Office of Procurement and Property Management; Uniform Procedures for the Acquisition and Transfer of Excess Personal Property

DEPARTMENT OF AGRICULTURE

7 CFR Chapter XXXII

RIN 0500-AA00

Office of Procurement and Property Management; Uniform Procedures

for the Acquisition and Transfer of Excess Personal Property

AGENCY: Office of Procurement and Property Management.

ACTION: Final rule.

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SUMMARY: The final rule sets forth uniform procedures for the

acquisition and transfer of excess personal property to the 1890 Land

Grant Institutions (including Tuskegee University), the 1994 Land Grant

Institutions and the Hispanic-Serving Institutions in support of

research, educational, technical, and scientific activities or for

related programs as authorized by section 923 of the Federal

Agriculture Improvement and Reform Act (FAIR) of 1996 (Pub. L. 104-

127), 7 U.S.C. 2206a.

EFFECTIVE DATE: November 27, 1998.

FOR FURTHER INFORMATION CONTACT: Kathy Fay on 202-720-9779.

SUPPLEMENTARY INFORMATION:

I. Background

II. Analysis of comments

III. Procedural Requirements

A. Executive Order Nos. 12866 and 12988.

B. Regulatory Flexibility Act.

C. Paperwork Reduction Act.

D. Small Business Regulatory Enforcement Fairness Act.

IV Electronic Access Addresses

I. Background

The proposed rule was published in the Federal Register on January

23, 1998 (63 FR 3481). Three comments were received.

II. Analysis of comments

The General Services Administration (GSA) requested that

Accountable Utilization Officer be changed to Area Utilization Officer.

GSA was unclear if the Department of Agriculture (USDA) would sign the

Standard Form 122, Transfer Order Excess Personal Property as the

approving office and forward the document to GSA for final approval.

USDA will sign the SF-122 as the approving office and forward the

document to GSA for final approval. GSA asked we note that where there

are competing Federal requests for excess property, GSA gives a higher

priority to those requests where title will be retained by the Federal

Government. Changes have been made to section 3200.4 to clarify the

rule and incorporate the GSA recommended addition. GSA also expressed

concern about USDA's plan to conduct compliance checks. USDA intends to

conduct scheduled compliance reviews on an annual basis to ensure that

the property is being used for intended purposes, and has added

additional language to section 3200.9 to so state.

The State of South Dakota, Federal Property Agency requested that

we not transfer title of excess personal property to the 1890 Land

Grant Institutions, (including Tuskegee University), 1994 Land Grant

Institutions and Hispanic-Serving Institutions. The State of South

Dakota, Federal Property Agency expressed concern that the transfer of

title would prevent further return of the property to Federal surplus

when no longer needed by an eligible institution. This would deprive

other State, local and nonprofit agencies of potential future use of

the property. USDA believes that transferring title of excess personal

property to institutions for the most part located in economically

disadvantaged rural and urban areas will improve research, educational,

technical, and scientific activities and related programs and build

capacity on the respective campuses. The State of South Dakota, Federal

Property Agency is concerned about usable excess personal property

being requested for purposes of cannibalization. The State of South

Dakota, Federal Property Agency suggests excess personal property

should be screened first for use of the property for its intended

purpose. USDA notes that eligible institutions are required to submit a

supporting statement with each excess personal property request to

cannibalize. The supporting statement must justify clearly the

cannibalization, and indicate that cannibalizing the requested property

for secondary use has a greater benefit than utilization of the item in

its existing form. USDA has added a new subsection to 3200.6 to

prohibit stockpiling of excess personal property, and note that

requests for cannibalization normally are subordinate to requests for

complete items.

The National Association of State Agencies for Surplus Property

(NASASP) opposed the proposed rule out of concern that the transfer of

title would have a negative effect on the amount of property available

for the Federal surplus property donation program. USDA believes

targeting institutions located for the most part in areas that are

economically disadvantaged will improve their capacity in the areas of

research, educational, technical, and scientific activities.

With respect to concern regarding accountability for the property

and improper use for cannibalization purposes, USDA notes that eligible

institutions violating the provisions of this part may face suspension

and debarment under 7 CFR part 3017.

Additional, non-substantive stylistic changes also have been made.

III. Procedural Requirements

A. Executive Order Nos. 12866 and 12988

This rule has been determined to be not significant for purposes of

Executive Order 12866 and, therefore, has not been reviewed by the

Office of Management and Budget (OMB). The proposed rule has been

reviewed under Executive Order 12988, Civil Justice Reform. The

proposed rule meets the applicable standards in section 3 of Executive

Order 12988.

B. Regulatory Flexibility Act

The Department of Agriculture certifies that this rule will not

have a significant economic impact on a substantial number of small

entities as defined in the Regulatory Flexibility Act, 5 U.S.C. 601 et

seq. This certification is based on the fact that the regulation

imposes no new requirements on small entities, and that any impact on

the reduction of surplus property due to the transfer of title will be

minimal because most property

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returned to USDA by the institutions for surplus in the past has been

unusable.

C. Paperwork Reduction

The information collection and record keeping requirements to

implement these procedures have been cleared by the Office of

Management and Budget (OMB), under 0505-0019, in accordance with the

Paperwork Reduction Act., 44 U.S.C. 3500 et seq.

D. Small Business Regulatory Enforcement Fairness Act

This rule has been submitted to each House of Congress and the

Comptroller General in accordance with the Small Business Regulatory

Enforcement Fairness Act of 1996, 5 U.S.C. 801, et seq.

IV. Electronic Access Addresses.

You may send electronic mail (E-mail) to [email protected] or

contact us via fax at (202) 720-3747.

List of Subjects in 7 CFR Part 3200

Excess Government property, Government property, Government

property management.

For the reasons set forth in the preamble, the Department of

Agriculture establishes chapter XXXII of title 7 of the Code of Federal

Regulations to read as follows:

CHAPTER XXXII--OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT,

DEPARTMENT OF AGRICULTURE

Part 3200--Department of Agriculture guidelines for the acquisition

and transfer of excess personal property.

3201--3299 [Reserved]

PART 3200--DEPARTMENT OF AGRICULTURE GUIDELINES FOR THE ACQUISITION

AND TRANSFER OF EXCESS PERSONAL PROPERTY

Sec.

3200.1 Purpose.

3200.2 Eligibility.

3200.3 Definitions.

3200.4 Procedures.

3200.5 Dollar limitation.

3200.6 Restrictions.

3200.7 Title.

3200.8 Costs.

3200.9 Accountability and record keeping.

3200.10 Disposal.

3200.11 Liabilities and losses.

Authority: 5 U.S.C. 301; 7 U.S.C. 2206a.

Sec. 3200.1 Purpose.

This Part sets forth the procedures to be utilized by Department of

Agriculture (USDA) in the acquisition and transfer of excess property

to the 1890 Land Grant Institutions (including Tuskegee University),

1994 Land Grant Institutions, and the Hispanic-Serving Institutions in

support of research, educational, technical, and scientific activities

or for related programs as authorized by 7 U.S.C. 2206a. Title to the

personal property shall pass to the institution.

Sec. 3200.2 Eligibility.

Institutions that are eligible to receive Federal excess personal

property pursuant to the provisions of this part are the 1890 Land

Grant Institutions (including Tuskegee University), 1994 Land Grant

Institutions, and the Hispanic-Serving Institutions conducting

research, educational, technical, and scientific activities or related

programs.

Sec. 3200.3 Definitions.

(a) 1890 Land grant institutions--any college or university

eligible to receive funds under the Act of August 30, 1890 (7 U.S.C.

321 et.seq.), including Tuskegee University.

(b) 1994 Land grant institutions--any of the tribal colleges or

universities as defined in section 532 of the Equity in Educational

Land-Grant Status Act of 1994 (7 U.S.C. 301 note).

(c) Hispanic-serving institutions--institutions of higher education

as defined in section 316(b) of the Higher Education Act of 1965 (20

U.S.C. 1059c (b)).

(d) Property management officer--is an authorized USDA or

institution official responsible for property management.

(e) Screener--is an individual designated by an eligible

institution and authorized by the General Services Administration (GSA)

to visit property sites for the purpose of inspecting personal property

intended for use by the institution.

(f) Excess personal property--is any personal property under the

control of a Federal agency that is no longer needed.

(g) Cannibalization--is the dismantling of equipment for parts to

repair or enhance other equipment.

Sec. 3200.4 Procedures.

(a) To receive information concerning the availability of Federal

excess personal property, an eligible institution's property management

officer may contact their regional GSA, Area Utilization Officer. All

property management officers of eligible institutions will be placed on

the USDA mailing list for information on the availability of property.

USDA excess property will first be screened by USDA agencies through

the Departmental Excess Personal Property Coordinator (DEPPC) using the

PMIS/PROP system.

(b) Excess property selected by screeners of eligible institutions

should be inspected whenever possible, or the holding agency should be

contacted to verify the condition of the items, because interpretation

of condition codes varies among Federal agencies.

(c) If the condition of the item is acceptable, the institution

should ``freeze'' (reserve) items by calling the appropriate GSA office

or USDA Departmental Excess Personal Property Coordinator (DEPPC).

Since GSA may have several ``freezes'' on a piece of equipment, it is

critical that the paperwork be submitted as soon as possible. Further,

while transfers of excess personal property normally will be approved

by GSA on a first-come-first-serve basis, consideration will be given

to such factors as national defense requirements, emergency needs,

preclusion of new procurement, energy conservation, equitable

distribution, and retention of title in the Government.

(d) Eligible institutions may submit property requests by mail or

fax on a Standard Form 122, ``Transfer Order Excess Personal

Property,'' with a written justification statement (submitted by the

recipient) explaining how the property will be used for research,

educational, technical, or scientific activity or for related programs.

(e) The SF-122 should be signed by the eligible institution's

property management officer or authorized designee.

(1) The following information should also be provided:

(i) Date prepared.

(ii) GSA/DEPPC address.

(iii) Ordering Agency and address.

(iv) Holding Agency and address.

(v) Name and address of Institution.

(vi) Location of property.

(vii) Shipping instruction (including institution contact person

and phone number).

(viii) Complete description of property including original

acquisition cost, serial number, condition code, and quantity.

(2) This statement needs to be added following the property

description but does not serve as a justification statement:

The property requested hereon is certified to be used in support

of research, educational, technical, and scientific activities or

for related programs. This transfer is requested pursuant to the

provisions of section 923 of Pub. L. 104-127 (7 U.S.C. 2206a).

(f) The SF-122 should be forwarded to USDA for approval and

signature by an authorized USDA official. As

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confirmation of approval, the eligible institution's property

management officer will receive a stamped copy of the SF-122. If the

request is disapproved, it will be returned to the property management

officer of the eligible institution with an appropriate explanation.

All USDA approved SF-122's will be forwarded to DEPPC or the

appropriate GSA office for final approval.

(g) Once the excess personal property is physically received, the

institution is required to immediately return a copy of the SF-122 to

USDA indicating receipt of requested items. Cancellations should also

be reported to USDA.

Note: USDA shall send an informational copy of all SF-122's

transactions to GSA.

Sec. 3200.5 Dollar Limitation.

There is no dollar limitation on excess personal property obtained

under these procedures.

Sec. 3200.6 Restrictions.

(a) The authorized USDA official will approve the transfer of

excess personal property in the following groups for the 1890 Land

Grant Institutions (including Tuskegee University), 1994 Land Grant

Institutions and the Hispanic-Serving Institutions in support of

research, educational, technical, and scientific activities or for

related programs:

Eligible Federal Supply Code Groups

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FSC group Name

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12.................................. Fire Control Equipment.

19.................................. Ships, Small Crafts, Pontoons, and

Floating Docks.

22.................................. Railway Equipment.

23.................................. Vehicles, Motor Vehicles, Trailers

and Cycles.

24.................................. Tractors.

26.................................. Tires and Tubes.

28.................................. Engines, Turbines and Components.

29.................................. Engine Accessories.

30.................................. Mechanical Power Transmission

Equipment.

31.................................. Bearings.

32.................................. Woodworking Machinery and

Equipment.

34.................................. Metal Working Machinery.

35.................................. Service and Trade Equipment.

36.................................. Special Industry Machinery.

37.................................. Agricultural Machinery and

Equipment.

38.................................. Construction, Mining, Excavating,

and Highway Maintenance

Equipment.

39.................................. Material Handling Equipment.

40.................................. Rope, Cable, Chain, and Fittings.

41.................................. Refrigeration, Air Conditioning

and Air Circulating Equipment.

42.................................. Fire Fighting, Rescue, and Safety

Equipment.

43.................................. Pumps, Compressors.

44.................................. Furnace, Steam Plant, and Drying.

45.................................. Plumbing, Heating, and Sanitation

Equipment; and Nuclear Reactors.

46.................................. Water Purification and Sewage

Treatment Equipment.

47.................................. Pipe, Tubing, Hose, and Fittings.

49.................................. Maintenance and Repair Shop

Equipment.

51.................................. Hand Tools.

52.................................. Measuring Tools.

53.................................. Hardware and Abrasives.

54.................................. Prefabricated Structures and

Scaffolding.

55.................................. Lumber, Millwork, Plywood, and

Veneer.

56.................................. Construction and Building

Materials.

58.................................. Communication, Detection, and

Coherent Radiation Equipment.

59.................................. Electrical and Electronic

Equipment Components.

60.................................. Fiber Optics Materials,

Components, Assemblies, and

Accessories.

61.................................. Electric Wire, and Power and

Distribution Equipment.

62.................................. Lighting Fixtures and Lamps.

63.................................. Alarm, Signal, and Security

Detection Systems.

65.................................. Medical, Dental, and Veterinary

Equipment and Supplies.

66.................................. Instruments and Laboratory

Equipment.

67.................................. Photographic Equipment.

69.................................. Training Aids and Devices.

70.................................. General Purposes Automatic Data

Processing Equipment (Including

Firmware) Software, and Support

Equipment.

71.................................. Furniture.

72.................................. Household and Commercial

Furnishings and Appliances.

73.................................. Food Preparation and Serving

Equipment.

74.................................. Office Machines, Text Processing

Systems and Visible Record

Equipment.

75.................................. Office Supplies and Devices.

76.................................. Books, Maps, and Other

Publications.

77.................................. Musical Instruments, Phonographs,

and Home-type Radios.

78.................................. Recreational and Athletic

Equipment.

79.................................. Cleaning Equipment and Supplies.

80.................................. Brushes, Paints, Sealers, and

Adhesives.

81.................................. Containers, Packaging and Packing

Supplies.

83.................................. Textiles, Leather, Furs, Apparel

and Shoe Findings, Tents, and

Flags.

84.................................. Clothing, Individual Equipment and

Insignia.

85.................................. Toiletries.

87.................................. Agricultural Supplies.

88.................................. Live Animals.

91.................................. Fuels, Lubricants, Oils and Waxes.

93.................................. Nonmetallic Fabricated Materials.

94.................................. Nonmetallic Crude Materials.

95.................................. Metal Bars, Sheets, and Shapes.

96.................................. Ores, Minerals and their Primary

Products.

99.................................. Miscellaneous.

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Note to paragraph (a): Requests for items in Federal Supply Code

Groups other than those listed in this paragraph shall be referred

to the Director of OPPM for consideration and approval.

(b) Excess personal property may be transferred for the purpose of

cannibalization, provided the eligible institution submits a supporting

statement which clearly indicates that cannibalizing the requested

property for secondary use has greater benefit than utilization of the

item in its existing form.

(c) Use of the procedures in this part for the purpose of

stockpiling of excess personal property for future cannibalization is

prohibited. Transfer requests for the purpose of cannibalization will

be considered, but are normally subordinate to requests for complete

items.

Sec. 3200.7 Title.

Title to excess personal property obtained under Part 3200 will

automatically pass to the 1890 Land Grant Institutions (including

Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-

Serving Institutions once USDA receives the SF-122 indicating that the

institution has received the property. Note: When competing Federal

claims are made for particular items of excess personal property held

by agencies other than USDA, with or without payment of reimbursement,

GSA will give preference to the Federal agency that will retain title

in the Government.

Sec. 3200.8 Costs.

Excess personal property obtained under this part is provided free

of charge. However, the institution must pay all costs associated with

packaging and transportation. The institution

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should specify the method of shipment on the SF-122.

Sec. 3200.9 Accountability and record keeping.

USDA requires that Federal excess personal property received by an

eligible institution pursuant to this part shall be placed into use for

a research, educational, technical, or scientific activity, or for a

related purpose, within 1 year of receipt of the property, and used for

such purpose for at least 1 year thereafter. The institution's property

management officer must establish and maintain accountable records

identifying the property's location, description, utilization and

value. To ensure that the excess personal property is being used for

its intended purpose under this part, compliance reviews will be

conducted by an authorized representative of USDA. The review will

include site visit inspections of the property and the accountability

and record keeping systems.

Sec. 3200.10 Disposal.

When the property is no longer needed by the institution, it may be

used in support of other Federal projects or sold, and the proceeds

used for research, educational, technical, and scientific activities,

or for related programs of the recipient institution.

Sec. 3200.11 Liabilities and losses.

USDA assumes no liability with respect to accidents, bodily injury,

illness, or any other damages or loss related to excess personal

property transferred under this part.

PARTS 3201-3299--[RESERVED]

W. R. Ashworth,

Director, Office of Procurement and Property Management.

[FR Doc. 98-28542 Filed 10-26-98; 8:45 am]

BILLING CODE 3410-PA-P