[Code of Federal Regulations]
[Title 32, Volume 4]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 32CFR644.85]

[Page 168]
 
                       TITLE 32--NATIONAL DEFENSE
 
              CHAPTER V--DEPARTMENT OF THE ARMY (CONTINUED)
 
PART 644--REAL ESTATE HANDBOOK--Table of Contents
 
                         Subpart C--Acquisition
 
Sec. 644.85  General negotiation procedures.

    (a) Provisions of Military Construction Appropriation Act. (1) 
Section 108 of the Military Construction Appropriation (MCA) Act of 1978 
(Pub. L. 95-101) provides that no part of the funds provided in the Act 
shall be used for purchase of land or easements in excess of the value 
as determined by the Corps of Engineers, except:
    (i) Where there is a determination of value by a Federal Court; or
    (ii) Purchases negotiated by the Attorney General or his designee; 
or
    (iii) Where the estimated value is less than $25,000; or
    (iv) As otherwise determined by the Secretary of Defense to be in 
the public interest.
    (2) The above wording, except for paragraph (a)(1)(iv) of this 
section, constitutes a limitation on accepting or submitting a 
recommendation for approval of a counteroffer in excess of the appraised 
value. Paragraph (a)(1)(iv) brings military acquisition within the 
general acquisition policy required under Pub. L. 91-646. Future MCA 
Acts should be carefully examined to determine if any limitations on 
acquisition have been restored.
    (b) Local Cooperation Projects. The participation of a non-Federal 
agency in a federally-assisted project will be in accord with section 
221 of Pub. L. 91-611 and subpart J (to be published). Acquisition of 
real property by a non-Federal agency will be in accord with sections 
210 and 305 of Pub. L. 91-646 and this chapter.
    (c) Negotiations on the Basis of Ownership; ``Package-Deal'' 
Negotiations. (1) Normally, negotiations for all interests in all tracts 
which are being acquired from one parent ownership will be negotiated at 
one time. These tracts will usually consist of all those to which the 
same basic tract number has been assigned. Exceptions may be made only 
where negotiations for some of the tracts in a series must be 
accomplished to obtain possession, or for other critical reasons. 
Piecemeal acquisition must be avoided if at all possible.
    (2) When more than one tract is operated by the owner as a unit, 
negotiations should take place on the two or more tracts or groups of 
tracts, whether or not they bear the same basic tract number.
    (3) In cases where an owner insists on a ``package-deal'' 
negotiation on all tracts in the same ownership, or having at least one 
common owner, the negotiations will be considered as one transaction.
    (4) Tracts which are in the same ownership, but which are not 
operated as a unit, should, unless the owner desires otherwise, be 
negotiated separately, on the basis of the separate appraisals which 
would be prepared in this type of case.
    (5) Under paragraphs (c)(1), (2), and (3) of this section, the 
limitations of authority to accept counteroffers will be applied to the 
entire transaction.
    (d) Acquisition by Condemnation if Negotiations Fail. As soon as it 
is determined that a satisfactory agreement cannot be reached after full 
consideration of all reasonable counteroffers received, action will be 
promptly taken to acquire the property by condemnation proceedings, 
including the filing of a declaration of taking, in order to make funds 
available to the landowner and to maintain the project acquisition 
schedule. The landowner should be advised in writing, sufficiently in 
advance of the submission of the condemnation assembly to the Chief of 
Engineers, that condemnation proceedings will be recommended and the 
reason therefor. Condemnation assemblies will include copies of the 
Negotiator's Reports or other written records of negotiations. The 
estimated compensation to be deposited in the registry of the Federal 
District Court with the filing of a declaration of taking will be in the 
amount of the approved appraisal.