§ 101-43.302 - Agency responsibility.

(a) To obtain maximum utilization and to minimize the procurement of new items, each executive agency shall be responsible for making excess personal property available and for facilitating the transfer of the property to other Federal agencies for direct use or for use by their authorized cost-reimbursement contractors, cooperatives, and project grantees, and to the organizations specified in § 101-43.309-1. Each executive agency shall, to the maximum practicable extent, fulfill its requirements for property by obtaining excess personal property from other Federal agencies instead of initiating a new procurement.

(b) Agencies receiving or transferring excess personal property shall establish controls over the processing of transfer orders and shall establish and maintain an adequate system of property accountability. Each Federal agency shall develop and maintain an effective system for the prevention and detection of situations involving the nonuse, improper use, or unauthorized disposal or destruction of excess personal property received by the agency. This responsibility should include compliance reviews, field inspections, audits, and other procedures to monitor the excess personal property controlled by an agency. The system of accountability for excess personal property should be in accordance with agency procedures, and records subject to audit by an internal audit group of the Federal agency and made available to the General Accounting Office upon request.

(c) GSA will assist agencies in meeting their requirements for property of the types excepted by this part from formal reporting as excess. Federal agencies requiring such property should contact the appropriate GSA regional office indicated in § 101-43.4802. GSA area utilization officers, stationed at key excess generating points throughout the United States, screen and offer nonreported personal property as it becomes available for transfer.

(d) GSA regional offices will screen all requests for replenishment of stock and direct delivery purchase requests submitted by agencies against lists of excess personal property available in their regions. GSA may take physical custody of such excess personal property for redistribution or may direct its transfer to executive agencies instead of procurement of new property from commercial sources of supply. Notice of intent to substitute will be provided to the ordering agency if the excess personal property is used, rehabilitated, or differs in some substantial characteristics from the item ordered. This will give the ordering agency an opportunity to inspect the property before shipment. Acceptance of excess personal property under these circumstances shall be required unless the using agency submits a written justification stating that such transfers or substitutions would result in serious hardship or impairment to its operations.

(e) Part 101-27 prescribes standards for executive agencies use in computing inventory levels. To encourage the use of excess property which might otherwise be disposed of as surplus, inventory levels may be adjusted upward when items of stock are to be acquired from excess sources. Such adjustments should be computed with caution and arrived at after careful analysis which gives consideration to the factors set forth in part 101-27 and this part. Generally, acquisitions of items for inventory from excess shall not exceed a 2-year supply except when:

(1) A greater quantity is needed to meet known requirements for an authorized planned program.

(2) The item is not available without special manufacture and a predictable requirement exists.

(3) Administrative determination has been made that in application of the economic order quantity (EOQ) principle of stock replenishment within an agency, an inventory level in excess of 2 years is appropriate for low dollar-volume items.

(4) The items are being transferred into authorized stock funds for resale to other Government agencies.

(5) In addition, the following conditions should be met prior to acquisition of excess:

(i) There must be a predictable requirement for an authorized program.

(ii) The cost of acquisition, including packing and shipping, carrying in inventory, and preservation, shall not exceed delivered cost of new material.

(iii) The supply acquired does not exceed the expected shelf life, considering condition at time of acquisition.

(iv) The supply of spare parts acquired shall not exceed the life expectancy of the equipment supported.