FEDERAL EXCESS PROPERTY PROGRAM HANDBOOK

TABLE OF CONTENTS:


    INTRODUCTION

    PURPOSE

    ELIGIBILITY

    USDA RESPONSIBILITIES

    INSTITUTION RESPONSIBILITIES

    GSA RESPONSIBILITIES

    PROGRAM REQUIREMENTS AND RESTRICTIONS

 

    COSTS

    SCREENERS

    SCREENERS IDENTIFICATION CARD

    WHERE TO SCREEN

    SOURCES FOR EXCESS

    HOW TO SCREEN

    SCREENING FROM A DEPARTMENT OF DEFENSE (DOD), DEFENSE REUTILIZATION    MARKETING OFFICE (DRMO)

    SCREENING THROUGH A DOD, DEFENSE LOGISTICS AGENCY RECYCLING CONTROL POINT

    SCREENING USDA EXCESS PERSONAL PROPERTY

    PROCEDURES FOR COMPLETING THE SF-122

    RECEIPT OF FEDERAL EXCESS PERSONAL PROPERTY

    ACCOUNTABILITY AND RECORDKEEPING


    DISPOSAL OF FEPP

    GLOSSARY

    DEFINITIONS

    ELIGIBLE INSTITUTIONS

    FINAL RULE

    TIPS FOR IMPROVED PROPERTY ACQUISITIONS


INTRODUCTION

Congress included a provision in Section 923 of the Federal Agriculture Improvement and Reform Act (FAIR) (Public Law (P. L.) 104-127), which authorizes the Secretary of Agriculture to acquire and transfer title of Federal excess personal property (FEPP) to certain eligible Institutions in support of in support of research, educational, technical, and scientific activities or for related programs. This important provision of the law allows these eligible institutions to screen FEPP at the same time it is being screened by Federal agencies and before it is offered for screening to State agencies and other interested parties.

PURPOSE

This Handbook outlines the procedures to be followed when acquiring property through this program.

ELIGIBILITY

Under FAIR, the following institutions are eligible to participate in the FEPP Program:

* The above mentioned colleges/universities/institutions authorized to receive FEPP under Section 923 of the FAIR will be referred to as Institutions throughout this document.

USDA RESPONSIBILITIES

USDA has designated an individual to carry out it's responsibilities under Section 923 (P. L. 102-127).

Ms. Kathy Fay, FEPP Program Manager

USDA, OPPEP, PMD

1400 Independence Ave., SW

Mail Stop 9304

Washington, DC 20250

Telephone Number: 202-720-9779

TDD Number: 202-401-4133

Fax Number: 202-720-3339

E-Mail Address: Kathy.Fay@usda.gov

USDA will promote the acquisition, proper use, control, accountability and disposition of FEPP furnished to eligible Institutions under this program.

The FEPP Program Manager will:


INSTITUTION RESPONSIBILITIES

The president of an eligible Institution must designate in writing to the FEPP Program Manager a Property Management Officer (PMO) who will be responsible for administering the program within the Institution. The PMO will be responsible for the acquisition, control, accountability, maintenance and use of FEPP.

The PMO will:

NOTE: Whenever the PMO responsibilities change hands it is the responsibility of the Head of the Institution to notify the FEPP Program Manager.

GSA RESPONSIBILITIES

After the Institution has obtained approval from USDA, GSA will grant final approval of the transfer of FEPP. GSA approves transfers on a first-come-first-served basis. If there are competing requests, full consideration shall be given to such factors as national defense requirements, emergency needs, energy conservation, preclusion of new procurement, equitable distribution and transportation costs, and retention of title in the Government.

PROGRAM REQUIREMENTS AND RESTRICTIONS

The following restrictions are associated with USDA's FEPP Program.

5. FEPP acquired under USDA's program must be put into use within one year after receipt. Also, FEPP acquired must be used for one year before the Institution can dispose of it.

COSTS

FEPP obtained under this program is provided free of charge. However, the Institution must pay all costs associated with packaging and transportation. The Institution must specify the method of shipment in the appropriate box on the SF-122.

SCREENERS

The Screener is an individual designated by eligible Institutions and authorized by USDA and GSA to visit property sites for the purpose of inspecting personal property intended for use by the Institution. This person can be the same person as the PMO or can be another individual. The screener should be knowledgeable of the Institution's programs and their needs.

SCREENERS IDENTIFICATION CARD

Individuals designated by the Institutions to be a screener must complete GSA Form 2946, Screener's Identification Card, and the necessary applications. These can be obtained through GSA or USDA. A copy of the GSA Form 2946 and the necessary applications forms can be found in Appendix C. (Note: GSA Form 2946 cannot be duplicated, do not make copies of Appendix C). The PMO will forward the completed application to USDA. USDA will approve the application and forward it to the appropriate GSA office for issuance.

Screener's Identification Cards are valid for two years. It is the individual's responsibility to apply for a renewal card. Terminated or expired cards must be returned to the USDA's FEPP Program Manager for cancellation before a new card can be issued.

WHERE TO SCREEN

Almost any Federal installation can be a source of FEPP, but time is most effectively spent at military installations. Military installations generate large quantities of excess on their own, and many smaller offices in the surrounding area often turn in their property there as well.

Veterans Administration hospitals and munitions plants also generate sizeable quantities of useful property. Your GSA representatives will assist you in locating generating facilities.

SOURCES FOR EXCESS

General Services Administration

Department of Defense

United States Department of Agriculture

HOW TO SCREEN

Screeners should be trained for the job, and advised of the types of property to find. There is a wide variety of property being released at government facilities. Sometimes a large quantity of unusable property is picked up because the Institution's needs were not clearly communicated to the screener. Therefore, Institutions should develop a well defined FEPP acquisition plan to guide the screener in his/her effort to meet the needs of the Institution. There is no doubt that items will show up that were not anticipated but would be very useful. An acquisition plan, experience and knowledge of the needs of the Institution will then assist a screener in determining unanticipated needs.

A typical screening trip will usually involve a visit to a military facility. This involves passing through some form of security. Depending on the base's mission and other factors, entry may involve simply driving in, or going into an office to sign in and receive a pass. Each installation is different, and requires some adjustments.

The first trip to a facility will require some effort to locate the disposal yard. If there is a guard or check-in point at the gate, ask for directions. Once you have located the disposal yard, it is important to sign in and present the Screeners Card.

SCREENING FROM A DEPARTMENT OF DEFENSE (DOD), DEFENSE REUTILIZATION MARKETING OFFICE (DRMO)

After signing in with the DRMO, the screener will receive a current calendar and map of property available for screening. The calendar will specify a cycle for each location of property. The DRMO's printout will be made available.

Items on the printout should be inspected to see if they will fill a need for the Institution. Often the description on the printout is misleading or the property is not in the condition listed.

The search for listed items also provides an opportunity to look at the other excess property being processed at the disposal office. Small items and items which require protection from weather are usually inside the warehouse. They may be stacked on the floor, on shelves, or in bins and carts. Larger items are outside. Vehicles are usually lined up in a row and tires, metal scrap, and other bulk items are in piles.

A good rapport with all the workers at the disposal yard is a valuable tool. It could lead to beneficial working relationship in which the DRMO is aware of your needs and notifies you when desirable items are available.

The property will be in one of five stages of disposal: Accumulation, Federal, Donation, "Blue Light," or Public Sales.

Stage 1 Accumulation Cycle Property found in the Accumulation cycle will have items added throughout the entire time it is in the DRMO. Property may be screened and frozen during this cycle.
Stage 2 Federal Cycle After the Accumulation cycle, any remaining property enters the 14-day Federal cycle. Only Federal agencies can freeze and pick up property during this cycle. Institution screeners are considered agents of USDA and may screen at this point.
Stage 3 Donation Cycle During the 7-day Donation cycle, Federal agencies may screen the property but will have no priority. Donation agencies have priority in this cycle. A Federal screener desiring property in this cycle must process the necessary paperwork promptly to have a chance to acquire it.
Stage 4 Blue Light Cycle When the property enters the Blue Light cycle, it will be awarded to the first customer with an approved document. Usually, this property is well picked over. The recipient must immediately remove the property.
Stage 5 Public Sales The final cycle is the Public Sale cycle, and Institutions may purchase property in this cycle if their procurement regulations permit.

Screeners should concentrate their efforts in the Accumulation and the Federal cycles. This is where the best property will be found, and where there is adequate time to process the required paperwork. Monitor the calendar for the dates the cycles will change to facilitate future visits.

After property is located and tagged, a Screener's Tally Sheet (Defense Reutilization Marketing Service (DRMS) Form 103) must be completed. Filling out the screener sheet correctly is one of the most important aspects of the job, and is also one which often receives insufficient attention. Figure 1 below labels all required elements (A-F) on DRMS Form 103, followed by Table 1 describing the type of information that needs to be entered into each field. The required information is almost always available and is usually found on a form attached to the property.


Screener*s Tally Sheet * DRMS Form 103

Figure 1 - DRMS Form 103

 

 

 

 

 

 

 

 

Figure 1 - DRMS Form 103



Label
Required Information

Description
A Document number This number is important to the DRMO because it locates the property on the printout. It is often referred to as "TID" or "turn-in document" number.


B
Stock Number This is an 11- or 13-digit number that identifies almost every item of personal property owned by the Federal Government. A correct stock number allows the item to be described exactly, and is often helpful later, when repair parts or a military technical manual is needed.
C Noun Description A brief description of the item that includes the manufacturer, model, and serial number.
D Condition Code Either an alpha or numeric code that identifies the present condition of the item. Note - this is the most likely item to be in error, so it should be compared carefully to the actual condition.
E Unit of Issue (E1) and

Quantity (E2)

These items can cause embarrassment if ignored. If the unit of issue is "case" instead of "each" the screener may acquire many more items than can be justified by need. "Quantity" should also be carefully noted for the same reason.
F Acquisition Cost Although in most cases no money changes hands in the FEPP program, the original cost of the item to the government is an important statistic. This is also known as standard cost.
F1 Unit Price Actual price of one item.
F2 Extend. Price Unit Price multiplied by the Quantity.



Table 1 - Required Information for DRMS Form 103

If the above listed items are not noted, acquisition of the property may be unnecessarily delayed as the information is not available for the preparation of the SF-122. There is also information that, although not required on the SF-122, is very helpful. This additional information can be noted in the Noun Description column of DRMS Form 103. Examples of this information are:

The screener takes the DRMS Form 103 (eventually this form will be used to complete the SF-122) back to the DRMO Processing Office, where the property is checked for availability and is officially frozen. Some DRMOs mark the computer printout to indicate that a screener already has a claim to the property. Others move the property to a holding area with sections identified for various screeners. Others attach tags to the items with the screening agency listed on them. Regardless, it is important that the paperwork process not be delayed or another agency may get the property.

Once property is approved for transfer the Institution must remove it from the DRMO within 14-calendar days. Institutions should coordinate pickup and transportation requirements with the DRMO.

The DOD-4160.21-M-Defense Materiel Disposition Manual is available on the Internet at www.drms.dla.mil. The manual contains current up-to-date information on standard screening procedures used at DRMO's. A list of DRMO's with telephone numbers, addresses, fax numbers, etc., is also available on the homepage.

SCREENING THROUGH A DOD, DEFENSE LOGISTICS AGENCY RECYCLING CONTROL POINT

The Recycling Control Point (RCP) program was initiated approximately four years ago by the DLA in an effort to replace expensive "moving of property" with the "moving of information". In the past, excess property generated at various DLA depots throughout the nation has been transported to the nearest DRMO for standard disposal processing. The bulk of property processed at "depot DRMO's" in the past has been excess items from the depot itself.

Normally, excess depot stock transported to the DRMO was loaded, unloaded, processed, and expedited for excess, donation, and sales actions. Under the RCP program, the overall concept leaves property physically in place in the original warehouse locations and makes their excess/surplus status available via the Internet. The actual RCP database is located on the DRMS home page (http://www.drms.dla.mil). Items can be searched by Federal Supply Group (FSG), Federal Supply Code (FSC), National Stock Number (NSN), or noun description. The format of the RCP search form is identical to that of the standard search form for DRMS property.

RCP property cannot be physically viewed at any time during its disposal process. There are no visitors permitted in the depot locations. Information concerning their description and availability is limited to the DRMS home page and GSA's FEDS system. Most items have extended descriptions available via hypertext links within the search results. The program is coordinated through the RCP Program Office located within DRMS Headquarters, Battle Creek, Michigan. The RCP office is the primary contact for all concerns of RCP property throughout the nation. All RCP ordering, questions, and contact takes place via the RCP office regardless of the physical location of the property. RCP "Liaisons" are available at each location for customer assistance regarding items via email or telephone. Their names, phone numbers, email addresses, etc. are listed on the RCP home page. See below for website address.

For Federal transfers, the SF-122 must be completed for the item(s) and faxed to the RCP program office. DLA/DRMS pays for all shipping of RCP property to Federal transfer customers. There is no shipping charge for any items requisitioned by a Federal customer via Form SF-122. All 22 continental DLA depots are now issuing property via the RCP program.

Procedures

Step 1: Access the DRMS web site at one of the following addresses: http://www.drms.dla.mil or http://www.drms.com
Step 2: Click on "Government" button on left menu

Step 3: On the next screen, click on "RCP" button on left menu

Step 4: This brings the user to the RCP main page, click on the "Searchable

Database" hyperlink

Step 5: This next screen is a data search form. Users can search by FSC, FSG,

NSN, or noun description. The most productive and efficient searches

are usually performed via FSC or FSG. Also, users can add in date

and location information to restrict the search results.

Step 6: RCP items - regardless if they are located on the DRMS RCP database or in GSA's FEDS System - should be electronically frozen in the FEDS database. If possible, include the freeze document number (located at the top of the freeze screen) on the SF-122 when preparing for reference.

Completing the Transfer Order

Preparation of the SF-122 for RCP property is somewhat different from the normal DRMO processing. Specifically, the following information applies to preparation of RCP transfer orders:

RCP Program, DRMS Headquarters

Federal Center, 74 N. Washington

Battle Creek, Michigan 49017

For item description, use the pertinent information gained from the RCP search results. Note: There will be no warehouse locations for RCP property. Descriptive information must include the National Stock Number (NSN), Defense Turn-in Document (DTID), Demilitarization code, condition code, quantity, cost each, and extended cost.

Upon completing the SF-122, the Institution will:

SCREENING USDA EXCESS PERSONAL PROPERTY

Departmental Excess Personal Property Coordinator (DEPPC) is USDA's internal clearinghouse for excess property. This property is available for transfer within USDA before it is reported to GSA for Federal screening. DEPPC has sole authority for assigning USDA excess property to requesting agencies. DEPPC's selection procedures are:

PROCEDURES FOR COMPLETING THE SF-122

(a) GSA and Holding agency control number - Fill in the appropriate report number.

(b) Item No. - Fill in the appropriate item number.

(c) Description - Fill in the description of the item. This includes manufacturer, model number, serial number (if available), Federal supply code, and condition code.

(d) Unit - Fill in the appropriate unit of issues. i.e, each, box, bushel, etc.

(e) Quantity - Fill in the appropriate quantity requested.

(f) Unit - Fill in the original acquisition amount.

(g) Total - Fill in the total acquisition amount for the line (quantity x unit).

"The property requested hereon is certified to be used in support of research, educational, technical, and scientific activities or for related programs. This transfer is requested pursuant to the provisions of Section 923 Pub. L. 104-127 (7 U.S.C. 2206a). Also, in accordance with these provisions USDA authorizes transfer of title of this property to the college/university/institution."

When acquiring FEPP, on-site inspections are strongly recommended to determine its condition and usefulness. If personal inspection is impractical, information as to the nature and condition of the property may be secured from the reporting agency official with personal knowledge of the property in question.

Once the SF-122 is completed it must be submitted to USDA for approval. Once the SF-122 is approved USDA will fax or mail an approved copy to the Institution and GSA. It is the Institution's responsibility to arrange for delivery or pick up. If the SF-122 is disapproved, USDA will a fax a copy back to the Institution with a written explanation.

Note: We have included information on how to improve acquisitions of FEPP in Appendix E.

RECEIPT OF FEDERAL EXCESS PERSONAL PROPERTY

Once the Institution physically receives the FEPP, the Institution is required to immediately return a copy of the SF-122 to USDA either by mail or fax, indicating that the items have been received. Title does not transfer until the receipt copy is received by USDA. The Institution is also responsible for reporting any cancellations to USDA.

ACCOUNTABILITY AND RECORDKEEPING

USDA requires that FEPP received by an eligible Institution be placed into use for the purposes it was required within 1 year of receipt of the property and used for that purpose for a least 1 year thereafter.

All eligible Institutions must maintain accurate and complete property records on USDA furnished FEPP. The property records should include description (including model number and manufacturer), serial number, original acquisition cost, date acquired by the Institution, date put in use, USDA document number and location. The Institution must also maintain documentation on any disposal action taken. The Institution must maintain FEPP in a manner equal to the maintenance of the Institution's property.

To ensure that FEPP is being used for its intended purpose, USDA will conduct compliance reviews. The review will include site visit inspections of the property and the accountability and recordkeeping systems.

DISPOSAL OF FEPP

Once the requirements are met for retention of property (see Program Requirements and Restrictions) by the Institution and title is transferred, FEPP no longer needed by the Institutions will be disposed of in accordance with the Institution's disposal practices. Regardless of ownership FEPP must never be disposed of in any manner which is detrimental or dangerous to public health or safety. Also, any costs incurred during the disposal process are the responsibility of the Institution.

GLOSSARY

Commonly used Acronyms

AUO - Area Utilization Officer

DM - Departmental Management

DEPPC - Departmental Excess Personal Property Coordinator

DLA - Defense Logistics Agency

DRMO - Defense Reutilization Marketing Office

DRMS - Defense Reutilization Marketing Service

DTID - Defense Turn in Document

FAIR - Federal Agriculture Improvement and Reform Act

FEPP - Federal Excess Personal Property

FPMR - Federal Property Management Regulations

FSC - Federal Supply Code

FSG - Federal Supply Group

FSS - Federal Supply Service

GSA - General Services Administration

NSN - National Stock Number

PMD - Property Management Division

PMO - Property Management Officer

PPB - Personal Property Branch

RCP - Recycling Control Point


DEFINITIONS

Accountability - Maintaining an account (record) for personal property by providing a complete audit trail for property transactions from receipt to final disposition.

Activity Address Code (ACC) - A six-digit identification number used by GSA to identify the Federal Excess Personal Property Program. USDA's activity address code is 123AEH.

Area Utilization Officer (AUO) - A GSA field employee whose primary function is equitable distribution of excess and surplus property.

Cannibalization - A form of property use involving removal of parts from a piece of property to repair or improve a similar piece of property.

Condition Code - An alpha or numeric code that identifies the present condition of the item.

Condition Code Definition

1 Excellent - Property which is in new condition and can be used immediately without modification or repairs.

4 Usable - Property which shows some wear, but can be used without significant repair.

7 Repairable - Property which is unusable in its current condition but can be economically repaired.

X Salvage - Property which has value in excess of its basic material content but repair or rehabilitation is impractical and/or uneconomical.

S Scrap - Property which has no value except for its basic material content.


Defense Logistics Agency (DLA) - Headquartered at Ft. Belvoir, VA; responsible for managing the Defense Reutilization and Marketing Service, as well as the Law Enforcement Support Offices.

Defense Reutilization and Marketing Office/Officer (DRMO) - Accountable Property Office at military installations responsible for property disposal. Each DRMO is a subdivision of the DRMS.

Defense Reutilization and Marketing Service (DRMS) - Headquartered in Battle Creek, MI; responsible for the reutilization, transfer, and disposal of Department of Defense excess property.

Departmental Excess Personal Property Coordinator (DEPPC) - USDA excess property clearinghouse.

Excess Personal Property - Any personal property under the control of a Federal agency that is not required by the agency in the discharge of its responsibilities, as determined by the agency head.

Federal Agency - Any executive agency or any establishment in the legislative or judicial branch of the Government, including any wholly owned Government corporation.

Federal Excess Personal Property (FEPP) - This acronym refers to any property which is excess to a Federal agency.

Federal Supply Class (FSC) - The first four digits of the national stock number.

Federal Supply Group - The first two digits of the national stock number.

Freeze - An indicated interest in FEPP. A freeze does not reserve property; multiple freezes may be placed on property. GSA allocates the final disposition of property based on date order of freezes and other priorities.

General Services Administration (GSA) - Clearinghouse for Federal Excess Personal Property government-wide.

Holding Agency - The office accountable for property although the property may be physically located elsewhere.

National Stock Number (NSN) - The 13-digit identifying number used for Federal government property.

Personal Property - Property of any kind except real property, records of the Federal Government, and naval vessels of the following categories; battleships, cruisers, aircraft carrier, destroyers and submarines.

Property Management Officer (PMO) - The individual appointed by the Institution who is responsible for administering the FEPP Program.

Public body - Institution receiving public funding.

Reporting Agency - The agency that initiates the report of excess personal property. The reporting agency may or may not be the same as the holding agency.

Screen - To look for excess property on-site, online or from excess property catalogs, forms, and other sources.

SCREEN - Screen by Computer and Request Excess by Electronic Notification. SCREEN is GSA's automated inquiry and request module.

Screener's ID Card (GSA Form 2946) - Identification card used by non-Federal employees to gain access for on-site screening. This card must have both the USDA's FEPP Program Manager's signature and GSA approval to be valid.

Single Cycle Screening - This is an accelerated method of screening an increased volume of property at military installations to accommodate base closings and force reductions. Property is received by the DRMO and placed in a single location, by commodity, where it remains until it is delivered to the customer.

State Agency for Surplus Property (SASP) - A state agency authorized to receive and distribute surplus Federal property.

Surplus Property - Any personal property not required for the need and the discharge of the responsibilities of any Federal agency as determined by GSA.

Surplus Release Date (SRD) - A GSA assigned date on which excess property becomes surplus property.

Utilization - The method by which excess personal property is identified, processed, reported, acquired, and transferred among Federal agencies.

Unserviceable Property - Property which is in scrap or salvage condition.

United States Department of Agriculture (USDA) - A department under the Executive Branch of Government. The Office of Procurement, Property and Emergency Preparedness is a USDA agency.

Want List - A list of current or prospective needs for excess personal property.

ELIGIBLE INSTITUTIONS

1890 Land-Grant Institutions - The 1890 Land-Grant Institutions were created as a result of the Second Morrill Act of 1890. Prior to this, the United States Congress passed the First Morrill Act of 1862, which authorized the establishment of a land-grant institution in each state to educate citizens in agriculture, home economics, mechanical arts, and other practical professions. The passage of the Second Morrill Act by the United States Congress in 1890, expanded the 1862 system of land-grant universities to include historically black institutions. The1890 Institution are:

1994 TRIBAL COLLEGES - The Tribal Colleges were created over the last 30 years in response to the higher education needs of American Indians and generally serve geographically isolated populations that have no other means of accessing education beyond the high school level. In 1994, Congress designated specific Tribal Colleges as land-grant institutions through the "Equity in Educational Land-Grant Status Act of 1994" Public Law 103-382. Referred to as "1994 Institutions," the thirty Tribal Colleges with land-grant status are:

Hispanic-Serving Institutions (HSIs) - Accredited and degree-granting public or private nonprofit institutions of higher education with at least 25 percent or more total undergraduate Hispanic full-time equivalent student enrollment. A complete listing can be found on the Department of Educations website at http://www.ed.gov/offices/OIIA/Hispanic/hsi.

 

FINAL RULE

Appendix A

57233

Rules and Regulations Federal Register

Vol. 63, No. 207

Tuesday, October 27, 1998

DEPARTMENT OF AGRICULTURE

7 CFR Chapter XXXII

RIN 0500-AA00

Office of Procurement and Property

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

AGENCY: Office of Procurement and Property Management.

ACTION: Final rule.

SUMMARY: The final rule sets forth uniform procedures for the acquisition and transfer of excess personal property

to the 1890 Land Grant Institutions (including Tuskegee University), the 1994 Land Grant Institutions and the

Hispanic-Serving Institutions in support of research, educational, technical, and scientific activities or for related

programs as authorized by section 923 of the Federal Agriculture Improvement and Reform Act (FAIR) of 1996 (Pub

. L.104-127), 7 U.S.C. 2206a.

EFFECTIVE DATE: November 27, 1998.

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

SUPPLEMENTARY INFORMATION:

I. Background

II. Analysis of comments

III. Procedural Requirements

A. Executive Order Nos. 12866 and 12988.

B. Regulatory Flexibility Act.

C. Paperwork Reduction Act.

D. Small Business Regulatory Enforcement Fairness Act.

IV Electronic Access Addresses

I. Background

The proposed rule was published in the Federal Register on January 23, 1998 (63 FR 3481). Three comments were

received.

II. Analysis of comments

The General Services Administration (GSA) requested that Accountable Utilization Officer be changed to Area Utilization Officer. GSA was unclear if the Department of Agriculture (USDA) would sign the Standard Form 122,

Transfer Order Excess Personal Property as the approving office and forward the document to GSA for final approval.

USDA will sign the SF-122 as the approving office and forward the document to GSA for final approval.

GSA asked we note that where there are competing Federal requests for excess property, GSA gives a higher priority to those requests where title will be retained by the Federal Government. Changes have been made to section 3200.4 to clarify the rule and incorporate the GSA recommended addition. GSA also expressed concern about USDA's plan to conduct compliance checks. USDA intends to conduct scheduled compliance reviews on an annual basis to ensure that the property is being used for intended purposes, and has added additional language to section 3200.9 to so state. The State of South Dakota, Federal Property Agency requested that we not transfer title of excess personal property to the 1890 Land Grant Institutions, (including Tuskegee University), 1994 Land Grant Institutions and Hispanic-Serving Institutions. The State of South Dakota, Federal Property Agency expressed concern that the transfer of title would prevent further return of the property to Federal surplus when no longer needed by an eligible institution. This would deprive other State, local and nonprofit agencies of potential future use of the property. USDA believes that transferring title of excess personal property to institutions for the most part located in economically disadvantaged rural and urban areas will improve research, educational, technical, and scientific activities and related programs and build capacity on the respective campuses. The State of South Dakota, Federal Property Agency is concerned about usable excess personal property being requested for purposes of cannibalization. The State of South Dakota, Federal Property Agency suggests excess personal property should be screened first for use of the property for its intended purpose.

USDA notes that eligible institutions are required to submit a supporting statement with each excess personal property request to cannibalize. The supporting statement must justify clearly the cannibalization, and indicate that cannibalizing the requested property for secondary use has a greater benefit than utilization of the item in its existing form. USDA has added a new subsection to 3200.6 to prohibit stockpiling of excess personal property, and note that requests for cannibalization normally are subordinate to requests for complete items. The National Association of State Agencies for Surplus Property (NASASP) opposed the proposed rule out of concern that the transfer of title would have a negative effect on the amount of property available for the Federal surplus property donation program.

USDA believes targeting institutions located for the most part in areas that are economically disadvantaged will improve their capacity in the areas of research, educational, technical, and scientific activities. With respect to concern regarding accountability for the property and improper use for cannibalization purposes, USDA notes that eligible institutions violating the provisions of this part may face suspension and debarment under 7 CFR part 3017. Additional, non-substantive stylistic changes also have been made.

III. Procedural Requirements

A. Executive Order Nos. 12866 and 12988

This rule has been determined to be not significant for purposes of Executive Order 12866 and, therefore, has not been reviewed by the Office of Management and Budget (OMB). The proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. The proposed rule meets the applicable standards in section 3 of Executive Order 12988.

B. Regulatory Flexibility Act

The Department of Agriculture certifies that this rule will not have a significant economic impact on a substantial number of small entities as defined in the Regulatory Flexibility Act, 5 U.S.C. 601 et seq. This certification is based on the fact that the regulation imposes no new requirements on small entities, and that any impact on the reduction of surplus property due to the transfer of title will be minimal because most property



APPENDIX A

57234 Federal Register / Vol. 63, No. 207 / Tuesday, October 27, 1998 / Rules and Regulations

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

C. Paperwork Reduction -The information collection and recordkeeping requirements to implement these procedures have been cleared by the Office of Management and Budget (OMB), under 0505-0019, in accordance with the Paperwork Reduction Act., 44 U.S.C. 3500 et seq.

D. Small Business Regulatory Enforcement Fairness Act -This rule has been submitted

to each House of Congress and the Comptroller General in accordance with the Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 801, et seq.

IV. Electronic Access Addresses - You may send electronic mail (E-mail) to kathy.fay@usda.gov or contact us via fax at (202) 720-3339.

List of Subjects in 7 CFR Part 3200

Excess Government property, Government property, Government property management. For the reasons set forth in the preamble, the Department of Agriculture establishes chapter XXXII of title 7 of the Code of Federal Regulations to read as follows:

CHAPTER XXXII--OFFICE OF

PROCUREMENT AND PROPERTY

MANAGEMENT, DEPARTMENT OF

AGRICULTURE

Part 3200--Department of Agriculture guidelines for the acquisition and transfer of excess personal property.

3201--3299 [Reserved]

PART 3200--DEPARTMENT OF

AGRICULTURE GUIDELINES FOR THE ACQUISITION AND TRANSFER OF EXCESS PERSONAL PROPERTY

Sec.

3200.1 Purpose.

3200.2 Eligibility.

3200.3 Definitions.

3200.4 Procedures.

3200.5 Dollar limitation.

3200.6 Restrictions.

3200.7 Title.

3200.8 Costs.

3200.9 Accountability and record keeping.

3200.10 Disposal.

3200.11 Liabilities and losses.

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

§ 3200.1 Purpose.

This Part sets forth the procedures to be utilized by Department of Agriculture (USDA) in the acquisition and transfer of excess property to the 1890 Land Grant Institutions (including Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-Serving Institutions in support of research, educational, technical, and scientific activities or for related programs as authorized by 7 U.S.C. 2206a. Title to the personal property shall pass to the institution.

§ 3200.2 Eligibility.

Institutions that are eligible to receive Federal excess personal property pursuant

to the provisions of this part are the 1890 Land Grant Institutions (including Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-Serving Institutions conducting research, educational, technical, and scientific activities or related programs.

§ 3200.3 Definitions.

(a) 1890 Land grant institutions--any college or university eligible to receive funds under the Act of August 30, 1890

(7 U.S.C. 321 et.seq.), including Tuskegee University.

(b) 1994 Land grant institutions--any of the tribal colleges or universities as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note).

(c) Hispanic-serving institutions--

institutions of higher education as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c (b)).

(d) Property management officer--is an authorized USDA or institution official responsible for property management.

(e) Screener--is an individual designated by an eligible institution and authorized by the General Services Administration (GSA) to visit property sites for the purpose of inspecting personal property intended for use by the institution.

(f) Excess personal property--is any personal property under the control of a Federal agency that is no longer needed.

(g) Cannibalization--is the dismantling of equipment for parts to repair or enhance other equipment.

§ 3200.4 Procedures.

(a) To receive information concerning the availability of Federal excess personal property, an eligible institution's property management officer may contact their regional GSA, Area Utilization Officer. All property management officers of eligible institutions will be placed on the USDA mailing list for information on the availability of property. USDA excess property will first be screened by USDA agencies through the Departmental Excess Personal Property Coordinator (DEPPC) using the PMIS/PROP system.

(b) Excess property selected by screeners of eligible institutions should be inspected whenever possible, or the holding agency should be contacted to verify the condition of the items, because interpretation of condition codes varies among Federal agencies.

(c) If the condition of the item is acceptable, the institution should ''freeze'' (reserve) items by calling the appropriate GSA office or USDA Departmental Excess Personal Property Coordinator (DEPPC). Since GSA may have several ''freezes'' on a piece of equipment, it is critical that the paperwork be submitted as soon as possible. Further, while transfers of excess personal property normally will be approved by GSA on a first-come-first-serve basis, consideration will be given to such factors as national defense requirements, emergency needs, preclusion of new procurement, energy conservation, equitable distribution, and retention of title in the Government.

(d) Eligible institutions may submit property requests by mail or fax on a Standard Form 122, ''Transfer Order Excess Personal Property,'' with a written justification statement (submitted by the recipient) explaining how the property will be used for research, educational, technical, or scientific activity or for related programs.

(e) The SF-122 should be signed by the eligible institution's property management officer or authorized designee.

(1) The following information should also be provided:

(i) Date prepared.

(ii) GSA/DEPPC address.

(iii) Ordering Agency and address.

(iv) Holding Agency and address.

(v) Name and address of Institution.

(vi) Location of property.

(vii) Shipping instruction (including institution contact person and phone number).

(viii) Complete description of property including original acquisition cost, serial number, condition code, and quantity.

(2) This statement needs to be added following the property description but does not serve as a justification statement:

The property requested hereon is certified to be used in support of research, educational, technical, and scientific

activities or for related programs. This transfer is requested pursuant to the provisions of section 923 of Pub. L.

104-127 (7 U.S.C. 2206a).

(f) The SF-122 should be forwarded to USDA for approval and signature by an authorized USDA official.



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confirmation of approval, the eligible institution's property management officer will receive a stamped copy of the SF-122. If the request is disapproved, it will be returned to the property management officer of the eligible institution with an appropriate explanation. All USDA approved SF-122's will be forwarded to DEPPC or the appropriate GSA office for final approval.

(g) Once the excess personal property is physically received, the institution is required to immediately return a copy of

the SF-122 to USDA indicating receipt of requested items. Cancellations should also be reported to USDA.

Note: USDA shall send an informational copy of all SF-122's transactions to GSA.

§ 3200.5 Dollar Limitation.

There is no dollar limitation on excess personal property obtained under these procedures.

§ 3200.6 Restrictions.

(a) The authorized USDA official will approve the transfer of excess personal property in the following groups for the

1890 Land Grant Institutions (including Tuskegee University), 1994 Land Grant Institutions and the Hispanic-Serving

Institutions in support of research, educational, technical, and scientific activities or for related programs:

ELIGIBLE FEDERAL SUPPLY CODE (FSC) GROUP

FSC group Name

12... Fire Control Equipment.

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

22... Railway Equipment.

23... Vehicles, Motor Vehicles, Trailers and Cycles.

24... Tractors.

26 ... Tires and Tubes.

28... Engines, Turbines and Components.

29... Engine Accessories.

30... Mechanical Power Transmission Equipment.

31... Bearings.

32... Woodworking Machinery and Equipment.

34... Metal Working Machinery.

35... Service and Trade Equipment.

36... Special Industry Machinery.

37... Agricultural Machinery and Equipment.

38... Construction, Mining, Excavating and Highway Maintenance Equipment.

39... Material Handling Equipment.

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

41... Refrigeration, Air Conditioning and Air Circulating Equipment.

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

43... Pumps, Compressors.

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

45... Plumbing, Heating, and Sanitation Equipment; and Nuclear Reactors.

46... Water Purification and Sewage Treatment Equipment.

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

49... Maintenance and Repair Shop Equipment.

51... Hand Tools.

52... Measuring Tools.

53... Hardware and Abrasives.

54... Prefabricated Structures and Scaffolding.

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

56... Construction and Building Materials.

58... Communication, Detection, and Coherent Radiation Equipment.

59... Electrical and Electronic Equipment Components.

60... Fiber Optics Materials, Components, Assemblies, and Accessories.

61.... Electric Wire, and Power and Distribution Equipment.

62.... Lighting Fixtures and Lamps.

63... Alarm, Signal, and Security Detection Systems.

65... Medical, Dental, and Veterinary Equipment and Supplies.

66... Instruments and Laboratory Equipment.

67... Photographic Equipment.

69... Training Aids and Devices.

70... General Purposes Automatic Data Processing Equipment (Including Firmware) Software, and Support Equipment.

71... Furniture.

72... Household and Commercial Furnishings and Appliances.

73... Food Preparation and Serving Equipment.

74... Office Machines, Text Processing Systems and Visible Record Equipment.

75... Office Supplies and Devices.

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

77... Musical Instruments, Phonographs, and Home-type Radios.

78... Recreational and Athletic Equip

79... Cleaning Equipment and Supplies.

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

81... Containers, Packaging and Packing Supplies.

83... Textiles, Leather, Furs, Apparel and Shoe Findings, Tents, and Flags.

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

85... Toiletries.

87... Agricultural Supplies.

88... Live Animals.

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

93... Nonmetallic Fabricated Materials.

94... Nonmetallic Crude Materials.

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

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

99....Miscellaneous.

Note to paragraph (a): Requests for items in Federal Supply Code Groups other than those listed in this paragraph shall be referred to the Director of OPPEP for consideration and approval.

(b) Excess personal property may be transferred for the purpose of cannibalization, provided the eligible institution submits a supporting statement which clearly indicates that cannibalizing the requested property for secondary use has greater benefit than utilization of the item in its existing form.

(c) Use of the procedures in this part for the purpose of stockpiling of excess personal property for future cannibalization is prohibited. Transfer requests for the purpose of cannibalization will be considered, but are normally subordinate to requests for complete items.

§ 3200.7 Title.

Title to excess personal property obtained under Part 3200 will automatically pass to the 1890 Land Grant Institutions (including Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-Serving Institutions once USDA receives the SF-122 indicating that the institution has received the property. Note: When competing Federal claims are made for particular items of excess personal property held by agencies other than USDA, with or without payment of reimbursement, GSA will give preference to the Federal agency that will retain title in the Government.

§ 3200.8 Costs.

Excess personal property obtained under this part is provided free of charge. However, the institution must pay all costs associated with packaging and transportation. The institution

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

§ 3200.9 Accountability and record keeping.

USDA requires that Federal excess personal property received by an eligible institution pursuant to this part shall be placed into use for a research, educational, technical, or scientific activity, or for a related purpose, within 1 year of receipt of the property, and used for such purpose for at least 1 year thereafter. The institution's property management officer must establish and maintain accountable records identifying the property's location, description, utilization and value. To ensure that the excess personal property is being used for its intended purpose under this part, compliance reviews will be conducted by an authorized representative of USDA. The review will include site visit inspections of the property and the accountability and record keeping systems.

§ 3200.10 Disposal.

When the property is no longer needed by the institution, it may be used in support of other Federal projects or sold, and the proceeds used for research, educational, technical, and scientific activities, or for related programs of the recipient institution.

§ 3200.11 Liabilities and losses.

USDA assumes no liability with respect to accidents, bodily injury, illness, or any other damages or loss related to excess personal property transferred under this part.

PARTS 3201-3299--[RESERVED]

W. R. Ashworth,

Director, Office of Procurement, Property and Emergency Preparedness

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



BILLING CODE 3410-PA-P

Appendix B

Standard Form 122, Transfer Order Excess Personal Property

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix C

GSA Screener*s Identification, GSA Form 2946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix C

GSA Excess Property Screener*s Application



 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix C

Screener Certification Application for GSA Form 2946,Screener*s Identification

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix D

Federal Equipment Disposal System (FEDS) is the General Services Administrations's (GSA) computer system for recording, tracking and controlling the nationwide inventory of excess and surplus property of the Federal government. GSA uses FEDS to track the progress of property as it moves from the redistribution and excess stage of disposal to the surplus or donation stage. After allocation, FEDS creates the appropriate transfer order documents required to complete transfer of the property.

Screen by Computer and Request Excess by Electronic Notification (SCREEN) was added as an on-line module to FEDS in March 1995. Customers use SCREEN to electronically search for excess and surplus personal property which is available for transfer. SCREEN is also used to generate and automatically transmit transfer requests by electronically freezing property.

FEDS/SCREEN is available to 3 groups of users: Federal agencies; non-Federal recipients and State Agencies for Surplus Property (SASP). Non-Federal recipients are activities which receive excess property through a Federal sponsor but are themselves neither Federal agencies nor donees.

Instructions for using FEDS/SCREEN can be found at http://pub.fss.gsa.gov/property.html. It is important to note that GSA will only assign access codes and passwords for applications that have been approved by authorized individuals. All applications submitted without proper approval will be returned to the agency for re-submission. Applications must be submitted through the FEPP Program Manager.

Also, individuals who are assigned an access code and password must use the system at least once in a 6 month period or they will be deleted from the system. Once a user is deleted from the system, a new application must be submitted.

FEDS/SCREEN

APPLICATION FORM

THIS FORM MUST BE ATTACHED TO AN APPROVED LETTER OF AUTHORIZATION FROM THE FEPP PROGRAM MANAGER.

REQUIRED INFORMATION

NAME ________________________________________________________________

PASSWORD SHOULD BE 6 CHARACTERS OR LESS

______________________________________________________________________

COMPLETE MAILING ADDRESS (INCLUDING TELEPHONE NUMBER)

__________________________________________________________________

INSTITUTION NAME __________________________________________________

TO BE FILLED IN BY FEPP PROGRAM MANAGER

AGENCY/BUREAU CODE (IF YOU DON'T KNOW, DO NOT FILL IN)

__________________________________________________________________

PERMISSION LEVELS:

SEARCH ONLY______________________________________________

SEARCH & FREEZE _________________________________________

MAIL TO: USDA, OPPEP, PMD, PPB

1400 Independence Ave, SW

Mail Stop 9304

Washington, DC 20250

Attn: Kathy Fay, FEPP Program Manager

NOTE: USERS MUST ACCESS THE SYSTEM AT LEAST ONCE EVERY 6 MONTHS OR YOUR USER ID AND PASSWORD WILL BE CANCELED AND RE-APPLICATION WILL BE NECESSARY.

Appendix E

TIPS FOR IMPROVED PROPERTY ACQUISITIONS

This information was composed by Craig Locke, USDA Screener, from the University of Kentucky. We have included it for your perusal. We have taken the liberty to make some editorial changes.

Knowledge is Power

Like anything else, a good working knowledge of all aspects of the FEPP Program is vital in order to operate a successful program within your Institution. Unfortunately, there are no college courses that can be taken as a foundation to do the job. Many times there isn't even a fellow employee available to learn from. Many who work with the acquisition of FEPP items as screeners usually operate in a "solo" capacity. There are few fields that require the multitude of abilities and expertise as screening does. A good screener should be able to examine and make sound decisions regarding items ranging from vehicles to computers, office equipment to lab equipment, hand tools to plumbing supplies. Also important is logistical thinking in screening decisions. What type of transportation is required? Does the property represent monetary benefits exceeding the cost of placing the item(s) into use? Smart acquisition decisions are based also on a working knowledge of program policy and regulations. Listed below are some suggestions on building the knowledge base required for a solid property screening.

Screening and Acquisitions Policy

Materials Knowledge

Logistics

Communication is also Power

Communication and promptness in all dealings in the FEPP community is one of the more critical tools in successful acquisition of property. Take the initiative to establish a good rapport with the property generators and DRMO's. Communicate needs in both verbal and written form. Follow-up with generating activities from time to time concerning available property. Be sure property managers or Reutilization, Transfer and Donation (RTD) specialists are informed regarding pickup/transportation of items or unusual circumstances that may be involved in the transfer of property. Most importantly, develop a relationship based on integrity and an appreciation for the program as a whole.

Communication on the local front is also important. Ensure the local party utilizing the property understands the description of the item along with its realistic condition. Inherent to the transfer of property is the concept of its long-term services to the new program it serves. Good communication on all fronts helps insure this concept is maintained. Equally, as important, ensure the party utilizing the property understands regulations and policies regarding its usage.

Step into the Electronic Community

The ability to electronically screen property from computer databases via the DRMS home page and GSA's FEDS System offers an invaluable asset to any property program. Its true this change is hard to make for people who have been screening "in person" for many years. An important notion regarding this change is to view electronic screening as a "complement" rather than a "substitution".

A Solid Foundation

This item is placed at the end, as it should be - a solid foundation of respect and integrity is important to the success of your FEPP Program. It's easy to become wrapped up in the mechanics of the property program and forget what's at the core of the work. Truly what a privilege we have at hand. We have the opportunity to acquire needed property for our programs at little or no cost. Many times it is not even measurable in monetary terms. An opportunity very worthy of appreciation and respect. But it requires something in return - also not of a monetary value. It's important to respect and give value to the property managers, RTD specialists, AUO's, etc. assisting with the program. Just as important is adherence to the guidelines and policies surrounding the property program. Ultimately, the FEPP Program Manager serves the taxpayer in general by responsibly extending the life/benefit of his/her investment further into public service. Insomuch, the manger is truly a "steward" for the taxpayer.