[Federal Register Volume 63, Number 207 (Tuesday, October 27, 1998)]
[Rules and Regulations]
[Pages 57233-57236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28542]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 63, No. 207 / Tuesday, October 27, 1998 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
7 CFR Chapter XXXII
RIN 0500-AA00
Office of Procurement and Property Management; Uniform Procedures
for the Acquisition and Transfer of Excess Personal Property
AGENCY: Office of Procurement and Property Management.
ACTION: Final rule.
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SUMMARY: The final rule sets forth uniform procedures for the
acquisition and transfer of excess personal property to the 1890 Land
Grant Institutions (including Tuskegee University), the 1994 Land Grant
Institutions and the Hispanic-Serving Institutions in support of
research, educational, technical, and scientific activities or for
related programs as authorized by section 923 of the Federal
Agriculture Improvement and Reform Act (FAIR) of 1996 (Pub. L. 104-
127), 7 U.S.C. 2206a.
EFFECTIVE DATE: November 27, 1998.
FOR FURTHER INFORMATION CONTACT: Kathy Fay on 202-720-9779.
SUPPLEMENTARY INFORMATION:
I. Background
II. Analysis of comments
III. Procedural Requirements
A. Executive Order Nos. 12866 and 12988.
B. Regulatory Flexibility Act.
C. Paperwork Reduction Act.
D. Small Business Regulatory Enforcement Fairness Act.
IV Electronic Access Addresses
I. Background
The proposed rule was published in the Federal Register on January
23, 1998 (63 FR 3481). Three comments were received.
II. Analysis of comments
The General Services Administration (GSA) requested that
Accountable Utilization Officer be changed to Area Utilization Officer.
GSA was unclear if the Department of Agriculture (USDA) would sign the
Standard Form 122, Transfer Order Excess Personal Property as the
approving office and forward the document to GSA for final approval.
USDA will sign the SF-122 as the approving office and forward the
document to GSA for final approval. GSA asked we note that where there
are competing Federal requests for excess property, GSA gives a higher
priority to those requests where title will be retained by the Federal
Government. Changes have been made to section 3200.4 to clarify the
rule and incorporate the GSA recommended addition. GSA also expressed
concern about USDA's plan to conduct compliance checks. USDA intends to
conduct scheduled compliance reviews on an annual basis to ensure that
the property is being used for intended purposes, and has added
additional language to section 3200.9 to so state.
The State of South Dakota, Federal Property Agency requested that
we not transfer title of excess personal property to the 1890 Land
Grant Institutions, (including Tuskegee University), 1994 Land Grant
Institutions and Hispanic-Serving Institutions. The State of South
Dakota, Federal Property Agency expressed concern that the transfer of
title would prevent further return of the property to Federal surplus
when no longer needed by an eligible institution. This would deprive
other State, local and nonprofit agencies of potential future use of
the property. USDA believes that transferring title of excess personal
property to institutions for the most part located in economically
disadvantaged rural and urban areas will improve research, educational,
technical, and scientific activities and related programs and build
capacity on the respective campuses. The State of South Dakota, Federal
Property Agency is concerned about usable excess personal property
being requested for purposes of cannibalization. The State of South
Dakota, Federal Property Agency suggests excess personal property
should be screened first for use of the property for its intended
purpose. USDA notes that eligible institutions are required to submit a
supporting statement with each excess personal property request to
cannibalize. The supporting statement must justify clearly the
cannibalization, and indicate that cannibalizing the requested property
for secondary use has a greater benefit than utilization of the item in
its existing form. USDA has added a new subsection to 3200.6 to
prohibit stockpiling of excess personal property, and note that
requests for cannibalization normally are subordinate to requests for
complete items.
The National Association of State Agencies for Surplus Property
(NASASP) opposed the proposed rule out of concern that the transfer of
title would have a negative effect on the amount of property available
for the Federal surplus property donation program. USDA believes
targeting institutions located for the most part in areas that are
economically disadvantaged will improve their capacity in the areas of
research, educational, technical, and scientific activities.
With respect to concern regarding accountability for the property
and improper use for cannibalization purposes, USDA notes that eligible
institutions violating the provisions of this part may face suspension
and debarment under 7 CFR part 3017.
Additional, non-substantive stylistic changes also have been made.
III. Procedural Requirements
A. Executive Order Nos. 12866 and 12988
This rule has been determined to be not significant for purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget (OMB). The proposed rule has been
reviewed under Executive Order 12988, Civil Justice Reform. The
proposed rule meets the applicable standards in section 3 of Executive
Order 12988.
B. Regulatory Flexibility Act
The Department of Agriculture certifies that this rule will not
have a significant economic impact on a substantial number of small
entities as defined in the Regulatory Flexibility Act, 5 U.S.C. 601 et
seq. This certification is based on the fact that the regulation
imposes no new requirements on small entities, and that any impact on
the reduction of surplus property due to the transfer of title will be
minimal because most property
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returned to USDA by the institutions for surplus in the past has been
unusable.
C. Paperwork Reduction
The information collection and record keeping requirements to
implement these procedures have been cleared by the Office of
Management and Budget (OMB), under 0505-0019, in accordance with the
Paperwork Reduction Act., 44 U.S.C. 3500 et seq.
D. Small Business Regulatory Enforcement Fairness Act
This rule has been submitted to each House of Congress and the
Comptroller General in accordance with the Small Business Regulatory
Enforcement Fairness Act of 1996, 5 U.S.C. 801, et seq.
IV. Electronic Access Addresses.
You may send electronic mail (E-mail) to kathy.fay@usda.gov or
contact us via fax at (202) 720-3747.
List of Subjects in 7 CFR Part 3200
Excess Government property, Government property, Government
property management.
For the reasons set forth in the preamble, the Department of
Agriculture establishes chapter XXXII of title 7 of the Code of Federal
Regulations to read as follows:
CHAPTER XXXII--OFFICE OF PROCUREMENT AND PROPERTY MANAGEMENT,
DEPARTMENT OF AGRICULTURE
Part 3200--Department of Agriculture guidelines for the acquisition
and transfer of excess personal property.
3201--3299 [Reserved]
PART 3200--DEPARTMENT OF AGRICULTURE GUIDELINES FOR THE ACQUISITION
AND TRANSFER OF EXCESS PERSONAL PROPERTY
Sec.
3200.1 Purpose.
3200.2 Eligibility.
3200.3 Definitions.
3200.4 Procedures.
3200.5 Dollar limitation.
3200.6 Restrictions.
3200.7 Title.
3200.8 Costs.
3200.9 Accountability and record keeping.
3200.10 Disposal.
3200.11 Liabilities and losses.
Authority: 5 U.S.C. 301; 7 U.S.C. 2206a.
Sec. 3200.1 Purpose.
This Part sets forth the procedures to be utilized by Department of
Agriculture (USDA) in the acquisition and transfer of excess property
to the 1890 Land Grant Institutions (including Tuskegee University),
1994 Land Grant Institutions, and the Hispanic-Serving Institutions in
support of research, educational, technical, and scientific activities
or for related programs as authorized by 7 U.S.C. 2206a. Title to the
personal property shall pass to the institution.
Sec. 3200.2 Eligibility.
Institutions that are eligible to receive Federal excess personal
property pursuant to the provisions of this part are the 1890 Land
Grant Institutions (including Tuskegee University), 1994 Land Grant
Institutions, and the Hispanic-Serving Institutions conducting
research, educational, technical, and scientific activities or related
programs.
Sec. 3200.3 Definitions.
(a) 1890 Land grant institutions--any college or university
eligible to receive funds under the Act of August 30, 1890 (7 U.S.C.
321 et.seq.), including Tuskegee University.
(b) 1994 Land grant institutions--any of the tribal colleges or
universities as defined in section 532 of the Equity in Educational
Land-Grant Status Act of 1994 (7 U.S.C. 301 note).
(c) Hispanic-serving institutions--institutions of higher education
as defined in section 316(b) of the Higher Education Act of 1965 (20
U.S.C. 1059c (b)).
(d) Property management officer--is an authorized USDA or
institution official responsible for property management.
(e) Screener--is an individual designated by an eligible
institution and authorized by the General Services Administration (GSA)
to visit property sites for the purpose of inspecting personal property
intended for use by the institution.
(f) Excess personal property--is any personal property under the
control of a Federal agency that is no longer needed.
(g) Cannibalization--is the dismantling of equipment for parts to
repair or enhance other equipment.
Sec. 3200.4 Procedures.
(a) To receive information concerning the availability of Federal
excess personal property, an eligible institution's property management
officer may contact their regional GSA, Area Utilization Officer. All
property management officers of eligible institutions will be placed on
the USDA mailing list for information on the availability of property.
USDA excess property will first be screened by USDA agencies through
the Departmental Excess Personal Property Coordinator (DEPPC) using the
PMIS/PROP system.
(b) Excess property selected by screeners of eligible institutions
should be inspected whenever possible, or the holding agency should be
contacted to verify the condition of the items, because interpretation
of condition codes varies among Federal agencies.
(c) If the condition of the item is acceptable, the institution
should ``freeze'' (reserve) items by calling the appropriate GSA office
or USDA Departmental Excess Personal Property Coordinator (DEPPC).
Since GSA may have several ``freezes'' on a piece of equipment, it is
critical that the paperwork be submitted as soon as possible. Further,
while transfers of excess personal property normally will be approved
by GSA on a first-come-first-serve basis, consideration will be given
to such factors as national defense requirements, emergency needs,
preclusion of new procurement, energy conservation, equitable
distribution, and retention of title in the Government.
(d) Eligible institutions may submit property requests by mail or
fax on a Standard Form 122, ``Transfer Order Excess Personal
Property,'' with a written justification statement (submitted by the
recipient) explaining how the property will be used for research,
educational, technical, or scientific activity or for related programs.
(e) The SF-122 should be signed by the eligible institution's
property management officer or authorized designee.
(1) The following information should also be provided:
(i) Date prepared.
(ii) GSA/DEPPC address.
(iii) Ordering Agency and address.
(iv) Holding Agency and address.
(v) Name and address of Institution.
(vi) Location of property.
(vii) Shipping instruction (including institution contact person
and phone number).
(viii) Complete description of property including original
acquisition cost, serial number, condition code, and quantity.
(2) This statement needs to be added following the property
description but does not serve as a justification statement:
The property requested hereon is certified to be used in support
of research, educational, technical, and scientific activities or
for related programs. This transfer is requested pursuant to the
provisions of section 923 of Pub. L. 104-127 (7 U.S.C. 2206a).
(f) The SF-122 should be forwarded to USDA for approval and
signature by an authorized USDA official. As
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confirmation of approval, the eligible institution's property
management officer will receive a stamped copy of the SF-122. If the
request is disapproved, it will be returned to the property management
officer of the eligible institution with an appropriate explanation.
All USDA approved SF-122's will be forwarded to DEPPC or the
appropriate GSA office for final approval.
(g) Once the excess personal property is physically received, the
institution is required to immediately return a copy of the SF-122 to
USDA indicating receipt of requested items. Cancellations should also
be reported to USDA.
Note: USDA shall send an informational copy of all SF-122's
transactions to GSA.
Sec. 3200.5 Dollar Limitation.
There is no dollar limitation on excess personal property obtained
under these procedures.
Sec. 3200.6 Restrictions.
(a) The authorized USDA official will approve the transfer of
excess personal property in the following groups for the 1890 Land
Grant Institutions (including Tuskegee University), 1994 Land Grant
Institutions and the Hispanic-Serving Institutions in support of
research, educational, technical, and scientific activities or for
related programs:
Eligible Federal Supply Code Groups
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FSC group Name
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12.................................. Fire Control Equipment.
19.................................. Ships, Small Crafts, Pontoons, and
Floating Docks.
22.................................. Railway Equipment.
23.................................. Vehicles, Motor Vehicles, Trailers
and Cycles.
24.................................. Tractors.
26.................................. Tires and Tubes.
28.................................. Engines, Turbines and Components.
29.................................. Engine Accessories.
30.................................. Mechanical Power Transmission
Equipment.
31.................................. Bearings.
32.................................. Woodworking Machinery and
Equipment.
34.................................. Metal Working Machinery.
35.................................. Service and Trade Equipment.
36.................................. Special Industry Machinery.
37.................................. Agricultural Machinery and
Equipment.
38.................................. Construction, Mining, Excavating,
and Highway Maintenance
Equipment.
39.................................. Material Handling Equipment.
40.................................. Rope, Cable, Chain, and Fittings.
41.................................. Refrigeration, Air Conditioning
and Air Circulating Equipment.
42.................................. Fire Fighting, Rescue, and Safety
Equipment.
43.................................. Pumps, Compressors.
44.................................. Furnace, Steam Plant, and Drying.
45.................................. Plumbing, Heating, and Sanitation
Equipment; and Nuclear Reactors.
46.................................. Water Purification and Sewage
Treatment Equipment.
47.................................. Pipe, Tubing, Hose, and Fittings.
49.................................. Maintenance and Repair Shop
Equipment.
51.................................. Hand Tools.
52.................................. Measuring Tools.
53.................................. Hardware and Abrasives.
54.................................. Prefabricated Structures and
Scaffolding.
55.................................. Lumber, Millwork, Plywood, and
Veneer.
56.................................. Construction and Building
Materials.
58.................................. Communication, Detection, and
Coherent Radiation Equipment.
59.................................. Electrical and Electronic
Equipment Components.
60.................................. Fiber Optics Materials,
Components, Assemblies, and
Accessories.
61.................................. Electric Wire, and Power and
Distribution Equipment.
62.................................. Lighting Fixtures and Lamps.
63.................................. Alarm, Signal, and Security
Detection Systems.
65.................................. Medical, Dental, and Veterinary
Equipment and Supplies.
66.................................. Instruments and Laboratory
Equipment.
67.................................. Photographic Equipment.
69.................................. Training Aids and Devices.
70.................................. General Purposes Automatic Data
Processing Equipment (Including
Firmware) Software, and Support
Equipment.
71.................................. Furniture.
72.................................. Household and Commercial
Furnishings and Appliances.
73.................................. Food Preparation and Serving
Equipment.
74.................................. Office Machines, Text Processing
Systems and Visible Record
Equipment.
75.................................. Office Supplies and Devices.
76.................................. Books, Maps, and Other
Publications.
77.................................. Musical Instruments, Phonographs,
and Home-type Radios.
78.................................. Recreational and Athletic
Equipment.
79.................................. Cleaning Equipment and Supplies.
80.................................. Brushes, Paints, Sealers, and
Adhesives.
81.................................. Containers, Packaging and Packing
Supplies.
83.................................. Textiles, Leather, Furs, Apparel
and Shoe Findings, Tents, and
Flags.
84.................................. Clothing, Individual Equipment and
Insignia.
85.................................. Toiletries.
87.................................. Agricultural Supplies.
88.................................. Live Animals.
91.................................. Fuels, Lubricants, Oils and Waxes.
93.................................. Nonmetallic Fabricated Materials.
94.................................. Nonmetallic Crude Materials.
95.................................. Metal Bars, Sheets, and Shapes.
96.................................. Ores, Minerals and their Primary
Products.
99.................................. Miscellaneous.
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Note to paragraph (a): Requests for items in Federal Supply Code
Groups other than those listed in this paragraph shall be referred
to the Director of OPPM for consideration and approval.
(b) Excess personal property may be transferred for the purpose of
cannibalization, provided the eligible institution submits a supporting
statement which clearly indicates that cannibalizing the requested
property for secondary use has greater benefit than utilization of the
item in its existing form.
(c) Use of the procedures in this part for the purpose of
stockpiling of excess personal property for future cannibalization is
prohibited. Transfer requests for the purpose of cannibalization will
be considered, but are normally subordinate to requests for complete
items.
Sec. 3200.7 Title.
Title to excess personal property obtained under Part 3200 will
automatically pass to the 1890 Land Grant Institutions (including
Tuskegee University), 1994 Land Grant Institutions, and the Hispanic-
Serving Institutions once USDA receives the SF-122 indicating that the
institution has received the property. Note: When competing Federal
claims are made for particular items of excess personal property held
by agencies other than USDA, with or without payment of reimbursement,
GSA will give preference to the Federal agency that will retain title
in the Government.
Sec. 3200.8 Costs.
Excess personal property obtained under this part is provided free
of charge. However, the institution must pay all costs associated with
packaging and transportation. The institution
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should specify the method of shipment on the SF-122.
Sec. 3200.9 Accountability and record keeping.
USDA requires that Federal excess personal property received by an
eligible institution pursuant to this part shall be placed into use for
a research, educational, technical, or scientific activity, or for a
related purpose, within 1 year of receipt of the property, and used for
such purpose for at least 1 year thereafter. The institution's property
management officer must establish and maintain accountable records
identifying the property's location, description, utilization and
value. To ensure that the excess personal property is being used for
its intended purpose under this part, compliance reviews will be
conducted by an authorized representative of USDA. The review will
include site visit inspections of the property and the accountability
and record keeping systems.
Sec. 3200.10 Disposal.
When the property is no longer needed by the institution, it may be
used in support of other Federal projects or sold, and the proceeds
used for research, educational, technical, and scientific activities,
or for related programs of the recipient institution.
Sec. 3200.11 Liabilities and losses.
USDA assumes no liability with respect to accidents, bodily injury,
illness, or any other damages or loss related to excess personal
property transferred under this part.
PARTS 3201-3299--[RESERVED]
W. R. Ashworth,
Director, Office of Procurement and Property Management.
[FR Doc. 98-28542 Filed 10-26-98; 8:45 am]
BILLING CODE 3410-PA-P
