Property Management Regulations

SUMMARY: The Department of Energy (DOE) today publishes a final rule to

reissue the Department of Energy Property Management Regulation (DOE-

PMR) in its entirety. This rule updates the DOE-PMR by deleting

obsolete and unnecessary material and incorporating policy and

procedure changes issued previously by the Department through Personal

Property Letters and DOE-PMR Bulletins. This action provides DOE

organizations and DOE contractors an up-to-date, single source for

guidance on personal property management matters peculiar to the

Department. Specific material that is incorporated, revised, or deleted

from the DOE-PMR was summarized in the ``Section-by-Section Analysis''

which appeared in the Notice of Proposed Rulemaking published in the

Federal Register on September 11, 1996. Revisions which resulted from

comments received on the proposed rulemaking are summarized in Section

II ``Comments on the Notice of Proposed Rulemaking.''

EFFECTIVE DATE: This final rule will be effective May 20, 1998.

FOR FURTHER INFORMATION CONTACT: Julia A. Harman, Office of Contract

and Resource Management (HR-53), Office of Procurement and Assistance

Management, Department of Energy, 1000 Independence Avenue, SW.,

Washington, DC 20585 (202) 586-1435.

SUPPLEMENTARY INFORMATION:

I. Background

II. Comments on the Notice of Proposed Rulemaking

III. Procedural Requirements

A. Review Under Executive Order 12866

B. Review Under Executive Order 12988

C. Review Under the Regulatory Flexibility Act

D. Review Under the Paperwork Reduction Act

E. Review Under Executive Order 12612

F. Review Under the National Environmental Policy Act

G. Review Under Small Business Regulatory Enforcement Fairness

Act of 1996

H. Review Under the Unfunded Mandates Reform Act of 1995

I. Background

The DOE-PMR, published at 41 CFR Ch. 109, has not been updated to

reflect interim changes in Departmental personal property management

policy and procedures since 1984. These interim changes, issued through

Personal Property Letters and DOE-PMR Bulletins, were made to comply

with Executive Orders, statutory requirements, and commitments made to

Congress regarding weaknesses identified in the Department's personal

property management practices.

The updating of the DOE-PMR completes phase I of the Department's

two-phased commitment to bring about significant reform of its personal

property management regulations. The phase I objective was to produce

an up-to-date baseline document for use in the reform effort. Having

done that, the phase II effort will concentrate on (a) significantly

reducing and simplifying the personal property regulations in

accordance with Executive Order 12988. Phase II is scheduled to be

completed in calendar year 1998.

II. Comments on the Notice of Proposed Rulemaking

A Notice of Proposed Rulemaking was published in the Federal

Register on September 11, 1996 (61 FR 48006). Interested parties were

invited to participate in this rulemaking by submitting comments. The

public comment period closed on November 12, 1996, a period of 60 days.

During this period, comments were received from one DOE contractor and

one DOE subcontractor employee commenting as a private citizen. The DOE

contractor's comments focused on the Math and Science Equipment Gift

Program covered in Subpart 109-50.2. The contractor recommended that:

1. The following authorities rest with the Head of the Contracting

Activity (HCA), or designee, in lieu of DOE Headquarters: (1) Adding to

the list of eligible equipment at Sec. 109-50.203; and (2) making gifts

exceeding $25,000 cumulative book value to any one institution at

Sec. 109-50.205. We disagree with both recommendations because the

Executive Agencies that own the equipment are responsible for defining

and regulating which specific equipment is eligible. In order to insure

that all aspects of the equipment gift program (including equipment

eligibility determinations and gift making authorizations) are applied

uniformly throughout the Department, these authorities need to be

maintained at the Headquarters level.

2. The limitations in Sec. 109-50.205 be modified to significantly

raise or eliminate the requirement to obtain DOE Headquarters

authorization to make gifts exceeding $25,000 cumulative book value to

any one institution. We disagree with the recommendation for several

reasons. First of all, the distribution of equipment should be made to

those schools with the greatest needs. The threshold is designed to

encourage a fair and equitable distribution of equipment among those

schools. Secondly, without such a threshold some schools would tend to

benefit greatly at the expense of others. We do not believe that to be

the intent of the gift program. Thirdly, since the threshold is based

on book or depreciated value, a significant amount of equipment can be

distributed under the $25,000 threshold. Finally, feedback on the

equipment gift program to date does not indicate that the threshold is

an impediment to meeting the program objectives.

3. Equipment in disposal condition codes 2 (unused-fair) and 5

(used-fair) be made eligible under the program. We disagree with the

recommendation because equipment must be made available to schools at

the lowest possible cost. To that end, the Department should only

provide equipment that can be used ``as is'' for an extended period of

time. The transfer of equipment in fair (i.e., marginal) condition

would burden schools with immediate or near term costs for servicing,

repair, and possible disposal of the equipment. While the

recommendation is well meaning, we view it as counter to the spirit and

intent of the program.

4. Section 109-50.205 be rewritten to remove apparent

contradictions and clarify the hierarchy of distribution to and

eligibility of potential recipients. We agree with the recommendation

and have rewritten the section to clarify the procedure that was

originally established in a July 17, 1995 DOE Headquarters memorandum

that established the equipment gift program.

5. The requirement to forward a copy of each Equipment Gift

Agreement to DOE Headquarters be eliminated or changed to the Head of

the Contracting Activity or designee. We disagree with the

recommendation because the Equipment Gift Agreements are used by DOE

Headquarters (a) to monitor the success of and make adjustments to the

program and (b) as source documents for preparing a report provided by

the Department to the General Services Administration (GSA). The

comments submitted by the DOE subcontractor employee who commented as a

private citizen involved financial accounting issues. Although the

comments were submitted under the rulemaking, the solutions are outside

the scope of the DOE-PMR. The comments were forwarded to the DOE Office

of Financial Policy for consideration as

[[Page 19615]]

proposed changes to DOE accounting directives. DOE field offices were

also invited to submit comments, primarily for consideration under

phase II of the Department's regulatory reform effort. Among the

comments received were several regarding Executive Order 12999, which

replaces Executive Order 12821. Executive Order 12999 will be

implemented upon approval of the Department's implementation plan.

However, a number of the comments were accepted for immediate

implementation because they addressed areas affected by Presidential

directive, recent Federal Property Management Regulation changes issued

by GSA, or minor editorial and technical errors. The revisions made as

a result of these comments are as follows:

1. The word ``capital'' in the term ``capital equipment,'' used

extensively in part 1 of this regulation and defined in Sec. 109-1.100-

50, is removed to eliminate the confusion created by the use of the

same term, with different meaning, by the Department's financial

accounting organization. This change was formalized in a Departmental

memorandum issued on August 29, 1996.

2. The acronyms CPPSR and HR in Sec. 109-1.100-51 are deleted

because neither acronym is used in the text.

3. Deviation requests in Sec. 109-1.110-50 involving aviation

related matters are forwarded by the on-site DOE Aviation Management

Officer, in lieu of the Organizational Property Management Officer, to

the DOE Senior Aviation Management Official.

4. Loans in Sec. 109-1.5102 are approved by the on-site property

administrator when the OPMO is not located at the contractor facility.

5. Identification marking of property in Sec. 109-1.5105 is

expanded to allow the use of ``U.S. DOE'' as an alternative marking

when there is not enough room to mark it as ``U.S. Government

Property.''

6. The applicability of the policy and guidance in subpart 109-1.53

is limited to three categories of high risk personal property because

other Departmental systems and procedures already provide the required

controls for the remaining six categories.

7. The physical inventory requirement for sensitive items in

Sec. 109-1.5109 is modified to reflect changes that were authorized in

Personal Property Letter 970-2 issued on February 23, 1996.

8. By a Presidential Memorandum dated February 10, 1993 Agency

Heads were instructed to ``refrain from authorizing the use of

Government vehicles for * * * deputies for daily home-to-work

transportation.'' Accordingly, the authority for the Deputy Secretary

contained in Sec. 109-6.403(b) is eliminated.

9. Section 109-27.000-50 is deleted because the information in the

section is redundant.

10. The stores inventory turnover ratio in Sec. 109-27.5002 is

corrected to show the proper comparative factors.

11. The subpart 27.51 dealing with precious metals management is

updated to reflect the establishment of the Business Center for

Precious Metals Sales and Recovery.

12. The periodic EHFFP program reviews in Sec. 109-28.5005 are

conducted by the on-site property administrator when the OPMO is not

located at the contractor facility.

13. Part 109-37 dealing with aviation administration is reserved

pending a complete revision of Departmental policies and procedures.

14. Definition of special purpose vehicles in Sec. 109-38.001 is

updated to include all terrain vehicles.

15. Section 109-38.106 is deleted as a result of Federal Property

Management Regulation changes published in FPMR Amendment G-111, dated

October 28, 1996.

16. Section 109-43.307-52(c) is moved to Sec. 109-42.1102-8(a) and

updated to include a reference to the Defense Demilitarization Manual

because it deals with United States Munitions List items subject to

demilitarization.

17. Sections 109-43.4701(a) and 109-44.4701(a) and Secs. 109-

45.1002-2, 109-45.4701, and 109-46.305 are removed as a result of a

FPMR change, published as FPMR Amendment H-196, dated June 24, 1997,

that eliminated several annual reports required by GSA.

18. Section 109-46.201(c) is updated to reflect a FPMR change,

published as FPMR Amendment H-195, dated June 23, 1997, that reduced

the number of Federal Supply Classification Groups on the exchange/sale

authority exclusion list.

19. Section 109-50.106 is updated to delete references to the use

of ADPE tapes and printed catalogs. Both are no longer in use.

Aside from these minor editorial and technical error corrections,

there were no significant revisions to the rulemaking based on the

submitted comments.

20. Subpart 109-50.3 is withdrawn and held in reserve pending

resolution of outstanding issues related to economic development.

III. 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 that

Executive Order, by the Office of Information and Regulatory Affairs of

the Office of Management and Budget (OMB).

B. 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 regulations meet the relevant standards of Executive Order 12988.

C. Review Under the Regulatory Flexibility Act

The rule was reviewed under the Regulatory Flexibility Act of 1980,

Pub. L. 96-354, which requires preparation of an initial regulatory

flexibility analysis for any rule that is likely to have a significant

economic impact on a substantial number of small entities. In the

background section of the rule, DOE noted that the rule was the first

[[Page 19616]]

phase of a two-phased approach to (1) streamline the personal property

management process and (2) reduce constraints, prescriptive

requirements, and administrative processes on DOE internal operations

and large contractors who manage and operate DOE facilities. Based on

this review, DOE certified that this rule will not have a significant

economic impact on a substantial number of small entities and,

therefore, no regulatory flexibility analysis had been prepared. DOE

did not receive any comments on this certification.

D. Review Under the Paperwork Reduction Act

No new information collection or record keeping requirements are

imposed by this rule. Accordingly, no OMB clearance is required under

the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.).

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. DOE has determined that

this rule will not have a substantial direct effect on the

institutional interests or traditional functions of States.

F. 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), DOE has determined

that this rule is categorically excluded from the need to prepare an

environmental impact statement or environmental assessment.

G. Review Under Small Business Regulatory Enforcement Fairness Act of

1996

As required by 5 U.S.C. 801, DOE will report to Congress

promulgation of the rule prior to its effective date. The report will

state that it has been determined that the rule is not a ``major rule''

as defined by 5 U.S.C. 804(3).

H. Review Under the Unfunded Mandates Reform Act of 1995

The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally

requires a Federal agency to perform a detailed assessment of costs and

benefits of any rule imposing a Federal mandate with costs to State,

local or tribal governments, or to the private sector, of $100 million

or more. This rulemaking only affects DOE and private sector entities,

and the impact is less than $100 million.

List of Subjects in 41 CFR Chapter 109

Government property management.

Issued in Washington, DC, on March 31, 1998.

Richard H. Hopf,

Deputy Assistant Secretary for Procurement and Assistance Management.

For the reasons set out in the preamble, Chapter 109 of Title 41 of

the Code of Federal Regulations is 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 [RESERVED]

109-38 Motor equipment management

109-39 Interagency fleet management systems

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 policies 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 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.

[[Page 19617]]

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 Policies.

109-1.5303 Procedures.

109-1.5304 Deviations.

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 sets forth the Department of Energy (DOE) Property

Management Regulations (DOE-PMR) which establish uniform DOE property

management policies, regulations, and procedures that implement and

supplement the Federal Property Management Regulations. Property

management statutory authorities that are unique to the Department

(e.g., section 161g of the Atomic Energy Act of 1954 (42 U.S.C.

2201(g)) and section 3155 of the National Defense Authorization Act for

Fiscal Year 1994 (42 U.S.C. 72741)) are not addressed in these

regulations.

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.

Automatic data processing equipment means, as used in this part 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.

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 reutilizing, transferring, donating,

selling, abandoning, destroying, or other disposition of Government-

owned personal property.

Dual-Use List means nuclear-related material, equipment, and

related technology as described in the International Atomic Energy

Agency Information Circular (INFCIRC) 254 Part 2.

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.

Especially designed or prepared property means equipment and

material designed or prepared especially for use in the nuclear fuel

cycle and described in the Nuclear Suppliers Group Trigger List

(INFCIRC 254 Part 1).

Export controlled information 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, and which, if given uncontrolled release, could reasonably be

expected to adversely affect U.S. national security or nuclear

nonproliferation objectives.

Export controlled property means property the export of which is

subject to licensing by the U.S. Department of Commerce, the U.S.

Department of State, the U.S. Nuclear Regulatory Commission, 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, D.C. 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 of high

risk property are automatic data processing equipment, especially

designed or prepared property, export controlled information, export

controlled property, hazardous property, nuclear weapon components or

weapon-like components, proliferation sensitive property, radioactive

property, special nuclear material, and unclassified controlled nuclear

information.

Munitions list means articles, services, and related technical data

designated as defense articles and defense services by the Arms Export

Control Act of 1968, as amended.

Nuclear weapon component or weapon-like component means parts of

whole war reserve nuclear weapon systems, joint test assemblies,

trainers, or test devices, including associated testing, maintenance,

and handling equipment; or items that simulate such parts.

Personal property means property of any kind, except for real

estate and interests therein (such as easements and rights-of-way), and

permanent fixtures which are 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), as amended; and petroleum in the Strategic

Petroleum Reserve and the Naval Petroleum Reserves.

[[Page 19618]]

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

Suppliers Group Trigger List and Dual-Use List, or 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 plutonium, uranium 233, uranium

enriched in the isotope 233 or 235, any other materials which the

Nuclear Regulatory Commission pursuant to the Atomic Energy Act of

1954, as amended, determines to be special nuclear material, or any

material artificially enriched by any of the foregoing, but does not

include source material.

Trigger List means nuclear material, equipment, and related

technology as described in the INFCIRC 254, Part 1.

Unclassified controlled nuclear information means U.S. Government

information pertaining to atomic energy defense activities as 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.

(b) Acronyms. As used in this chapter, the following acronyms

apply:

ADPE: Automatic Data Processing Equipment

CFR: Code of Federal Regulations

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

FAR: Federal Acquisition 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

INFCIRC: International Atomic Energy Agency Information Circular

IFMS: Interagency Fleet Management System

M&O: Management and Operating

MCTL: Military Critical Technologies List

OCRM: Office of Contract and Resource Management

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 affecting the Department's

personal property management program.

Sec. 109-1.103 FPMR temporary regulations.

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

(a) Subject to applicable procedural requirements in 41 U.S.C.

418b, 42 U.S.C 7191 and 5 U.S.C 553, Personal Property Letters are

authorized for publication of temporary policies that should not be

codified in the Code of Federal Regulations (CFR).

(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 Chapter 109 of Title 41, Public Contracts and

Property Management. Loose leaf publications of the DOE-PMR 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

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 includes basic and significant Departmental

personal property management policies and standards which implement,

supplement, or deviate from the FPMR.

[[Page 19619]]

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;

(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) Each request for deviation shall contain the following:

(1) A statement of the deviation desired, including identification

of the specific paragraph number(s) of the DOE-PMR;

(2) The reason why the deviation is considered necessary or would

be in the best interest of the Government;

(3) If applicable, the name of the contractor and identification of

the contractor affected;

(4) A statement as to whether the deviation has been requested

previously and, if so, circumstances of the previous request;

(5) A description of the intended effect of the deviation;

(6) A statement of the period of time for which the deviation is

needed; and

(7) Any pertinent background information which will contribute to a

full understanding of the desired deviation.

(b)(1) 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).

(2) Requests for deviations from aviation related portions of the

FPMR and DOE-PMR concerning aviation operations shall be forwarded by

the OPMO or on-site DOE Aviation Management Officer with supporting

documentation to the DOE Senior Aviation Management Official.

(c) The Deputy Assistant Secretary for Procurement and Assistance

Management is authorized to grant deviations to the DOE-PMR.

(d) 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 efficient 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

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 efficiently managing personal property in the

custody or possession of DOE organizations and designated contractors;

and

(b) Uniform principles, policies, and standards for 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 equipment shall be based on the unit

acquisition cost threshold specified in the definition of equipment

contained in section 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 as

authorized by law;

(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 practices shall assure the best

possible use of personal property. Supplies and equipment shall be

generally limited to those items essential for carrying out the

programs of DOE efficiently.

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

equivalent when approved in writing by the OPMO or on-site DOE property

administrator. 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.

(b) Requests for loans to foreign Governments and other foreign

organizations shall be submitted to the Deputy Assistant Secretary for

International Energy Policy, Trade and Investment 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

[[Page 19620]]

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''

(if marking space is limited, property may be marked ``U.S. DOE'')

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) Equipment 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 must 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, model and serial 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 Equipment.

An individual property record will be developed and maintained for

each item of 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 equipment will be controlled as

both sensitive items and 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 equipment which are also designated as sensitive items

will be controlled as sensitive items and as 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 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 efficient 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 periodic physical inventories (see Sec. 109-

1.5110 of this part).

[[Page 19621]]

(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 efficient 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) Equipment--biennial.

(2) Sensitive items--annual (see paragraph 109-1.5110(l) of this

section).

(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 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 equipment and stores inventories may be

conducted 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.

(l) Physical inventories of sensitive items (excluding arms,

ammunition, and military property) having an acquisition cost of $2,000

or less may also be conducted using statistical sampling methods.

However if statistical sampling methods are used, a wall-to-wall

inventory is required no less frequently than every three years and at

contract completion (unless there is a follow-on contract with the same

contractor).

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 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 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

[[Page 19622]]

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) Agency Report of Motor Vehicle Oct. 31................ FPMR 101-38.903, DOE-PMR 109- SF 82.

Data. 38.903.

(3) Excess Personal Property Nov. 15................ FPMR 101-43.4701(c), DOE-PMR Letter.

Furnished to Non-Federal Recipients. 109-43.4701(c).

(4) Negotiated Sales................ Nov. 15................ FPMR 101-45.4702, DOE-PMR Letter.

109-45.4702.

----------------------------------------------------------------------------------------------------------------

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 efficient 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

Sec. 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 Sec. 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

efficient 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.

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:

(a) Adequate records.

(b) Controls over acquisitions.

(c) Identification as Government-owned personal property.

(d) Physical inventories.

(e) Proper care, maintenance, and protection.

(f) Controls over personal property requiring special handling

(i.e., nuclear-related, proliferation-sensitive, hazardous, or

contaminated property).

(g) Reporting, redistribution, and disposal of excess and surplus

personal property.

(h) Accounting for personal property that is lost, damaged,

destroyed, stolen, abandoned, or worn out.

(i) Periodic reports, including physical inventory results and

total acquisition cost of Government property.

(j) 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

[[Page 19623]]

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 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 by the head

of the field organization with advice of the contracting officer,

property administrator, OPMO, legal counsel, DPMO, and appropriate

program officials. Approval authority may be redelegated to the

contracting officer or contracting officer's designee. Conditional

approval and disapproval authority cannot be redelegated. 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.

(a) This subpart provides identification, accounting, control, and

disposal policy guidance for the following categories of high risk

personal property: especially designed or prepared property, export

controlled property, nuclear weapon components or weapon-like

components, and proliferation sensitive property. The guidance is

intended to ensure that the disposition of these categories of high

risk personal property does not adversely affect the national security

or nuclear nonproliferation objectives of the United States.

(b) The other categories of high risk personal property are

controlled by other life cycle management programs and procedures

monitored by other Departmental elements.

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

personal 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 Policies.

(a) It is the responsibility of DOE organizations and designated

contractors to manage and control Government-owned high risk personal

property in an efficient manner. High risk personal property will be

managed throughout its life cycle so as to protect public and DOE

personnel safety and to advance the national security and the nuclear

nonproliferation objectives of the U.S. Government.

(b) The disposition of high risk property is subject to special

considerations. Items of high risk property may present significant

risks to the national security and nuclear nonproliferation objectives

of the Government which must be evaluated. Organizations will identify

high risk property and control its disposition to eliminate or mitigate

such risks. In no case shall property be transferred or disposed unless

it receives a high risk assessment and is handled accordingly.

Sec. 109-1.5303 Procedures.

(a) Identification, marking and control. To ensure the appropriate

treatment of property at its disposal and to prevent inadvertent,

uncontrolled release of high risk property, property should be assessed

and evaluated as high risk property as early in its life cycle as

practical.

(1) Newly acquired high risk personal property shall be identified

and tracked during the acquisition process and marked upon receipt.

(2) All personal property shall be reviewed for high risk

identification, marking, and database entry during

[[Page 19624]]

regularly scheduled physical inventories, unless access to the property

is difficult or impractical because the property is a component of a

larger assembly, a complex operating system, or an older facility. The

review of this property will be completed, prior to disposition, when

replacing components or when operating systems and facilities are

decommissioned and dismantling.

(3) High risk personal property which by its nature cannot be

marked, such as stores items and metal stock, is exempt from this

requirement. However, personal property management programs should

contain documentation on the characterization of this property as high

risk.

(b) Disposition of high risk property.

(1) Prior to disposition, all personal property, materials or data

will be assessed to determine:

(i) Whether it should be characterized as high risk and

(ii) What actions are necessary to ensure compliance with

applicable national security or nonproliferation controls.

(2) The DOE or designated contractor property management

organization may not process high risk personal property into a

reutilization/disposal program without performing the reviews

prescribed by the local high risk property management system. The

reviews must be properly documented, and all appropriate certifications

and clearances received, in accordance with the approved site or

facility personal property management program.

(3) The disposition (including demilitarization of items on the

Munitions List) and handling of high risk personal property are subject

to applicable provisions of Subchapter H of the FPMR, subchapter H of

this chapter, and the DOE Guidelines on Export Control and

Nonproliferation.

(4) Documentation. All applicable documentation, including records

concerning the property's categorization as high risk, shall be

included as part of the property transfer. The documentation shall be

included with all transfers within, or external to, DOE.

(5) Unless an alternative disposition option appears to be in the

best interest of the Government, surplus Trigger List components,

equipment, and materials and nuclear weapon components shall either be

sold for scrap after being rendered useless for their originally

intended purpose or destroyed, with the destruction verified and

documented. Requests for approval of an alternative disposition may be

made through the cognizant Assistant Secretary to the Director of the

Office of Nonproliferation and National Security.

(6) Export Restriction Notice. The following Export Restriction

Notice, or approved equivalent notice, shall be included in all

transfers, sales, or other offerings:

Export Restriction Notice

The use, disposition, export and reexport of this property are

subject to all applicable U.S. laws and regulations, including the

Atomic Energy Act of 1954, as amended; the Arms Export Control Act

(22 U.S.C. 2751 et seq.); the Export Administration Act of 1979 (560

U.S.C. Append 2401 et seq.); Assistance to Foreign Atomic Energy

Activities (10 CFR part 810); Export and Import of Nuclear Equipment

and Material (10 CFR part 110); International Traffic in Arms

Regulations (22 CFR parts 120 et seq.); Export Administration

Regulations (15 CFR part 730 et seq.); Foreign Assets Control

Regulations (31 CFR parts 500 et seq.); and the Espionage Act (37

U.S.C. 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 authorized in accordance with the provisions of this

agreement.

Sec. 109-1.5304 Deviations.

(a) Life cycle control determinations. When the HFO approves a

contractor program containing controls, other than life cycle control

consistent with this subpart, the decision shall be justified in

writing and a copy sent to the Deputy Assistant Secretary for

Procurement and Assistance Management. A HFO's decision 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.

(b) Certain transfers, sales, or other offerings of high risk

personal property may require special conditions or specific

restrictions as determined necessary by the property custodian or

cognizant program office.

(c) Requests for deviations from the requirements of this subpart

may be made through the cognizant HFO to the Deputy Assistant Secretary

for Procurement and Assistance Management.

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;

[[Page 19625]]

(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 or for

incidental purposes as prescribed in this section. 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 (home-to-work) is limited to:

(1) The 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).

(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).

(d) A Departmental official who is authorized home-to-work

transportation is permitted to use Government-owned or leased motor

vehicles for non-official purposes incidental to the official use of

the vehicle, provided that the incremental cost (e.g., driver time and

mileage) of such use is de minimis or such costs are outweighed by

other considerations, such as the efficient use of the official's time.

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.

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) At 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, at a minimum, the

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.

[[Page 19626]]

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 identity 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.

(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

[[Page 19627]]

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 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).

PART 109-27--INVENTORY MANAGEMENT

Sec. 109-27.000-50 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 efficient 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.

[[Page 19628]]

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 efficient 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 (dollar value of 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

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

[[Page 19629]]

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.

(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 to the Business Center for Precious

Metals Sales and Recovery 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

Sec. 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 Business Center

for Precious Metals Sales and Recovery 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.

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

[[Page 19630]]

scales. The inventoried weight and form shall be recorded on the

physical inventory sheets by metal content and percent 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 efficient

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 disposal process specified in subchapter H of the

FPMR and this regulation.

Sec. 109-27.5106-2 Withdrawals.

Pure metals, parts, fabricated products, catalysts, or solutions,

are generally available and the Business Center for Precious Metals

Sales and Recovery 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

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 Business Center for Precious Metals Sales and Recovery will

request annually from each DOE field organization its long-range

forecast of anticipated withdrawals from the pool and returns to the

pool.

Sec. 109-27.5106-5 Assistance.

The Business Center for Precious Metals Sales and Recovery operates

the precious metals pool. DOE organizations and contractors may obtain

specific information regarding the operation of the precious metals

pool (operating contractor's name, address, and telephone number;

processing charges; etc.) by contacting the Chief, Property Management

Branch, Oak Ridge Operations Office.

Sec. 109-27.5107 Recovery of silver from used hypo solution and scrap

film.

The requirements for the recovery of silver from used hypo solution

and scrap film are contained in Sec. 109-45.1003 of this chapter.

PART 109-28--STORAGE AND DISTRIBUTION

Sec.

109-28.000-50 Policy.

109-28.000-51 Storage guidelines.

Subpart 109-28.3--Customer Supply Centers

109-28.306 Customer supply center (CSC) accounts and related

controls.

109-28.306-3 Limitations on use.

109-28.306-5 Safeguards.

Subpart 109-28.50--Management of Equipment Held for Future Projects

109-28.5000 Scope of subpart.

109-28.5001 Definition.

109-28.5002 Objective.

109-28.5003 Records.

109-28.5004 Justification and review procedures.

109-28.5005 EHFFP program review.

109-28.5006 Utilization.

Subpart 109-28.51--Management of Spare Equipment

109-28.5100 Scope of subpart.

109-28.5101 Definition.

109-28.5102 Exclusions.

109-28.5103 Management policy.

[[Page 19631]]

Authority: 42 U.S.C. 7254.

Sec. 109-28.000-50 Policy.

DOE offices and designated contractors shall:

(a) Establish storage space and warehousing services for the

receipt, storage, issue, safekeeping and protection of Government

property;

(b) Provide storage space and warehousing services in the most

efficient manner consistent with program requirements; and

(c) Operate warehouses in accordance with generally accepted

industrial management practices and principles.

Sec. 109-28.000-51 Storage guidelines.

(a) Indoor storage areas should be arranged to obtain proper stock

protection and maximum utilization of space within established floor

load capacities.

(b) Storage yards for items not requiring covered protection shall

be protected by locked fenced enclosures to the extent necessary to

protect the Government's interest.

(c) Storage areas shall be prominently posted to clearly indicate

that the property stored therein is U.S. Government property, with

entrance to such areas restricted to authorized personnel only.

(d) Property in storage must be protected from fire, theft,

deterioration, or destruction. In addition certain items require

protection from dampness, heat, freezing, or extreme temperature

changes. Other items must be stored away from light and odors,

protected from vermin infestation, or stored separately because of

their hazardous characteristics.

(e) Hazardous or contaminated property, including property having a

history of use in an area where exposure to contaminated property may

have occurred, shall not be commingled with non-contaminated property,

but stored separately in accordance with instructions from the

environmental, safety, and health officials.

(f) Unless inappropriate or impractical until declared excess,

nuclear-related and proliferation-sensitive property shall be

identified as such by use of a certification tag signed by an

authorized program official (designated in writing with signature cards

on file in the personal property management office). Such personal

property shall not be commingled with other personal property, but

stored separately in accordance with instructions from the cognizant

program office.

Subpart 109-28.3--Customer Supply Centers

Sec. 109-28.306 Customer supply center (CSC) accounts and related

controls.

Sec. 109-28.306-3 Limitations on use.

DOE offices and designated contractors shall establish internal

controls for ensuring that the use of CSC accounts is limited to the

purchase of items for official Government use.

Sec. 109-28.306-5 Safeguards.

DOE offices and designated contractors shall establish internal

controls for ensuring that the customer access codes assigned for their

accounts are properly protected.

Subpart 109-28.50--Management of Equipment Held for Future Projects

Sec. 109-28.5000 Scope of subpart.

This subpart provides policies, principles, and guidelines to be

used in the management of equipment held for future projects (EHFFP).

Sec. 109-28.5001 Definition.

Equipment held for future projects means items being retained,

based on approved justifications, for a known future use, or for a

potential use in planned projects.

Sec. 109-28.5002 Objective.

The objective of the EHFFP program is to enable DOE offices and

contractors to retain equipment not in use in current programs but

which has a known or potential use in future DOE programs, while

providing visibility on the types and amounts of equipment so retained

through review and reporting procedures. It is intended that equipment

be retained where economically justifiable for retention, considering

cost of maintenance, replacement, obsolescence, storage, deterioration,

or future availability; made available for use by others; and promptly

excessed when no longer needed.

Sec. 109-28.5003 Records.

Records of all EHFFP shall be maintained by the holding

organization, including a listing of items with original date of

classification as EHFFP; initial justifications for retaining EHFFP;

rejustifications for retention; and documentation of reviews made by

higher levels of management.

Sec. 109-28.5004 Justification and review procedures.

Procedures shall provide for the following:

(a) The original decision to classify and retain equipment as EHFFP

shall be justified in writing, providing sufficient detail to support

the need for retention of the equipment. This justification will cite

the project for which retained, the potential use to be made of the

equipment, or other reasons for retention.

(b) The validity of the initial classification EHFFP shall be

reviewed by management at a level above that of the individual making

the initial determination.

(c) Retention of equipment as EHFFP must be rejustified annually to

ensure that original justifications remain valid. The rejustifications

will contain sufficient detail to support retention.

(d) When equipment is retained as EHFFP for longer than one year,

the annual rejustification shall be reviewed at a level of management

at least two levels above that of the individual making the

determination to retain the EHFFP. Equipment retained as EHFFP for

longer than three years should be approved by the head of the DOE field

organization.

Sec. 109-28.5005 EHFFP program review.

OPMOs or on-site DOE property administrators shall conduct periodic

reviews to ensure that the EHFFP program is being conducted in

accordance with established procedures and this subpart. Included in

the review will be proper determinations of property as EHFFP, the

validity of justifications for retaining EHFFP, and the inclusion of

EHFFP in management walk-throughs as prescribed in Sec. 109-25.109-1 of

this chapter.

Sec. 109-28.5006 Utilization.

It is DOE policy that, where practicable and consistent with

program needs, EHFFP be considered as a source of supply to avoid or

postpone acquisition.

Subpart 109-28.51--Management of Spare Equipment

Sec. 109-28.5100 Scope of subpart.

This subpart provides policy guidance to be used in the management

of spare equipment.

Sec. 109-28.5101 Definition.

Spare equipment means items held as replacement spares for

equipment in current use in DOE programs.

Sec. 109-28.5102 Exclusions.

The following categories of equipment will not be considered spare

equipment:

(a) Equipment installed for emergency backup, e.g., an emergency

power facility, or an electric motor or a pump, any of which is in

place and electrically connected.

[[Page 19632]]

(b) Equipment items properly classified as stores inventory.

Sec. 109-28.5103 Management policy.

(a) Procedures shall require the maintenance of records for spare

equipment, cross-referenced to the location in the facility and the

engineering drawing number. The purpose for retention shall be in the

records.

(b) Reviews shall be made based on technical evaluations of the

continued need for the equipment. The reviews should be held

biennially. In addition, individual item levels shall be reviewed when

spare equipment is installed for use, the basic equipment is removed

from service, or the process supported is changed.

(c) Procedures shall be established to provide for the

identification and reporting of unneeded spare equipment as excess

property.

PART 109-30--FEDERAL CATALOG SYSTEM

Sec.

109-30.001-50 Applicability.

Authority: 42 U.S.C. 7254.

Sec. 109-30.001-50 Applicability.

The provisions of 41 CFR part 101-30 do not apply to designated

contractors.

SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES

PART 109-37--[RESERVED]

PART 109-38--MOTOR EQUIPMENT MANAGEMENT

Sec.

109-38.000 Scope of part.

109-38.000-50 Policy.

Subpart 109-38.0--Definition of Terms

109-38.001 Definitions.

Subpart 109-38.1--Fuel Efficient Motor Vehicles

109-38.104 Fuel efficient passenger automobiles and light trucks.

109-38.105 Agency purchase and lease of motor vehicles.

109-38.106 Leasing of motor vehicles.

Subpart 109-38.2--Registration, Identification, and Exemptions

109-38.200 General requirements.

109-38.201 Registration and inspection.

109-38.201-50 Registration in foreign countries.

109-38.202 Tags.

109-38.202-2 Outside the District of Columbia.

109-38.202-3 Records.

109-38.202-50 Security.

109-38.203 Agency identification.

109-38.204 Exemptions.

109-38.204-1 Unlimited exemptions.

109-38.204-3 Requests for exempted motor vehicles in the District

of Columbia.

109-38.204-4 Report of exempted motor vehicles.

109-38.204-50 Records of exempted motor vehicles.

Subpart 109-38.3--Official Use of Government Motor Vehicles

109-38.300 Scope.

109-38.301 Authorized use.

109-38.301-1 Contractors' use.

109-38.301-1.50 Authorization for transportation between residence

and place of employment.

109-38.301-1.51 Emergency use.

109-38.301-1.52 Maintenance of records.

109-38.301-1.53 Responsibilities of motor vehicle operators.

Subpart 109-38.4--Use and Replacement Standards

109-38.401 Use standards.

109-38.401-2 Use of self-service pumps.

109-38.402 Replacement standards.

109-38.402-50 Prompt disposal of replaced motor vehicles.

109-38.403 Responsibility for damages.

109-38.403-1 Policy.

109-38.403-2 Responsibility.

109-38.403-3 Exceptions.

Subpart 109-38.5--Scheduled Maintenance

109-38.502 Guidelines.

109-38.502-50 DOE guidelines.

Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles

109-38.701 Transfer of title for Government-owned motor vehicles.

109-38.701-50 Authority to sign Standard Form 97, The United States

Government Certificate to Obtain Title to a Vehicle.

Subpart 109-38.8--Standard Form 149, U.S. Government National Credit

Card

109-38.800 General.

109-38.801 Obtaining SF 149, U.S. Government National Credit Card.

Subpart 109-38.9--Federal Motor Vehicle Fleet Report

109-38.902 Records.

109-38.903 Reporting of data.

109-38.903-50 Reporting DOE motor vehicle data.

Subpart 109-38.51--Utilization of Motor Equipment

109-38.5100 Scope of subpart.

109-38.5101 Policy.

109-38.5102 Utilization controls and practices.

109-38.5103 Motor vehicle utilization standards.

109-38.5104 Other motor equipment utilization standards.

109-38.5105 Motor vehicle local use objectives.

109-38.5106 Application of motor vehicle use goals.

Subpart 109-38.52--Watercraft

109-38.5200 Scope of subpart.

109-38.5201 Definition.

109-38.5202 Watercraft operations.

109-38.5203 Watercraft identification and numbers.

Authority: 42 U.S.C. 7254.

Sec. 109-38.000 Sec. Scope of part.

109-38.000-50 Policy.

Motor vehicles and watercraft shall be acquired, maintained, and

utilized in support of DOE programs in the minimum quantity required

and in the most efficient manner consistent with program requirements,

safety considerations, fuel economy, and applicable laws and

regulations.

Subpart 109-38.0--Definition of Terms

Sec. 109-38.001 Definitions.

Experimental vehicles means vehicles acquired solely for testing

and research purposes or otherwise designated for experimental

purposes. Such vehicles are to be the object of testing and research as

differentiated from those used as vehicular support to testing and

research. Experimental vehicles are not to be used for passenger

carrying services unless required as part of a testing/evaluation

program, and they are not subject to statutory price limitations or

authorization limitations.

Motor equipment means any item of equipment which is self-propelled

or drawn by mechanical power, including motor vehicles, motorcycles and

scooters, construction and maintenance equipment, materials handling

equipment, and watercraft.

Motor vehicle means any equipment, self-propelled or drawn by

mechanical power, designed to be operated principally on highways in

the transportation of property or passengers.

Special purpose vehicles means vehicles which are used or designed

for specialized functions. These vehicles include, but are not limited

to: Trailers, semi-trailers, other types of trailing equipment; trucks

with permanently mounted equipment (such as aerial ladders);

construction and other types of equipment set forth in Federal Supply

Classification Group (FSCG) 38; material handling equipment set forth

in FSCG 39; and fire fighting equipment set forth in FSCG 42. For

reporting purposes within DOE, motorcycles, motor scooters and all

terrain vehicles will also be reported as special purpose vehicles.

Subpart 109-38.1--Fuel Efficient Motor Vehicles

Sec. 109-38.104 Fuel efficient passenger automobiles and light trucks.

(a) [Reserved]

(b) All requests to purchase passenger automobiles larger than

class IA, IB, or

[[Page 19633]]

II (small, subcompact, or compact) shall be forwarded with

justification to the DPMO for approval and certification for compliance

with the fuel economy objectives listed in 41 CFR 101-38.104.

(b)(1)-(b)(4) [Reserved]

(5) Requests to exempt certain light trucks from the fleet average

fuel economy calculations shall be forwarded with justification to the

DPMO for approval.

Sec. 109-38.105 Agency purchase and lease of motor vehicles.

(a) DOE activities shall submit a copy of all motor vehicle leases

and purchases not procured through the GSA Automotive Commodity Center

to GSA.

(b)-(c) [Reserved]

(d) DOE activities desiring to renew a commercial lease shall

submit the requirement in writing to the DPMO for approval prior to

submission by field offices to GSA.

(e) DOE activities shall submit a copy of all lease agreements to

GSA.

Subpart 109-38.2--Registration, Identification, and Exemptions

Sec. 109-38.200 General requirements.

(a)-(e) [Reserved]

(f) Requests made pursuant to 41 CFR 101-38.200(f) for exemption

from the requirement for displaying U.S. Government tags and other

identification on motor vehicles, except for those vehicles exempted in

accordance with Sec. 109-38.204-1 of this subpart, shall be submitted

through normal administrative channels to the DPMO for approval. Each

approved exemption must be renewed annually, and the DPMO shall be

notified promptly when the need for a previously authorized exemption

no longer exists. Copies of certifications and cancellation notices

required to be furnished to GSA pursuant to 41 CFR 101-38.200(f) will

be transmitted to GSA by the DPMO.

(g) Requests for temporary removal and substitution of Government

markings shall be submitted with justification to the DPMO for review

and approval. Copies of the determination and justification required to

be furnished to GSA will be transmitted to GSA by the DPMO.

Sec. 109-38.201 Registration and inspection.

Sec. 109-38.201-50 Registration in foreign countries.

Motor vehicles used in foreign countries are to be registered and

carry license tags in accordance with the existing motor vehicle

regulations of the country concerned. The person responsible for a

motor vehicle in a foreign country shall make inquiry at the United

States Embassy, Legation, or Consulate concerning the regulations that

apply to registration, licensing, and operation of motor vehicles and

shall be guided accordingly.

Sec. 109-38.202 Tags.

Sec. 109-38.202-2 Outside the District of Columbia.

The Director of Administrative Services and heads of field

organizations shall make the determination concerning the use of tags

outside the District of Columbia.

Sec. 109-38.202-3 Records.

(a) The DPMO assigns ``blocks'' of U.S. Government license tag

numbers to DOE organizations and maintains a current record of such

assignments. Additional ``blocks'' will be assigned upon request.

(b) Each DOE direct operation and designated contractor shall

maintain a current record of individual assignments of license tags to

the motor vehicles under their jurisdiction.

Sec. 109-38.202-50 Security.

Unissued license tags shall be stored in a locked drawer, cabinet,

or storage area with restricted access to prevent possible fraud or

misuse. Tags which are damaged or unusable will be safeguarded until

destroyed.

Sec. 109-38.203 Agency identification.

Standard DOE motor vehicle window decals (DOE Form 1530.1), and

door decals to be used only on vehicles without windows (DOE Form

1530.2), are available from the Office of Administrative Services,

Logistics Management Division, Headquarters, using DOE Form 4250.2,

``Requisition for Supplies, Equipment or Services'', or as directed by

that office.

Sec. 109-38.204 Exemptions.

Sec. 109-38.204-1 Unlimited exemptions.

(a)-(f) [Reserved]

(g) The Director, Office of Administrative Services and heads of

field organizations for their respective organizations may approve

exemptions from the requirement for the display of U.S. Government

license tags and other official identification for motor vehicles used

for security or investigative purposes.

Sec. 109-38.204-3 Requests for exempted motor vehicles in the District

of Columbia.

The Director, Office of Administrative Services is designated to

approve requests for regular District of Columbia license tags, and

furnishes annually the name and specimen signature of each

representative authorized to approve such requests to the District of

Columbia Department of Transportation.

Sec. 109-38.204-4 Report of exempted motor vehicles.

DOE offices shall provide upon request the necessary information to

the DPMO to enable that office to submit a report of exempted vehicles.

Sec. 109-38.204-50 Records of exempted motor vehicles.

The Director, Office of Administrative Services and heads of field

organizations shall maintain records of motor vehicles exempted from

displaying U.S. Government license tags and other identification. The

records shall contain a listing, by type, of each exempted motor

vehicle operated during the previous fiscal year, giving information

for each motor vehicle on hand at the beginning of the year and each of

those newly authorized during the year, including:

(a) Name and title of authorizing official (including any

authorization by Headquarters and GSA);

(b) Date exemption was authorized;

(c) Justification for exemption and limitation on use of the

exempted motor vehicle;

(d) Date of discontinuance for any exemption discontinued during

the year; and

(e) Probable duration of exemptions for motor vehicles continuing

in use.

Subpart 109-38.3--Official Use of Government Motor Vehicles

Sec. 109-38.300 Scope.

This subpart prescribes the requirements governing the use of

Government motor vehicles for official purposes by designated

contractors.

Sec. 109-38.301 Authorized use.

The use of Government motor vehicles by officers and employees of

the Government is governed by the provisions of 41 CFR 101-6.4 and

section 109-6.4 of this chapter.

Sec. 109-38.301-1 Contractors' use.

Heads of field organizations shall ensure that provisions of the

FPMR concerning contractor use of Government motor vehicles are

complied with by their designated contractors.

Sec. 109-38.301-1.50 Authorization for transportation between

residence and place of employment.

(a) Government motor vehicles shall not be used for transportation

between residence and place of employment by

[[Page 19634]]

designated contractor personnel except under extenuating circumstances

specifically provided for under the terms of the contract. Examples of

circumstances eligible for prior approval of home-to-work motor vehicle

use which would be appropriate to include in the terms of the contract

include: use related to safety or security operations, use related to

compelling operational considerations, and use determined as cost

effective to DOE's interest. Under no circumstances shall the comfort

and convenience, or managerial position, of contractor employees be

considered justification for authorization of use.

(b) The use of Government motor vehicles for transportation between

residence and place of employment (including sporadic use) by

designated contractor personnel shall be approved in writing by the

Head of the field organization or designee, with delegation no lower

than the Assistant Manager for Administration at the Operations Offices

or the equivalent position at other DOE contracting activities provided

that the individual is a warranted contracting officer. The

contractor's request for approval shall include the name and title of

the employee, the reason for the use, and the expected duration of the

use. Each authorization is limited to one year, but can be extended for

an unlimited number of additional one-year periods.

Sec. 109-38.301-1.51 Emergency use.

(a) Procedures for authorization of designated contractor use of

Government motor vehicles in emergencies, including unscheduled

overtime situations at remote sites where prior approval is not

possible, shall be included in a contractor's approved property

management procedures. The procedures shall include examples of

emergency situations warranting such use. Records detailing instances

of emergency use shall be maintained and review of all such emergency

or overtime use must be certified through established audit procedures

on at least an annual basis by the OPMO.

(b) In limiting the use of Government motor vehicles to official

purposes, it is not intended to preclude their use in emergencies

threatening loss of life or property. Such use shall be documented and

the documentation retained for three years.

Sec. 109-38.301-1.52 Maintenance of records.

Designated contractors shall maintain logs or other records on the

use of a Government motor vehicle for transportation between an

employee's residence and place of employment. As a minimum, these logs

shall indicate the employee's name, date of use, time of departure and

arrival, miles driven, and names of other passengers. Cognizant finance

offices shall be provided with applicable data on employees who utilize

Government motor vehicles for such transportation for purposes of the

Deficit Reduction Act of 1984 concerning the taxation of fringe

benefits.

Sec. 109-38.301-1.53 Responsibilities of motor vehicle operators.

Designated contractors shall assure that their employees are aware

of their responsibilities, identical to those listed in Sec. 109-6.400-

50 of this chapter for DOE employees, concerning the use and operation

of Government motor vehicles.

Subpart 109-38.4--Use and Replacement Standards

Sec. 109-38.401 Use standards.

Sec. 109-38.401-2 Use of self-service pumps.

It is DOE policy that motor vehicle operators shall use self-

service pumps in accordance with the provisions of 41 CFR 101-38.401-2.

Sec. 109-38.402 Replacement standards.

(a) [Reserved]

(b) Motor vehicles may be replaced without regard to the

replacement standards in 41 CFR 101-38.402 only after certification by

the Director of Administrative Services or the Head of the field

organization for their respective organizations that a motor vehicle is

beyond economical repair due to accident damage or wear caused by

abnormal operating conditions.

Sec. 109-38.402-50 Prompt disposal of replaced motor vehicles.

A replaced motor vehicle shall be removed from service and disposed

of prior to or as soon as practicable after delivery of the replacement

motor vehicle to avoid concurrent operation of both motor vehicles.

Sec. 109-38.403 Responsibility for damages.

Sec. 109-38.403-1 Policy.

The policy for assigning responsibility for vehicle damage is to

recover from users the costs for damages which would adversely affect

the vehicle's resale.

Sec. 109-38.403-2 Responsibility.

The designated contractor will charge the using organization all

costs resulting from damage, including vandalism, theft and parking lot

damage to a DOE vehicle which occurs during the period that the vehicle

is assigned to an employee of that organization. The charges recovered

by the designated maintenance operation will be used to repair the

vehicle. Other examples for which organizations will be charged are as

follows:

(a) Damage caused by misuse or abuse inconsistent with normal

operation and local conditions; or

(b) Repair costs which are incurred as a result of user's failure

to obtain required preventative maintenance; or

(c) Unauthorized purchases or repairs, including credit card

misuse, provided there is a clear, flagrant, and documented pattern of

such occurrences.

Sec. 109-38.403-3 Exceptions.

Exceptions to Sec. 109-38.403-2 of this subpart are as follows:

(a) As the result of the negligent or willful act of a party other

than the organization or it's employee, and the responsible party can

be determined; or

(b) As a result of mechanical failure and the employee was not

otherwise negligent. Proof of the failure must be provided; or

(c) As a result of normal wear comparable to similar vehicles.

Subpart 109-38.5--Scheduled Maintenance

Sec. 109-38.502 Guidelines.

Sec. 109-38.502-50 DOE guidelines.

(a) Whenever practicable and cost effective, commercial service

facilities shall be utilized for the maintenance of motor vehicles.

(b) Individual vehicle maintenance records shall be kept to provide

records of past repairs, as a control against unnecessary repairs and

excessive maintenance, and as an aid in determining the most economical

time for replacement.

(c) One-time maintenance and repair limitations shall be

established by the motor equipment fleet manager. To exceed repair

limitations, approval of the motor equipment fleet manager is required.

(d) Warranties.

(1) Motor vehicles under manufacturer's warranty shall be repaired

under the terms of the warranty.

(2) When motor vehicles are maintained in Government repair

facilities in isolated locations that are distant from franchised

dealer facilities, or when it is not practical to return the vehicles

to a dealer, a billback agreement shall be sought from manufacturers to

permit warranty work to be performed on a reimbursable basis.

[[Page 19635]]

Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles

Sec. 109-38.701 Transfer of title for Government-owned motor vehicles.

Sec. 109-38.701-50 Authority to sign Standard Form 97, The United

States Government Certificate to Obtain Title to a Vehicle.

The Standard Form (SF) 97 shall be signed by an appropriate

contracting officer. The Director, Office of Administrative Services

and heads of field organizations for their respective organizations may

delegate the authority to sign SF 97 to responsible DOE personnel under

their jurisdiction.

Subpart 109-38.8--Standard Form 149, U.S. Government National

Credit Card

Sec. 109-38.800 General.

(a)--(c) [Reserved]

(d) The Director, Office of Administrative Services and heads of

field organizations for their respective organizations shall be

responsible for establishing procedures to provide for the

administrative control of fleet credit cards. Administrative control

shall include, as a minimum:

(1) A reconciliation of on-hand credit cards with the inventory

list provided by GSA,

(2) Providing motor vehicle operators with appropriate instructions

regarding the use and protection of credit cards against theft and

misuse,

(3) The taking of reasonable precautions in the event an SF 149 or

SF 149A is lost or stolen to minimize the opportunity of purchases

being made by unauthorized persons, including notification to the

paying office of the loss or theft,

(4) Validation of credit card charges to ensure they are for

official use only items, and

(5) Being on the alert for any unauthorized bills.

Sec. 109-38.801 Obtaining SF 149, U.S. Government National Credit

Card.

DOE offices electing to use national credit cards shall request the

assignment of billing address code numbers from the DPMO. Following the

assignment, DOE organizations shall submit orders for issuance of

national credit cards in accordance with the instructions provided by

GSA.

Subpart 109-38.9--Federal Motor Vehicle Fleet Report

Sec. 109-38.902 Records.

The Director, Office of Administrative Services and OPMOs for their

respective organizations shall establish adequate records for

accounting and reporting purposes.

Sec. 109-38.903 Reporting of data.

Sec. 109-38.903-50 Reporting DOE motor vehicle data.

(a) DOE offices and designated contractors operating DOE-owned or

commercially-leased motor vehicles shall prepare the following reports

using SF 82, Agency Report of Motor Vehicle Data or DOE approved

equivalent, for the entire fleet including security vehicles.

(1) DOE Report of Motor Vehicle Data.

(2) DOE Report of Truck Data.

(b) Designated contractors shall submit the reports to the DOE

contracting office for review and approval. DOE offices shall submit

reports, including designated contractor reports, to the DPMO by

November 15 of each year.

(c) Copies of the report forms may be obtained by contacting the

DPMO.

(d) Personal computer generated reports are acceptable provided

that the standard report format is followed.

Subpart 109-38.51--Utilization of Motor Equipment

Sec. 109-38.5100 Scope of subpart.

This subpart prescribes policies and procedures concerning the

utilization of motor equipment.

Sec. 109-38.5101 Policy.

It is DOE policy to keep the number of motor vehicles and other

motor equipment at the minimum needed to satisfy programmatic

requirements. To attain this goal, controls and practices shall be

established which will achieve the most practical and economical

utilization of motor equipment. These controls and practices apply to

all DOE-owned and commercially leased motor equipment and to GSA

Interagency Fleet Management System motor vehicles.

Sec. 109-38.5102 Utilization controls and practices.

Controls and practices to be used by DOE organizations and

designated contractors for achieving maximum economical utilization of

motor equipment shall include, but not be limited to:

(a) The maximum use of motor equipment pools, taxicabs, shuttle

buses, or other common service arrangements;

(b) The minimum, practicable assignment of motor equipment to

individuals, groups, or specific organizational components;

(c) The maintenance of individual motor equipment use records, such

as trip tickets or vehicle logs, or hours of use, as appropriate,

showing sufficiently detailed information to evaluate appropriateness

of assignment and adequacy of use being made. If one-time use of a

motor vehicle is involved, such as assignments from motor pools, the

individual's trip records must, as a minimum, identify the motor

vehicle and show the name of the operator, dates, destination, time of

departure and return, and mileage;

(d) The rotation of motor vehicles between high and low mileage

assignments where practicable to maintain the fleet in the best overall

replacement age and mileage balance and operating economy;

(e) The charging, if considered feasible, to the user organization

for the cost of operating and maintaining motor vehicles assigned to

groups or organizational components. These charge-back costs should

include all direct and indirect costs of the motor vehicle fleet

operation as determined by the field organization and contractor

finance and accounting functions;

(f) The use of dual-purpose motor vehicles capable of hauling both

personnel and light cargo whenever appropriate to avoid the need for

two motor vehicles when one can serve both purposes. However, truck-

type or van vehicles shall not be acquired for passenger use merely to

avoid statutory limitations on the number of passenger motor vehicles

which may be acquired;

(g) The use of motor scooters and motorcycles in place of higher

cost motor vehicles for certain applications within plant areas, such

as mail and messenger service and small parts and tool delivery. Their

advantage, however, should be weighed carefully from the standpoint of

overall economy (comparison with cost for other types of motor

vehicles) and increased safety hazards, particularly when mingled with

other motor vehicle traffic; and

(h) The use of electric vehicles for certain applications. The use

of these vehicles is encouraged wherever it is feasible to use them to

further the goal of fuel conservation.

Sec. 109-38.5103 Motor vehicle utilization standards.

(a) The following average utilization standards are established for

DOE as objectives for those motor vehicles operated generally for those

purposes for which acquired:

(1) Sedans and station wagons, general purpose use--12,000 miles

per year.

(2) Light trucks (4 x 2's) and general purpose vehicles, one ton

and under

[[Page 19636]]

(less than 12,500 GVWR)--10,000 miles per year.

(3) Medium trucks and general purpose vehicles, 1\1/2\ ton through

2\1/2\ ton (12,500 to 23,999 GVWR)--7,500 miles per year.

(4) Heavy trucks and general purpose vehicles, three ton and over

(24,000 GVWR and over)--7,500 miles per year.

(5) Truck tractors--10,000 miles per year.

(6) All-wheel-drive vehicles--7,500 miles per year.

(7) Other motor vehicles--No utilization standards are established

for other trucks, ambulances, buses, law enforcement motor vehicles,

and special purpose vehicles. The use of these motor vehicles shall be

reviewed at least annually by the motor equipment fleet manager and

action shall be taken and documented to verify that the motor vehicles

are required to meet programmatic, health, safety, or security

requirements.

(b) When operating circumstances prevent the above motor vehicle

utilization standards from being met, local use objectives must be

established and met as prescribed in Sec. 109-38.5105 of this subpart.

Sec. 109-38.5104 Other motor equipment utilization standards.

No utilization standards are established for motor equipment other

than motor vehicles. Each DOE office should establish through an

agreement between the fleet manager and the OPMO utilization criteria

for other motor equipment including heavy mobile equipment and review,

adjust, and approve such criteria annually. Utilization of various

classifications of other motor equipment can be measured through

various statistics including miles, hours of use, number of trips, and

fuel consumption. A utilization review of other motor equipment shall

be performed at least annually by the motor equipment fleet manager to

justify retainment or disposition of excess equipment not needed to

fulfill Departmental, programmatic, health, safety, or security

requirements.

Sec. 109-38.5105 Motor vehicle local use objectives.

(a) Individual motor vehicle utilization cannot always be measured

or evaluated strictly on the basis of miles operated or against any

Department-wide mileage standard. For example, light trucks

specifically fitted for use by a plumber, welder, etc., in the

performance of daily work assignments, would have uniquely tailored use

objectives, different from those set forth for a truck used for general

purposes. Accordingly, efficient local use objectives, which represent

practical units of measurement for motor vehicle utilization and for

planning and evaluating future motor vehicle requirements, must be

established and documented by the Organizational Motor Equipment Fleet

Manager. The objectives should take into consideration past

performance, future requirements, geographical disbursement, and

special operating requirements.

(b) These objectives shall be reviewed and adjusted as appropriate,

but not less often than annually, by the motor equipment fleet manager.

The reviews shall be documented. The Organizational Motor Equipment

Fleet Manager is responsible for reviewing and approving in writing all

proposed local use objectives.

Sec. 109-38.5106 Application of motor vehicle use goals.

(a) At least annually, the motor equipment fleet manager will

review motor vehicle utilization statistics and all motor vehicles

failing to meet the applicable DOE utilization standard or local use

objective must be identified.

(b) Prompt action must be initiated to:

(1) Reassign the underutilized motor vehicles;

(2) Dispose of the underutilized motor vehicles; or

(3) Obtain a special justification from users documenting their

continued requirement for the motor vehicle and any proposed actions to

improve utilization. Any requirement for underutilized motor vehicles

which the motor equipment fleet manager proposes to continue in its

assignment, must be submitted in writing to the Organizational Motor

Equipment Fleet Manager for approval.

(c) Both Department-wide standards and local use objectives should

be applied in such a manner that their application does not stimulate

motor vehicle use for the purpose of meeting the objective. The

ultimate standard against which motor vehicle use must be measured is

that the minimum number of motor vehicles will be retained to satisfy

program requirements.

Subpart 109-38.52--Watercraft

Sec. 109-38.5200 Scope of subpart.

This subpart establishes basic policies and procedures that apply

to the management of watercraft operated by DOE organizations and

designated contractors. The head of each Departmental organization

operating watercraft shall issue such supplemental instructions as may

be needed to ensure the efficient use and management of watercraft.

Sec. 109-38.5201 Definition.

As used in this subpart the following definition applies:

Watercraft means any vessel used to transport persons or material

on water.

Sec. 109-38.5202 Watercraft operations.

(a) No person may operate a watercraft on a waterway until skill of

operation and basic watercraft knowledge have been demonstrated.

(b) Operators of watercraft shall check the vessel to ensure that

necessary equipment required by laws applicable to the area of

operation are present, properly stowed, and in proper working order.

(c) Operators shall comply with all applicable Federal, state, and

local laws pertaining to the operation of watercraft.

(d) Operators shall not use watercraft or carry passengers except

in the performance of official Departmental assignments.

Sec. 109-38.5203 Watercraft identification and numbers.

Watercraft in the custody of DOE or designated contractors shall

display identifying numbers, whether issued by the U.S. Coast Guard,

State, or local field organization, in accordance with applicable

requirements.

PART 109-39--INTERAGENCY FLEET MANAGEMENT SYSTEMS

Subpart 109-39.1--Establishment, Modification, and Discontinuance of

Interagency Fleet Management Systems

Sec.

109-39.101 Notice of intention to begin a study.

109-39.101-1 Agency cooperation.

109-39.103 Agency appeals.

109-39.105 Discontinuance or curtailment of service.

109-39.105-2 Agency requests to withdraw participation.

109-39.106 Unlimited exemptions.

109-39.107 Limited exemptions.

Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management

System Vehicles

109-39.300 General.

109-39.301 Utilization guidelines.

Authority: 42 U.S.C. 7254.

[[Page 19637]]

Subpart 109-39.1--Establishment, Modification, and Discontinuance

of Interagency Fleet Management Systems

Sec. 109-39.101 Notice of intention to begin a study.

Sec. 109-39.101-1 Agency cooperation.

The Director, Office of Administrative Services and heads of field

organizations for their respective organizations shall designate

representatives to coordinate with GSA concerning the establishment of

a GSA fleet management system to serve their organization.

Sec. 109-39.103 Agency appeals.

The Director, Office of Administrative Services and heads of field

organizations for their respective organizations may appeal, or request

exemption from, a determination made by GSA concerning the

establishment of a fleet management system. A copy of the appeal or

request shall be forwarded to the DPMO.

Sec. 109-39.105 Discontinuance or curtailment of service.

Sec. 109-39.105-2 Agency requests to withdraw participation.

Should circumstances arise that would tend to justify

discontinuance or curtailment of participation by a DOE organization of

a given interagency fleet management system, the participating

organization should forward complete details to the DPMO for

consideration and possible referral to the Administrator of General

Services.

Sec. 109-39.106 Unlimited exemptions.

The Director, Office of Administrative Services and heads of field

organizations for their respective organizations shall make the

determination that an unlimited exemption from inclusion of a motor

vehicle in a fleet management system is warranted. A copy of the

determination shall be forwarded to GSA and to the DPMO.

Sec. 109-39.107 Limited exemptions.

The Director, Office of Administrative Services and heads of field

organizations for their respective organizations shall seek limited

exemptions from the fleet management system.

Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management

System Vehicles

Sec. 109-39.300 General.

(a)-(c) [Reserved]

(d) Motor equipment fleet managers shall ensure that operators and

passengers in GSA Interagency Fleet Management System (IFMS) motor

vehicles are aware of the prohibition against the use of tobacco

products in these vehicles.

Sec. 109-39.301 Utilization guidelines.

DOE activities utilizing GSA IFMS motor vehicles will receive and

review vehicle utilization statistics in order to determine if miles

traveled justify vehicle inventory levels. Activities should retain

justification for the retention of vehicles not meeting DOE utilization

guidelines or established local use objectives, as appropriate. Those

vehicles not justified for retention shall be returned to the issuing

GSA interagency fleet management center.

PART 109-40--TRANSPORTATION AND TRAFFIC MANAGEMENT

Subpart 109-40.1--General Provisions

Sec.

109-40.000 Scope of part.

109-40.000-50 Applicability to contractors.

109-40.102 Representation before regulatory bodies.

109-40.103 Selection of carriers.

109-40.103-1 Domestic transportation.

109-40.103-2 Disqualification and suspension of carriers.

109-40.103-3 International transportation.

109-40.104 Use of Government-owned transportation equipment.

109-40.109 Utilization of special contracts and agreements.

109-40.110 Assistance to economically disadvantaged transportation

businesses.

109-40.110-1 Small business assistance.

109-40.110-2

Minority business enterprises.

109-40.112 Transportation factors in the location of Government

facilities.

109-40.113 Insurance against transportation hazards.

Subpart 109-40.3--Traffic Management

109-40.301 Traffic management functions administration.

109-40.302 Standard routing principle.

109-40.303-3 Most fuel efficient carrier/mode.

109-40.304 Rate tenders to the Government.

109-40.305-50 Negotiations involving national security.

109-40.306-1 Recommended rate tender format.

109-40.306-2 Required shipping documents and annotations.

109-40.306-3 Distribution.

Subpart 109-40.50--Bills of Lading

109-40.5000 Scope of subpart.

109-40.5001 Policy.

109-40.5002 Applicability.

109-40.5003 Commercial bills of lading.

109-40.5004 Government bills of lading.

109-40.5005 Description of property for shipment.

Subpart 109-40.51--Price-Anderson Coverage Certifications for Nuclear

Shipments

109-40.5100 Scope of subpart.

109-40.5101 Policy.

Authority: Sec. 161, as amended, 68 Stat. 948; 42 U.S.C. 2201;

sec. 205, as amended, 63 Stat. 390; 40 U.S.C. 486; sec. 644, 91

Stat. 585, 42 U.S.C. 7254.

Subpart 109-40.1--General Provision

Sec. 109-40.000 Scope of part.

This part describes DOE regulations governing transportation and

traffic management activities. It also covers arrangements for

transportation and related services by bill of lading. These

regulations are designed to ensure that all transportation and traffic

management activities will be carried out in the manner most

advantageous to the Government in terms of economy, efficiency,

service, environment, safety and security.

Sec. 109-40.000-50 Applicability to contractors.

DOE-PMR 109-40, Transportation and Traffic Management, should be

applied to cost-type contractors' transportation and traffic management

activities. Departure

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