles'' (formerly Secs. 109-38.5101
and 109-38. 5102) deletes the requirement for field offices to report
unused allocations, unless requested by the Departmental Property
Management Officer or designee.
24. Section 109-26.501-51 ``Used vehicles'' is added to establish
policy for purchasing used vehicles where justified by special
circumstances.
25. Section 109-26.501-52 ``Justification for purchase'' is added
to require that a written justification for purchase of a motor vehicle
must accompany the requisition.
26. Section 109-27.102-50 ``Systems contracting'' is added as an
alternate method for stock inventory replenishment.
27. Section 109-27.5004-2 ``Construction inventories'' is deleted.
28. Section 109-27.5005 ``Guide levels for construction
inventories'' is deleted.
29. Section 109-27.5009 ``Control of hypodermic needles and
syringes'' is modified, adding syringes as a control item.
30. Section 109-27.5012-3 ``Federal standards applicable to
marking'' is deleted.
31. Subpart 109-27.51 ``Management of Equipment Held for Future
Projects'' is moved to subpart 109-28.50, ``Management of Equipment
Held for Future Projects.''
32. Subpart 109-27.52 ``Management of Spare Equipment'' is moved to
subpart 109-28.51, ``Management of Spare Equipment.''
33. Section 109-27.5104-4 ``Physical inventories'' revises the
precious metals physical inventory requirement from semiannual to
annual.
34. Section 109-27.5104-5 ``Control and issue of stock'' formerly
was Sec. 109-27.5304-6 ``Stock issue.''
35. Section 109-27.5106-3 ``Returns'' strengthens the requirement
for returning excess precious metals to the precious metals pool by
substituting the word ``must'' for ``should.''
36. Section 109-28.000-51 ``Storage guidelines,'' formerly
Sec. 109-28.001-51, is revised and condensed to eliminate unneeded
material. Guidance is added to address hazardous, contaminated,
nuclear-related, and proliferation sensitive property.
37. Section 109-28.306-3 ``Limitations on use,'' formerly Sec. 109-
28.308-3, requires DOE offices and designated contractors, in lieu of
the Director of Administration and heads of field offices, to establish
controls for use of customer supply center (CSC) accounts.
38. Section 109-28.306-5 ``Safeguards,'' formerly Sec. 109-28.308-
6, requires DOE offices and designated contractors, in lieu of the
Director of Administration and heads of field offices, to establish
controls on customer access codes for CSC accounts.
39. Subpart 109-28.50 ``Management of Equipment Held for Future
Projects'' formerly was subpart 109-27.51.
40. Section 109-28.5005 ``EHFFP program review,'' formerly
Sec. 109-27.5106 ``Field organization review'', requires OPMOs, in lieu
of heads of field offices and contracting officers, to conduct reviews
of equipment held for future projects (EHFFP) programs.
41. Subpart 109-28.51 ``Management of Spare Equipment'' formerly
was subpart 109-27.52.
42. Part 109-29 ``Federal Specifications and Standards'', is
deleted.

D. Subchapter F--ADP and Telecommunications

43. Part 109-35 ``Telecommunications'', is deleted.
44. Part 109-36 ``ADP Management'', is deleted.

E. Subchapter G--Aviation, Transportation, and Motor Vehicles

45. Part 109-37 ``Government aviation administration and
coordination'' added, expanding guidance formerly found in subpart 109-
38.52.
46. Section 109-38.000-50 ``Policy'' (aircraft portion only) is
moved to part 109-37 since aircraft management responsibility has been
transferred to the Assistant Secretary for Environment, Safety, and
Health.
47. Subpart 109-38.3 ``Official Use of Government Motor Vehicles''
applies only to designated contractors. Official use for DOE employees
is covered in subpart 109-6.4.
48. Section 109-38.301-1.50 ``Authorization for transportation
between residence and place of employment'' states that such use is to
be provided for under terms of the contract, and is to be approved by
DOE contracting official.
49. Section 109-38.301-1.51 ``Emergency use'' clarifies what is
emergency use, including unscheduled overtime.
50. Section 109-38.301-1.52 ``Maintenance of records'' requires the
maintenance of logs for home-to-work use of motor vehicles.
51. Section 109-38.301-1.53 ``Responsibilities of motor vehicle
operators'' references for contractor employees the same motor vehicle
operator responsibilities in Sec. 109-6.400-50 that apply to Federal
employees. Use of seat belts and potential tax liability are also
added.
52. Section 109-38.1306 ``Acquisition of fuel-efficient passenger
automobiles'' is deleted since acquisition plans are no longer to be
submitted to Headquarters.
53. Subpart 109-38.51 ``Utilization of Motor Equipment,'' formerly
subpart 109-38.50, adds utilization requirements for motor equipment
other than motor vehicles.
54. Section 109-38.5101 ``Policy'' adds motor equipment and GSA
Interagency Fleet Management System motor vehicles.
55. Section 109-38.5102 ``Utilization controls and practices'' adds
charge-back provisions and use of dual-purpose vehicles, motor
scooters, motorcycles, and electric vehicles.
56. Section 109-38.5103 ``Motor vehicle utilization standards''
requires annual usage reviews of other trucks,

[[Page 48008]]

ambulances, buses, and motor equipment other than motor vehicles to
justify retention.
57. Section 109-38.5106 ``Application of motor vehicle use goals''
is added requiring annual reviews of vehicle utilization statistics,
identification of vehicles not meeting goals, justification of their
retention by users, or reassignment or disposition.
58. Former subpart 109-38.51 ``Acquisition of Motor Vehicles'' is
now subpart 109-26.5 ``GSA Procurement Programs''.
59. Policy and procedures on the official use of motor vehicles,
formerly found in subpart 109-38.54 ``Official Use of Motor Vehicles
and Aircraft'', is now found in 109-6.4 ``Official Use of Government
Carriers Between Residence and Place of Employment'' and subpart 109-
38.3 ``Official Use of Government Motor Vehicles''.
60. Section 109-38.5410 ``Use of motor vehicles by the Postal
Service'' is deleted.
61. Subpart 109-39.3 ``Use and Care of GSA Interagency Fleet
Management System Vehicles'' prohibits smoking in these vehicles and
requires a review of utilization statistics to justify their retention.

F. Subchapter H--Utilization and Disposal

62. Part 109-42 ``Utilization and disposal of hazardous materials
and certain categories of property'' is added setting forth policies
and procedures for radioactively or chemically contaminated excess and
surplus personal property.
63. Part 109-42 ``Property Rehabilitation Services and Facilities''
is moved to subpart 109-45.10.
64. Section 109-43.304-1.50 ``DOE reutilization screening'',
formerly Sec. 109-43.311-1-50, is modified to include the Used Energy-
Related Laboratory Equipment Grant Program in the DOE screening cycle.
65. Section 109-43.304-4 ``Property at installations due to be
discontinued'', formerly Sec. 109-43.311-5, adds new requirements for
developing site utilization and disposal programs for installations to
be closed.
66. Section 109-43.305-50 ``Nuclear-related and proliferation-
sensitive property'' is added to define non-reporting/screening
requirements.
67. Section 109-43.307 ``Items requiring special handling'' is
added to include the monitoring of hazardous property; designates
accepting officials for gifts for defense purposes, conditional gifts,
and unconditional gifts; and addresses the disposal of unsafe personal
property.
68. Section 109-43.307-50 ``Export controlled property'' adds
requirements for export controls, licenses and authorizations.
69. Section 109-43.307-52 ``Nuclear-related or proliferation-
sensitive property'' is added to include policy on identification and
disposition of this type of property.
70. Section 109-43.307-53 ``ADPE'', formerly Sec. 109-43.313-51, is
changed to include requirements for sanitizing ADPE prior to disposal.
71. Section 109-43.313-53 ``Naval gun mounts'' is deleted.
72. Section 109-43.313-54 ``Precious metals'' is deleted, covered
by subpart 109-27.51.
73. Section 109-43.313-55 ``Shielding material'' is deleted.
74. Section 109-43.313-57 ``Lead'' is deleted.
75. Section 109-43.4701 ``Performance Reports'' adds the use of
form 85-2 and adds fields for the Utilization and Disposal of Excess
and Surplus Personal Property report.
76. Section 109-44.702-3 ``Hazardous materials'' is added, making
the Director, OAS and the OPMOs responsible for safeguards in the
donation of hazardous materials to public bodies.
77. Section 109-45.301-51 ``Export/import clause'' is added as new
clause to be added to all sales documents.
78. Section 109-45.304-2.50 ``Negotiated sales and negotiated sales
at fixed prices by designated contractors'' criteria in this section is
changed from reasonable recovery value of property to be sold not to
exceed $1,000 to the fair market value not to exceed $15,000.
79. Section 109-45.309 ``Special classes of property'' is added to
address the sale of gold, hazardous property, export controlled
property, classified property, nuclear-related or proliferation-
sensitive property and ADPE.
80. Section 109-45.309-50 ``Unserviceable Property'' is deleted.
81. Section 109-45.316 ``Report of identical bids'' is deleted.
82. Section 109-45.317 ``Noncollusive bids and proposals'' is added
to designate the Heads of field organization to make determinations
regarding sale terms and conditions.
83. Former subpart 109-45.5 ``Abandonment or destruction of
personal property'' is now subpart 109-45.9.
84. Subpart 109-45.6 ``Debarred, suspended, and ineligible
contractors'' is added to require that procedures be established to
ensure that listed contractors are not offered solicitations, etc.
85. Subpart 109-45.9 ``Abandonment or destruction of personal
property,'' formerly subpart 109-45.5, is changed to allow abandonment
or destruction of property if the property has no commercial value or
its continued care and handling would cost more than the proceeds from
its sale.
86. Subpart 109-45.10 ``Recovery of Precious Metals,'' former
subpart 109-42.3 ``Recovery of precious metals and strategic and
critical metals,'' is modified to address the recovery of precious
metals from items in other than pure form and use of the DoD Precious
Metals Recovery Program.
87. Most of subpart 109-45.50 ``Excess and surplus radioactively
and chemically contaminated personal property'' is now included in
subpart 109-1.53 ``Management of high-risk property.''
88. Part 109-50 ``Programmatic disposal of DOE property'' is
renamed to ``Special DOE disposal authorities.''
89. Former subpart 109-50.3 ``Used Energy-Related Laboratory
Equipment Grant Program'' is redesignated subpart 109-50.1 and former
Secs. 109-50.305-5 ``Excess used energy-related laboratory equipment
holding organizations'' and 109-50.305-6 ``Screening locations'' are
deleted.
90. Subpart 109-50.2 ``Support to Math and Science Education'' is
added to provide guidance on providing property to schools with math
and science programs.
91. Subpart 109-50.3 ``Economic development'' is added to provide
guidance on providing property to community economic development
groups.

G. Subchapter I--Industrial Plant Equipment

92. Part 109-51 ``Loans of Industrial Plant Equipment from the
Defense Industrial Plant Equipment Center'' is deleted as a result of
the discontinuance of FPMR part 101-51.

III. Public Comments

DOE invites interested persons to participate by submitting data,
views, or arguments with respect to the DOE-PMR amendments set forth in
this rule. The public's participation is especially encouraged with
respect to (a) the definition of terms used throughout the DOE-PMR and
(b) part 109-50, Special DOE Disposal Authorities since the guidance
contained in this part has significant public impact. Three copies of
written comments should be submitted to the address indicated in the
ADDRESSES section of this rule. All comments received will be available
for public inspection during normal work

[[Page 48009]]

hours. All written comments received by the date indicated in the
``DATES'' section of this notice will be carefully assessed and fully
considered prior to the effective date of these amendments as a final
rule. Any information considered to be confidential must be so
identified and submitted in writing, one copy only. DOE reserves the
right to determine the confidential status of the information and to
treat it according to its determination in accordance with 10 CFR
1004.11.

IV. Procedural Requirements

A. Review Under Executive Order 12866

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 was not subject to review under the Executive
Order by the Office of Information and Regulatory Affairs.

B. Review Under the National Environmental Policy Act

Pursuant to the Council on Environmental Quality Regulations (40
CFR parts 1500-1508), the Department has established guidelines for its
compliance with the provisions of the National Environmental Policy Act
(NEPA) of 1969 (42 U.S.C. 4321 et seq.). Pursuant to appendix A of
subpart D of 10 CFR part 1021, National Environmental Policy Act
Implementing Procedures (Categorical Exclusion A6), the Department of
Energy has determined that this proposed rule is categorically excluded
from the need to prepare an environmental impact statement or
environmental assessment.

C. Review Under the Paperwork Reduction Act

To the extent that new information collection or recordkeeping
requirements are imposed by this rulemaking, they are provided for
under Office of Management and Budget paperwork clearance package No.
1910-0300. No new information collection is proposed by this rule.

D. Review Under the Regulatory Flexibility Act

These proposed regulatory amendments were reviewed under the
Regulatory Flexibility Act of 1980, 5 U.S.C. 601, et seq., which
requires preparation of an initial regulatory flexibility analysis for
any rule which is likely to have significant economic impact on a
substantial number of small entities. With one exception, the proposed
amendments impose compliance requirements only on management and
operating contractors who are large businesses. The exception involves
requirements to account for and control high risk property. In some
instances, these requirements may apply to small business
subcontractors. The cost of compliance will be minimal because such
subcontractors already have property systems to handle high risk
property without costly adjustments. Therefore, DOE certifies that this
rule will not have a significant economic impact on a substantial
number of small entities and, therefore, no regulatory flexibility
analysis has been prepared.

E. Review Under Executive Order 12612

Executive Order 12612 entitled ``Federalism,'' 52 FR 41685 (October
30, 1987), requires that regulations, rules, legislation, and any other
policy actions be reviewed for any substantial direct effects on
States, on the relationship between the Federal Government and the
States, or in the distribution of power and responsibilities among
various levels of Government. If there are sufficient substantial
direct effects, then the Executive Order requires preparation of a
federalism assessment to be used in all decisions involved in
promulgating and implementing a policy action. The Department of Energy
has determined that this proposed rule will not have a substantial
direct effect on the institutional interests or traditional functions
of States.

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
Executive 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. With regard to the review
required by section 3(a), 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,
the proposed regulations meet the relevant standards of Executive Order
12988.

G. Public Hearing Determination

DOE has concluded that this proposed rule does not involve any
significant issues of law or fact. Therefore, consistent with 5 U.S.C.
553, DOE has not scheduled a public hearing.

List of Subjects in 41 CFR Chapter 109

Government property management.

Issued in Washington, DC, on August 23, 1996.
Archer L. Durham,
Assistant Secretary for Human Resources and Administration.

For the reasons set forth in the preamble, 41 CFR Chapter 109 is
proposed to be revised as set forth below:

CHAPTER 109--DEPARTMENT OF ENERGY

PROPERTY MANAGEMENT REGULATIONS

SUBCHAPTER A--GENERAL

Part
109-1 Introduction.
109-6 Miscellaneous regulations.

SUBCHAPTER B--[RESERVED]

SUBCHAPTER C--[RESERVED]

SUBCHAPTER D--[RESERVED]

SUBCHAPTER E--SUPPLY AND PROCUREMENT

109-25 General.
109-26 Procurement sources and program.
109-27 Inventory management.
109-28 Storage and distribution.
109-30 Federal catalog system.

SUBCHAPTER F--[RESERVED]

SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES
109-37 Government aviation administration and coordination.
109-38 Motor equipment management.
109-39 Interagency fleet management systems.

[[Page 48010]]

SUBCHAPTER H--UTILIZATION AND DISPOSAL

109-42 Utilization and disposal of hazardous materials and certain
categories of property.
109-43 Utilization of personal property.
109-44 Donation of personal property.
109-45 Sale, abandonment, or destruction of personal property.
109-46 Utilization and disposal of personal property pursuant to
exchange/ sale authority.
109-48 Utilization, donation, or disposal of abandoned and
forfeited personal property.
109-50 Special DOE disposal authorities.

SUBCHAPTER A--GENERAL

PART 109-1--INTRODUCTION

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 System.
109-1.101-50 DOE-PMR System.
109.1.102 Federal Property Management Regulations.
109-1.102-50 DOE-PMRs.
109-1.103 FPMR temporary regulations.
109-1.103-50 DOE-PMR temporary regulations and bulletins.
109-1.104 Publication and distribution of FPMR.
109-1.104-50 Publication and distribution of DOE-PMR.
109-1.106 Applicability of FPMR.
109-1.106-50 Applicability of FPMR and DOE-PMR.
109-1.107 Agency consultation regarding FPMR.
109-1.107-50 Consultation regarding DOE-PMR.
109-1.108 Agency implementation and supplementation of FPMR.
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.
109-1.5104 Borrowing 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 Capital equipment.
109-1.5108-2 Sensitive items.
109-1.5108-3 Stores inventories.
109-1.5108-4 Precious metals.
109-1.5108-5 Administratively controlled items.
109-1.5109 Control of sensitive items.
109-1.5110 Physical inventories of personal property.
109-1.5111 Retirement of 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 Definitions.
109-1.5303 Policies.
109-1.5304 Procedures.

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

SUBCHAPTER A--GENERAL

PART 109-1--INTRODUCTION

Subpart 109-1.1--Regulation System

Sec. 109-1.100-50 Scope of subpart.

This subpart describes the Department of Energy (DOE) Property
Management Regulations (DOE-PMR) system which establishes uniform
property management policies, regulations, and procedures for use
throughout the DOE.

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:
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.
Capital equipment means any item of personal property having a unit
acquisition cost of $5,000 or more and having the potential for
maintaining its integrity (i.e., not expendable due to use) as an item.
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 restoration and management contractors, and other major
prime contractors located at DOE sites.
Direct operations means operations conducted by DOE personnel.
Disposal means the process of redistributing, transferring,
donating, selling, abandoning, destroying, or other disposition of
Government-owned personal property.
Especially designed or prepared property means equipment or
materials that are especially designed or prepared for nuclear
application and listed in the Nuclear Suppliers Group ``trigger list''
published by the International Atomic Energy Agency.
Export controlled property means property the export of which is
subject to licensing by the U.S. Department of Commerce or the U.S.
Department of State, or authorized by the U.S. Department of Energy.
Hazardous property means any personal property, including scrap or
waste but excluding property involving a radiological hazard, that is
ignitable, corrosive, reactive, or toxic because of its quantity,
concentration, or physical, chemical, or infectious characteristics, or
that is deemed a hazardous material, chemical substance or mixture, or
hazardous waste under the Hazardous Material Transportation Act, the
Resource Conservation and Recovery Act, or the Toxic Substances Control
Act. Such property may be in solid, liquid, semi-liquid, or contained
gas form and may cause or significantly contribute to an increase in
mortality or illness, or pose present or potential hazard to human
health or the environment when improperly used, treated, stored,
transported, disposed of, or mismanaged.
Heads of field organizations means the heads of any Departmental
office located outside the Washington, DC metropolitan area. In
addition, the Federal Energy Regulatory Commission, and the Office of
Headquarters Procurement Operations, shall be considered a field
organization for purposes of these regulations.
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

[[Page 48011]]

of high risk property (defined separately in this subpart) are
proliferation sensitive property, special nuclear material, hazardous
property, radioactive property, and especially designed or prepared
property.
Personal property means property of any kind, except for real
estate, interests therein (such as easements and rights-of-way), and
permanent fixtures which is Government-owned, chartered, rented, or
leased from commercial sources by and in the custody of DOE or its
designated contractors; source, byproduct, special nuclear materials,
and atomic weapons as defined in section 11 of the Atomic Energy Act of
1954, 42 U.S.C. 2014; and petroleum in the Strategic Petroleum Reserve
and the Naval Petroleum Reserves.
Personal property management means the development, implementation,
and administration of policies, standards, programs, practices and
procedures for effective and economical acquisition, receipt, storage,
issue, use, control, physical protection, care and maintenance,
determination of requirements, maintenance of related operating
records, and disposal of personal property (exclusive of the property
accounting records).
Proliferation-sensitive property means nuclear-related or dual-use
equipment, material, or technology as described in the Nuclear Supplier
Group's ``Trigger'' List and Dual-Use List; and equipment, material or
technology used in the research, design, development, testing, or
production of nuclear or other weapons.
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 items means those items of personal property which are
considered to be susceptible to being appropriated for personal use or
which can be readily converted to cash, for example: Firearms, portable
photographic equipment, binoculars, portable tape recorders, portable
calculators, portable power tools, portable computers, and portable
communications equipment.
Special nuclear material means:
(1) Plutonium, uranium enriched in the isotope of 233 or 235, and
any other materials so designated pursuant to section 51 of Atomic
Energy Act of 1954, 42 U.S.C. 2071, and
(2) Materials artificially enriched by any of the foregoing.
(b) Acronyms. As used in this chapter, the following acronyms
apply:

ADPE--Automatic Data Processing Equipment
CFR--Code of Federal Regulations
CPPSR--Contractor Personal Property System Review
CRO--Community Reuse Organization
CSC--Customer Supply Center
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
ERLE--Energy-Related Laboratory Equipment
FAA--Federal Aviation Administration
FAMIS--Federal Aviation Management Information System
FIRMR--Federal Information Resources Management Regulation
FPMR--Federal Property Management Regulations
FSC--Federal Supply Classification
FSCG--Federal Supply Classification Group
GAO--General Accounting Office
GSA--General Services Administration
GVWR--Gross Vehicle Weight Rating
HR--High Risk
IFMS--Interagency Fleet Management System
M&O Management and Operating
MCTL Military Critical Technologies List
NTSB National Transportation Safety Board
OCMA Office of Contractor Management and Administration
OPMO Organizational Property Management Officer
OPSEC Operations Security
PPL Personal Property Letter
REAPS Reportable Excess Automated Property System
SNM Special Nuclear Material
UCNI Unclassified Controlled Nuclear Information
U.S.C United States Code

Sec. 109-1.101 Federal Property Management Regulations 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.

Sec. 109-1.102-50 DOE-PMRs.

The DOE-PMRs (41 CFR Ch. 109) implements and supplements the FPMR
(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 effecting the Department's
personal property management program.

Sec. 109-1.103 FPMR temporary regulations.

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

(a) Subject to applicable procedural requirements in 42 U.S.C 7191
and 5 U.S.C 553, Personal Property Letters are authorized for
publication when time or extraordinary circumstances will not permit
promulgation of an amendment to the Code of Federal Regulations (CFR)
affecting DOE direct operations only and if the PPL will be effective
for a period of 12 months or less. These PPLs will be codified before
the designated expiration date or their effective period will be
extended if it is determined that conversion to permanent form cannot
be accomplished within the specified time frame.
(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 or DOE-PMR.

Sec. 109-1.104 Publication and distribution of FPMR.

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 Ch. 109 of Title 41, Public Contracts and Property
Management. Looseleaf publications will be distributed to DOE offices.

Sec. 109-1.106 Applicability of FPMR.

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

(a) The FPMR and DOE-PMR apply to all direct operations.
(b) The DOE-PMR does not apply to facilities and activities
conducted under Executive Order 12344 and Pub. L. 98-525.
(c) Unless otherwise provided in the appropriate part or subpart,
the FPMR 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 and DOE-PMR apply.
(e) The FPMR 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.
(f) 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

[[Page 48012]]

Acquisition Regulation (DEAR), 48 CFR part 945.
(g) Regulations for the management of personal property held by
financial assistance recipients are contained in the DOE Financial
Assistance Rules (10 CFR part 600) and DOE Order 534.1, Accounting.

Sec. 109-1.107 Agency consultation regarding FPMR.

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

The DOE-PMR shall be fully coordinated with all Departmental
elements substantively concerned with the subject matter.

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

(a) The DOE-PMR shall include basic and significant Departmental
personal property management policies and standards which implement,
supplement, or deviate from the FPMR. In the absence of any DOE-PMR
issuance, the basic FPMR material shall govern.
(b) The DOE-PMR shall be consistent with the FPMR and shall not
duplicate or paraphrase the FPMR 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 as implemented and supplemented from time to time;
(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) [Reserved]
(b) Requests for deviations from applicable portions of the FPMR
and DOE-PMR (except aviation related portions) shall be forwarded with
supporting documentation by the Organizational Property Management
Officer (OPMO) to the Departmental Property Management Officer (DPMO).
(c)(1) Requests for deviations from aviation related portions of
the FPMR and DOE-PMR concerning aviation operations shall be forwarded
by the OPMO with supporting documentation to the DOE Senior Aviation
Management Official.
(2) Each request for deviation shall contain the following:
(i) A statement of the deviation desired, including identification
of the specific paragraph number(s) of the DOE-PMR;
(ii) The reason why the deviation is considered necessary or would
be in the best interest of the Government;
(iii) If applicable, the name of the contractor and identification
of the contractor affected;
(iv) A statement as to whether the deviation has been requested
previously and, if so, circumstances of the previous request;
(v) A description of the intended effect of the deviation;
(vi) A statement of the period of time for which the deviation is
needed; and
(vii) Any pertinent background information which will contribute to
a full understanding of the desired deviation.
(d) The Deputy Assistant Secretary for Procurement and Assistance
Management is authorized to grant deviations to the DOE-PMR.
(e) Requests for deviations from the FPMR will be coordinated with
GSA by the DPMO.

Subpart 109-1.50--Personal Property Management Program

Sec. 109-1.5000 Scope of subpart.

This subpart supplements the FPMR, states DOE personal property
management policy and program objectives, and prescribes authorities
and responsibilities for the conduct of an effective 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
economically and efficiently and in accordance with applicable Federal
statutes and regulations.

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 effectively managing personal property in the
custody or possession of DOE organizations and designated contractors;
and
(b) Uniform principles, policies, and standards for economical and
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. The standards and
practices that apply to capital equipment shall be based on the unit
acquisition cost threshold specified in the definition of capital
equipment contained in Sec. 109-1.100-51 of this part. No other
acquisition cost threshold shall apply.

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;
(b) As otherwise authorized by law and approved by the Director,
Office of Administrative Services; heads of field organizations for
their respective organizations; or a contracting officer for
contractor-held property.

Sec. 109-1.5102 Maximum use of personal property.

Personal Property management systems shall assure that the best
possible use is made of personal property. Supplies and equipment shall
be generally limited to those items essential for carrying out the
programs of DOE effectively.

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 or computer generated
equipment when approved in writing by the OPMO. 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 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.

[[Page 48013]]

(b) Requests for loans to foreign Governments and other foreign
organizations shall be submitted to the Deputy Assistant Secretary for
International Energy Policy for approval, with a copy to the cognizant
Headquarters program office.

Sec. 109-1.5104 Borrowing of personal property.

(a) DOE organizations and designated contractors are encouraged to
borrow personal property within DOE to further DOE programs. Property
classified as Equipment Held For Future Projects (EHFFP) or as In
Standby should be reviewed by those receiving availability inquiries
for short-term use (one year or less). Borrowing of Government personal
property from other Federal agencies is also encouraged when required
for short periods of time. Such transactions shall be covered by
written agreements which include all terms of the transaction.
(b) In determining whether it is practical and economical to borrow
personal property, consideration shall be given to suitability,
condition, value, extent and nature of use, extent of availability,
portability, cost of transportation, and other similar factors.
(c) Adequate records and controls shall be established and
maintained for borrowed property to ensure its proper control and
prompt return to the lender.

Sec. 109-1.5105 Identification marking of personal property.

(a) Personal property shall be marked ``U.S. Government property''
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.
(1) Capitalized property and sensitive items shall be marked ``U.S.
Government property'' and numbered for control purposes.
(2) Administratively controlled property and other personal
property susceptible to unauthorized personal use should be marked
``U.S. Government property'' and numbered for control purposes.
(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, or, if removal is
impractical, additional permanent markings may be added to indicate
such disposal.

Sec. 109-1.5106 Segregation of personal property.

Ordinarily, 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 basic 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 and model 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 Capital equipment.

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

Sec. 109-1.5108-2 Sensitive items.

Individual item records will be maintained for each sensitive item.
Minimum dollar value thresholds for controlling sensitive items, if
used, will be determined by the OPMO for each DOE organization in
consultation with appropriate management officials. This threshold may
be applied organization-wide or by individual contractors or location.
Identification of types of property meeting the DOE-PMR definition of
sensitive property should be the primary determinant of sensitive
category with dollar thresholds, if any, considered as a guideline
only. Sensitive items which are also capital equipment will be
controlled as both sensitive items and capital 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. 109-1.5109 Control of sensitive items.

(a) A list of types of personal property considered to be sensitive
shall be developed and maintained by each DOE activity/site, taking
into consideration value, costs of administration, need for control,
and other factors that management determines should apply.
(b) Items of capital equipment which are also designated as
sensitive items will be controlled as sensitive items and as capital
equipment.
(c) Written procedures shall be established for control of
sensitive items and shall address:
(1) Approval of purchase requisitions or issue documents at an
appropriate supervisory level;
(2) Establishment of controls in the central receiving and
warehousing

[[Page 48014]]

department, such as extraordinary physical protection, handling, and
maintenance of a current listing of sensitive items;
(3) Establishment and maintenance of appropriate records;
(4) Requirement for tagging and identification;
(5) Use of memorandum receipts or custody documents at time of
assignment or change in custody;
(6) Establishment of custodial responsibilities describing:
(i) Need for extraordinary physical protection;
(ii) Requirement for effective physical and administrative control
of sensitive items assigned for general use within an organizational
unit as appropriate to the type of property and the circumstances;
(iii) Requirement for prompt reporting and investigation of loss,
damage or destruction; and
(iv) Requirement for promptly reporting changes in custody.
(7) Requirement for an annual physical inventory;
(8) Requirement for an employee transfer or termination check-out
procedure and examination and adjustment of records;
(9) Reminder of prohibition of use for other than official purposes
and penalties for misuse;
(10) A clear statement of the extent of responsibility for
financial accountability depending upon contractor policy; and
(11) Other procedures which have demonstrated effective physical
and administrative control over sensitive items.

Sec. 109-1.5110 Physical inventories of personal property.

(a) Physical inventories of those categories of personal property
as specified in paragraph (f) 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 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) Procedures that are limited to a check-off of a listing of
recorded property without actual verification of the location and
existence of such property do not meet the requirements of a physical
inventory.
(f) The frequency of physical inventories of personal property
shall be as follows:
(1) Capital equipment--biennial.
(2) Sensitive items--annual.
(3) Stores inventories--annual.
(4) Precious metals--annual.
(5) Administratively controlled items--There is no formal
Department requirement for the performance of physical inventories of
this property. However, OPMOs should determine such requirements based
on management needs.
(g) 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.
(h) Physical inventories of capital 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.
(i) The results of physical inventories shall be reconciled with
the property records, and with applicable financial control accounts.
(j) The results of physical inventories shall be reported to the
OPMO within 30 days after the reconciliation required above.
(k) Physical inventories of capital equipment and stores
inventories may be conducted by 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. 109-1.5111 Retirement of property.

When Government property is worn out, lost, stolen, destroyed,
abandoned, or damaged beyond economical repair, it shall be listed on a
retirement work order. A full explanation shall be supported by an
investigation, if necessary, as to the date and circumstances
surrounding the wear, loss, theft, destruction, abandonment, or damage.
The retirement work order shall be signed by the responsible official
initiating the report and reviewed and approved by an official at least
one supervisory level above the official initiating the report.

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 either 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

[[Page 48015]]

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 assuring 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.

Reports to be submitted to the DPMO are listed in Table 1:

Table 1
----------------------------------------------------------------------------------------------------------------
Report Title Due at DOE Headquarters References Form No.
----------------------------------------------------------------------------------------------------------------
(1) Report of Exempted Motor On request................. FPMR 101-38.204-4, DOE-PMR Letter.
Vehicles. 109-38.204-4.
(2) Precious Metals................ Oct. 31.................... FPMR 101-45.1002-2, DOE- Letter.
PMR 109-45.1002-2.
(3) Agency Report of Motor Vehicle Oct. 31.................... FPMR 101-38.903, DOE-PMR SF 82.
Data. 109-38.903.
(4) Excess Personal Property Nov. 15.................... FPMR 101-43.4701(c), DOE- Letter.
Furnished to Non-Federal PMR 109-43.4701(c).
Recipients.
(5) Utilization and Disposal of Nov. 15.................... FPMR 101-44.4701, and FPMR 85-2.
Excess and Surplus Personal 101-45.4701.
Property.
(6) Negotiated Sales............... Nov. 15.................... FPMR 101-45.4702, DOE-PMR Letter.
109-45.4702.
(7) Utilization and Disposal of Nov. 30.................... FPMR 101-46.305, DOE-PMR Letter.
Personal Property Pursuant to 109-46.305.
Exchange/Sale Authority.
----------------------------------------------------------------------------------------------------------------

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 effective 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 and approved in
writing by the cognizant DOE contracting office in accordance with
section 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 section 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
effective 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.

(a) 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:
(1) Adequate records.
(2) Controls over acquisitions.
(3) Identification as Government-owned personal property.
(4) Physical inventories.

[[Page 48016]]

(5) Proper care, maintenance, and protection.
(6) Controls over personal property requiring special handling
(i.e., nuclear-related, proliferation-sensitive, hazardous, or
contaminated property).
(7) Reporting, redistribution, and disposal of excess and surplus
personal property.
(8) Accounting for personal property that is lost, damaged,
destroyed, stolen, abandoned, or worn out.
(9) Periodic reports, including physical inventory results and
total acquisition cost of Government property.
(10) 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 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 effective and 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 as
specified in Sec. 109-1.5004-5(c) of this part. 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. 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.

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.

This subpart provides policy and guidance for the identification
and responsible disposition of high risk personal property to ensure
that its disposition does not adversely affect public safety, the
environment, national security, or nuclear nonproliferation objectives
of the United States.

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
property control requirements in this subpart as guidance, heads of
field organizations or OPMOs shall assure 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 Definitions.

Automatic data processing equipment means, as used in this subpart
and to the extent that such equipment is used to process export
controlled information or unclassified controlled nuclear information,
any equipment or interconnected system or subsystems of equipment that
is used in the automatic acquisition, storage, manipulation,
management, movement, control, display, switching, interchange,
transmission, or reception of data or information.
Export controlled information (ECI) 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 under U.S. laws or regulations. ECI includes
nuclear, nuclear-related, and other types of information which, if
released, could reasonably be expected to adversely affect U.S.
national security or nuclear nonproliferation objectives.
Unclassified controlled nuclear information (UCNI) means U.S.
Government information pertaining to atomic energy defense activities
as

[[Page 48017]]

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.

Sec. 109-1.5303 Policies.

(a) It is the responsibility of DOE organizations and designated
contractors to manage and control Government-owned high risk property
in an economical, efficient, and environmentally sound manner. However,
to the extent that other previously approved systems are in place and
the head of the field organization has determined, in writing, that
they are operating effectively to manage and control certain categories
of high risk property, such systems may continue to be utilized.
(b) When items of property are no longer needed by a Departmental
organization or a designated contractor, it is generally the
Government's policy to dispose of that property through the prescribed
FPMR mechanisms for treatment of excess and surplus property.
(c) The disposition of certain types of property, such as high risk
property, are subject to other considerations. Items of high risk
property may present significant risks to the public, the environment,
or to the national security and nuclear nonproliferation objectives of
the Government which must be evaluated. It is, therefore, DOE policy
to:
(1) Effectively balance its interest in maximizing value and
effective utilization with the need to safeguard public safety, the
environment, or the national security; and
(2) Ensure the accomplishment of nuclear nonproliferation
objectives.
(d) Property management should provide for the assessment and
identification of high risk property at the earliest stage of its life-
cycle use unless the head of a field organization determines, in
writing, that it is not cost effective or is otherwise inappropriate to
do so. A decision by the head of a field organization 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.
(e) A determination not to provide life cycle control consistent
with this subpart shall be made in writing by the head of the field
organization, with a copy sent to the Deputy Assistant Secretary for
Procurement and Assistance Management. Property shall not be
transferred or disposed of unless it has been subjected to a high risk
property assessment.

Sec. 109-1.5304 Procedures.

(a) Identification. Generally, the earlier in its life cycle that
an item of personal property is assessed for identification as high
risk property, the greater the availability of information to assist in
such identification and appropriate categorization. Accordingly, to
help ensure the appropriate treatment of property at its disposal and
to prevent inadvertent, uncontrolled release of high risk property, it
is recommended that property be assessed and evaluated as high risk
property as early in its life cycle as is practical.
(b) Inventories. This subpart does not require special inventories
for the identification of high risk property. It is, however, required
that DOE and designated contractors use the inventory process as a
means to identify high risk property as early in its life cycle as
possible. Inventories shall be conducted in accordance with the
schedules established in this regulation, the DEAR, and the Financial
Assistance Rule.
(c) Disposition of high risk property.--(1) General. (i) Prior to
its disposition an item of personal property, materials or data will be
assessed to determine whether it should be characterized as high risk.
(ii) The DOE or designated contractor property management
organization may not process high risk property into a reutilization/
disposal program unless all reviews are properly documented and all
appropriate certifications and clearances have been received, in
accordance with the approved site or facility personal property
management program.
(2) Special requirements.
(i) Nuclear-related, proliferation-sensitive, radioactive property,
hazardous property and unclassified controlled nuclear information
(UCNI) shall be dispositioned in accordance with approved procedures
and systems or with the prior approval of the cognizant program office.
Disposition and handling of the first four categories of property are
subject to applicable provisions of subchapter H in the FPMR and this
regulation and UCNI is subject to section 148 of the Atomic Energy Act.
(ii) DOE organizations and designated contractors shall take
measures to ensure that proliferation-sensitive or other export
controlled property and information is not directly exported to
countries on the DOE Sensitive Country List (Attachment 1 of the
Interim Guidelines for Export Control and Nonproliferation, dated
November 3, 1994 or any subsequent amendments adopted and issued by the
Department) except in accordance with Government nonproliferation and
national security policy and objectives.
(iii) Surplus nuclear weapons components and equipment and
materials especially designed or prepared for nuclear use as identified
in the Nuclear Suppliers Group ``Trigger'' List, shall either be sold
for scrap after being made useless for their originally intended
purpose or shall be destroyed and verified unless an alternative
disposition option appears to be in the best interest of the
Government. Requests for an approval of alternative disposition may be
made through the cognizant Assistant Secretary to the Director of the
Office of Nonproliferation and National Security.
(iv) Automatic data processing equipment shall be sanitized before
being turned in for disposition to ensure that all data, information,
and software have been removed from the equipment.
(d) Transfer documentation. Property transfer records should
include all available documentation concerning the subject property's
categorization as high risk, use, and special handling instructions,
including any warnings, safety instructions, and information pertaining
to future disposition, as appropriate. Such documentation shall be
included with all transfers external to DOE and DOE contractor
organizations as well as transfers external to those organizations.
Nuclear materials safeguard and security concerns shall be addressed in
accordance with DOE Order 5633.3B, Control and Accountability of
Nuclear Materials.
(e) Export Restriction Notice. The following Export Restriction
Notice shall be included in all sales, transfers or other offerings:

Export Restriction Notice

The use, disposition, export and reexport of this property is
subject to all applicable U.S. laws and regulations, including the
Atomic Energy Act of 1954, as amended; the Arms Export Control Act
(22 USC 2751 et seq.); the Export Administration Act of 1979 (560
USC Append 2401 et seq.); DOE Regulations (10 CFR part 810);
International Traffic in Arms Regulations (22 CFR part 120 et seq.);
Export Administration Regulations (15 CFR part 730 et seq.); Foreign
Assets Control Regulations (31 CFR part 500 et seq.); and the
Espionage Act (37 USC 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
reexport of the property; and
b. Any use or disposition, export or reexport of the property
which is not

[[Page 48018]]

authorized in accordance with the provisions of this agreement.

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. 486(c); 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 101-6.4 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.
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).

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;
(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 cards;
(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.

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.
Official use does not include use of vehicles between residence and
place of employment unless provided for in accordance with paragraph
(b) of this section. The Director, Office of Administrative Services
and heads of field organizations 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 101-6.4 and this subpart.
(b) The use of Government motor vehicles between an employee's
residence and place of employment is limited to:
(1) The Secretary of Energy and the Deputy Secretary of Energy; and
(2) Those persons engaged in field work as determined by the
Secretary of Energy in accordance with 41 CFR 101-6.403(b) and
paragraph (b) of Sec. 109-6.403.
(c) 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 101-
6.402(f).

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.

SUBCHAPTER E--SUPPLY AND PROCUREMENT

PART 109-25--GENERAL

Subpart 109-25.1--General Policies

Sec.
109-25.100 Use of Government personal property and nonpersonal
services.
109-25.103 Promotional materials, trading stamps, or bonus goods.
109-25.103-1 General.
109-25.104 Acquisition of office furniture and office machines.
109-25-109 Laboratory and research equipment.
109-25-109-1 Identification of idle equipment.
109-25-109-2 Equipment pools.

Subpart 109-25.3--Use Standards

109-25.302 Office furniture, furnishings, and equipment.
109-25.350 Furnishing of Government clothing and individual
equipment.

Subpart 109-25.4--Replacement Standards

109-25.401 General.
109-25.401-50 Replacement approvals.

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

Subpart 109-25.1--General Policies

Sec. 109-25.100 Use of Government personal property and nonpersonal
services.

The Director, Office of Administrative Services and heads of field
organizations shall ensure to restrict the use of Government property/
services to officially designated activities.

Sec. 109-25.103 Promotional materials, trading stamps, or bonus goods.

Sec. 109-25.103-1 General.

DOE offices and designated contractors shall establish procedures
for the receipt and disposition of promotional materials, trading
stamps, or bonus goods consistent with the provisions of 41 CFR 101-
25.103.

Sec. 109-25.104 Acquisition of office furniture and office machines.

DOE offices and designated contractors shall make the determination
as to whether requirements can be met through the utilization of DOE
owned furniture and office machines.

[[Page 48019]]

Sec. 109-25.109 Laboratory and research equipment.

The provisions of 41 CFR 101-25.109 and this section apply to
laboratory and research equipment in the possession of DOE field
organizations and designated contractors.

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

(a) As 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. The
submission to the head of the laboratory or facility of a report of
walk-throughs conducted shall be at the discretion of the laboratory or
facility management. However, DOE field organizations may require
designated contractors to submit a report of walk- throughs to the
OPMOs. Equipment identified as idle and unneeded shall be redeployed,
reassigned, placed in equipment pools, or excessed, as appropriate. All
walk-throughs shall be documented to include, as a minimum, identity of
the participants, areas covered, findings, recommendations, corrective
action plans, and results achieved. The documentation shall be made
available for review by appropriate contractor management, DOE offices,
and audit teams.
(b) Members of management walk-through inspection teams should be
coordinated with the property administrator and the OPMO.
(c) OPMOs shall periodically review walk-through procedures and
practices of DOE offices and designated contractors to determine their
effectiveness.

Sec. 109-25.109-2 Equipment pools.

(a)--(c) [Reserved]
(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) Heads of field organizations shall require periodic independent
reviews of equipment pool operations.

Subpart 109-25.3--Use Standards

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

The Director, Office of Administrative Services, heads of field
organizations, 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, as amended.

Subpart 109-25.4--Replacement Standards

Sec. 109-25.401 General.

Sec. 109-25.401-50 Replacement approvals.

The Director, Office of Administrative Services and heads of field
organizations are authorized to approve replacement of office machines,
furniture, and materials handling equipment.

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 OCMA 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) OCMA is responsible for:
(1) All policy matters related to the issuance and control of
activity address codes within DOE; and
(2) Furnishing the identify 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) [Reserved]
(b) 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 DPMO. However,
where GSA refuses to grant a waiver and it is believed that procurement
through GSA would adversely affect or otherwise impair a program, the
DPMO may, upon written request of the head of the DOE field
organization, grant the authority for direct purchase of general
purpose motor vehicles. Upon receipt of written authorization from the
DPMO, the head of the field organization may authorize direct purchase
of special purpose vehicles. The purchase price for passenger motor
vehicles shall not exceed any statutory limitation in effect at the
time the purchase is made.

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 DPMO, 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 DPMO.

[[Page 48020]]

(c) To assure that DOE does not exceed the number of passenger
motor vehicles authorized to be acquired in any fiscal year, the Deputy
Assistant Secretary for Procurement and Assistance 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 Director, Office of
Administrative Services and heads of field organizations 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 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

Sec.
109-27.000-50 Scope of part.
109-27.000-51 Definitions.

Subpart 109-27.1--Stock Replenishment

109-27.102 Economic order quantity principle.
109-27.102-1 Applicability.
109-27.102-50 Systems contracting.
109-27.102-51 Policy.
109-27.102-52 Implementation.

Subpart 109-27.2--Management of Shelf-Life Materials

109-27.202 Applicability.

Subpart 109-27.3--Maximizing Use of Inventories

109-27.302 Applicability.

Subpart 109-27.4--Elimination of Items from Inventory

109-27.402 Applicability.

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

109-27.5001 Objectives.
109-27.5002 Stores inventory turnover ratio.
109-27.5003 Stock control.
109-27.5004 Sub-stores.
109-27.5005 Shop, bench, cupboard or site stock.
109-27.5006 Stores catalogs.
109-27.5007 Physical inventories.
109-27.5007-1 Procedures.
109-27.5007-2 Inventory adjustments.
109-27.5008 Control of drug substances and potable alcohol.
109-27.5009 Control of hypodermic needles and syringes.
109-27.5010 Containers returnable to vendors.
109-27.5011 Identification marking of metals and metal products.
109-27.5011-1 General.
109-27.5011-2 Exception.

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 Perpetual inventory records.
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 used hypo solution and scrap
film.

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

Sec. 109-27.000-50 Scope of part.

This part excludes atomic weapons or byproducts and source or
special nuclear materials as defined in the Atomic Energy Act of 1954,
as amended; enriched uranium in stockpile storage; and petroleum in the
Strategic Petroleum Reserve and the Naval Petroleum Reserves.

[[Page 48021]]

Sec. 109-27.000-51 Definitions.

As used in this part the following definitions apply:
Inventories mean stocks of stores, construction, supplies, and
parts used in support of DOE programs.
Inventory management means the effective use of methods, procedures
and techniques for recording, analyzing, and adjusting inventories in
accordance with established policy. The following related functions are
included:
(1) Providing adequate protection against misuse, theft, and
misappropriation.
(2) Providing accurate analyses of quantities to determine
requirements so that only minimal obsolescence losses will be
encountered, while ensuring adequate inventory levels to meet program
schedules.
(3) Providing adequate and accessible storage facilities and
services based upon analyses of program requirements so that a minimum
and economical amount of time is required to service the program.
Stock record means a device for collecting, storing, and providing
historical data on recurring transactions for each line item of
inventory.
Sub-store means a geographically removed part of the main store's
operation conducted as a subordinate element of it and subject to the
same management policies and inventory controls.
Systems contracting means a materials management purchasing
technique for the purchase of general, common-use, and repetitive
supply items in a particular product family. An example is office
supplies, purchased from a commercial vendor, that are needed for
immediate use instead of purchasing in bulk for future use, storing in
warehouses, and issuing to customers by use of a requisitioning system.
Systems contracting and just-in-time contracting are synonymous.

Subpart 109-27.1--Stock Replenishment

Sec. 109-27.102 Economic order quantity principle.

Sec. 109-27.102-1 Applicability.

Replenishment of inventories of stock items having recurring
demands will be by use of the economic order quantity (EOQ) principle.
However, when considered more suitable, designated contractors may use
other generally accepted approaches to EOQ.

Sec. 109-27.102-50 Systems contracting.

Systems contracting may be used instead of or along with EOQ once a
determination is made that such a system is feasible and cost
effective, and that adequate controls are in place to ensure proper
use.

Sec. 109-27.102-51 Policy.

Systems contracting for supply operations is a proven cost-
effective approach to meeting procurement needs and may be implemented
in DOE offices and designated contractors wherever significant cost
savings to the Government will result. Impacts on local suppliers and
small and disadvantaged business concerns should be considered in the
overall business strategy.

Sec. 109-27.102-52 Implementation.

(a) DOE OPMOs shall establish required property management controls
relative to the implementation of systems contracting.
(b) DOE offices and designated contractors operating a materials
management function who have not performed an initial feasibility study
for the implementation of systems contracting shall perform such a
study for selected commodity groups. The study may be accomplished over
a period of time, until all commodity groups have been considered. The
study should address functional requirements, activity levels of
commodity groups and individual items, and potential impacts on local
suppliers and small and disadvantaged businesses. An industrial
relations analysis on existing labor relations and union contracts may
also be necessary.
(c) As required in the DEAR, DOE offices and designated contractors
are required to consider the use of GSA supply sources when
economically advantageous to the Government. These sources must be
considered in the conduct of the feasibility study.
(d) DOE contracting offices shall evaluate the initial cost benefit
studies performed by contractors to verify the savings and other
benefits of systems contracting, and shall approve its implementation.
In those instances where a cost benefit study has previously been
performed, the DOE contracting office shall ensure that those studies
have been evaluated and the approval to proceed with systems
contracting has been provided to the contractor in writing.
(e) DOE offices shall periodically reevaluate systems contracting
operations conducted by their office and designated contractors to
ensure that required property management controls are being followed.

Subpart 109-27.2--Management of Shelf-Life Materials

Sec. 109-27.202 Applicability.

When considered more suitable, designated contractors may use other
generally accepted approaches to the management of shelf-life
materials.

Subpart 109-27.3--Maximizing Use of Inventories

Sec. 109-27.302 Applicability.

When considered more suitable, designated contractors may use other
generally accepted approaches to maximizing use of inventories.

Subpart 109-27.4--Elimination of Items From Inventory

Sec. 109-27.402 Applicability.

When considered more suitable, designated contractors may use other
generally accepted approaches to determine which items should be
eliminated from inventory.

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

Sec. 109-27.5001 Objectives.

Necessary inventories shall be established and maintained at
reasonable levels, consistent with DOE requirements, applicable laws
and regulations, and the following objectives:
(a) The maintenance of adequate stock levels through accurate
analyses of quantities to determine requirements and stock
replenishments so that only minimal obsolescence losses will be
encountered while ensuring adequate inventory levels to meet program
schedules;
(b) The protection of materials against misuse, theft, and
misappropriation;
(c) The maintenance of an economical operation; and
(d) The standardization of inventories to the greatest extent
practicable.

Sec. 109-27.5002 Stores inventory turnover ratio.

Comparison of investment in stores inventories to annual issues
shall be made to assure that minimum inventories are maintained for the
support of programs. This comparison may be expressed either as a
turnover ratio (issues divided by dollar value of inventory) or in the
average number of month's supply on hand. Turnover or number of month's
supply is calculated only on current-use inventory. Performance goals,
i.e., a six months investment or a turnover ratio of 2.0, shall be
established for each stores using

[[Page 48022]]

activity. It is recognized, however, that extenuating operating
circumstances may preclude the achievement of such objectives.

Sec. 109-27.5003 Stock control.

(a) Stock control shall be maintained on the basis of stock record
accounts of inventories on hand, on order, received, issued, and
disposed of, and supported by proper documents in evidence of these
transactions. Stock record accounts shall be available for review and
inspection.
(b) Personal property under stock control for greater than 90 days
shall be maintained in stock record accounts.

Sec. 109-27.5004 Sub-stores.

(a) Sub-stores shall be established when necessary to expedite
delivery of materials and supplies to the users, serve emergencies,
provide economy in transportation, reduce shop and site stocks, and
enable stores personnel to provide assistance in obtaining materials
and supplies as needed.
(b) Items stored for issue in the sub-stores shall be treated as
inventory items for control and reporting purposes. Stock records shall
be integrated with central stock records so that the total amount on
hand of any item at all locations is known.

Sec. 109-27.5005 Shop, bench, cupboard or site stock.

Shop, bench, cupboard or site stocks are an accumulation of small
inventories of fast-moving materials at the point of use. Normally,
these inventories are expensed at time of issue from controlled stores.
However, when stocks of such inventories are not consumed or do not
turn over in a reasonable period of time, which normally should not
exceed 90 days, these items should be subject to the required physical
controls and recorded in the proper inventory account.

Sec. 109-27.5006 Stores catalogs.

A stores catalog for customer use that lists items available from
stock shall be established for each stores operation. Exceptions to
this requirement are authorized where establishment of a catalog is
impracticable or uneconomical because of small total value or number of
items involved, or temporary need for the facility.

Sec. 109-27.5007 Physical inventories.

Sec. 109-27.5007-1 Procedures.

The following procedures shall be established for taking physical
inventory of stocks subjected to quantity controls as well as those
under financial control:
(a) Completion of a physical inventory not less frequently than
every twelve months.
(b) Reconciliation of inventory quantities with the stock records.
(c) Preparation of a report of the physical inventory results.

Sec. 109-27.5007-2 Inventory adjustments.

Discrepancies between physical inventories and stock records shall
be adjusted and the supporting adjustment records shall be reviewed and
approved by a responsible official at least one supervisory level above
the supervisor in charge of the warehouse or storage facility. Items on
an adjustment report which are not within reasonable tolerances for
particular items shall be thoroughly investigated before report
approval. Adjustment reports shall be retained on file for inspection
and review.

Sec. 109-27.5008 Control of drug substances and potable alcohol.

Effective procedures and practices shall provide for the management
and physical security of controlled substances and potable alcohol 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. Controls and records of potable
alcohol shall be maintained on quantities of one quart and above.

Sec. 109-27.5009 Control of hypodermic needles and syringes.

Effective procedures and practices shall provide for the management
and physical security of hypodermic needles and syringes to prevent
illegal use. Controls shall include supervisory approval for issue,
storage in locked repositories, and the rendering of the items useless
prior to disposal.

Sec. 109-27.5010 Containers returnable to vendors.

Containers furnished by vendors shall be administratively and
physically controlled before and after issuance. Prompt action shall be
taken to return such containers to vendors for credit after they have
served their intended use.

Sec. 109-27.5011 Identification marking of metals and metal products.

Sec. 109-27.5011-1 General.

Metals and metal products shall be identified and marked in
accordance with applicable Federal standards. This requirement applies
to direct charges as well as to items procured for store, shop or floor
stock, or for use on construction projects. Additional markings not
covered by Federal standards should be used to show special properties,
corrosion data, or test data as required. The preferred process is for
the marking to be done in the manufacturing process, but it may be
applied by suppliers when circumstances warrant.

Sec. 109-27.5011-2 Exception.

Exceptions to the marking requirement may be made when:
(a) It is necessary to procure small quantities from suppliers not
equipped to do the marking;
(b) It would delay delivery of emergency orders; or
(c) Procurement is from DOE or other Federal agency excess.

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) Assuring that the organization's precious metals activities are
conducted in accordance with Departmental requirements.
(b) Maintaining of 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.

[[Page 48023]]

(d) Insuring 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 of 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 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 Precious
Metals Pool Manager 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. All combinations used for
precious metals protection shall be changed at least on an annual
basis.

Sec. 109-27.5104-3 Perpetual inventory records.

Perpetual inventory records shall be maintained as specified in
Chapter V of DOE Order 534.1, Accounting.

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.
(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 class 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 effective and
economical 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.
(e) Employee termination and transfer procedures shall include
clearance for precious metals possession.

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 normal disposal process.

Sec. 109-27.5106-2 Withdrawals.

Pure metals, parts, fabricated products, catalysts, or solutions,
are generally available and the DOE pool contractor can provide
assistance in supplying such requirements. Metals can be shipped to any
facility to fulfill fabrication requirements.

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. With the exception of silver,
this includes precious metals in any form, including shapes, scrap, or

[[Page 48024]]

radioactively contaminated. Only high grade nonradioactively
contaminated silver should be included. 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 precious metals pool contractor will request annually from each
DOE field organization its long-range forecast of anticipated
withdrawals from the pool and returns to the pool.

Se

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A96-21922. Public record. Not legal advice.