[Federal Register: April 13, 2000 (Volume 65, Number 72)]
[Proposed Rules]
[Page 20013-20032]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ap00-27]
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Part IV
General Services Administration
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41 CFR Parts 101-44 and 102-37
Donation of Surplus Personal Property; Proposed Rule
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 101-44 and 102-37
[FPMR Amendment H-]
RIN 3090-AH20
Donation of Surplus Personal Property
AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Proposed rule.
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SUMMARY: The General Services Administration is revising the Federal
Property Management Regulations (FPMR) by moving coverage on donation
of surplus personal property into the Federal Management Regulation
(FMR). A cross-reference is added to the FPMR to direct readers to the
coverage in the FMR. The FMR is written in plain language to provide
agencies with updated regulatory material that is easy to read and
understand.
DATES: Send your written comments by June 12, 2000 to be considered in
the formulation of a final rule.
ADDRESSES: Send written comments to: Ms. Sharon A. Kiser, Regulatory
Secretariat (MVRS), Federal Acquisition Policy Division, General
Services Administration, 1800 F Street, NW., Washington, DC 20405.
Send comments by e-mail to: RIN.3090-AH20@gsa.gov.
FOR FURTHER INFORMATION CONTACT: Martha Caswell, Director, Personal
Property Management Policy Division (MTP), 202-501-3846.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule updates, streamlines, and clarifies FPMR part
101-44 and moves the part into the Federal Management Regulation (FMR).
The proposed rule is written in a plain language question and answer
format. In this format, a question and its answer combine to establish
a rule. This means the employee and the agency must follow the language
contained in both the question and its answer.
Proposed updates include:
1. The use of the same dollar thresholds for reporting overages and
shortages of property, in addition to a shortened report period.
2. The removal of the 2-year limit for reimbursing State surplus
property agencies from the sale of undistributed property.
3. The change of definition of ``museum.''
4. The reinstatement of a requirement that donee eligibility files
be updated at 3-year intervals.
5. The approval of all Red Cross donations by GSA.
6. The shift in responsibility from GSA to the Federal Aviation
Administration to issue screening credentials for public airports.
B. Executive Order 12866
GSA has determined that this proposed rule is not a significant
rule for the purposes of Executive Order 12866 of September 30, 1993.
C. Regulatory Flexibility Act
A regulatory flexibility analysis is not required under the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because there is no
requirement that this proposed rule be published in the Federal
Register for notice and comment.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because this proposed
rule does not contain any information collection requirements that
require the approval of the Office of Management and Budget (OMB).
E. Small Business Regulatory Enforcement Fairness Act
This proposed rule is exempt from Congressional review prescribed
under 5 U.S.C. 801 since it relates solely to agency management and
personnel.
List of Subjects in 41 CFR Parts 101-44 and 102-37
Government property management, Homeless, Reporting and
recordkeeping requirements, Surplus Government property.
For the reasons set forth in the preamble, GSA proposes to amend 41
CFR chapters 101 and 102 as follows:
CHAPTER 101--[AMENDED]
1. Part 101-44 is revised to read as follows:
PART 101-44--DONATION OF SURPLUS PERSONAL PROPERTY
Authority: 40 U.S.C. 486(c); Sec. 205(c), 63 Stat. 390.
Sec. 101-44.000 Cross-reference to the Federal Management Regulation
(FMR) (41 CFR chapter 102, parts 102-1 through 102-220).
For information on donation of surplus personal property previously
contained in this part, see FMR part 37 (41 CFR part 102-37).
CHAPTER 102--[AMENDED]
2. Part 102-37 is added to subchapter B to read as follows:
PART 102-37--DONATION OF SURPLUS PERSONAL PROPERTY
Subpart A--General Provisions
Sec.
102-37.5 What does this part cover?
102-37.10 What is the primary governing authority for this part?
102-37.15 Who must comply with the provisions of this part?
102-37.20 How do we request a deviation from these requirements and
who can approve it?
Definitions
102-37.25 What definitions apply to this part?
The Donation Process
102-37.30 When does property become surplus?
102-37.35 Who handles the donation of property?
102-37.40 What type of property is available for donation?
102-37.45 Are exchange/sale items eligible for donation?
102-37.50 How long is property available for donation purposes?
102-37.55 Is there a special form to request or transfer property?
102-37.60 Who pays for transportation and the costs incurred in
packing, loading, or preparing the property for shipment?
102-37.65 What is the timeframe for removing property that has been
approved for donation?
102-37.70 How should overages and shortages in shipments be
handled?
Subpart B--GSA
102-37.75 What are GSA's responsibilities in the donation of
property?
102-37.80 What happens when GSA receives multiple requests for the
same property?
102-37.85 What factors will GSA consider in allocating property
among the States?
102-37.90 What report is GSA required to compile concerning the
donation program?
Subpart C--Holding Agency
102-37.95 To whom do ``we'', ``you'', and their variants refer?
102-37.100 What are our responsibilities in the donation of
property?
102-37.105 May we get reimbursement for our costs?
102-37.110 May we donate property directly to eligible non-Federal
recipients without going through GSA?
102-37.115 What are some of the donations that don't require GSA's
approval?
102-37.120 May we withdraw property for Federal use once it enters
the donation cycle?
102-37.125 May we recover property that has been picked up by a
SASP?
Subpart D--State Agency for Surplus Property
102-37.130 To whom do ``we'', ``you'', and their variants refer?
102-37.135 What are our responsibilities in the donation of
property?
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102-37.140 How do we become eligible to distribute property to
donees?
Certifications and Agreements
102-37.145 What certifications must we make before acquiring
property for distribution?
102-37.150 What other requirements must we fulfill before acquiring
property for distribution?
102-37.155 Must we make a drug-free workplace certification?
102-37.160 Must we make a certification regarding lobbying?
State Plan of Operation
102-37.165 What is a State plan of operation?
102-37.170 Who is responsible for developing and submitting the
plan?
102-37.175 When does a State plan take effect?
102-37.180 Must GSA approve amendments or modifications to the
plan?
102-37.185 Do plans or amendments require public notice?
102-37.190 What happens if we don't operate in accordance with our
plan?
102-37.195 What must a State include in the plan of operation?
102-37.200 What steps must we take if the State decides to dissolve
our SASP?
Screening and Requesting Property
102-37.205 Do we need special authorization to screen property?
102-37.210 How Do we obtain screener-ID cards for ourselves or
donees?
102-37.215 May we request property that is in the sales cycle?
102-37.220 May we request property specifically for
cannibalization?
Eligibility of Donees
102-37.225 Who may acquire property through a SASP?
102-37.230 Who determines if an activity is eligible to receive
donated property?
102-37.235 Must we maintain eligibility records on SEAs?
102-37.240 How often must we update donee eligibility records?
102-37.245 What must we do if a donee fails to maintain its
eligibility status?
102-37.250 May we grant eligibility to applicants who would
otherwise qualify as eligible donees, but whose approval,
accreditation, or licensing is pending?
102-37.255 Are we eligible to acquire property as a public agency
donee?
102-37.260 What should we do if an applicant seeks an appeal of a
negative determination of eligibility?
Distributing Property
102-37.265 Are there special requirements for distributing property
to SEAs?
102-37.270 May we distribute property to eligible donees of another
State?
Terms and Conditions
102-37.275 What terms and conditions must we impose on the donee?
102-37.280 May we waive any of the terms and conditions of
donation?
102-37.285 Do restrictions remain on property that has been
authorized for cannibalization?
102-37.290 May a donee exchange donated property during the period
of restriction?
102-37.295 On what categories of property has GSA imposed special
handling conditions or use limitations?
102-37.300 What documentation must we provide to acquire an
aircraft or vessel?
102-37.305 What are the special terms, conditions, and restrictions
regarding aircraft and vessels?
Service and Handling Charges
102-37.310 May we accept personal checks in payment of service
charges?
102-37.315 Are there restrictions on how we may use service charge
funds or other monies derived from donated Federal property?
Cooperative Agreements
102-37.320 What is a cooperative agreement?
102-37.325 Is there a fee for services and other support supplied
under a cooperative agreement?
102-37.330 When May we terminate cooperative agreements?
Reports
102-37.335 What reports must we provide to GSA?
Compliance and Audits
102-37.340 What actions must we take to report damaged or missing
property in our custody?
102-37.345 What measures must we take to ensure that property is
used for the purpose(s) for which donated?
102-37.350 What actions must we take if a review or other
information indicates noncompliance with donation terms and
conditions?
102-37.355 Must we coordinate with GSA on compliance actions?
102-37.360 How must we handle funds derived from compliance
actions?
102-37.365 Does coverage under the Single Audit Act exempt us from
other reviews of our program?
Disposing of Undistributed Property
102-37.370 When must we offer property to other SASPs?
102-37.375 Must GSA approve a transfer between SASPs?
102-37.380 May we recover our costs if property is transferred to
another SASP?
102-37.385 When should we report undistributed property to GSA?
102-37.390 May we sell undistributed property?
102-37.395 Under what conditions may we abandon or destroy
property?
102-37.400 May we get reimbursement if property is recovered for
Federal use?
102-37.405 What costs may we recover if undistributed property is
sold?
Subpart E--Donations to Public Agencies and Eligible Nonprofit
Organizations
102-37.410 To whom do ``we'', ``you'', and their variants refer?
Eligibility
102-37.415 Who determines if we are eligible to receive property?
102-37.420 What basic criteria must we meet to qualify for
eligibility?
102-37.425 What if there is no specific authority that can approve
or accredit our program as required for qualification?
Terms and Conditions
102-37.430 What certifications must we make before acquiring
property?
102-37.435 What agreements must we make before acquiring property?
102-37.440 May we use donated property for any purpose?
102-37.445 May we acquire property for exchange?
Screening and Requesting Property
102-37.450 Do we need special authorization to screen property for
our program(s)?
102-37.455 How do we obtain a screener-ID card?
102-37.460 What type of information must we provide when requesting
an aircraft or vessel?
Returns and Reimbursements
102-37.465 May we receive reimbursement for our donation expenses
when we return property?
Subpart F--Donations to Public Airports
102-37.470 To whom do ``we'', ``you'', and their variants refer?
102-37.475 What is the authority for public airport donations?
102-37.480 What are our responsibilities in the donation of
property?
102-37.485 What information must we provide to GSA?
Subpart G--Donations to the American National Red Cross
102-37.490 To whom do ``we'', ``you'', and their variants refer?
102-37.495 What is the authority for donations to the American
National Red Cross?
102-37.500 What type of property may we receive?
102-37.505 What steps must we take to acquire property?
102-37.510 What happens to property we don't request?
Subpart H--Donations to Public Bodies in Lieu of Abandonment/
Destruction
102-37.515 To whom do ``we'', ``you'', and their variants refer?
102-37.520 What is a public body?
102-37.525 What type of property is donable under this subpart?
102-37.530 Is there a special form for processing donations?
102-37.535 Who pays for costs associated with the donation?
Authority: 40 U.S.C. 486(c); Sec. 205(c), 63 Stat. 390.
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Subpart A--General Provisions
Sec. 102-37.5 What does this part cover?
This part covers the donation of surplus personal property located
within a State, including foreign excess personal property returned for
handling as surplus personal property.
Sec. 102-37.10 What is the primary governing authority for this part?
Subsection 203(j)(1) of the Federal Property and Administrative
Services Act of 1949, as amended (the Property Act), gives the General
Services Administration (GSA) discretionary authority to prescribe the
necessary regulations for, and to execute the surplus personal property
donation program.
Sec. 102-37.15 Who must comply with the provisions of this part?
All executive agencies, State agencies for surplus property
(SASPs), and donees must comply with this part.
Sec. 102-37.20 How do we request a deviation from these requirements
and who can approve it?
See Secs. 102-2.60 through 102-2.110 of this chapter to request a
deviation from the requirements of this part.
Definitions
Sec. 102-37.25 What definitions apply to this part?
The following definitions apply to this part:
Accredited means approval by a recognized accrediting board or
association on a regional, State, or national level, such as a State
board of education or health; the American Hospital Association; a
regional or national accrediting association for universities,
colleges, or secondary schools; or another recognized accrediting
association.
Approved means recognition and approval by the State department of
education, State department of health, or other appropriate authority
where no recognized accrediting board, association, or other authority
exists for the purpose of making an accreditation. For an educational
institution or an educational program, approval must relate to academic
or instructional standards established by the appropriate authority.
For a public health institution or program, approval must relate to the
medical requirements and standards for the professional and technical
services of the institution established by the appropriate authority.
Cannibalization means to remove serviceable parts from one item of
equipment in order to install them on another item of equipment.
Child care center means a public or nonprofit facility where
educational, social, health, and nutritional services are provided to
children through age 14, or as prescribed by State law, and that is
approved or licensed by the State or other appropriate authority as a
child day care center or child care center.
Clinic means an approved public or nonprofit facility organized and
operated for the primary purpose of providing outpatient public health
services and includes customary related services such as laboratories
and treatment rooms.
College means an approved or accredited public or nonprofit
institution of higher learning offering organized study courses and
credits leading to a baccalaureate or higher degree.
Conservation means a program or programs carried out or promoted by
a public agency for public purposes involving directly or indirectly
the protection, maintenance, development, and restoration of the
natural resources of a given political area. These resources include
but are not limited to the air, land, forests, water, rivers, streams,
lakes and ponds, minerals, and animals, fish and other wildlife.
Donation screening period means a period of time following the
surplus release date during which surplus personal property may be
determined to be usable and necessary for donation purposes.
Donee means:
(1) A service educational activity.
(2) A State, political subdivision thereof, or tax-supported
organization therein acting on behalf of a public airport.
(3) A public agency using surplus personal property in carrying out
or promoting one or more public purposes.
(4) An eligible nonprofit tax-exempt educational or public health
institution or organization.
(5) A public or nonprofit program for older individuals.
Drug abuse or alcohol treatment center means a clinic or medical
institution that provides for the diagnosis, treatment, or
rehabilitation of alcoholics or drug addicts. These centers must have
on their staffs, or available on a regular visiting basis, qualified
professionals in the fields of medicine, psychology, psychiatry, or
rehabilitation.
Economic development means a program(s) carried out or promoted by
a public agency for public purposes to improve the opportunities of a
given political area for the establishment or expansion of industrial,
commercial, or agricultural plants or facilities and which otherwise
assist in the creation of long-term employment opportunities in the
area or primarily benefit the unemployed or those with low incomes.
Education means a program(s) to develop and promote the training,
general knowledge, or academic, technical, and vocational skills and
cultural attainments of individuals in a community or given political
area. Public educational programs may include public school systems and
supporting facilities such as centralized administrative or service
facilities.
Educational institution means an approved, accredited, or licensed
public or nonprofit institution, facility, organization conducting
educational programs or research for educational purposes, such as a
child care center, school, college, university, school for the mentally
disabled, school for the physically disabled, or an educational radio
or television station.
Educational radio station means a radio station licensed by the
Federal Communications Commission and operated exclusively for
noncommercial educational purposes and which is public or nonprofit and
tax exempt under section 501 of the Internal Revenue Code (26 U.S.C.
501).
Educational television station means a television station licensed
by the Federal Communications Commission which operates exclusively for
noncommercial educational purposes and which is public or nonprofit and
tax exempt under section 501 of the Internal Revenue Code.
Foreign excess personal property means any excess personal property
located outside a State.
GSA means the General Services Administration, acting by and
through the Administrator of General Services or an official to whom
functions under this part have been delegated by the Administrator of
General Services.
Health center means an approved public or nonprofit facility that
provides public health services, including related facilities such as
diagnostic and laboratory facilities and clinics.
Holding agency means the executive agency having accountability
for, and generally possession of, property.
Homeless individual means:
(1) An individual who lacks a fixed, regular, and adequate
nighttime residence, or who has a primary nighttime residence that is:
(i) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mentally ill);
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(ii) An institution that provides a temporary residence for
individuals intended to be institutionalized; or
(iii) A public or private place not designed for, or ordinarily
used as, a regular sleeping accommodation for human beings.
(2) For purposes of this part, the term homeless individual does
not include any individual imprisoned or otherwise detained pursuant to
an Act of the Congress or a State law.
Hospital means an approved or accredited public or nonprofit
institution providing public health services primarily for inpatient
medical or surgical care of the sick and injured and includes related
facilities such as laboratories, outpatient departments, training
facilities, and staff offices.
Library means a public or nonprofit facility providing library
services free to all residents of a community, district, State, or
region.
Licensed means recognition and approval by the appropriate State or
local authority approving institutions or programs in specialized
areas. Licensing generally relates to established minimum public
standards of safety, sanitation, staffing, and equipment as they relate
to the construction, maintenance, and operation of a health or
educational facility, rather than to the academic, instructional, or
medical standards for these institutions.
Medical institution means an approved, accredited, or licensed
public or nonprofit institution, facility, or organization whose
primary function is the furnishing of public health and medical
services to the public or promoting public health through the conduct
of research, experiments, training, or demonstrations related to cause,
prevention, and methods of diagnosis and treatment of diseases and
injuries. The term includes, but is not limited to, hospitals, clinics,
alcohol and drug abuse treatment centers, public health or treatment
centers, research and health centers, geriatric centers, laboratories,
medical schools, dental schools, nursing schools, and similar
institutions. The term does not include institutions primarily engaged
in domiciliary care, although a separate medical facility within such a
domiciliary institution may qualify as a medical institution.
Museum means a public or private nonprofit institution that is
organized on a permanent basis for essentially educational or aesthetic
purposes and which, using a professional staff, owns or uses tangible
objects, either animate or inanimate; cares for these objects; and
exhibits them to the public on a regular basis (at least 1000 hours a
year). As used in this part, the term museum includes, but is not
limited to, the following institutions if they satisfy all other
provisions of this definition: Aquariums and zoological parks;
botanical gardens and arboretums; nature centers; museums relating to
art, history (including historic buildings), natural history, science,
and technology; and planetariums. For the purposes of this definition,
an institution uses a professional staff if it employs at least one
fulltime staff member or the equivalent, whether paid or unpaid,
primarily engaged in the acquisition, care, or public exhibition of
objects owned or used by the institution. This definition of museum
does not include any institution that exhibits objects to the public if
the display or use of the objects is only incidental to the primary
function of the institution.
Nonappropriated fund property means property acquired by religious
or morale, welfare or recreational activities, post exchanges, ship
stores, military officer or enlisted clubs, veterans' canteens, and
similar activities with funds generated by Government employees and
their dependents for operation of these activities. Such property is
not Federal property.
Nonprofit means an entity not operated for profit that has been
held by the Internal Revenue Service to be exempt from taxation under
section 501 of the Internal Revenue Code.
Parks and recreation means a program(s) carried out or promoted by
a public agency for public purposes that involve directly or indirectly
the acquisition, development, improvement, maintenance, and protection
of park and recreational facilities for the residents of a given
political area.
Program for older individuals means any State or local government
agency or any nonprofit tax-exempt activity that receives funds
appropriated for programs for older individuals under the Older
Americans Act of 1965, as amended, under title IV or title XX of the
Social Security Act (42 U.S.C. 601 et seq.), or under titles VIII and X
of the Economic Opportunity Act of 1964 (42 U.S.C. 2991 et seq.) and
the Community Services Block Grant Act (42 U.S.C. 9901 et seq.).
Property Act means the Federal Property and Administrative Services
Act of 1949 (63 Stat. 377), as amended (codified as amended in
scattered sections of 40 U.S.C. and 41 U.S.C.), the law that
centralized Federal property management and disposal functions under
the GSA.
Provider of assistance to homeless individuals means a public
agency or a nonprofit, tax-exempt institution or organization that
operates a program which provides assistance such as food, shelter, or
other services to homeless individuals.
Provider of assistance to impoverished families and individuals
means a public or private, nonprofit tax-exempt organization whose
primary function is to provide money, goods, or services to families or
individuals whose annual incomes are below the poverty line (as defined
in section 673 of the Community Services Block Grant Act) (42 U.S.C.
9902). Providers include food banks, self-help housing groups, and
organizations providing services such as the following: Health care;
medical transportation; scholarships and tuition assistance; tutoring
and literacy instruction; job training and placement; employment
counseling; child care assistance; meals or other nutritional support;
clothing distribution; home construction or repairs; utility or rental
assistance; and legal counsel.
Public agency means any State; political subdivision thereof,
including any unit of local government or economic development
district; any department, agency, or instrumentality thereof, including
instrumentalities created by compact or other agreement between States
or political subdivisions; multijurisdictional substate districts
established by or pursuant to State law; or any Indian tribe, band,
group, pueblo, or community located on a State reservation.
Public health means a program(s) to promote, maintain, and conserve
the public's health by providing health services to individuals and/or
by conducting research, investigations, examinations, training, and
demonstrations. Public health services may include but are not limited
to the control of communicable diseases, immunization, maternal and
child health programs, sanitary engineering, sewage treatment and
disposal, sanitation inspection and supervision, water purification and
distribution, air pollution control, garbage and trash disposal, and
the control and elimination of disease-carrying animals and insects.
Public health institution means an approved, accredited, or
licensed public or nonprofit institution, facility, or organization
conducting a public health program(s) such as a hospital, clinic,
health center, or medical institution, including research for such
programs, the services of which are available to the public.
Public purpose means a program(s) carried out by a public agency
that is legally authorized in accordance with
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the laws of the State or political subdivision thereof and for which
public funds may be expended. Public purposes include but are not
limited to programs such as conservation, economic development,
education, parks and recreation, public health, and public safety.
Public safety means a program(s) carried out or promoted by a
public agency for public purposes involving, directly or indirectly,
the protection, safety, law enforcement activities, and criminal
justice system of a given political area. Public safety programs may
include, but are not limited to those carried out by:
(1) Public police departments.
(2) Sheriffs' offices.
(3) The courts.
(4) Penal and correctional institutions (including juvenile
facilities).
(5) State and local civil defense organizations.
(6) Fire departments and rescue squads (including volunteer fire
departments and rescue squads supported in whole or in part with public
funds).
School (except schools for the mentally or physically disabled)
means a public or nonprofit approved or accredited organizational
entity devoted primarily to approved academic, vocational, or
professional study and instruction, that operates primarily for
educational purposes on a full-time basis for a minimum school year and
employs a full-time staff of qualified instructors.
School for the mentally or physically disabled means a facility or
institution operated primarily to provide specialized instruction to
students of limited mental or physical capacity. It must be public or
nonprofit and must operate on a full-time basis for the equivalent of a
minimum school year prescribed for public school instruction for the
mentally or physically disabled, have a staff of qualified instructors,
and demonstrate that the facility meets the health and safety standards
of the State or local government.
Service educational activity (SEA) means any educational activity
designated by the Secretary of Defense as being of special interest to
the armed forces; e.g., maritime academies or military, naval, Air
Force, or Coast Guard preparatory schools.
State means one of the 50 States, the District of Columbia, the
U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of Puerto
Rico, and the Commonwealth of the Northern Mariana Islands.
State Agency for Surplus Property (SASP) means the agency
designated under State law to receive Federal surplus personal property
for distribution to eligible donees within the State as provided for in
subsection 203(j) of the Property Act.
Surplus personal property (property) means any excess personal
property not required for the needs and the discharge of the
responsibilities of all Federal agencies, as determined by the
Administrator of General Services.
Surplus release date means the date on which Federal utilization
screening of excess personal property has been completed, and the
property is available for donation.
University means a public or nonprofit approved or accredited
institution for instruction and study in the higher branches of
learning and empowered to confer degrees in special departments or
colleges.
The Donation Process
Sec. 102-37.30 When does property become surplus?
Excess personal property becomes surplus at the close of business
on the surplus release date. This is the point at which the excess
screening period has been completed without transfer to a Federal
agency or other eligible recipient.
Sec. 102-37.35 Who handles the donation of property?
(a) The General Services Administration has overall responsibility
for executing the Government's property donation program and transfers
most property to State agencies for surplus property (SASP), who in
turn, distribute it to eligible donees in their States. The General
Services Administration also returns to the American National Red
Cross, by donation, such property as was originally derived from or
through it.
(b) The Federal Aviation Administration (FAA), acting under
delegation from the Department of Transportation, administers the
program under which specified property is donated to States and tax-
supported organizations for public airport use under 49 U.S.C. 47151.
At FAA's request, GSA transfers specified property directly to specific
public airport applicants.
(c) Donations to public bodies are made by holding agencies in
accordance with subpart H of this part.
Sec. 102-37.40 What type of property is available for donation?
All property (including property in working capital funds
established under 10 U.S.C. 2208 or in similar funds) is available for
donation to eligible recipients, except for the following categories:
(a) Surplus agricultural commodities, food, and cotton or woolen
goods determined from time to time by the Secretary of Agriculture to
be commodities requiring special handling to assist him in carrying out
his responsibilities with respect to price support or stabilization.
(b) Property in trust funds.
(c) Nonappropriated fund property.
(d) Naval vessels of the following categories: Battleships,
cruisers, aircraft carriers, destroyers, and submarines.
(e) Surplus vessels of 1500 gross tons or more which the Maritime
Administration determines to be merchant vessels or capable of
conversion to merchant use.
(f) Records of the Federal Government.
(g) Property that requires reimbursement upon transfer (such as
abandoned or other unclaimed property that is found on premises owned
or leased by the Government).
(h) Controlled substances.
(i) Items as may be specified from time to time by the
Administrator of General Services.
Sec. 102-37.45 Are exchange/sale items eligible for donation?
No, exchange/sale items are not eligible for donation (see part
101-46 of this title).
Sec. 102-37.50 How long is property available for donation purposes?
Unless otherwise agreed to by the holding agency and GSA,
authorized screeners have:
(a) Twenty-one calendar days following the surplus release date to
screen property for donation purposes; and
(b) Ten calendar days to screen foreign excess personal property
that is not required for further Federal use.
Sec. 102-37.55 Is there a special form to request or transfer
property?
Yes, requests from SASPs and public airports must be submitted on a
Standard Form (SF) 123, Transfer Order Surplus Personal Property.
Alternatively, submission of such information in electronic format must
be as specified and approved by GSA. GSA may require additional
information to support and justify a donation request.
Sec. 102-37.60 Who pays for transportation and the costs incurred in
packing, loading, or preparing the property for shipment?
Direct costs that the holding agency incurs in packing, loading, or
preparing the property for shipment must be borne
[[Page 20019]]
by the transferee (SASP or public airport receiving the property).
Where such costs are incurred, they must be reimbursed promptly by the
transferee upon appropriate billing, unless the holding agency waives
the amount involved as being uneconomical or impractical to collect.
Payment of all transportation costs must also be borne by the
transferee.
Sec. 102-37.65 What is the timeframe for removing property that has
been approved for donation?
The transferee or its agent must remove property within 15 calendar
days from the date of notification of availability, unless otherwise
coordinated with the holding agency. If the transferee decides prior to
pickup or shipment that it cannot use the property, it must notify the
GSA regional office that approved the donation request.
Sec. 102-37.70 How should overages and shortages in shipments be
handled?
(a) If you are a SASP or public airport and you receive more or
less property than approved on the SF 123, and the total acquisition
cost of the line items involved is less than $500, annotate your
receiving and inventory records to document the discrepancy. If the
total acquisition cost is $500 or more, you must submit a shortage
report, or a SF 123 in the case of an overage, to the GSA approving
office and include the following information:
(1) Name and address of the holding agency.
(2) All pertinent GSA and holding agency control numbers, in
addition to the SASP or public airport transfer order number.
(3) A description of each line item of property, the condition
code, the quantity and unit of issue, and the unit and total
acquisition cost.
(b) Submit the SF 123 or shortage report to GSA, with a copy to the
holding agency, within 30 calendar days of the date of transfer.
Subpart B-GSA
Sec. 102-37.75 What are GSA's responsibilities in the donation of
property?
GSA is responsible for supervising and directing the disposal of
surplus personal property. In addition to issuing regulatory guidance
for the donation of property, GSA:
(a) Determines when property is surplus to the needs of the
Government.
(b) Allocates and transfers property on a fair and equitable basis
to SASPs for further distribution to eligible donees.
(c) Supervises the care and handling of property while it is in the
custody of a SASP.
(d) Approves all transfers of property to public airports.
(e) Returns, by donation, property derived from or through the
American National Red Cross.
(f) Approves, after consultation with the holding agency, foreign
excess personal property to be returned to the United States for
donation purposes.
(g) Coordinates and controls the level of donee screening activity
at Federal installations.
(h) Imposes appropriate conditions on the donation of property
having characteristics that require special handling or use
limitations.
(i) Keeps track of and reports to Congress on Federal donation
programs.
Sec. 102-37.80 What happens when GSA receives multiple requests for
the same property?
When requests for specific items of property are received from both
a public airport and a SASP, GSA will exercise its discretion in
determining where the property will provide the greatest public
benefit. In case of two or more requests from SASPs, GSA will use the
allocating criteria in Sec. 102-37.85.
Sec. 102-37.85 What factors will GSA consider in allocating property
among the States?
GSA allocates property among the SASPs on a fair and equitable
basis using the following factors (listed in order of importance):
(a) Extraordinary needs caused by disasters or emergency
situations.
(b) Requests from the Department of Defense (DOD) for DOD-generated
property to be allocated through a SASP for donation to a specific SEA.
(c) Need and usability of property, as reflected by requests from
SASPs.
Note to Sec. 102-37.85(c): Requests for property to be used as
functional items will be given preference over cannibalization
requests. GSA will give special consideration to requests
transmitted through the SASPs by eligible donees for specific items
of property.
(d) States in greatest need of the type of property to be allocated
where the need is evidenced by a letter of justification.
(e) The quantity of property of the type under consideration which
was previously allocated to or is potentially available to a SASP from
a more advantageous source.
(f) Performance of a SASP in effecting prompt distribution of
property to eligible donees.
(g) Equitable distribution based on the existing condition and the
original acquisition cost of the property.
(h) Performance of a SASP in effecting timely pickup or removal of
property approved for transfer.
(i) Equitable distribution based on the ratio of population and per
capita income of each State.
Sec. 102-37.90 What report is GSA required to compile concerning the
donation program?
Biennially, GSA must transmit to Congress and the Comptroller
General of the United States a report containing:
(a) A full and independent evaluation of the operation of programs
for the donation of Federal property;
(b) Statistical information on the amount of property approved for
transfer to the SASPs and donated to eligible non-Federal organizations
during each succeeding biennial period (and the amount of excess
personal property transferred to Federal agencies and provided to
grantees and non-Federal organizations); and
(c) Any necessary or desirable recommendations of GSA.
Subpart C--Holding Agency
Sec. 102-37.95 To whom do ``we'', ``you'', and their variants refer?
Use of pronouns ``we'', ``you'', and their variants throughout this
subpart refers to the executive agency that has accountability and
custody of the surplus personal property.
Sec. 102-37.100 What are our responsibilities in the donation of
property?
Your responsibilities in the donation of property are:
(a) Cooperating with all entities authorized to participate in the
donation program and their authorized representatives in locating,
screening, and inspecting property for donation. Upon reasonable
request, you must make available to these agencies and their
representatives information regarding the quantity, description,
condition, and location of donable property in your inventory.
(b) Setting aside property upon notification that there is a
potential donation requirement, and holding it from further disposal
pending processing of the transfer document approved by GSA.
(c) Notifying and subsequently releasing property to the transferee
(or the transferee's designated agent) upon receipt of a GSA-approved
SF 123.
(d) Notifying the approving GSA regional office if the property is
not removed within 15 calendar days after the transferee is notified of
its availability. GSA will advise you of further disposal instructions.
[[Page 20020]]
(e) Performing and bearing the cost of care and handling of
property pending its disposal, except as provided in Sec. 102-37.105.
Sec. 102-37.105 May we get reimbursement for our costs?
You may recover from the transferee (SASP or public airport) direct
costs you incurred incident to a donation, such as packing, handling,
crating, and transportation expenses. No overhead or administrative
costs are to be included in the billing.
Sec. 102-37.110 May we donate property directly to eligible non-
Federal recipients without going through GSA?
No, you may not donate property directly to eligible non-Federal
recipients unless you have statutory authority to do so. All such
donations must be included on your annual report to GSA under Sec. 101-
43.4701(c) of this title.
Sec. 102-37.115 What are some of the donations that don't require
GSA's approval?
The following donations do not require GSA's approval:
(a) Donations of condemned, obsolete, or other specified material
under 10 U.S.C. 2572, 10 U.S.C. 7308, 10 U.S.C. 7541, 10 U.S.C. 7545,
and 14 U.S.C. 641a. However, such property must first undergo excess
Federal and surplus donation screening as required in this part and
part 101-43 of this title.
(b) Donations to public bodies under subpart H of this part.
(c) Donations to small disadvantaged businesses under 13 CFR Part
124.
(d) Donation of law enforcement canines under 40 U.S.C. 484(r).
Sec. 102-37.120 May we withdraw property for Federal use once it
enters the donation cycle?
Yes, with the prior approval of GSA, you may withdraw property that
has been set aside or approved for donation, but not yet removed. You
may withdraw property to meet emergency or critical requirements
without prior approval of GSA, but you must notify GSA immediately of
such actions. GSA will notify the SASP of any withdrawals of property
that has been approved for donation.
Sec. 102-37.125 May we recover property that has been picked up by a
SASP?
Yes, you may request, through GSA, property that is in the
possession of a SASP. However, you will be responsible for reimbursing
the SASP the costs of care and handling, including transportation
costs, the SASP incurred in initially acquiring the property.
Subpart D--State Agency for Surplus Property
Sec. 102-37.130 To whom do ``we'', ``you'', and their variants refer?
Use of pronouns ``we'', ``you'', and their variants throughout this
subpart refers to the SASP.
Sec. 102-37.135 What are our responsibilities in the donation of
property?
Your responsibilities in the donation of property are to:
(a) Determine the eligibility of entities seeking to obtain Federal
property as a:
(1) Public agency.
(2) Nonprofit educational or public health institution or
organization.
(3) Program for older individuals.
(b) Distribute property fairly, equitably, and promptly to eligible
donees in your State based on their relative needs and resources, and
ability to use the property, and as provided in your State plan of
operation.
(c) Enforce compliance with the terms and conditions imposed on
donated property.
Sec. 102-37.140 How do we become eligible to distribute property to
donees?
In order to receive transfers of donable property, you must:
(a) Have a GSA-approved State plan of operation; and
(b) Provide the certifications and agreements as set forth in
Secs. 102-37.145 and 102-37.150.
Certifications and Agreements
Sec. 102-37.145 What certifications must we make before acquiring
property for distribution?
Before acquiring property for distribution, you must certify that:
(a) You are the agency of the State designated under State law that
has legal authority under subsection 203(j) of the Property Act and GSA
regulations, to receive property for distribution within the State to
eligible donees as defined in this part.
(b) No person with supervisory or managerial duties in your State's
donation program is debarred, suspended, ineligible, or voluntarily
excluded from participating in the donation program.
(c) The property is usable and needed by:
(1) A public agency for one or more public purposes.
(2) An eligible nonprofit organization or institution which is
exempt from taxation under section 501 of the Internal Revenue Code,
for the purpose of education or public health (including research for
any such purpose) within the State.
(3) An eligible nonprofit, tax-exempt activity for programs for
older individuals.
(d) When property is picked up by or shipped to your SASP, you have
adequate and available funds, facilities, and personnel to provide
accountability, warehousing, proper maintenance, and distribution of
the property.
(e) When property is distributed by your SASP to a donee, or when
delivery is made directly from a holding agency to a donee pursuant to
a State distribution document, you have determined that the donee
acquiring the property is eligible within the meaning of the Property
Act and GSA regulations, and that the property is usable and needed by
the donee.
Sec. 102-37.150 What other requirements must we fulfill before
acquiring property for distribution?
With respect to property picked up by or shipped to your SASP, you
must agree to the following:
(a) You are granted the right to possession only. You will make
prompt statewide distribution of such property, on a fair and equitable
basis, to donees eligible to acquire property under section 203(j) of
the Property Act and GSA regulations. You will distribute property only
after such eligible donees have properly executed the appropriate
certifications and agreements established by your SASP and/or GSA.
(b) Title to the property remains in the United States Government
although you have taken possession of it. Conditional title to the
property will pass to the eligible donee when the donee executes the
required certifications and agreements and takes possession of the
property.
(c) You will:
(1) Promptly pay the cost of care, handling, and shipping incident
to taking possession of the property.
(2) During the time that title remains in the United States
Government, be responsible as a bailee for the property from the time
it is released to you or to the transportation agent you have
designated.
(3) In the event of any loss of or damage to any or all of the
property during transportation or storage at a place other than a place
under your control, take the necessary action to obtain restitution
(fair market value) for the Government. In the event of loss or damage
due to negligence or willful misconduct on your part, repair, replace,
or pay to the GSA the fair market value of any such property, or take
such other action as the GSA may direct.
[[Page 20021]]
(d) You may retain property for use in performing your donation
program functions only when authorized by GSA in accordance with the
provisions of a cooperative agreement entered into with GSA.
(e) When acting under an interstate cooperative distribution
agreement (see Sec. 102-37.320) as an agent and authorized
representative of an adjacent State with which you share a common
boundary, you will:
(1) Make the certifications and agreements required in Sec. 102-
37.145 and this section on behalf of the adjacent SASP.
(2) Require the donee to execute the distribution documents of the
State in which the donee is located.
(3) Forward copies of the distribution documents to the
corresponding SASP.
(f) You will not discriminate on the basis of race, color, national
origin, sex, age, or handicap in the distribution of the property, and
will comply with GSA regulations on nondiscrimination as set forth in
part 101-6, subpart 101-6.2, and part 101-8 of this title.
Sec. 102-37.155 Must we make a drug-free workplace certification?
If you have a cooperative agreement with GSA that allows you to
retain Federal property for SASP use, you must certify that you will
provide a drug-free workplace as a condition for receiving such
property. Drug-free workplace certification requirements are found at
part 105-68, subpart 105-68.6, of this title.
Sec. 102-37.160 Must we make a certification regarding lobbying?
You are subject to the anti-lobbying certification and disclosure
requirements in part 105-69 of this title when all of the following
conditions apply:
(a) You have entered into a cooperative agreement with GSA that
provides for your SASP to retain donable Federal property for use in
performing donation functions or any other cooperative agreement.
(b) The cooperative agreement was executed after December 23, 1989.
(c) The fair market value of the property requested under the
cooperative agreement is more than $100,000.
State Plan of Operation
Sec. 102-37.165 What is a State plan of operation?
A State plan of operation is a document developed under State law
and approved by GSA in which the State sets forth a plan for the
management and administration of the SASP in the donation of property.
Sec. 102-37.170 Who is responsible for developing and submitting the
plan?
The State legislature must develop the plan. The chief executive
officer of the State must certify and submit the plan to GSA for
acceptance and certify that you are authorized to acquire and
distribute property to eligible donees in the State, to enter into
cooperative agreements, and to undertake other actions and provide
other assurances as are required by subsection 203(j)(4) of the
Property Act and set forth in the plan. Send the plan to:
General Services Administration
Office of Transportation and Property Management (FB)
Washington, DC 20406
Sec. 102-37.175 When does a State plan take effect?
The plan takes effect on the date GSA notifies the chief executive
officer of the State that the plan conforms to the provisions of
subsection 203(j)(4) of the Property Act and the requirements of this
part and that allocation and transfer of donable surplus property to
the State will begin.
Sec. 102-37.180 Must GSA approve amendments or modifications to the
plan?
Yes, GSA must approve amendments or modifications to the plan.
Sec. 102-37.185 Do plans or amendments require public notice?
No plan of operation, and no major amendment to the plan, may be
filed with GSA until 60 calendar days after general notice of the
proposed plan or amendment has been published and interested persons
have been given at least 30 calendar days to submit comments.
Sec. 102-37.190 What happens if we don't operate in accordance with
our plan?
If you don't operate in accordance with your plan, GSA may withhold
allocation and transfer of surplus property until the nonconformance is
corrected.
Sec. 102-37.195 What must a State include in the plan of operation?
You must ensure the plan conforms to the provisions of subsection
203(j)(4) of the Property Act and includes the following information
and assurances. (You may include in the plan other provisions not
inconsistent with the purposes of the Property Act and the requirements
of this part.):
State Plan Requirements
------------------------------------------------------------------------
Regarding-- The plan must--
------------------------------------------------------------------------
(a) Designation of a SASP.............. (1) Name the State agency that
will be responsible for
administering the plan.
(2) Describe the
responsibilities vested in the
agency which must include the
authorities to acquire,
warehouse and distribute
property to eligible donees,
carry out other requirements
of the State plan, and provide
details concerning the
organization of the agency,
including supervision,
staffing, structure, and
physical facilities.
(3) Indicate the organizational
status of the agency within
the State governmental
structure and the title of the
State official who directly
supervises the State agent.
------------------------------------------------------------------------
(b) Operational authority.............. (1) Include copies of existing
State statutes and/or
executive orders relative to
the operational authority of
the SASP. Where express
statutory authority does not
exist or is ambiguous, or
where authority exists by
virtue of executive order, the
plan must include also the
opinion of the State's
Attorney General regarding the
existence of such authority.
------------------------------------------------------------------------
[[Page 20022]]
(c) Inventory control and accounting (1) Require the SASP to use a
systems.. management control and
accounting system that
effectively governs the
utilization, inventory
control, accountability, and
disposal of property.
(2) Provide a detailed
explanation of the inventory
control and accounting system
that the SASP will use.
(3) Provide that property
retained by the SASP to
perform its functions be
maintained on separate records
from those of donable
property.
------------------------------------------------------------------------
(d) Return of donated property......... (1) Require the SASP to provide
for the return of donated
property from the donee, at
the donee's expense, if the
property is still usable as
determined by the SASP, and:
(i) The donee has not placed
the property into use for the
purpose for which it was
donated within 1 year of
donation; or (ii) The donee
ceases to use the property
within 1 year after placing it
in use.
(2) Specify that return of
property can be accomplished
by:
(i) Physical return to the
SASP facility, if required by
the SASP.
(ii) Retransfer directly to
another donee, SASP, or
Federal agency, as required by
the SASP.
(iii) Disposal (by sale or
other means) as directed by
the SASP.
(3) Set forth procedures to
accomplish property returns to
the SASP, retransfers to other
organizations, or disposition
by sale, abandonment, or
destruction.
------------------------------------------------------------------------
(e) Financing and service charges...... (1) Set forth the means and
methods for financing the
SASP. When the State
authorizes the SASP to assess
and collect service charges
from participating donees to
cover direct and reasonable
indirect costs of its
activities, the method of
establishing the charges must
be set forth in the plan.
(2) Affirm that service
charges, if assessed, are fair
and equitable and based on
services performed (or paid
for) by the SASP, such as
screening, packing, crating,
removal, and transportation.
When the SASP provides minimal
services in connection with
the acquisition of property,
except for document processing
and other administrative
actions, the State plan must
provide for minimal charges to
be assessed in such cases and
include the bases of
computation.
(3) Provide that property made
available to nonprofit
providers of assistance to
homeless individuals be
distributed at a nominal cost
for care and handling of the
property.
(4) Set forth how funds
accumulated from service
charges, or from other sources
such as sales or compliance
proceeds are to be used for
the operation of the SASP and
the benefit of participating
donees.
(5) Affirm, if service charge
funds are to be deposited or
invested, that such deposits
or investments are permitted
by State law and set forth the
types of depositories and/or
investments contemplated.
(6) Cite State authority to use
service charges to acquire or
improve SASP facilities and
set forth disposition to be
made of any financial assets
realized upon the sale or
other disposal of the
facilities.
(7) Indicate if the SASP
intends to maintain a working
capital reserve. If one is to
be maintained, the plan should
provide the provisions and
limitations for it.
(8) State if refunds of service
charges are to be made to
donees when there is an excess
in the SASP's working capital
reserve and provide details of
how such refunds are to be
made, such as a reduction in
service charges or a cash
refund, prorated in an
equitable manner.
------------------------------------------------------------------------
(f) Terms and conditions on donable (1) Require the SASP to impose
property.. terms, conditions,
reservations, and restrictions
on the donee for any item of
donated property with a unit
acquisition cost of $5,000 or
more and any passenger motor
vehicle. The specific terms,
conditions, reservations, and
restrictions that the SASP
requires must be set forth in
the plan.
[[Page 20023]]
(2) Provide that the SASP may
impose reasonable terms,
conditions, reservations, and
restrictions on the use of
other donated property. If the
SASP elects to impose
additional terms, conditions,
reservations, and
restrictions, it should list
them in the plan. If the SASP
wishes to provide for
amending, modifying, or
releasing any terms,
conditions, reservations, or
restrictions it has elected to
impose, it must state in the
plan the standards it will use
to grant such amendments,
modifications or releases.
(3) Provide that the SASP will
impose on the donation of
property, regardless of unit
acquisition cost, such
conditions involving special
handling or use limitations as
GSA may determine necessary
because of the characteristics
of the property.
------------------------------------------------------------------------
(g) Nonutilized or undistributed (1) The plan must provide that,
property.. subject to GSA approval,
property in the possession of
the SASP which donees in the
State cannot use will be
disposed of by:
(i) Transfer to another SASP
or Federal agency.
(ii) Sale.
(iii) Abandonment or
destruction.
(iv) Other arrangements.
------------------------------------------------------------------------
(h) Fair and equitable distribution.... (1) Provide that the SASP will
make fair and equitable
distribution of property to
eligible donees in the State
based on their relative needs
and resources and ability to
use the property.
(2) Set forth the policies and
detailed procedures for
effecting a prompt, fair, and
equitable distribution.
(3) Require that the SASP,
insofar as practicable, select
property requested by eligible
donees and, if requested by
the donee, arrange for
shipment of the property
directly to the donee.
------------------------------------------------------------------------
(i) Eligibility........................ (1) Set forth procedures for
the SASP to determine the
eligibility of applicants for
the donation of surplus
personal property.
(2) Provide for donee
eligibility records to include
at a minimum:
(i) Legal name and address of
the donee.
(ii) Status of the donee as a
public agency or as an
eligible nonprofit, tax-exempt
activity.
(iii) Details on the scope of
the donee's program.
(iv) Proof of tax exemption
under section 501 of the
Internal Revenue Code if the
donee is nonprofit.
(v) Proof that the donee is
approved, accredited, or
licensed if it is a
requirement for operation of
the donee's program(s); or
certification of funding if
the donee is a nonprofit
activity that conducts
programs for older
individuals.
(vi) Financial resources.
(vii) Written designation of
a representative(s) to act for
the donee in acquiring
property from the SASP signed
by the chief administrative
officer or by resolution of
the donee's governing body.
(viii) Nondiscrimination
assurance.
(ix) Types of property
needed.
------------------------------------------------------------------------
(j) Compliance and utilization......... (1) Provide that the SASP
conduct utilization reviews
for donee compliance with the
terms, conditions,
reservations, and restrictions
imposed by GSA and the SASP on
property having a unit
acquisition cost of $5,000 or
more and any passenger motor
vehicle.
(2) Provide for the reviews to
include a survey of donee
compliance with any special
handling conditions or use
limitations imposed on items
of property by GSA.
(3) Set forth the proposed
frequency of such reviews and
provide adequate assurances
that the SASP will take
effective action to correct
noncompliance or otherwise
enforce such terms,
conditions, reservations, and
restrictions.
[[Page 20024]]
(4) Require the SASP to prepare
reports on utilization reviews
and compliance actions and
provide assurance that the
SASP will initiate appropriate
investigations of alleged
fraud in the acquisition of
donated property or misuse of
such property.
------------------------------------------------------------------------
(k) Consultation with advisory bodies (1) Provide for consultation
and public and private groups.. with advisory bodies and
public and private groups
which can assist the SASP in
determining the relative needs
and resources of donees, the
proposed utilization of
donable property by eligible
donees, and how distribution
of donable property can be
effected to fill existing
needs of donees.
(2) Provide details of how the
SASP will accomplish such
consultation.
------------------------------------------------------------------------
(l) Audit.............................. (1) Provide for periodic
internal audits of the
operations and financial
affairs of the SASP.
(2) Provide for compliance with
the external audit
requirements of Office of
Management and Budget Circular
No. A-133, ``Audits of States,
Local Governments, and Non-
Profit
Organizations''(available at
www.whitehouse.gov/OMB), and
make provisions for the SASP
to furnish GSA with:
(i) Two copies of any audit
report made pursuant to the
Circular, or with two copies
of those sections that pertain
to the Federal donation
program.
(ii) An outline of all
corrective actions and
scheduled completion dates for
the actions.
(3) Provide for cooperation in
GSA or Comptroller General
conducted audits.
------------------------------------------------------------------------
(m) Cooperative agreements............. If the SASP wishes to enter
into, renew, or revise
cooperative agreements with
GSA or other Federal agencies:
(1) Affirm the SASP's
intentions to enter into
cooperative agreements.
(2) Cite the authority for
entering into such agreements.
------------------------------------------------------------------------
(n) Liquidation........................ Provide for the SASP to submit
a liquidation plan prior to
termination of the SASP
activities if the State
decides to dissolve the SASP.
------------------------------------------------------------------------
(o) Forms.............................. Include copies of distribution
documents used by the SASP.
------------------------------------------------------------------------
(p) Records............................ Affirm that all official
records of the SASP will be
retained for a minimum of 3
years, except that:
(1) Records involving property
subject to restrictions for
more than 2 years must be kept
1 year beyond the specified
period of restriction.
(2) Records involving property
with perpetual restriction
must be retained in
perpetuity.
(3) Records involving property
in noncompliance status must
be retained for at least 1
year after the noncompliance
case is closed.
------------------------------------------------------------------------
Sec. 102-37.200 What steps must we take if the State decides to
dissolve our SASP?
If the State decides to dissolve your SASP, submit a liquidation
plan that includes:
(a) Reasons for the liquidation;
(b) A schedule for liquidating the agency and the estimated date of
termination;
(c) Method of disposing of property on hand under the requirements
of this part;
(d) Method of disposing of the agency's physical and financial
assets;
(e) Retention of all available records of the SASP for a 2-year
period following liquidation; and
(f) Designation of another governmental entity to serve as the
agency's successor in function until continuing obligations on property
donated prior to the closing of the agency are fulfilled.
Screening and Requesting Property
Sec. 102-37.205 Do we need special authorization to screen property?
Yes, you must have a valid screener-identification card (GSA Form
2946, Screener's Identification) prior to screening and freezing
property at holding agencies. However, you and donee representatives do
not need a screener-ID card to inspect, evaluate, or remove specific
property approved for donation.
Sec. 102-37.210 How do we obtain screener-ID cards for ourselves or
donation?
To obtain screening authorization you must:
(a) Submit a written request to the GSA regional office serving the
area in which the intended screener is located. The request must state
the name and address of your SASP or the donee the prospective screener
represents, and certify that the applicant is qualified to screen as an
authorized representative of the cited organization. A list of the
Federal installations the screener will be authorized to visit must
accompany
[[Page 20025]]
each request. The list of Federal installations should be limited to
those within the applicable State, except where there are particular
reasons why a screener should regularly visit installations outside the
State.
(b) Accompany each request for authorization with a completed GSA
Form 2946 that contains an affixed passport-style photograph of the
prospective screener. Copies of the form are available from the GSA
regional office servicing your State.
Sec. 102-37.215 May we request property that is in the sales cycle?
Yes, you may request property that is in the sales cycle if the
property involved was not previously made available for donation or the
property is needed to fill an emergency or critical requirement. You
must submit such requests to GSA for consideration and coordination
with the holding agency so that such action is not harmful to the
overall outcome of the sale. Such requests may only be granted prior to
sales award.
Sec. 102-37.220 May we request property specifically for
cannibalization?
Yes; however, you must provide justification and include the
following statement on the SF 123: ``Item(s)__________requested for
cannibalization.'' Your request for cannibalization will be approved
only when it is clear that disassembly of the item for use of its
component parts will provide greater potential benefit than use of the
item in its existing form.
Eligibility of Donees
Sec. 102-37.225 Who may acquire property through a SASP?
You may distribute property to the following classes of donees:
(a) Public agencies.
(b) Nonprofit educational or public health institutions or
organizations, such as:
(1) Medical institutions.
(2) Hospitals.
(3) Clinics.
(4) Health centers.
(5) Drug abuse or alcohol treatment centers.
(6) Providers of assistance to homeless individuals.
(7) Providers of assistance to impoverished families and
individuals.
(8) Schools.
(9) Colleges.
(10) Universities.
(11) Schools for the mentally disabled.
(12) Schools for the physically disabled.
(13) Child care centers.
(14) Radio and television stations licensed by the Federal
Communications Commission as educational radio or educational
television stations.
(15) Museums attended by the public.
(16) Libraries, serving free all residents of a community,
district, State or region.
(c) Public or nonprofit programs for older individuals.
(d) Service educational activities.
Sec. 102-37.230 Who determines if an activity is eligible to receive
donated property?
(a) Public agencies and nonprofit tax-exempt activities. You
determine if an applicant is eligible to receive property as a public
agency, a nonprofit educational or public health institution, or a
program for older individuals under the requirements of this part. You
may request GSA assistance or guidance in making such determinations.
(b) Service educational activities (SEAs). The Department of
Defense (DOD) sets eligibility requirements for SEAs and makes
eligibility determinations.
Sec. 102-37.235 Must we maintain eligibility records on SEAs?
Yes, you must maintain eligibility records on SEA's, but maintain
them separately from your other eligibility files and make sure they
include:
(a) Documentation verifying that the activity has been designated
as eligible by DOD to receive surplus DOD property.
(b) A statement designating one or more donee representative(s) to
act for the SEA in acquiring property.
(c) A listing of the types of property needed or authorized for use
in the SEA's program.
Sec. 102-37.240 How often must we update donee eligibility records?
You must update donee eligibility records as needed, but no less
than every 3 years, to ensure that all documentation supporting the
donee's eligibility is current and accurate. Annually you must update
files for programs whose eligibility depend on annual appropriations,
annual licensing, or annual certification.
Sec. 102-37.245 What must we do if a donee fails to maintain its
eligibility status?
If a donee fails to maintain its eligibility status, you must
terminate distribution of property to the activity, recover any usable
property still under Federal restriction, and take any other required
compliance actions.
Sec. 102-37.250 May we grant eligibility to applicants who would
otherwise qualify as eligible donees, but whose approval,
accreditation, or licensing is pending?
You may grant conditional eligibility to those applicants whose
programs are required to be approved, accredited, or licensed, but who
are unable to obtain accreditation, approval, or licensing because they
are newly organized or because the facilities in which their activities
are to be housed are not yet constructed. If the construction of an
applicant's facility or physical plant has not been completed, and
after evaluating the progress and potential of the applicant, you may
at your discretion make available property that can be immediately
utilized at this point in the applicant's program. You may accept
letters from public authorities, either local or State, that you deem
competent (such as a board of health or a board of education) stating
that the applicant otherwise meets the standards prescribed for
approved, accredited or licensed institutions and organizations. Under
no circumstances can the SASP grant conditional eligibility prior to
receiving evidence of nonprofit status.
Sec. 102-37.255 Are we eligible to acquire property as a public agency
donee?
No, you are not eligible to acquire property as a public agency
donee, but you can retain surplus personal property for use in
operating the donation program if you have a cooperative agreement with
GSA that allows you to do so. You must obtain prior GSA approval before
using any donable property in your operation of the SASP. Make your
needs known by submitting a listing of needed property to the
appropriate GSA regional office for approval. GSA will review the list
to ensure that it is of the type and quantity of property that is
reasonably needed and useful in performing your SASP operations. Unless
GSA disapproves the retention of the property within 30 calendar days
of receipt of the listing, title to the property will vest in your
SASP. You must maintain separate records for the property.
Sec. 102-37.260 What should we do if an applicant seeks an appeal of a
negative determination of eligibility?
You should forward complete documentation on all appeal requests,
including your comments and recommendations, to the applicable GSA
regional office for review and coordination with GSA headquarters.
[[Page 20026]]
Distributing Property
Sec. 102-37.265 Are there special requirements for distributing
property to SEAs?
Yes, only DOD-generated property may be donated to SEAs. Property
generated by Federal civil agencies are not eligible for donation to
SEAs, unless the SEAs also qualify under Sec. 102-37.225(b) to receive
donations of property. When donating DOD property to eligible SEAs, you
must observe any restrictions the sponsoring Military Services may have
imposed on the types of property the SEAs may receive.
Sec. 102-37.270 May we distribute property to eligible donees of
another State?
Yes, you may distribute property to eligible donees of another
State, if you and the other SASP determine that such an arrangement
will be of mutual benefit to you and the donees concerned. Where such
determinations are made, an interstate distribution cooperative
agreement as prescribed in Sec. 102-37.320 must be prepared and
submitted to the appropriate GSA regional office for approval. When
acting under an interstate distribution cooperative agreement, you
must:
(a) Require the donee recipient to execute the distribution
documents of its home SASP.
(b) Forward copies of executed distribution documents to the
donee's home SASP.
Terms and Conditions
Sec. 102-37.275 What terms and conditions must we impose on the donee?
You must impose the terms and conditions on the donee required in
your State plan of operation.
Sec. 102-37.280 May we waive any of the terms and conditions of
donation?
You may alter or grant releases from State-imposed restrictions,
provided your State plan of operation sets forth the standards by which
such actions will be taken. You may not grant releases from, or
amendments or corrections to:
(a) The statutory requirement that usable property be returned by
the donee to the SASP if the property has not been placed in use for
the purposes for which it was donated within one year of donation or
ceases to be used by the donee for those purposes within one year of
being placed in use, except that:
(1) You may grant authority to the donee to cannibalize property
items subject to this requirement when you determine that such action
will result in increased utilization of the property and that the
proposed action meets the standards prescribed in your plan of
operation with respect to amendments, modifications, or releases of the
terms and conditions imposed on donated property; or
(2) You may, with the written concurrence of GSA, grant donees:
(i) A time extension to place property into use if the delay in
putting the property into use was beyond the control and without the
fault or negligence of the donee; or
(ii) Authority to trade in one donated item for one like item
having similar use potential.
(b) The terms, conditions, reservations, and restrictions the
Property Act requires you to impose on the use of passenger motor
vehicles and any item of property having a unit acquisition cost of
$5,000 or more.
(c) Any special handling condition or use limitation imposed by
GSA, except with the prior written approval of GSA.
Sec. 102-37.285 Do restrictions remain on property that has been
authorized for cannibalization?
Property authorized for cannibalization must remain under the
period of restriction imposed by the transfer/distribution document
pending completion of the proposed cannibalization. Components
resulting from the cannibalization, which have a unit acquisition cost
of $5,000 or more, must remain under the restrictions imposed by the
transfer/distribution document. Components with a unit acquisition cost
of less than $5,000 may be released upon cannibalization from the
additional restrictions imposed by the State. However, these components
must continue to be used or be otherwise disposed of in accordance with
this part.
Sec. 102-37.290 May a donee exchange donated property during the
period of restriction?
Yes, a donee may exchange donated property during the period of
restriction with the approval of GSA. The donee must have used the
donated item for its acquired purpose for a minimum of 6 months prior
to being considered for exchange, and it must be demonstrated that the
exchange will result in increased utilization value to the donee. As a
condition of approval of the exchange, the item being exchanged cannot
be in a noncompliance status. The item acquired by the donee must be:
(a) Made subject to the period of restriction remaining on the item
exchanged.
(b) Of equal or greater value than the item exchanged.
Sec. 102-37.295 On what categories of property has GSA imposed special
handling conditions or use limitations?
GSA has imposed special handling or processing requirements on the
property categorized in this section. GSA may, on a case-by-case basis,
prescribe additional restrictions for handling or using these items or
prescribe special processing requirements on items in addition to those
listed in this section.
(a) Aircraft and vessels. The requirements of this section apply to
the donation of any fixed-or rotary-wing aircraft and donable vessels
that are 50 feet or more in length, having a unit acquisition cost of
$5,000 or more, regardless of the purpose for which donated. Such
aircraft or vessels may be donated to public agencies and eligible
nonprofit activities provided the aircraft or vessel is not classified
for reasons of national security and any lethal characteristics are
removed. The following table provides locations of other policies and
procedures governing aircraft and vessels:
------------------------------------------------------------------------
For-- See--
------------------------------------------------------------------------
(1) Policies and procedures Part 101-37, subpart 101-37.6, of
governing the donation of aircraft this title.
parts.
------------------------------------------------------------------------
(2) Documentation needed by GSA to Sec. 102-37.300.
process requests for aircraft or
vessels.
------------------------------------------------------------------------
(3) Special terms, conditions, and Sec. 102-37.305.
restrictions imposed on aircraft
and vessels.
------------------------------------------------------------------------
(4) Guidelines on preparing plans Sec. 102-37.460.
of utilization for aircraft or
vessels.
------------------------------------------------------------------------
[[Page 20027]]
(b) Tax-free alcohol or specially denatured alcohol. (1) When tax-
free or specially denatured alcohol is requested for donation, the
donee must have a special permit issued by the Assistant Regional
Commissioner of the appropriate regional office, Bureau of Alcohol,
Tobacco, and Firearms (BATF), Department of the Treasury, to acquire
the property. You must include the BATF use-permit number on the SF
123.
(2) You may not store tax-free or specially denatured alcohol in
your facilities. You must make arrangements for this property to be
shipped or transported directly from the holding agency to the
designated donee.
(c) M-151 vehicles. M-151 vehicles have been identified as a hazard
to the safety of public highway users, and eligible donees may not
acquire these vehicles without mutilation. Mutilation must result in
the unitized body of the vehicle being cut, crushed, or mangled in such
a manner as to completely preclude rebuilding into a usable unitized
body. When acquiring M-151 components and parts, the donee recipient
must certify on the distribution document that the components and parts
will not be reassembled as a vehicle for highway use.
(d) Hazardous materials, firearms, and property with unsafe or
dangerous characteristics. For hazardous materials, firearms, and
property with unsafe or dangerous characteristics, see part 101-42 of
this title.
(e) Franked and penalty envelopes and official letterheads. Franked
and penalty envelopes and official letterheads may not be donated
without the SASP or donee certifying that all Federal Government
markings will be obliterated before use.
Sec. 102-37.300 What documentation must we provide to acquire an
aircraft or vessel?
The following documentation must be submitted to GSA, along with
the SF 123, when you request an aircraft or vessel covered by Sec. 102-
37.295:
(a) A letter of intent, signed and dated by the authorized
representative of the proposed donee setting forth a detailed plan of
utilization for the property. (See Sec. 102.37.460.)
(b) A letter, signed and dated by you, confirming and certifying
the applicant's eligibility and containing an evaluation of the
applicant's ability to use the aircraft or vessel for the purpose
stated in its letter of intent and any other supplemental information
concerning the needs of the donee which supports making the allocation;
(c) Your distribution document, signed and dated by the authorized
donee representative; and
(d) A conditional transfer document, signed by you and the intended
donee, and containing the special terms, conditions, and restrictions
prescribed by GSA. The conditional transfer document may include
additional terms, conditions, and restrictions imposed by you on the
use of the aircraft or vessel that are consistent with any Federal
requirements or your plan of operation. However, none of the Federal
terms, conditions, and restrictions outlined in the executed
conditional transfer document, including the requirement for an
additional 48-month period of approved use, may be modified, amended,
waived, released, or abrogated by you without the prior written
approval of GSA.
Sec. 102-37.305 What are the special terms, conditions, and
restrictions regarding aircraft and vessels?
(a) The aircraft or vessel must be placed in use for the purpose
for which acquired no later than 12 months after acquisition and used
for the same purpose for a 12-month period thereafter. There shall be
an additional 48-month period of restriction which will expire after
the aircraft or vessel has been used for the purpose for which
acquired, except that the period of restriction for combat-configured
aircraft (aircraft having no commercial flight application based upon
their military design characteristics) runs in perpetuity.
(b) The donee of an aircraft must apply to the Federal Aviation
Administration (FAA) for registration of an aircraft intended for
flight use within 30 calendar days of receipt of the aircraft. The
donee of a vessel must, within 30 calendar days of receipt of the
vessel, apply for documentation of the vessel under applicable Federal,
State, and local laws and must record each document with the U.S. Coast
Guard at the port of documentation. The donee's application for
registration or documentation must include a fully executed copy of the
conditional transfer document and a copy of its letter of intent. The
donee must provide you and GSA with a copy of the FAA registration (and
a copy of its FAA Standard Airworthiness Certificate if the aircraft is
to be flown as a civil aircraft) and all the required documentation.
(c) The aircraft or vessel must be used solely in accordance with
the executed conditional transfer document and the plan of utilization
set forth in the donee's letter of intent, unless the donee has amended
the letter, and it has been approved in writing by you and GSA and a
copy of the amendment recorded with FAA or the U.S. Coast Guard, as
applicable.
(d) In the event any of the terms, conditions, and restrictions
imposed by the conditional transfer document are breached, title and
right to the possession of the aircraft or vessel will, at the option
of GSA, revert to the United States Government. The donee, at the
option of GSA, will be liable to the Government for the proceeds from
any unauthorized disposal or for the fair market value or fair rental
value of the aircraft or vessel at the time of any unauthorized
transaction or use, as determined by GSA.
(e) If, during the period of restriction, the aircraft or vessel is
no longer suitable, usable, or further needed by the donee for the
purpose for which the donee acquires it, the donee must promptly notify
you and request disposal instructions. You may not issue disposal
instructions, except with the prior written concurrence of GSA.
(f) Combat-configured aircraft, as designated by DOD, may not be
donated for flight purposes.
(g) For all aircraft donated for nonflight use, the donee must,
within 30 calendar days of receipt of the aircraft, remove and turn
over to you the manufacturer's data plate and the aircraft historical
records (except the records of the major components/life limited parts;
e.g., engines, transmissions, rotor blades, etc., necessary to
substantiate their reuse). You must send the records and data plate to
GSA for forwarding to the FAA.
Service and Handling Charges
Sec. 102-37.310 May we accept personal checks in payment of service
charges?
No, you may accept payments only in the form of warrants, checks,
or other official instruments drawn or issued by, and in the name of,
the respective donee institution. If eligible donees have their
operational expenses paid by a parent institution or organization, you
may accept checks issued by such parent institutions in payment of the
charges.
Sec. 102-37.315 Are there restrictions on how we may use service
charge funds or other monies derived from donated Federal property?
Except as provided in Sec. 102-37.360, you must use funds collected
from service charges, or from other sources such as proceeds from sale
of undistributed property or funds collected from compliance cases,
solely for the operation of the SASP and the benefit of participating
donees. Funds
[[Page 20028]]
may be deposited, invested, or used in accordance with State law to:
(a) Cover direct and indirect costs of your operation.
(b) Purchase necessary equipment for the SASP.
(c) Maintain a reasonable working capital reserve.
(d) Rehabilitate donable surplus property, including the purchase
of replacement parts.
(e) Make refunds of service charges in excess of your working
capital reserve to your participating donees.
(f) Acquire or improve office or distribution center facilities.
(g) Pay for the costs of internal and external audits.
Cooperative Agreements
Sec. 102-37.320 What is a cooperative agreement?
A cooperative agreement is an agreement you enter into with GSA or
a Federal agency designated by GSA or another SASP for the use of
property, facilities, personnel, or services to carry out the functions
of the donation program. For example:
(a) You and GSA may cooperate under the terms of an agreement for
the provision or use of property, facilities, personnel, or services to
facilitate the allocation, transfer, and distribution of donable
surplus property. After such an agreement is executed, GSA may assist
you by:
(1) Helping you to enter into agreements with other designated
Federal agencies for the use of property, facilities, personnel, or
services as are necessary and useful in aiding you to carry out the
functions of the donation program.
(2) Furnishing available office space and related support such as
office furniture and information technology equipment to assist you in
screening and processing property for donation.
(3) Permitting you to retain items of property transferred to you
for distribution that are needed by you in performing your donation
functions.
(b) With GSA's concurrence and where authorized by State law, you
may enter into an interstate distribution cooperative agreement to act
as an agent and authorized representative of an adjacent State with
which you share a common boundary. Agreements may be considered when
donees, because of their geographic proximity to the property
distribution centers of the adjoining State, could be more efficiently
and economically serviced by surplus property facilities in the
adjacent State. You and the other SASP must agree to the payment or
reimbursement of service charges by the donee and you also must agree
to the requirements of Sec. 102-37.150(e).
(c) You may enter into a cooperative agreement with GSA to conduct
sales of nondonated or undistributed property for and on behalf of GSA.
Sec. 102-37.325 Is there a fee for services and other support supplied
under a cooperative agreement?
Payment or reimbursement under a cooperative agreement will be a
matter for resolution between you and the Federal agency. GSA will
provide assistance, to the extent possible, without reimbursement.
However, any extraordinary costs incurred in providing assistance will
be on a reimbursable basis.
Sec. 102-37.330 When may we terminate cooperative agreements?
You may terminate a cooperative agreement with GSA upon a 60-
calendar day written notice. For other authorized agreements, you or
the other party may terminate the agreement as mutually agreed. You
must promptly notify GSA when such other agreements are terminated.
Reports
Sec. 102-37.335 What reports must we provide to GSA?
(a) Quarterly report on donations. Submit a GSA Form 3040, State
Agency Monthly Donation Report of Surplus Personal Property, in
duplicate, to the appropriate GSA regional office by the 25th day of
the month following the quarter being reported. (Office of Management
and Budget Control Number 3090-0112 has been assigned to this form.)
Forms and instructions for completing the form are available from your
servicing GSA office.
(b) Additional reports. Make such reports as GSA may require to
carry out its discretionary authority to transfer surplus personal
property for donation and to report to the Congress on the status and
progress of the donation program.
Compliance and Audits
Sec. 102-37.340 What actions must we take to report damaged or missing
property in our custody?
You must immediately notify GSA and appropriate law officials of
any damage to or loss of property in your custody due to theft,
vandalism, or other unusual circumstances. You must inform GSA of any
other type of damage to or loss of property in your custody.
Sec. 102-37.345 What measures must we take to ensure that property is
used for the purpose(s) for which donated?
You must make utilization surveys and reviews, as provided in your
plan of operation, to ensure that donees are using donated property
during the period of restriction for the purposes for which it was
acquired, including any special handling conditions or use limitations
imposed by GSA or you. You must fully document your efforts and report
all instances of noncompliance to GSA.
Sec. 102-37.350 What actions must we take if a review or other
information indicates noncompliance with donation terms and conditions?
(a) Promptly investigate any suspected failure to comply with the
conditions of donated property.
(b) Notify GSA immediately where there is evidence or allegations
of fraud, nonuse, misuse, or unauthorized disposal of donated property.
(c) Temporarily defer any further donations of property where
noncompliance allegations have been made and the donee is to be
investigated, until such time as the investigation has been completed
and a determination made that the allegations are either unfounded, or
the allegations are substantiated, and the donee is proposed for
suspension or debarment.
(d) Take action to correct the noncompliance or otherwise enforce
the conditions imposed on use of the property if a donee is found to be
in noncompliance. Such action may involve:
(1) Ensuring the property is used by the present donee for the
purpose for which it was donated.
(2) Recovering the property from the donee for:
(i) Redistribution to another donee within the State;
(ii) Transfer through GSA to another SASP; or
(iii) Transfer through GSA to a Federal agency.
(3) Recovering fair market value or the proceeds of disposal in
cases of unauthorized disposal or destruction.
(4) Recovering fair rental value for the time property was used in
an unauthorized manner.
(5) Disposing of by public sale property no longer suitable,
usable, or necessary for donation.
Sec. 102-37.355 Must we coordinate with GSA on compliance actions?
In enforcing compliance with the terms and conditions imposed on
donated property, you must coordinate with GSA before undertaking the
sale of, or making demand for payment of the
[[Page 20029]]
fair market value or fair rental value of donated property that:
(a) Is subject to any special handling condition or use limitation
imposed by GSA; or
(b) Has not been placed into use by the donee, for the purposes for
which it was donated, within one year of donation, or where the donee
ceased using the property for authorized purposes during the one-year
period after being placed in use.
Sec. 102-37.360 How must we handle funds derived from compliance
actions?
You must handle funds derived from compliance actions as follows:
(a) Federal restrictions. You must promptly remit to GSA any funds
derived from the enforcement of compliance involving a violation of any
Federal restriction, for deposit in the Treasury of the United States.
You must also submit any supporting documentation indicating the source
of the funds and essential background information.
(b) State restrictions. You may retain any funds derived from a
compliance action involving violation of any State-imposed restriction
and use such funds as provided in your State plan of operation.
Sec. 102-37.365 Does coverage under the Single Audit Act exempt us
from other reviews of our program?
No, although you are covered under the Single Audit Act (31 U.S.C.
7501-7507), from time to time the General Accounting Office (GAO), GSA,
or other authorized Federal activities may audit or review the
operations of a SASP. GSA will notify the chief executive officer of
the State of the reasons for a GSA audit. You must make available
financial records and all other records of the SASP for inspection by
representatives of GSA, GAO, or other authorized Federal activities.
Disposing of Undistributed Property
Sec. 102-37.370 When must we offer property to other SASPs?
When you determine that property in your possession is usable, but
not needed by eligible donees within your State, you must offer the
property for transfer to other SASPs. You may arrange for
representatives of other SASPs to visit your distribution facilities to
inspect and select unneeded property. GSA encourages prompt transfer of
property between the States, and will assist you, upon request, in
making known to other SASPs undistributed property that is available
for transfer.
Sec. 102-37.375 Must GSA approve a transfer between SASPs?
Yes, the requesting SASP must submit a SF 123, Transfer Order
Surplus Personal Property, to the GSA regional office in which the
releasing SASP is located. GSA then has 30 calendar days to approve or
disapprove the request.
Sec. 102-37.380 May we recover our costs if property is transferred to
another SASP?
You and the receiving SASP must mutually agree on the reimbursement
of costs incurred by you in acquiring the property from the Federal
government. If there is no agreement, GSA will determine appropriate
reimbursement.
Sec. 102-37.385 When should we report undistributed property to GSA?
You should report at any time property in your possession that is
not needed by you or another SASP to the GSA regional office for
disposal instructions. You are encouraged, however, to promptly report
any property that has been in your custody longer than a year, unless a
predictable requirement exists for that property. When reporting
property to GSA, provide:
(a) The best possible description of each line item of property,
its current condition code, quantity, unit and total acquisition cost,
State serial number, demilitarization code, and any special handling
conditions;
(b) The date you received each line item of property listed; and
(c) Certification of reimbursement requested under Sec. Sec. 102-
37.400 and 102-37.405.
Sec. 102-37.390 May we sell undistributed property?
Yes, you may sell undistributed property, provided you have a
cooperative agreement with GSA to sell undistributed Federal property,
and GSA approves your request to conduct a sale. Your request to sell
property should include the proposed sale date, a listing of the
property, location of the sale, method of sale, and proposed
advertising to be used. If a request is approved, the GSA regional
sales office will provide the necessary forms and instructions for you
to use in conducting the sale.
Sec. 102-37.395 Under what conditions may we abandon or destroy
property?
(a) You may abandon or destroy undistributed property when you
determine that the property has no commercial value or the estimated
cost of its continued care and handling would exceed the estimated
proceeds from its sale. The determination must be based on a finding
made in writing by an authorized official of your agency and sent to
the appropriate GSA regional office for approval. You must include in
the written finding:
(1) The basis for the abandonment or destruction;
(2) A detailed description of the property, its condition, and
total acquisition cost;
(3) The proposed method of destruction (burning, burying, etc.) or
the abandonment location;
(4) A statement confirming that the proposed abandonment or
destruction will not be detrimental or dangerous to public health or
safety and will not infringe on the rights of other persons;
(5) The signature of the SASP director requesting approval for the
abandonment or destruction; and
(6) The title, telephone number, and signature of the SASP
reviewing authority if a line item of the property to be disposed of at
any one location at any one time has a known or estimated acquisition
cost of more than $1,000.
(b) GSA will notify you within 30 calendar days whether you may
proceed with the abandonment or destruction. GSA will provide alternate
disposition instructions if your request for abandonment or destruction
is disapproved.
Sec. 102-37.400 May we get reimbursement if property is recovered for
Federal use?
(a) You may be reimbursed for the costs you incurred in acquiring
the property, including packing, handling, and transportation costs, at
the time the property is transferred to the Federal activity, except as
noted in paragraph (b) of this section. GSA will secure agreement of
the Federal agency to pay these charges prior to the release of the
property, and annotate the amount of reimbursement on the transfer
document.
(b) When the Federal Emergency Management Agency requests property
for a presidentially declared emergency or major disaster, you are
entitled to reimbursement of documented expenses originally incurred in
the screening, transporting, and receipt of the property. You should
coordinate and make arrangements for reimbursement with the State
official in charge of disaster relief.
Sec. 102-37.405 What costs may we recover if undistributed property is
sold?
When undistributed property is disposed of by public sale, GSA may
authorize reimbursement for care and handling expenses you incurred in
acquiring the property from within or outside a State. You must certify
the costs incurred and support them with
[[Page 20030]]
documentation if requested by GSA. You will not be reimbursed for costs
subsequent to the receipt of property, including unloading, moving,
repairing, preserving, or storage. You will not be reimbursed for costs
of transporting property to a location outside a SASP distribution
facility for the purpose of a sale, unless GSA specifically requires
transportation. Reimbursement may not exceed 50 percent of total sales
proceeds and is limited to:
(a) Direct costs you initially paid to the Federal holding agency,
including but not limited to packing, preparation for shipment, and
loading; and
(b) Transportation costs you incurred, but were not reimbursed by a
donee, for initially moving the property from the Federal holding
agency to your distribution facility or other point of receipt.
Subpart E--Donations to Public Agencies and Eligible Nonprofit
Organizations
Sec. 102-37.410 To whom do ``we'', ``you'', and their variants refer?
Use of pronouns ``we'', ``you'', and their variants throughout this
subpart refers to the donee.
Eligibility
Sec. 102-37.415 Who determines if we are eligible to receive property?
If you are a public agency or a nonprofit tax-exempt activity, the
SASP within your State determines if you are eligible as a public
agency, nonprofit educational or public health institution, or a
program for older individuals. If you offer courses of instruction
devoted to the military arts and sciences, the Department of Defense
will determine your eligibility to acquire property through the SASP as
a service educational activity (SEA).
Sec. 102-37.420 What basic criteria must we meet to qualify for
eligibility?
To qualify for eligibility:
(a) Your organization must conform to the definition of one of the
categories of eligible entities listed in Sec. 102-37.225 (see
Sec. 102-37.25 for definitions).
(b) You must be approved, accredited, or licensed if it is a
requirement for operation of your program.
(c) You must be a public agency or nonprofit and tax-exempt under
section 501 of the Internal Revenue Code.
(d) You must not be debarred, suspended, or excluded from any
Federal procurement or nonprocurement program.
(e) Your program must operate or be conducted in compliance with
applicable Federal nondiscrimination statutes.
Sec. 102-37.425 What if there is no specific authority that can
approve or accredit our program as required for qualification?
In considering your eligibility, a SASP may accept letters from
public authorities, either local or State, which it deems competent
(such as a board of health or a board of education) stating that your
organization meets the standards prescribed for approved or accredited
institutions and organizations. Other documentation the SASP may accept
as evidence of your approval include the following:
(a) In the case of educational activities, a SASP may deem letters
from three accredited or State-approved institutions that students from
your institution have been and are being accepted as sufficient
evidence of your eligibility for the donation program. Or the SASP may
consider you approved if you furnish evidence showing you meet the
academic or instructional standards prescribed for public schools in
the State; i.e., your organizational entity or program is devoted
primarily to approved academic, vocational (including technical or
occupational), or professional study and instruction, which operates
primarily for educational purposes on a full-time basis for a minimum
school year as prescribed by the State and employs a full-time staff of
qualified instructors.
(b) In the case of public health institutions or organizations, a
SASP may accept licensing as evidence of approval, provided the
licensing authority prescribes the medical requirements and standards
for the professional and technical services of your institution.
(c) The awarding of research grants to your institution or
organization by a recognized authority such as the National Institutes
of Health, the National Institute of Education, or by similar national
advisory council or organization may also constitute approval of your
institution or program, provided all other criteria are met.
Terms and Conditions
Sec. 102-37.430 What certifications must we make before acquiring
property?
Before you acquire property, you must certify that:
(a) You are a public agency or a nonprofit organization meeting the
requirements of the Property Act and/or regulations of GSA.
(b) You are acquiring the property for your own use and will use
the property for authorized purposes.
(c) You are not acquiring the property for any other use or
purpose, for use outside the State, or for sale.
(d) Funds are available to pay all costs and charges incident to
the donation.
(e) You will comply with the nondiscrimination regulations issued
under title VI of the Civil Rights Act of 1964 (52 U.S.C. 2000d-2000d-
4), section 606 of title VI of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 476), as amended, section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), as amended, title IX of the
Education Amendments of 1972 (20 U.S.C. 1681-1688), as amended, and
section 303 of the Age Discrimination Act of 1975 (42 U.S.C. 6101-
6107).
(f) You are not currently debarred, suspended, declared ineligible,
or voluntarily excluded from receiving the property.
Sec. 102-37.435 What agreements must we make before acquiring
property?
You must agree to the following conditions when acquiring property:
(a) The property is acquired on an ``as is, where is'' basis,
without warranty of any kind, and you will hold the Government harmless
from any or all debts, liabilities, judgments, costs, demands, suits,
actions, or claims of any nature arising from or incident to the
donation of the property, its use, or final disposition.
(b) You will return to the SASP, at your expense, any donated
property that is not placed in use for the purposes for which it was
donated within one year of donation, or which ceases to be used for
such purposes within one year of being placed in use.
(c) You will comply with the terms, conditions, reservations, and
restrictions, imposed by your SASP on the use of any item of property
having a unit acquisition cost of $5,000 or more and any passenger
motor vehicle. (If you are an SEA, this requirement does not apply to
you.)
(d) You agree that upon execution of the SASP distribution document
you have conditional title only to the property during the applicable
period of restriction. Full title to the property will vest in you only
after you have met all of the requirements of this part.
(e) You will comply with the terms, conditions, reservations, or
restrictions imposed on any other donated item by the SASP. (Not
applicable to SEAs.)
(f) You will comply with conditions imposed by GSA, if any,
requiring special handling or use limitations on donated property.
(g) You will use the property for an authorized purpose during the
period of restriction (see Sec. 101-37.440).
(h) You will obtain permission from the SASP before selling,
trading, leasing,
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loaning, bailing, cannibalizing, encumbering or otherwise disposing of
property during the period of restriction, or removing it permanently
for use outside the State.
(i) You will report to the SASP on the use, condition, and location
of donated property, and on other pertinent matters as the SASP may
require from time to time.
(j) If an insured loss of the property occurs during the period of
restriction, GSA or the SASP (depending on which agency has imposed the
restriction) will be entitled to reimbursement out of the insurance
proceeds of an amount equal to the unamortized portion of the fair
market value of the damaged or destroyed item.
Sec. 102-37.440 May we use donated property for any purpose?
You may use donated property only for the following purposes:
(a) Public purposes. A public agency that acquires property through
a SASP must use such property to carry out or to promote for the
residents of a given political area one or more public purposes.
(b) Educational and public health purposes. A nonprofit educational
or public health institution or organization must use property for
purposes of education or public health, including research for any such
purpose. While this does not preclude the use of donated property for a
related or subsidiary purpose incident to the institution's overall
program, the property must be used essentially for the primary
educational or public health function for which the activity receives
donable property and not for a nonrelated or commercial purpose.
(c) Programs for older individuals. Public and nonprofit programs
for older individuals must use donated property to provide services
that are necessary for the general welfare of older individuals, such
as social services, transportation services, nutrition services, legal
services, and multipurpose senior centers.
Sec. 102-37.445 May we acquire property for exchange?
No, you may not acquire property for exchange.
Screening and Requesting Property
Sec. 102-37.450 Do we need special authorization to screen property
for our program(s)?
Yes, you must have a valid screener-identification card (GSA Form
2946) before screening and freezing property at holding agencies.
However, you do not need a screener-ID card to inspect, evaluate, or
remove specific property already set aside or approved for donation.
Sec. 102-37.455 How do we obtain a screener-ID card?
To obtain screening authorization, you must ask your SASP to submit
a written request to the GSA regional office serving the area in which
you are located.
Sec. 102-37.460 What type of information must we provide when
requesting an aircraft or vessel?
Requests for donation of aircraft and vessels must be supported
with a letter of intent, signed and dated by your authorized
representative, that sets forth a detailed plan of utilization for the
property. The letter of intent must provide the following information:
(a) A description of the aircraft or vessel requested. If an
aircraft, the description must include the type, model or size, and the
serial number, if known. If a vessel, it must include the type, name,
class, size, displacement, length, beam, draft, lift capacity, and the
hull or registry numb