[Federal Register Volume 71, Number 176 (Tuesday, September 12, 2006)]
[Proposed Rules]
[Pages 53646-53648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15073]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 102-35
[FMR Case 2004-102-1]
RIN 3090-AH93
Federal Management Regulation; Disposition of Personal Property
AGENCY: Office of Governmentwide Policy, General Services
Administration (GSA).
ACTION: Proposed rule.
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SUMMARY: The General Services Administration is amending the Federal
Management Regulation (FMR) by revising coverage on personal property
and moving it into Subchapter B of the FMR. This proposed rule adds a
new part to Subchapter B of the FMR to provide an overview of the
property disposal regulation and provide definitions for terms found in
the FMR parts as well as the Federal Property Management Regulations
(FPMR) parts. The FPMR parts will be included in the FMR in the near
future. The FMR and any corresponding documents may be accessed at
GSA's Web site at http://www.gsa.gov/fmr.
DATES: Interested parties should submit comments in writing on or
before October 12, 2006 to be considered in the formulation of a final
rule.
ADDRESSES: Submit comments identified by FMR case 2004-102-1 by any of
the following methods:
Federal eRulemaking Portal:
http://www.regulations.gov. Follow the instructions for submitting
comments.
Agency Web Site: http://www.gsa.gov/fmr. Click on FMR
Proposed Rules, and the FMR case number to submit comments.
E-mail: [email protected]. Include FMR case 2004-
102-1 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW., Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FMR case 2004-
102-1 in all correspondence related to this case. All comments received
will be posted without change to http://www.gsa.gov/fmr, including any
personal information provided. Click on ``FMR Public Comments''.
FOR FURTHER INFORMATION CONTACT The Regulatory Secretariat, Room 4035,
GS Building, Washington, DC 20405, at (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Robert Holcombe, Office of Governmentwide Policy,
Personal Property Management Policy, at (202) 501-3828, or e-mail at
[email protected]. Please cite FMR case 2004-102-1.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule adds a new part, 102-35, to Subchapter B of the
FMR to provide an overview of the property disposal regulation and to
provide definitions for terms found in FMR parts 102-36 through 102-42
(41 CFR 102-36 through 102-42), as well as FPMR parts 101-42 and 101-48
(41 CFR 101-42 and 101-48) which will be included in the FMR in the
near future. This part serves as a summary and overview of the policies
relating to the disposal of Federal personal property and provides
overall guidance for all methods of property disposal.
Finally, this part emphasizes the use of excess property from other
agencies as the first source of supply, and specifically identifying
the preference to transfer property to Federal agencies for their own
use before transferring that property to agencies for use by non-
Federal entities.
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
This proposed rule is not required to be published in the Federal
Register for notice and comment; therefore the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., does not apply.
[[Page 53647]]
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
rule does not impose recordkeeping or information collection
requirements, or the collection of information from offerors,
contractors, or members of the public which require the approval of the
Office of Management and Budget (OMB) under 44 U.S.C. 3501 et seq.
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 Part 102-35
Government employees, Personal property.
Dated: January 18, 2006.
John G. Sindelar,
Acting Associate Administrator, Office of Governmentwide Policy.
For the reasons set forth in the preamble, GSA proposes to amend 41
CFR chapter 102 as follows:
CHAPTER 102--FEDERAL MANAGEMENT REGULATION
1. Part 102-35 is added to subchapter B of chapter 102 to read as
follows:
PART 102-35--DISPOSITION OF PERSONAL PROPERTY
Sec.
102-35.5 What is the scope of the General Services Administration's
regulations on the disposal of personal property?
102-35.10 How are these regulations for the disposal of personal
property organized?
102-35.15 What are the goals of GSA's personal property regulations?
102-35.20 What definitions apply to GSA's personal property
regulations?
102-35.25 What management reports must we provide?
102-35.30 What actions must I take regardless of the property
disposition method?
Authority: 40 U.S.C. 121(c).
Sec. 102-35.5 What is the scope of the General Services
Administration's regulations on the disposal of personal property?
The General Services Administration's personal property disposal
regulations contained in this part and parts 102-36 through 102-42 of
this subchapter B as well as parts 101-42 and 101-48 of the Federal
Property Management Regulations (41 CFR parts 101-42 and 101-48) cover
the disposal of personal property under the custody and control of
executive agencies located in the United States, the U.S. Virgin
Islands, American Samoa, Guam, Puerto Rico, the Northern Mariana
Islands, the Federated States of Micronesia, the Marshall Islands, and
Palau, except in part 102-39 of this subchapter B which applies to the
replacement of all property owned by executive agencies worldwide using
the exchange/sale authority and in sections 102-36.380 through 102-
36.400 which apply to the disposal of excess property located in
countries and areas not listed in this subpart. The legislative and
judicial branches are encouraged to follow these provisions for
property in their custody and control.
Sec. 102-35.10 How are these regulations for the disposal of personal
property organized?
The General Services Administration (GSA) has divided its
regulations for the disposal of personal property into the following
program areas:
(a) Disposition of excess personal property (part 102-36 of this
subchapter B).
(b) Donation of surplus personal property (part 102-37 of this
subchapter B).
(c) Sale of surplus personal property (part 102-38 of this
subchapter B).
(d) Replacement of personal property pursuant to the exchange/sale
authority (part 102-39 of this subchapter B).
(e) Utilization and disposal of hazardous materials and certain
categories of property (part 101-42 of the Federal Property Management
Regulations (FPMR), 41 CFR 101-42).
(f) Disposition of seized and forfeited, voluntarily abandoned, and
unclaimed personal property (part 101-48 of the FPMR, 41 CFR 101-48).
(g) Utilization, donation, and disposal of foreign gifts and
decorations (part 102-42 of this subchapter B).
Sec. 102-35.15 What are the goals of GSA's personal property
regulations?
The goals of GSA's personal property regulations are to--
(a) Reduce procurement costs by maximum use of the exchange/sale
authority for the replacement of personal property;
(b) Improve the identification and reporting of excess personal
property;
(c) Maximize the use of excess property as the first source of
supply to minimize expenditures for the purchase of new property, when
practicable;
Note to Sec. 102-35.15(c): If there are competing requests among
Federal agencies for excess property, preference will be given to
agencies where the transfer will avoid a new Federal procurement. A
transfer to an agency where the agency will provide the property to a
non-Federal entity for the non-Federal entity's use will be secondary
to Federal use.
(d) Achieve maximum use of Government property through the donation
of surplus personal property to State and local public agencies and
other eligible non-Federal recipients;
(e) Obtain the optimum monetary return to the Government for
surplus personal property sold and property sold under the exchange/
sale authority; and
(f) Reduce management and inventory costs by appropriate use of the
abandonment/destruction authority to dispose of unneeded personal
property that has no commercial value or the estimated cost of
continued care and handling would exceed the estimated sales proceeds
(see FMR Sec. Sec. 102-36.305 through 102-36.330).
Sec. 102-35.20 What definitions apply to GSA's personal property
regulations?
The following are definitions of, or cross-references to, some key
terms that apply to GSA's personal property regulations. Other personal
property terms are defined in the sections or parts to which they
primarily apply.
Abandoned or other unclaimed property (see Sec. 101-48.001-1 of
the Federal Property Management Regulations (41 CFR 101-48.001-1)).
Accountable Personal Property includes nonexpendable personal
property whose expected useful life is two years or longer and whose
acquisition value, as determined by the agency, warrants tracking in
the agency's property records, including capitalized and sensitive
personal property.
Accountability means the ability to account for personal property
by providing a complete audit trail for property transactions from
receipt to final disposition.
Acquisition cost means the original purchase price of an item.
Capitalized Personal Property includes property that is entered on
the agency's general ledger records as a major investment or asset. An
agency must determine its capitalization level based on generally
accepted accounting standards as defined by the American Institute of
Certified Public Accountants.
Control means the ongoing function of maintaining physical
oversight and surveillance of personal property throughout its complete
life cycle using various property management tools and techniques
taking into account the environment in which the property is located
and its vulnerability to theft, waste, fraud, or abuse.
[[Page 53648]]
Excess personal property (see Sec. 102-36.40 of this subchapter
B).
Exchange/sale (see Sec. 102-39.20 of this subchapter B).
Executive agency (see Sec. 102-36.40 of this subchapter B).
Federal agency (see Sec. 102-36.40 of this subchapter B).
Foreign gifts and decorations (see Sec. 102-42.10 of this
subchapter B).
Forfeited property (see Sec. 101-48.001-5 of the FPMR (41 CFR 101-
48.001-5)).
Inventory includes a formal listing of all accountable property
items assigned to an agency, along with a formal process to verify the
condition, location, and quantity of such items. This term may also be
used as a verb to indicate the actions leading to the development of a
listing. In this sense, an inventory must be conducted using an actual
physical count, electronic means, and/or statistical methods.
National property management officer means an official, designated
in accordance with Sec. 102-36.45(b) of this subchapter B, who is
responsible for ensuring effective acquisition, use, and disposal of
excess property within your agency.
Personal property (see Sec. 102-36.40 of this subchapter B).
Property management means the system of acquiring, maintaining,
using and disposing of the physical assets of an organization or
entity.
Seized property means personal property that has been confiscated
by a Federal agency, and whose care and handling will be the
responsibility of that agency until final ownership is determined by
the judicial process.
Sensitive Personal Property includes all items, regardless of
value, that require special control and accountability due to unusual
rates of loss, theft or misuse, or due to national security or export
control considerations. Such property includes weapons, ammunition,
explosives, and classified property or records, information technology
equipment with memory capability, cameras, and communications
equipment. These classifications do not preclude agencies from
specifying additional personal property classifications to effectively
manage their programs.
Surplus personal property (see Sec. 102-37.25 of this subchapter
B).
Utilization means the identification, reporting, and transfer of
excess personal property among Federal agencies to fill current or
future authorized requirements in lieu of new procurement.
Sec. 102-35.25 What management reports must we provide?
(a) There are three reports that must be provided. The report
summarizing the property provided to non-Federal recipients and the
report summarizing exchange/sale transactions (see FMR 102-36.295 and
FMR 102-39.75 respectively) must be provided every year (negative
reports are required). In addition, if you conduct negotiated sales of
surplus personal property valued over $5,000 in any year, you must
report this transaction in accordance with FMR 102-38.115 (negative
reports are not required for this report).
(b) The General Services Administration (GSA) may request other
reports as authorized by 40 U.S.C. 506(a)(1)(A).
Sec. 102-35.30 What actions must I take regardless of the property
disposition method?
Regardless of the disposition method used, you should take the
following actions.
(a) You must maintain property in a safe, secure, and cost-
effective manner until final disposition.
(b) You have authority to use the abandonment/destruction
provisions at any stage of the disposal process (see Sec. Sec. 102-
36.305 through 102-36.330 and Sec. 102-38.70 of this subchapter B).
(c) You must implement policies and procedures to remove sensitive
or classified information from property. Agency-affixed markings should
be removed, if at all possible, prior to property permanently leaving
your agency's control.
(d) Government property may only be used as authorized by your
agency. Title to Government property may not be transferred to a non-
Federal entity unless through official procedures specifically
authorized by law.
[FR Doc. E6-15073 Filed 9-11-06; 8:45 am]
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