98-9659. Property Management Regulations  

  • [Federal Register Volume 63, Number 75 (Monday, April 20, 1998)]
    [Rules and Regulations]
    [Pages 19614-19650]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-9659]
    
    
    
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    Part III
    
    
    
    
    
    Department of Energy
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    41 CFR Chapter 109
    
    
    
    Property Management Regulations; Final Rule
    
    Federal Register / Vol. 63, No. 75 / Monday, April 20, 1998 / Rules 
    and Regulations
    
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    DEPARTMENT OF ENERGY
    
    41 CFR Ch. 109
    
    RIN 1991-AA28
    
    
    Property Management Regulations
    
    AGENCY: Department of Energy.
    
    ACTION: Final Rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Department of Energy (DOE) today publishes a final rule to 
    reissue the Department of Energy Property Management Regulation (DOE-
    PMR) in its entirety. This rule updates the DOE-PMR by deleting 
    obsolete and unnecessary material and incorporating policy and 
    procedure changes issued previously by the Department through Personal 
    Property Letters and DOE-PMR Bulletins. This action provides DOE 
    organizations and DOE contractors an up-to-date, single source for 
    guidance on personal property management matters peculiar to the 
    Department. Specific material that is incorporated, revised, or deleted 
    from the DOE-PMR was summarized in the ``Section-by-Section Analysis'' 
    which appeared in the Notice of Proposed Rulemaking published in the 
    Federal Register on September 11, 1996. Revisions which resulted from 
    comments received on the proposed rulemaking are summarized in Section 
    II ``Comments on the Notice of Proposed Rulemaking.''
    
    EFFECTIVE DATE: This final rule will be effective May 20, 1998.
    
    FOR FURTHER INFORMATION CONTACT: Julia A. Harman, Office of Contract 
    and Resource Management (HR-53), Office of Procurement and Assistance 
    Management, Department of Energy, 1000 Independence Avenue, SW., 
    Washington, DC 20585 (202) 586-1435.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    II. Comments on the Notice of Proposed Rulemaking
    III. Procedural Requirements
        A. Review Under Executive Order 12866
        B. Review Under Executive Order 12988
        C. Review Under the Regulatory Flexibility Act
        D. Review Under the Paperwork Reduction Act
        E. Review Under Executive Order 12612
        F. Review Under the National Environmental Policy Act
        G. Review Under Small Business Regulatory Enforcement Fairness 
    Act of 1996
        H. Review Under the Unfunded Mandates Reform Act of 1995
    
    I. Background
    
        The DOE-PMR, published at 41 CFR Ch. 109, has not been updated to 
    reflect interim changes in Departmental personal property management 
    policy and procedures since 1984. These interim changes, issued through 
    Personal Property Letters and DOE-PMR Bulletins, were made to comply 
    with Executive Orders, statutory requirements, and commitments made to 
    Congress regarding weaknesses identified in the Department's personal 
    property management practices.
        The updating of the DOE-PMR completes phase I of the Department's 
    two-phased commitment to bring about significant reform of its personal 
    property management regulations. The phase I objective was to produce 
    an up-to-date baseline document for use in the reform effort. Having 
    done that, the phase II effort will concentrate on (a) significantly 
    reducing and simplifying the personal property regulations in 
    accordance with Executive Order 12988. Phase II is scheduled to be 
    completed in calendar year 1998.
    
    II. Comments on the Notice of Proposed Rulemaking
    
        A Notice of Proposed Rulemaking was published in the Federal 
    Register on September 11, 1996 (61 FR 48006). Interested parties were 
    invited to participate in this rulemaking by submitting comments. The 
    public comment period closed on November 12, 1996, a period of 60 days. 
    During this period, comments were received from one DOE contractor and 
    one DOE subcontractor employee commenting as a private citizen. The DOE 
    contractor's comments focused on the Math and Science Equipment Gift 
    Program covered in Subpart 109-50.2. The contractor recommended that:
        1. The following authorities rest with the Head of the Contracting 
    Activity (HCA), or designee, in lieu of DOE Headquarters: (1) Adding to 
    the list of eligible equipment at Sec. 109-50.203; and (2) making gifts 
    exceeding $25,000 cumulative book value to any one institution at 
    Sec. 109-50.205. We disagree with both recommendations because the 
    Executive Agencies that own the equipment are responsible for defining 
    and regulating which specific equipment is eligible. In order to insure 
    that all aspects of the equipment gift program (including equipment 
    eligibility determinations and gift making authorizations) are applied 
    uniformly throughout the Department, these authorities need to be 
    maintained at the Headquarters level.
        2. The limitations in Sec. 109-50.205 be modified to significantly 
    raise or eliminate the requirement to obtain DOE Headquarters 
    authorization to make gifts exceeding $25,000 cumulative book value to 
    any one institution. We disagree with the recommendation for several 
    reasons. First of all, the distribution of equipment should be made to 
    those schools with the greatest needs. The threshold is designed to 
    encourage a fair and equitable distribution of equipment among those 
    schools. Secondly, without such a threshold some schools would tend to 
    benefit greatly at the expense of others. We do not believe that to be 
    the intent of the gift program. Thirdly, since the threshold is based 
    on book or depreciated value, a significant amount of equipment can be 
    distributed under the $25,000 threshold. Finally, feedback on the 
    equipment gift program to date does not indicate that the threshold is 
    an impediment to meeting the program objectives.
        3. Equipment in disposal condition codes 2 (unused-fair) and 5 
    (used-fair) be made eligible under the program. We disagree with the 
    recommendation because equipment must be made available to schools at 
    the lowest possible cost. To that end, the Department should only 
    provide equipment that can be used ``as is'' for an extended period of 
    time. The transfer of equipment in fair (i.e., marginal) condition 
    would burden schools with immediate or near term costs for servicing, 
    repair, and possible disposal of the equipment. While the 
    recommendation is well meaning, we view it as counter to the spirit and 
    intent of the program.
        4. Section 109-50.205 be rewritten to remove apparent 
    contradictions and clarify the hierarchy of distribution to and 
    eligibility of potential recipients. We agree with the recommendation 
    and have rewritten the section to clarify the procedure that was 
    originally established in a July 17, 1995 DOE Headquarters memorandum 
    that established the equipment gift program.
        5. The requirement to forward a copy of each Equipment Gift 
    Agreement to DOE Headquarters be eliminated or changed to the Head of 
    the Contracting Activity or designee. We disagree with the 
    recommendation because the Equipment Gift Agreements are used by DOE 
    Headquarters (a) to monitor the success of and make adjustments to the 
    program and (b) as source documents for preparing a report provided by 
    the Department to the General Services Administration (GSA). The 
    comments submitted by the DOE subcontractor employee who commented as a 
    private citizen involved financial accounting issues. Although the 
    comments were submitted under the rulemaking, the solutions are outside 
    the scope of the DOE-PMR. The comments were forwarded to the DOE Office 
    of Financial Policy for consideration as
    
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    proposed changes to DOE accounting directives. DOE field offices were 
    also invited to submit comments, primarily for consideration under 
    phase II of the Department's regulatory reform effort. Among the 
    comments received were several regarding Executive Order 12999, which 
    replaces Executive Order 12821. Executive Order 12999 will be 
    implemented upon approval of the Department's implementation plan. 
    However, a number of the comments were accepted for immediate 
    implementation because they addressed areas affected by Presidential 
    directive, recent Federal Property Management Regulation changes issued 
    by GSA, or minor editorial and technical errors. The revisions made as 
    a result of these comments are as follows:
        1. The word ``capital'' in the term ``capital equipment,'' used 
    extensively in part 1 of this regulation and defined in Sec. 109-1.100-
    50, is removed to eliminate the confusion created by the use of the 
    same term, with different meaning, by the Department's financial 
    accounting organization. This change was formalized in a Departmental 
    memorandum issued on August 29, 1996.
        2. The acronyms CPPSR and HR in Sec. 109-1.100-51 are deleted 
    because neither acronym is used in the text.
        3. Deviation requests in Sec. 109-1.110-50 involving aviation 
    related matters are forwarded by the on-site DOE Aviation Management 
    Officer, in lieu of the Organizational Property Management Officer, to 
    the DOE Senior Aviation Management Official.
        4. Loans in Sec. 109-1.5102 are approved by the on-site property 
    administrator when the OPMO is not located at the contractor facility.
        5. Identification marking of property in Sec. 109-1.5105 is 
    expanded to allow the use of ``U.S. DOE'' as an alternative marking 
    when there is not enough room to mark it as ``U.S. Government 
    Property.''
        6. The applicability of the policy and guidance in subpart 109-1.53 
    is limited to three categories of high risk personal property because 
    other Departmental systems and procedures already provide the required 
    controls for the remaining six categories.
        7. The physical inventory requirement for sensitive items in 
    Sec. 109-1.5109 is modified to reflect changes that were authorized in 
    Personal Property Letter 970-2 issued on February 23, 1996.
        8. By a Presidential Memorandum dated February 10, 1993 Agency 
    Heads were instructed to ``refrain from authorizing the use of 
    Government vehicles for * * * deputies for daily home-to-work 
    transportation.'' Accordingly, the authority for the Deputy Secretary 
    contained in Sec. 109-6.403(b) is eliminated.
        9. Section 109-27.000-50 is deleted because the information in the 
    section is redundant.
        10. The stores inventory turnover ratio in Sec. 109-27.5002 is 
    corrected to show the proper comparative factors.
        11. The subpart 27.51 dealing with precious metals management is 
    updated to reflect the establishment of the Business Center for 
    Precious Metals Sales and Recovery.
        12. The periodic EHFFP program reviews in Sec. 109-28.5005 are 
    conducted by the on-site property administrator when the OPMO is not 
    located at the contractor facility.
        13. Part 109-37 dealing with aviation administration is reserved 
    pending a complete revision of Departmental policies and procedures.
        14. Definition of special purpose vehicles in Sec. 109-38.001 is 
    updated to include all terrain vehicles.
        15. Section 109-38.106 is deleted as a result of Federal Property 
    Management Regulation changes published in FPMR Amendment G-111, dated 
    October 28, 1996.
        16. Section 109-43.307-52(c) is moved to Sec. 109-42.1102-8(a) and 
    updated to include a reference to the Defense Demilitarization Manual 
    because it deals with United States Munitions List items subject to 
    demilitarization.
        17. Sections 109-43.4701(a) and 109-44.4701(a) and Secs. 109-
    45.1002-2, 109-45.4701, and 109-46.305 are removed as a result of a 
    FPMR change, published as FPMR Amendment H-196, dated June 24, 1997, 
    that eliminated several annual reports required by GSA.
        18. Section 109-46.201(c) is updated to reflect a FPMR change, 
    published as FPMR Amendment H-195, dated June 23, 1997, that reduced 
    the number of Federal Supply Classification Groups on the exchange/sale 
    authority exclusion list.
        19. Section 109-50.106 is updated to delete references to the use 
    of ADPE tapes and printed catalogs. Both are no longer in use.
        Aside from these minor editorial and technical error corrections, 
    there were no significant revisions to the rulemaking based on the 
    submitted comments.
        20. Subpart 109-50.3 is withdrawn and held in reserve pending 
    resolution of outstanding issues related to economic development.
    
    III. Procedural Requirements
    
    A. Review Under Executive Order 12866
    
        This regulatory action has been determined not to be a 
    ``significant regulatory action'' under Executive Order 12866, 
    ``Regulatory Planning and Review,'' (58 FR 51735, October 4, 1993). 
    Accordingly, this action was not subject to review, under that 
    Executive Order, by the Office of Information and Regulatory Affairs of 
    the Office of Management and Budget (OMB).
    
    B. Review Under Executive Order 12988
    
        With respect to the review of existing regulations and the 
    promulgation of new regulations, section 3(a) of Executive Order 12988, 
    ``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
    Executive agencies the general duty to adhere to the following 
    requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
    regulations to minimize litigation; and (3) provide a clear legal 
    standard for affected conduct rather than a general standard and 
    promote simplification and burden reduction. With regard to the review 
    required by section 3(a), section 3(b) of Executive Order 12988 
    specifically requires that Executive agencies make every reasonable 
    effort to ensure that the regulation: (1) Clearly specifies the 
    preemptive effect, if any; (2) clearly specifies any effect on existing 
    Federal law or regulation; (3) provides a clear legal standard for 
    affected conduct while promoting simplification and burden reduction; 
    (4) specifies the retroactive effect, if any; (5) adequately defines 
    key terms; and (6) addresses other important issues affecting clarity 
    and general draftsmanship under any guidelines issued by the Attorney 
    General. Section 3(c) of Executive Order 12988 requires Executive 
    agencies to review regulations in light of applicable standards in 
    section 3(a) and section 3(b) to determine whether they are met or it 
    is unreasonable to meet one or more of them. DOE has completed the 
    required review and determined that, to the extent permitted by law, 
    the regulations meet the relevant standards of Executive Order 12988.
    
    C. Review Under the Regulatory Flexibility Act
    
        The rule was reviewed under the Regulatory Flexibility Act of 1980, 
    Pub. L. 96-354, which requires preparation of an initial regulatory 
    flexibility analysis for any rule that is likely to have a significant 
    economic impact on a substantial number of small entities. In the 
    background section of the rule, DOE noted that the rule was the first
    
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    phase of a two-phased approach to (1) streamline the personal property 
    management process and (2) reduce constraints, prescriptive 
    requirements, and administrative processes on DOE internal operations 
    and large contractors who manage and operate DOE facilities. Based on 
    this review, DOE certified that this rule will not have a significant 
    economic impact on a substantial number of small entities and, 
    therefore, no regulatory flexibility analysis had been prepared. DOE 
    did not receive any comments on this certification.
    
    D. Review Under the Paperwork Reduction Act
    
        No new information collection or record keeping requirements are 
    imposed by this rule. Accordingly, no OMB clearance is required under 
    the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.).
    
    E. Review Under Executive Order 12612
    
        Executive Order 12612, entitled ``Federalism,'' 52 FR 41685 
    (October 30, 1987), requires that regulations, rules, legislation, and 
    any other policy actions be reviewed for any substantial direct effects 
    on States, on the relationship between the Federal Government and the 
    States, or in the distribution of power and responsibilities among 
    various levels of government. If there are sufficient substantial 
    direct effects, then the Executive Order requires preparation of a 
    federalism assessment to be used in all decisions involved in 
    promulgating and implementing a policy action. DOE has determined that 
    this rule will not have a substantial direct effect on the 
    institutional interests or traditional functions of States.
    
    F. Review Under the National Environmental Policy Act
    
        Pursuant to the Council on Environmental Quality Regulations (40 
    CFR parts 1500-1508), the Department has established guidelines for its 
    compliance with the provisions of the National Environmental Policy Act 
    (NEPA) of 1969 (42 U.S.C. 4321, et seq.). Pursuant to Appendix A of 
    subpart D of 10 CFR part 1021, National Environmental Policy Act 
    Implementing Procedures (Categorical Exclusion A6), DOE has determined 
    that this rule is categorically excluded from the need to prepare an 
    environmental impact statement or environmental assessment.
    
    G. Review Under Small Business Regulatory Enforcement Fairness Act of 
    1996
    
        As required by 5 U.S.C. 801, DOE will report to Congress 
    promulgation of the rule prior to its effective date. The report will 
    state that it has been determined that the rule is not a ``major rule'' 
    as defined by 5 U.S.C. 804(3).
    
    H. Review Under the Unfunded Mandates Reform Act of 1995
    
        The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally 
    requires a Federal agency to perform a detailed assessment of costs and 
    benefits of any rule imposing a Federal mandate with costs to State, 
    local or tribal governments, or to the private sector, of $100 million 
    or more. This rulemaking only affects DOE and private sector entities, 
    and the impact is less than $100 million.
    
    List of Subjects in 41 CFR Chapter 109
    
        Government property management.
    
        Issued in Washington, DC, on March 31, 1998.
    Richard H. Hopf,
    Deputy Assistant Secretary for Procurement and Assistance Management.
    
        For the reasons set out in the preamble, Chapter 109 of Title 41 of 
    the Code of Federal Regulations is revised as set forth below:
    
    CHAPTER 109--DEPARTMENT OF ENERGY PROPERTY MANAGEMENT REGULATIONS
    
    SUBCHAPTER A--GENERAL
    
    Part
    109-1  Introduction
    109-6  Miscellaneous regulations
    
    SUBCHAPTER B--[RESERVED]
    
    SUBCHAPTER C--[RESERVED]
    
    SUBCHAPTER D--[RESERVED]
    
    SUBCHAPTER E--SUPPLY AND PROCUREMENT
    
    109-25  General
    109-26  Procurement sources and program
    109-27  Inventory management
    109-28  Storage and distribution
    109-30  Federal catalog system
    
    SUBCHAPTER F--[RESERVED]
    
    SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES
    
    109-37  [RESERVED]
    109-38  Motor equipment management
    109-39  Interagency fleet management systems
    
    SUBCHAPTER H--UTILIZATION AND DISPOSAL
    
    109-42  Utilization and disposal of hazardous materials and certain 
    categories of property
    109-43  Utilization of personal property
    109-44  Donation of personal property
    109-45  Sale, abandonment, or destruction of personal property
    109-46  Utilization and disposal of personal property pursuant to 
    exchange/sale authority
    109-48  Utilization, donation, or disposal of abandoned and 
    forfeited personal property
    109-50  Special DOE disposal authorities
    
    SUBCHAPTER A--GENERAL
    
    PART 109-1--INTRODUCTION
    
    Subpart 109-1.1--Regulation System
    
    Sec.
    109-1.100-50  Scope of subpart.
    109-1.100-51  Definitions and acronyms.
    109-1.101  Federal Property Management Regulations System.
    109-1.101-50  DOE-PMR System.
    109.1.102  Federal Property Management Regulations.
    109-1.102-50  DOE-PMRs.
    109-1.103  FPMR temporary regulations.
    109-1.103-50  DOE-PMR temporary policies and bulletins.
    109-1.104  Publication and distribution of FPMR.
    109-1.104-50  Publication and distribution of DOE-PMR.
    109-1.106  Applicability of FPMR.
    109-1.106-50  Applicability of FPMR and DOE-PMR.
    109-1.107  Agency consultation regarding FPMR.
    109-1.107-50  Consultation regarding DOE-PMR.
    109-1.108  Agency implementation and supplementation of FPMR.
    109-1.110-50  Deviation procedures.
    
    Subpart 109-1.50--Personal Property Management Program
    
    109-1.5000  Scope of subpart.
    109-1.5001  Policy.
    109-1.5002  Personal property management program objectives.
    
    Subpart 109-1.51--Personal Property Management Standards and Practices
    
    109-1.5100  Scope of subpart.
    109-1.5101  Official use of personal property.
    109-1.5102  Maximum use of personal property.
    109-1.5103  Loan of personal property.
    109-1.5104  Borrowing of personal property.
    109-1.5105  Identification marking of personal property.
    109-1.5106  Segregation of personal property.
    109-1.5107  Physical protection of personal property.
    109-1.5108  Personal property records requirements.
    109-1.5108-1  Equipment.
    109-1.5108-2  Sensitive items.
    109-1.5108-3  Stores inventories.
    109-1.5108-4  Precious metals.
    109-1.5108-5  Administratively controlled items.
    109-1.5109  Control of sensitive items.
    109-1.5110  Physical inventories of personal property.
    109-1.5111  Retirement of property.
    109-1.5112  Loss, damage, or destruction of personal property in 
    possession of DOE direct operations.
    109-1.5113  Loss, damage, or destruction of personal property in 
    possession of designated contractors.
    
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    109-1.5114  Use of non-Government-owned property.
    109-1.5148  Personal property management reports.
    
    Subpart 109-1.52--Personal Property Management Program for Designated 
    Contractors
    
    109-1.5200  Scope of subpart.
    109-1.5201  Policy.
    109-1.5202  Establishment of a personal property holdings baseline.
    109-1.5203  Management of subcontractor-held personal property.
    109-1.5204  Review and approval of a designated contractor's 
    personal property management system.
    109-1.5205  Personal property management system changes.
    
    Subpart 109-1.53--Management of High Risk Personal Property
    
    109-1.5300  Scope of subpart.
    109-1.5301  Applicability.
    109-1.5302  Policies.
    109-1.5303  Procedures.
    109-1.5304  Deviations.
    
        Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
    7254).
    
    SUBCHAPTER A--GENERAL
    
    PART 109-1--INTRODUCTION
    
    Subpart 109-1.1--Regulation System
    
    
    Sec. 109-1.100-50  Scope of subpart.
    
        This subpart sets forth the Department of Energy (DOE) Property 
    Management Regulations (DOE-PMR) which establish uniform DOE property 
    management policies, regulations, and procedures that implement and 
    supplement the Federal Property Management Regulations. Property 
    management statutory authorities that are unique to the Department 
    (e.g., section 161g of the Atomic Energy Act of 1954 (42 U.S.C. 
    2201(g)) and section 3155 of the National Defense Authorization Act for 
    Fiscal Year 1994 (42 U.S.C. 72741)) are not addressed in these 
    regulations.
    
    
    Sec. 109-1.100-51  Definitions and acronyms.
    
        (a) Definitions. As used in this chapter, the terms personal 
    property and property are synonymous. In addition, the following 
    definitions apply:
        Administratively controlled items means personal property 
    controlled at the discretion of individual DOE offices, but for which 
    there is no DOE requirement to maintain formal records.
        Automatic data processing equipment means, as used in this part and 
    to the extent that such equipment is used to process export controlled 
    information or unclassified controlled nuclear information, any 
    equipment or interconnected system or subsystems of equipment that is 
    used in the automatic acquisition, storage, manipulation, management, 
    movement, control, display, switching, interchange, transmission, or 
    reception of data or information.
        Designated contractors means those on-site DOE contractors to which 
    the DOE-PMR is made applicable when included as a contractual 
    requirement. The contractors to which these regulations may be made 
    applicable include management and operating (M&O) contractors, 
    environmental restoration and management contractors, and other major 
    prime contractors located at DOE sites.
        Direct operations means operations conducted by DOE personnel.
        Disposal means the process of reutilizing, transferring, donating, 
    selling, abandoning, destroying, or other disposition of Government-
    owned personal property.
        Dual-Use List means nuclear-related material, equipment, and 
    related technology as described in the International Atomic Energy 
    Agency Information Circular (INFCIRC) 254 Part 2.
        Equipment means any item of personal property having a unit 
    acquisition cost of $5,000 or more and having the potential for 
    maintaining its integrity (i.e., not expendable due to use) as an item.
        Especially designed or prepared property means equipment and 
    material designed or prepared especially for use in the nuclear fuel 
    cycle and described in the Nuclear Suppliers Group Trigger List 
    (INFCIRC 254 Part 1).
        Export controlled information means unclassified U.S. Government 
    information under DOE cognizance that, if proposed for export by the 
    private sector, would require a U.S. Department of Commerce or U.S. 
    Department of State validated license, or a DOE authorization for 
    export, and which, if given uncontrolled release, could reasonably be 
    expected to adversely affect U.S. national security or nuclear 
    nonproliferation objectives.
        Export controlled property means property the export of which is 
    subject to licensing by the U.S. Department of Commerce, the U.S. 
    Department of State, the U.S. Nuclear Regulatory Commission, or 
    authorized by the U.S. Department of Energy.
        Hazardous property means any personal property, including scrap or 
    waste but excluding property involving a radiological hazard, that is 
    ignitable, corrosive, reactive, or toxic because of its quantity, 
    concentration, or physical, chemical, or infectious characteristics, or 
    that is deemed a hazardous material, chemical substance or mixture, or 
    hazardous waste under the Hazardous Material Transportation Act, the 
    Resource Conservation and Recovery Act, or the Toxic Substances Control 
    Act. Such property may be in solid, liquid, semi-liquid, or contained 
    gas form and may cause or significantly contribute to an increase in 
    mortality or illness, or pose present or potential hazard to human 
    health or the environment when improperly used, treated, stored, 
    transported, disposed of, or mismanaged.
        Heads of field organizations means the heads of any Departmental 
    office located outside the Washington, D.C. metropolitan area. In 
    addition, the Federal Energy Regulatory Commission, and the Office of 
    Headquarters Procurement Operations, shall be considered a field 
    organization for purposes of these regulations.
        High risk personal property means property that, because of its 
    potential impact on public health and safety, the environment, national 
    security interests, or proliferation concerns, must be controlled, and 
    disposed of in other than the routine manner. The categories of high 
    risk property are automatic data processing equipment, especially 
    designed or prepared property, export controlled information, export 
    controlled property, hazardous property, nuclear weapon components or 
    weapon-like components, proliferation sensitive property, radioactive 
    property, special nuclear material, and unclassified controlled nuclear 
    information.
        Munitions list means articles, services, and related technical data 
    designated as defense articles and defense services by the Arms Export 
    Control Act of 1968, as amended.
        Nuclear weapon component or weapon-like component means parts of 
    whole war reserve nuclear weapon systems, joint test assemblies, 
    trainers, or test devices, including associated testing, maintenance, 
    and handling equipment; or items that simulate such parts.
        Personal property means property of any kind, except for real 
    estate and interests therein (such as easements and rights-of-way), and 
    permanent fixtures which are Government-owned, chartered, rented, or 
    leased from commercial sources by and in the custody of DOE or its 
    designated contractors; source, byproduct, special nuclear materials, 
    and atomic weapons as defined in section 11 of the Atomic Energy Act of 
    1954 (42 U.S.C. 2014), as amended; and petroleum in the Strategic 
    Petroleum Reserve and the Naval Petroleum Reserves.
    
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        Personal property management means the development, implementation, 
    and administration of policies, standards, programs, practices and 
    procedures for effective and economical acquisition, receipt, storage, 
    issue, use, control, physical protection, care and maintenance, 
    determination of requirements, maintenance of related operating 
    records, and disposal of personal property (exclusive of the property 
    accounting records).
        Proliferation-sensitive property means nuclear-related or dual-use 
    equipment, material, or technology as described in the Nuclear 
    Suppliers Group Trigger List and Dual-Use List, or equipment, material 
    or technology used in the research, design, development, testing, or 
    production of nuclear or other weapons.
        Radioactive property means any item or material that is 
    contaminated with radioactivity and which emits ionizing radiation in 
    excess of background radiation as measured by appropriate 
    instrumentation.
        Sensitive items means those items of personal property which are 
    considered to be susceptible to being appropriated for personal use or 
    which can be readily converted to cash, for example: Firearms, portable 
    photographic equipment, binoculars, portable tape recorders, portable 
    calculators, portable power tools, portable computers, and portable 
    communications equipment.
        Special nuclear material means plutonium, uranium 233, uranium 
    enriched in the isotope 233 or 235, any other materials which the 
    Nuclear Regulatory Commission pursuant to the Atomic Energy Act of 
    1954, as amended, determines to be special nuclear material, or any 
    material artificially enriched by any of the foregoing, but does not 
    include source material.
        Trigger List means nuclear material, equipment, and related 
    technology as described in the INFCIRC 254, Part 1.
        Unclassified controlled nuclear information means U.S. Government 
    information pertaining to atomic energy defense activities as defined 
    in section 148 of the Atomic Energy Act. Such information can relate to 
    aspects of nuclear weapons design, development, testing, physical 
    security, production, or utilization facilities.
        (b) Acronyms. As used in this chapter, the following acronyms 
    apply:
    
    ADPE: Automatic Data Processing Equipment
    CFR: Code of Federal Regulations
    CSC: Customer Supply Center
    DEAR: Department of Energy Acquisition Regulation
    DOD: Department of Defense
    DOE: Department of Energy
    DOE-PMR: Department of Energy Property Management Regulations
    DPMO: Departmental Property Management Officer
    ECCN: Export Control Classification Number
    ECI: Export Controlled Information
    EHFFP: Equipment Held For Future Projects
    EOQ: Economic Order Quantity
    ERLE: Energy-Related Laboratory Equipment
    FAR: Federal Acquisition Regulation
    FPMR: Federal Property Management Regulations
    FSC: Federal Supply Classification
    FSCG: Federal Supply Classification Group
    GAO: General Accounting Office
    GSA: General Services Administration
    GVWR: Gross Vehicle Weight Rating
    INFCIRC: International Atomic Energy Agency Information Circular
    IFMS: Interagency Fleet Management System
    M&O: Management and Operating
    MCTL: Military Critical Technologies List
    OCRM: Office of Contract and Resource Management
    OPMO: Organizational Property Management Officer
    OPSEC: Operations Security
    PPL: Personal Property Letter
    REAPS: Reportable Excess Automated Property System
    SNM: Special Nuclear Material
    UCNI: Unclassified Controlled Nuclear Information
    U.S.C.: United States Code
    
    
    Sec. 109-1.101  Federal Property Management Regulations System.
    
    
    Sec. 109-1.101-50  DOE-PMR System.
    
        The DOE-PMR system described in this subpart is established to 
    provide uniform personal property management policies, standards, and 
    practices within the Department.
    
    
    Sec. 109-1.102  Federal Property Management Regulations.
    
    
    Sec. 109-1.102-50  DOE-PMRs.
    
        The DOE-PMRs (41 CFR Ch. 109) implements and supplements the FPMR 
    (41 CFR Ch. 101) issued by the General Services Administration (GSA), 
    Public Laws, Executive Orders, Office of Management and Budget 
    directives, and other agency issuances affecting the Department's 
    personal property management program.
    
    
    Sec. 109-1.103  FPMR temporary regulations.
    
    
    Sec. 109-1.103-50  DOE-PMR temporary policies and bulletins
    
        (a) Subject to applicable procedural requirements in 41 U.S.C. 
    418b, 42 U.S.C 7191 and 5 U.S.C 553, Personal Property Letters are 
    authorized for publication of temporary policies that should not be 
    codified in the Code of Federal Regulations (CFR).
        (b) DOE-PMR Bulletins are used to disseminate information 
    concerning personal property management matters not affecting policy or 
    to clarify instructions in actions required by the FPMR or DOE-PMR.
    
    
    Sec. 109-1.104  Publication and distribution of FPMR.
    
    
    Sec. 109-1.104-50  Publication and distribution of DOE-PMR.
    
        The DOE-PMR will be published in the Federal Register and will 
    appear in the CFR as Chapter 109 of Title 41, Public Contracts and 
    Property Management. Loose leaf publications of the DOE-PMR will be 
    distributed to DOE offices.
    
    
    Sec. 109-1.106  Applicability of FPMR.
    
    
    Sec. 109-1.106-50  Applicability of FPMR and DOE-PMR.
    
        (a) The FPMR and DOE-PMR apply to all direct operations.
        (b) The DOE-PMR does not apply to facilities and activities 
    conducted under Executive Order 12344 and Pub. L. 98-525.
        (c) Unless otherwise provided in the appropriate part or subpart, 
    the FPMR and DOE-PMR apply to designated contractors.
        (d) The Procurement Executive or head of a contracting activity may 
    designate contractors other than designated contractors to which the 
    FPMR and DOE-PMR apply.
        (e) The FPMR and DOE-PMR shall be used by contracting officers in 
    the administration of applicable contracts, and in the review, 
    approval, or appraisal of such contractor operations.
        (f) Regulations for the management of Government property in the 
    possession of other DOE contractors are contained in the Federal 
    Acquisition Regulation (FAR), 48 CFR part 45, and in the DOE 
    Acquisition Regulation (DEAR), 48 CFR part 945.
        (g) Regulations for the management of personal property held by 
    financial assistance recipients are contained in the DOE Financial 
    Assistance Rules (10 CFR part 600) and DOE Order 534.1, Accounting.
    
    
    Sec. 109-1.107  Agency consultation regarding FPMR.
    
    
    Sec. 109-1.107-50  Consultation regarding DOE-PMR.
    
        The DOE-PMR shall be fully coordinated with all Departmental 
    elements substantively concerned with the subject matter.
    
    
    Sec. 109-1.108  Agency implementation and supplementation of FPMR.
    
        (a) The DOE-PMR includes basic and significant Departmental 
    personal property management policies and standards which implement, 
    supplement, or deviate from the FPMR.
    
    [[Page 19619]]
    
    In the absence of any DOE-PMR issuance, the basic FPMR material shall 
    govern.
        (b) The DOE-PMR shall be consistent with the FPMR and shall not 
    duplicate or paraphrase the FPMR material.
        (c) Implementing procedures, instructions, and guides which are 
    necessary to clarify or to implement the DOE-PMR may be issued by 
    Headquarters or field organizations, provided that the implementing 
    procedures, instructions and guides:
        (1) Are consistent with the policies and procedures contained in 
    this regulation;
        (2) To the extent practicable, follow the format, arrangement, and 
    numbering system of this regulation; and
        (3) Contain no material which duplicates, paraphrases, or is 
    inconsistent with the contents of this regulation.
    
    
    Sec. 109-1.110-50  Deviation procedures.
    
        (a) Each request for deviation shall contain the following:
        (1) A statement of the deviation desired, including identification 
    of the specific paragraph number(s) of the DOE-PMR;
        (2) The reason why the deviation is considered necessary or would 
    be in the best interest of the Government;
        (3) If applicable, the name of the contractor and identification of 
    the contractor affected;
        (4) A statement as to whether the deviation has been requested 
    previously and, if so, circumstances of the previous request;
        (5) A description of the intended effect of the deviation;
        (6) A statement of the period of time for which the deviation is 
    needed; and
        (7) Any pertinent background information which will contribute to a 
    full understanding of the desired deviation.
        (b)(1) Requests for deviations from applicable portions of the FPMR 
    and DOE-PMR (except aviation related portions) shall be forwarded with 
    supporting documentation by the Organizational Property Management 
    Officer (OPMO) to the Departmental Property Management Officer (DPMO).
        (2) Requests for deviations from aviation related portions of the 
    FPMR and DOE-PMR concerning aviation operations shall be forwarded by 
    the OPMO or on-site DOE Aviation Management Officer with supporting 
    documentation to the DOE Senior Aviation Management Official.
        (c) The Deputy Assistant Secretary for Procurement and Assistance 
    Management is authorized to grant deviations to the DOE-PMR.
        (d) Requests for deviations from the FPMR will be coordinated with 
    GSA by the DPMO.
    
    Subpart 109-1.50--Personal Property Management Program
    
    
    Sec. 109-1.5000  Scope of subpart.
    
        This subpart supplements the FPMR, states DOE personal property 
    management policy and program objectives, and prescribes authorities 
    and responsibilities for the conduct of an efficient personal property 
    management program in DOE.
    
    
    Sec. 109-1.5001  Policy.
    
        It is DOE policy that a program for the management of personal 
    property shall be established and maintained to meet program needs 
    efficiently and in accordance with applicable Federal statutes and 
    regulations.
    
    
    Sec. 109-1.5002  Personal property management program objectives.
    
        The objectives of the DOE personal property management program are 
    to provide:
        (a) A system for efficiently managing personal property in the 
    custody or possession of DOE organizations and designated contractors; 
    and
        (b) Uniform principles, policies, and standards for efficient 
    management of personal property that are sufficiently broad in scope 
    and flexible in nature to facilitate adaptation to local needs and 
    various kinds of operations.
    
    Subpart 109-1.51--Personal Property Management Standards and Practices
    
    
    Sec. 109-1.5100  Scope of subpart.
    
        This subpart provides guidance on DOE standards and practices to be 
    applied in the management of personal property. The standards and 
    practices that apply to equipment shall be based on the unit 
    acquisition cost threshold specified in the definition of equipment 
    contained in section Sec. 109-1.100-51 of this part. No other 
    acquisition cost threshold shall apply.
    
    
    Sec. 109-1.5101  Official use of personal property.
    
        Personal property shall be used only in the performance of official 
    work of the United States Government, except:
        (a) In emergencies threatening loss of life or property as 
    authorized by law;
        (b) As otherwise authorized by law and approved by the Director, 
    Office of Administrative Services; heads of field organizations for 
    their respective organizations; or a contracting officer for 
    contractor-held property.
    
    
    Sec. 109-1.5102  Maximum use of personal property.
    
        Personal property management practices shall assure the best 
    possible use of personal property. Supplies and equipment shall be 
    generally limited to those items essential for carrying out the 
    programs of DOE efficiently.
    
    
    Sec. 109-1.5103  Loan of personal property.
    
        (a) Personal property which is not excess and would otherwise be 
    out of service for temporary periods may be loaned to other DOE offices 
    and contractors, other Federal agencies, and to others for official 
    purposes. The loan request shall be in writing, stating the purpose of 
    the loan and period of time required. The loan shall be executed on DOE 
    Form 4420.2, Personal Property Loan Agreement or computer generated 
    equivalent when approved in writing by the OPMO or on-site DOE property 
    administrator. When approved, a memorandum transmitting the loan 
    agreement shall be prepared identifying the loan period, delivery time, 
    method of payment and transportation, and point of delivery and return, 
    to ensure proper control and protect DOE's interest. The loan period 
    shall not exceed one year, but may be renewed in one year increments. 
    Second renewals of loan agreements shall be reviewed and justified at a 
    level of management at least two levels above that of the individual 
    making the determination to loan the property. Third renewals shall be 
    approved by the head of the field organization or designee.
        (b) Requests for loans to foreign Governments and other foreign 
    organizations shall be submitted to the Deputy Assistant Secretary for 
    International Energy Policy, Trade and Investment for approval, with a 
    copy to the cognizant Headquarters program office.
    
    
    Sec. 109-1.5104  Borrowing of personal property.
    
        (a) DOE organizations and designated contractors are encouraged to 
    borrow personal property within DOE to further DOE programs. Property 
    classified as Equipment Held For Future Projects (EHFFP) or as In 
    Standby should be reviewed by those receiving availability inquiries 
    for short-term use (one year or less). Borrowing of Government personal 
    property from other Federal agencies is also encouraged when required 
    for short periods of time. Such transactions shall be covered by 
    written agreements which include all terms of the transaction.
        (b) In determining whether it is practical and economical to borrow 
    personal property, consideration shall
    
    [[Page 19620]]
    
    be given to suitability, condition, value, extent and nature of use, 
    extent of availability, portability, cost of transportation, and other 
    similar factors.
        (c) Adequate records and controls shall be established and 
    maintained for borrowed property to ensure its proper control and 
    prompt return to the lender.
    
    
    Sec. 109-1.5105  Identification marking of personal property.
    
        (a) Personal property shall be marked ``U.S. Government property'' 
    (if marking space is limited, property may be marked ``U.S. DOE'') 
    subject to the criteria below. The markings shall be securely affixed 
    to the property, legible, and conspicuous. Examples of appropriate 
    marking media are bar code labels, decals, and stamping.
        (1) Equipment and sensitive items shall be marked ``U.S. Government 
    property'' and numbered for control purposes.
        (2) Administratively controlled property and other personal 
    property susceptible to unauthorized personal use should be marked 
    ``U.S. Government property'' and numbered for control purposes.
        (b) Personal property which by its nature cannot be marked, such as 
    stores items, metal stock, etc., is exempted from this requirement.
        (c) To the extent practicable and economical, markings shall be 
    removed prior to disposal outside of DOE, or, if removal is 
    impractical, additional permanent markings must be added to indicate 
    such disposal.
    
    
    Sec. 109-1.5106  Segregation of personal property.
    
        Ordinarily, contractor-owned personal property shall be segregated 
    from Government personal property. Commingling of Government and 
    contractor-owned personal property may be allowed only when:
        (a) The segregation of the property would materially hinder the 
    progress of the work (i.e., segregation is not feasible for reasons 
    such as small quantities, lack of space, or increased costs); and
        (b) Control procedures are adequate (i.e., the Government property 
    is specifically marked or otherwise identified as Government property).
    
    
    Sec. 109-1.5107  Physical protection of personal property.
    
        Controls such as property pass systems, memorandum records, regular 
    or intermittent gate checks, and/or perimeter fencing shall be 
    established as appropriate to prevent loss, theft, or unauthorized 
    removal of property from the premises on which such personal property 
    is located.
    
    
    Sec. 109-1.5108  Personal property records requirements.
    
        The contractor's property control records shall provide the 
    following basic information for every accountable item of Government 
    personal property in the contractor's possession and any other data 
    elements required by specific contract provisions:
        (a) Contract number or equivalent code designation.
        (b) Asset type.
        (c) Description of item (name, serial number, national stock number 
    (if available)).
        (d) Property control number (Government ownership identity).
        (e) Unit acquisition cost (including delivery and installation 
    cost, when appropriate, and unit of measure).
        (f) Acquisition document reference and date.
        (g) Manufacturer's name, model and serial number.
        (h) Quantity received, fabricated, issued or on hand.
        (i) Location (physical area)
        (j) Custodian name and organization code.
        (k) Use status (active, storage, excess, etc.)
        (l) High risk designation.
        (m) Disposition document reference and date.
    
    
    Sec. 109-1.5108-1  Equipment.
    
        An individual property record will be developed and maintained for 
    each item of equipment.
    
    
    Sec. 109-1.5108-2  Sensitive items.
    
        Individual item records will be maintained for each sensitive item. 
    Minimum dollar value thresholds for controlling sensitive items, if 
    used, will be determined by the OPMO for each DOE organization in 
    consultation with appropriate management officials. This threshold may 
    be applied organization-wide or by individual contractors or location. 
    Identification of types of property meeting the DOE-PMR definition of 
    sensitive property should be the primary determinant of sensitive 
    category, with dollar thresholds, if any, considered as a guideline 
    only. Sensitive items which are also equipment will be controlled as 
    both sensitive items and equipment.
    
    
    Sec. 109-1.5108-3  Stores inventories.
    
        Perpetual inventory records are to be maintained for stores 
    inventory items.
    
    
    Sec. 109-1.5108-4  Precious metals.
    
        Perpetual inventory records are to be maintained for precious 
    metals.
    
    
    Sec. 109-1.5108-5  Administratively controlled items.
    
        No formal property management records are required to be maintained 
    for this category of personal property, which includes such items as 
    those controlled for calibration or maintenance purposes, contaminated 
    property, tool crib items, and equipment pool items. Various control 
    records can be employed to help safeguard this property against waste 
    and abuse, including purchase vs. use information, tool crib check-
    outs, loss and theft reports, calibration records, disposal records, 
    and other similar records. Control techniques would include physical 
    security, custodial responsibility, identification/marking, or other 
    locally established control techniques.
    
    
    Sec. 109-1.5109  Control of sensitive items.
    
        (a) A list of types of personal property considered to be sensitive 
    shall be developed and maintained by each DOE activity/site, taking 
    into consideration value, costs of administration, need for control, 
    and other factors that management determines should apply.
        (b) Items of equipment which are also designated as sensitive items 
    will be controlled as sensitive items and as equipment.
        (c) Written procedures shall be established for control of 
    sensitive items and shall address:
        (1) Approval of purchase requisitions or issue documents at an 
    appropriate supervisory level;
        (2) Establishment of controls in the central receiving and 
    warehousing department, such as extraordinary physical protection, 
    handling, and maintenance of a current listing of sensitive items;
        (3) Establishment and maintenance of appropriate records;
        (4) Requirement for tagging and identification;
        (5) Use of memorandum receipts or custody documents at time of 
    assignment or change in custody;
        (6) Establishment of custodial responsibilities describing:
        (i) Need for extraordinary physical protection;
        (ii) Requirement for efficient physical and administrative control 
    of sensitive items assigned for general use within an organizational 
    unit as appropriate to the type of property and the circumstances;
        (iii) Requirement for prompt reporting and investigation of loss, 
    damage or destruction; and
        (iv) Requirement for promptly reporting changes in custody.
        (7) Requirement for periodic physical inventories (see Sec. 109-
    1.5110 of this part).
    
    [[Page 19621]]
    
        (8) Requirement for an employee transfer or termination check-out 
    procedure and examination and adjustment of records;
        (9) Reminder of prohibition of use for other than official purposes 
    and penalties for misuse;
        (10) A clear statement of the extent of responsibility for 
    financial accountability depending upon contractor policy; and
        (11) Other procedures which have demonstrated efficient physical 
    and administrative control over sensitive items.
    
    
    Sec. 109-1.5110  Physical inventories of personal property.
    
        (a) Physical inventories of those categories of personal property 
    as specified in paragraph (f) of this section shall be conducted at all 
    DOE and designated contractor locations.
        (b) Physical inventories shall be performed by the use of personnel 
    other than custodians of the property. Where staffing restraints or 
    other considerations apply, the inventory may be performed by the 
    custodian with verification by a second party.
        (c) Detailed procedures for the taking of physical inventories 
    shall be developed for each DOE office and designated contractor. The 
    OPMO shall review and approve the DOE office and contractor procedures.
        (d) The conduct of a physical inventory will be observed, or 
    follow-on audits made, by independent representatives, e.g., finance, 
    audit, or property personnel, to the extent deemed necessary to assure 
    that approved procedures are being followed and results are accurate. 
    These observations or audits shall be documented and the documentation 
    retained in the inventory record file.
        (e) Procedures that are limited to a check-off of a listing of 
    recorded property without actual verification of the location and 
    existence of such property do not meet the requirements of a physical 
    inventory.
        (f) The frequency of physical inventories of personal property 
    shall be as follows:
        (1) Equipment--biennial.
        (2) Sensitive items--annual (see paragraph 109-1.5110(l) of this 
    section).
        (3) Stores inventories--annual.
        (4) Precious metals--annual.
        (5) Administratively controlled items--There is no formal 
    Department requirement for the performance of physical inventories of 
    this property. However, OPMOs should determine such requirements based 
    on management needs.
        (g) Physical inventories shall be performed at intervals more 
    frequently than required when experience at any given location or with 
    any given item or items indicates that this action is necessary for 
    effective property accounting, utilization, or control.
        (h) Physical inventories of equipment may be conducted by the 
    ``inventory by exception'' method. The system and procedures for taking 
    physical inventories by this method must be fully documented and 
    approved in writing by the OPMO.
        (i) The results of physical inventories shall be reconciled with 
    the property records, and with applicable financial control accounts.
        (j) The results of physical inventories shall be reported to the 
    OPMO within 30 days after the reconciliation required above.
        (k) Physical inventories of equipment and stores inventories may be 
    conducted using statistical sampling methods in lieu of the normal 
    wall-to-wall method. The sampling methods employed must be 
    statistically valid and approved in writing by the OPMO. If use of the 
    statistical methods of physical inventory does not produce acceptable 
    results, the wall-to-wall method shall be used to complete the 
    inventories.
        (l) Physical inventories of sensitive items (excluding arms, 
    ammunition, and military property) having an acquisition cost of $2,000 
    or less may also be conducted using statistical sampling methods. 
    However if statistical sampling methods are used, a wall-to-wall 
    inventory is required no less frequently than every three years and at 
    contract completion (unless there is a follow-on contract with the same 
    contractor).
    
    
    Sec. 109-1.5111  Retirement of property.
    
        When Government property is worn out, lost, stolen, destroyed, 
    abandoned, or damaged beyond economical repair, it shall be listed on a 
    retirement work order. A full explanation shall be supported by an 
    investigation, if necessary, as to the date and circumstances 
    surrounding the wear, loss, theft, destruction, abandonment, or damage. 
    The retirement work order shall be signed by the responsible official 
    initiating the report and reviewed and approved by an official at least 
    one supervisory level above the official initiating the report.
    
    
    Sec. 109-1.5112  Loss, damage, or destruction of personal property in 
    possession of DOE direct operations.
    
        DOE offices shall establish procedures to provide for the 
    reporting, documentation, and investigation of instances of loss, 
    damage, or destruction of personal property including:
        (a) Notification to appropriate DOE organizations and law 
    enforcement offices;
        (b) Determination of cause or origin;
        (c) Liability and responsibility for repair or replacement; and
        (d) Actions taken to prevent further loss, damage, or destruction, 
    and to prevent repetition of similar incidents.
    
    
    Sec. 109-1.5113  Loss, damage, or destruction of personal property in 
    possession of designated contractors.
    
        (a) Designated contractors shall report any loss, damage, or 
    destruction of personal property in its possession or control, 
    including property in the possession or control of subcontractors, to 
    the property administrator as soon as it becomes known.
        (b) When physical inventories, consumption analyses, or other 
    actions disclose consumption of property considered unreasonable by the 
    property administrator; or loss, damage, or destruction of personal 
    property not previously reported by the contractor, the property 
    administrator shall require the contractor to investigate the incidents 
    and submit written reports.
        (c) Reports of physical inventory results and identified 
    discrepancies shall be submitted to the property administrator within 
    90 days of completion of physical inventories. An acceptable percentage 
    of shrinkage for stores inventories shall be determined by the property 
    administrator on a location-by-location basis, based on type and cost 
    of materials, historical data, and other site-specific factors. This 
    determination shall be in writing and be supported by appropriate 
    documentation.
        (d) The contractor's report referenced above shall contain factual 
    data as to the circumstances surrounding the loss, damage, destruction 
    or excessive consumption, including:
        (1) The contractor's name and contract number;
        (2) A description of the property;
        (3) Cost of the property, and cost of repairs in instances of 
    damage (in event actual cost is not known, use reasonable estimate);
        (4) The date, time (if pertinent), and cause or origin; and
        (5) Actions taken by the contractor to prevent further loss, 
    damage, destruction, or unreasonable consumption, and to prevent 
    repetition of similar incidents.
        (e) The property administrator shall ensure that the corrective 
    actions taken by the contractor under paragraph (d)(5) of this section 
    satisfactorily address system weaknesses.
        (f) The contracting officer shall make a determination of 
    contractor liability
    
    [[Page 19622]]
    
    with a copy of the determination furnished to the contractor and the 
    property administrator. Costs may be assessed against a contractor for 
    physical inventory discrepancies or other instances of loss of 
    Government property within the terms of the contract. Credit should 
    only be applied if specific items reported as lost can be uniquely 
    identified. General physical inventory write-ons are not to be used as 
    a credit.
        (g) If part of a designated contractor's personal property 
    management system is found to be unsatisfactory, the property 
    administrator shall increase surveillance of that part to prevent, to 
    the extent possible, any loss, damage, destruction or unreasonable 
    consumption of personal property. The property administrator shall give 
    special attention to reasonably assuring that any loss, damage, 
    destruction or unreasonable consumption occurring during a period when 
    a contractor's personal property management system is not approved is 
    identified before approval or reinstatement of approval.
    
    
    Sec. 109-1.5114  Use of non-Government-owned property.
    
        Non-Government-owned personal property shall not be installed in, 
    affixed to, or otherwise made a part of any Government-owned personal 
    property when such action will adversely affect the operation or 
    condition of the Government property.
    
    
    Sec. 109-1.5148  Personal property management reports.
    
        Reports to be submitted to the DPMO are listed in Table 1:
    
                                                         Table 1                                                    
    ----------------------------------------------------------------------------------------------------------------
                Report title              Due at DOE headquarters           References                 Form No.     
    ----------------------------------------------------------------------------------------------------------------
    (1) Report of Exempted Motor          On request.............  FPMR 101-38.204-4, DOE-PMR    Letter.            
     Vehicles.                                                      109-38.204-4.                                   
    (2) Agency Report of Motor Vehicle    Oct. 31................  FPMR 101-38.903, DOE-PMR 109- SF 82.             
     Data.                                                          38.903.                                         
    (3) Excess Personal Property          Nov. 15................  FPMR 101-43.4701(c), DOE-PMR  Letter.            
     Furnished to Non-Federal Recipients.                           109-43.4701(c).                                 
    (4) Negotiated Sales................  Nov. 15................  FPMR 101-45.4702, DOE-PMR     Letter.            
                                                                    109-45.4702.                                    
    ----------------------------------------------------------------------------------------------------------------
    
    Subpart 109-1.52--Personal Property Management Program for 
    Designated Contractors
    
    
    Sec. 109-1.5200  Scope of subpart.
    
        This subpart prescribes policy and responsibilities for the 
    establishment, maintenance, and appraisal of designated contractors' 
    programs for the management of personal property.
    
    
    Sec. 109-1.5201  Policy.
    
        (a) Designated contractors shall establish, implement, and maintain 
    a system that provides for an efficient personal property management 
    program. The system shall be consistent with the terms of the contract; 
    prescribed policies, procedures, regulations, statutes, and 
    instructions; and directions from the contracting officer.
        (b) Designated contractors' personal property management systems 
    shall not be considered acceptable until reviewed and approved in 
    writing by the cognizant DOE contracting office in accordance with 
    Sec. 109-1.5205 of this subpart.
        (c) Designated contractors shall maintain their personal property 
    management systems in writing. Revisions to the systems shall be 
    approved in writing by the cognizant DOE contracting office in 
    accordance with Sec. 109-1.5205 of this subpart.
        (d) Designated contractors shall include their personal property 
    management system in their management surveillance or internal review 
    program in order to identify weaknesses and functions requiring 
    corrective action.
        (e) Designated contractors are responsible and accountable for all 
    Government personal property in the possession of subcontractors, and 
    shall include appropriate provisions in their subcontracts and property 
    management systems to assure that subcontractors establish and maintain 
    efficient systems for the management of Government personal property in 
    their possession in accordance with Sec. 109-1.5204 of this subpart.
    
    
    Sec. 109-1.5202  Establishment of a personal property holdings 
    baseline.
    
        (a) If the contractor is a new designated contractor, the 
    contractor may accept the previous contractor's personal property 
    records as a baseline or may perform a complete physical inventory of 
    all personal property. This physical inventory is to be performed 
    within the time period specified by the contracting officer or the 
    contract, but no later than one year after the execution date of the 
    contract. If the physical inventory is not accomplished within the 
    allotted time frame, the previous contractor's records will be 
    considered as the baseline.
        (b) If any required physical inventories have not been accomplished 
    within the time periods prescribed in Sec. 109-1.5110(f) of this part, 
    the new contractor shall either perform such physical inventories 
    within 120 days of contract renegotiation, or accept the existing 
    property records as the baseline.
    
    
    Sec. 109-1.5203  Management of subcontractor-held personal property.
    
        Designated contractors shall require those subcontractors provided 
    Government-owned personal property to establish and maintain a system 
    for the management of such property. As a minimum, a subcontractor's 
    personal property management system shall provide for the following:
        (a) Adequate records.
        (b) Controls over acquisitions.
        (c) Identification as Government-owned personal property.
        (d) Physical inventories.
        (e) Proper care, maintenance, and protection.
        (f) Controls over personal property requiring special handling 
    (i.e., nuclear-related, proliferation-sensitive, hazardous, or 
    contaminated property).
        (g) Reporting, redistribution, and disposal of excess and surplus 
    personal property.
        (h) Accounting for personal property that is lost, damaged, 
    destroyed, stolen, abandoned, or worn out.
        (i) Periodic reports, including physical inventory results and 
    total acquisition cost of Government property.
        (j) An internal surveillance program, including periodic reviews, 
    to ensure that personal property is being managed in accordance with 
    established procedures.
    
    
    Sec. 109-1.5204  Review and approval of a designated contractor's 
    personal property management system.
    
        (a) An initial review of a designated contractor's personal 
    property management system shall be performed
    
    [[Page 19623]]
    
    by the property administrator within one year after the execution date 
    of the contract, except for contract extensions or renewals or when an 
    existing contractor has been awarded a follow-on contract. The purpose 
    of the review is to determine whether the contractor's system provides 
    adequate protection, maintenance, utilization, and disposition of 
    personal property, and reasonable assurance that the Department's 
    personal property is safeguarded against waste, loss, unauthorized use, 
    or misappropriation, in accordance with applicable statutes, 
    regulations, contract terms and conditions, programmatic needs, and 
    good business practices. If circumstances preclude completion of the 
    initial review within the ``within one year'' initial review 
    requirement, the property administrator shall request a deviation from 
    the requirement in accordance with the provisions of Sec. 109-1.110-50 
    of this part.
        (b) If a designated contractor is the successor to a previous 
    designated contractor and the contract award was based in part on the 
    contractor's proposal to overhaul the existing personal property 
    management system(s), the ``within one year'' initial review 
    requirement may be extended based on:
        (1) The scope of the overhaul; and
        (2) An analysis of the cost to implement the overhaul within a year 
    versus a proposed extended period.
        (c) When an existing contract has been extended or renewed, or the 
    designated contractor has been awarded a follow-on contract, an initial 
    review of the contractor's personal property management system is not 
    required. In such cases, the established appraisal schedule will 
    continue to be followed as prescribed in paragraph (d) of this section.
        (d) At a minimum of every three years after the date of approval of 
    a designated contractor's property management system, the OPMO shall 
    make an appraisal of the personal property management operation of the 
    contractor. The purpose of the appraisal is to determine if the 
    contractor is managing personal property in accordance with its 
    previously approved system and procedures, and to establish whether 
    such procedures are efficient. The appraisal may be based on a formal 
    comprehensive appraisal or a series of formal appraisals of the 
    functional segments of the contractor's operation.
        (e) A designated contractor's property management system shall be 
    approved, conditionally approved, or disapproved in writing by the head 
    of the field organization with advice of the contracting officer, 
    property administrator, OPMO, legal counsel, DPMO, and appropriate 
    program officials. Approval authority may be redelegated to the 
    contracting officer or contracting officer's designee. Conditional 
    approval and disapproval authority cannot be redelegated. When a system 
    is conditionally approved or disapproved, the property administrator or 
    contracting officer shall advise the contractor, in writing, of 
    deficiencies that need to be corrected, and a time schedule established 
    for completion of corrective actions.
        (f) Appropriate follow-up will be made by the property 
    administrator to ensure that corrective actions have been initiated and 
    completed.
        (g) When a determination has been made by the property 
    administrator that all major system deficiencies identified in the 
    review or appraisal have been corrected, the head of the field 
    organization shall withdraw the conditional approval or disapproval, 
    and approve the system with the concurrence of the OPMO. The approval 
    shall be in writing and addressed to appropriate contractor management.
        (h) The property administrator shall maintain a copy of all 
    designated contractor personal property management system appraisals 
    and approvals in such manner as to be readily available to 
    investigative and external review teams.
    
    
    Sec. 109-1.5205  Personal property management system changes.
    
        Any proposed significant change to a designated contractor's 
    approved personal property management system shall be reviewed by the 
    property administrator at the earliest possible time. Such changes 
    should then be approved in writing on an interim basis, or disapproved 
    in writing, by the property administrator as appropriate.
    
    Subpart 109-1.53--Management of High Risk Personal Property
    
    
    Sec. 109-1.5300  Scope of subpart.
    
        (a) This subpart provides identification, accounting, control, and 
    disposal policy guidance for the following categories of high risk 
    personal property: especially designed or prepared property, export 
    controlled property, nuclear weapon components or weapon-like 
    components, and proliferation sensitive property. The guidance is 
    intended to ensure that the disposition of these categories of high 
    risk personal property does not adversely affect the national security 
    or nuclear nonproliferation objectives of the United States.
        (b) The other categories of high risk personal property are 
    controlled by other life cycle management programs and procedures 
    monitored by other Departmental elements.
    
    
    Sec. 109-1.5301  Applicability.
    
        This subpart is applicable to all DOE organizations which purchase, 
    manage or dispose of Government personal property, or contract for the 
    management of Government facilities, programs, or related services, 
    which may directly or indirectly require the purchase, management, or 
    disposal of Government-owned personal property. Using the high risk 
    personal property control requirements in this subpart as guidance, 
    heads of field organizations or OPMOs shall assure that designated 
    contractors and financial assistance recipients are responsible for 
    developing a cost effective high risk property management system, 
    covering all operational responsibilities enumerated in this subpart.
    
    
    Sec. 109-1.5302  Policies.
    
        (a) It is the responsibility of DOE organizations and designated 
    contractors to manage and control Government-owned high risk personal 
    property in an efficient manner. High risk personal property will be 
    managed throughout its life cycle so as to protect public and DOE 
    personnel safety and to advance the national security and the nuclear 
    nonproliferation objectives of the U.S. Government.
        (b) The disposition of high risk property is subject to special 
    considerations. Items of high risk property may present significant 
    risks to the national security and nuclear nonproliferation objectives 
    of the Government which must be evaluated. Organizations will identify 
    high risk property and control its disposition to eliminate or mitigate 
    such risks. In no case shall property be transferred or disposed unless 
    it receives a high risk assessment and is handled accordingly.
    
    
    Sec. 109-1.5303  Procedures.
    
        (a) Identification, marking and control. To ensure the appropriate 
    treatment of property at its disposal and to prevent inadvertent, 
    uncontrolled release of high risk property, property should be assessed 
    and evaluated as high risk property as early in its life cycle as 
    practical.
        (1) Newly acquired high risk personal property shall be identified 
    and tracked during the acquisition process and marked upon receipt.
        (2) All personal property shall be reviewed for high risk 
    identification, marking, and database entry during
    
    [[Page 19624]]
    
    regularly scheduled physical inventories, unless access to the property 
    is difficult or impractical because the property is a component of a 
    larger assembly, a complex operating system, or an older facility. The 
    review of this property will be completed, prior to disposition, when 
    replacing components or when operating systems and facilities are 
    decommissioned and dismantling.
        (3) High risk personal property which by its nature cannot be 
    marked, such as stores items and metal stock, is exempt from this 
    requirement. However, personal property management programs should 
    contain documentation on the characterization of this property as high 
    risk.
        (b) Disposition of high risk property.
        (1) Prior to disposition, all personal property, materials or data 
    will be assessed to determine:
        (i) Whether it should be characterized as high risk and
        (ii) What actions are necessary to ensure compliance with 
    applicable national security or nonproliferation controls.
        (2) The DOE or designated contractor property management 
    organization may not process high risk personal property into a 
    reutilization/disposal program without performing the reviews 
    prescribed by the local high risk property management system. The 
    reviews must be properly documented, and all appropriate certifications 
    and clearances received, in accordance with the approved site or 
    facility personal property management program.
        (3) The disposition (including demilitarization of items on the 
    Munitions List) and handling of high risk personal property are subject 
    to applicable provisions of Subchapter H of the FPMR, subchapter H of 
    this chapter, and the DOE Guidelines on Export Control and 
    Nonproliferation.
        (4) Documentation. All applicable documentation, including records 
    concerning the property's categorization as high risk, shall be 
    included as part of the property transfer. The documentation shall be 
    included with all transfers within, or external to, DOE.
        (5) Unless an alternative disposition option appears to be in the 
    best interest of the Government, surplus Trigger List components, 
    equipment, and materials and nuclear weapon components shall either be 
    sold for scrap after being rendered useless for their originally 
    intended purpose or destroyed, with the destruction verified and 
    documented. Requests for approval of an alternative disposition may be 
    made through the cognizant Assistant Secretary to the Director of the 
    Office of Nonproliferation and National Security.
        (6) Export Restriction Notice. The following Export Restriction 
    Notice, or approved equivalent notice, shall be included in all 
    transfers, sales, or other offerings:
    
    Export Restriction Notice
    
        The use, disposition, export and reexport of this property are 
    subject to all applicable U.S. laws and regulations, including the 
    Atomic Energy Act of 1954, as amended; the Arms Export Control Act 
    (22 U.S.C. 2751 et seq.); the Export Administration Act of 1979 (560 
    U.S.C. Append 2401 et seq.); Assistance to Foreign Atomic Energy 
    Activities (10 CFR part 810); Export and Import of Nuclear Equipment 
    and Material (10 CFR part 110); International Traffic in Arms 
    Regulations (22 CFR parts 120 et seq.); Export Administration 
    Regulations (15 CFR part 730 et seq.); Foreign Assets Control 
    Regulations (31 CFR parts 500 et seq.); and the Espionage Act (37 
    U.S.C. 791 et seq.) which among other things, prohibit:
        a. The making of false statements and concealment of any 
    material information regarding the use or disposition, export or 
    reexport of the property; and
        b. Any use or disposition, export or reexport of the property 
    which is not authorized in accordance with the provisions of this 
    agreement.
    
    
    Sec. 109-1.5304  Deviations.
    
        (a) Life cycle control determinations. When the HFO approves a 
    contractor program containing controls, other than life cycle control 
    consistent with this subpart, the decision shall be justified in 
    writing and a copy sent to the Deputy Assistant Secretary for 
    Procurement and Assistance Management. A HFO's decision not to provide 
    life-cycle control should take into account:
        (1) The nature and extent of high risk property typically purchased 
    or otherwise brought to a DOE or designated contractor facility or 
    site;
        (2) The projected stability of DOE and designated contractor 
    operations; and
        (3) The degree of confidence in the property control measures 
    available at disposition.
        (b) Certain transfers, sales, or other offerings of high risk 
    personal property may require special conditions or specific 
    restrictions as determined necessary by the property custodian or 
    cognizant program office.
        (c) Requests for deviations from the requirements of this subpart 
    may be made through the cognizant HFO to the Deputy Assistant Secretary 
    for Procurement and Assistance Management.
    
    PART 109-6--MISCELLANEOUS REGULATIONS
    
    Subpart 109-6.4--Official Use of Government Passenger Carriers Between 
    Residence and Place of Employment
    Sec.
    109-6.400  Scope and applicability.
    109-6.400-50  Instructions to DOE passenger carrier operators.
    109-6.402  Policy.
    109-6.450  Statutory provisions.
    
        Authority: Sec. 205(c), 63 Stat. 390 (40 U.S.C. 486(c); 31 
    U.S.C. 1344(e)(1).
    
    Subpart 109-6.4--Official Use of Government Passenger Carriers 
    Between Residence and Place of Employment
    
    
    Sec. 109-6.400  Scope and applicability.
    
        (a) With the exception of Sec. 109-6.400-50, the provisions of this 
    subpart and 41 CFR 101-6.4 do not apply to designated contractors. 
    Official use provisions applicable to these contractors are contained 
    in Sec. 109-38.3 of this chapter.
        (b) When an employee on temporary duty is authorized to travel by 
    Government motor vehicle, and in the interest of the Government, is 
    scheduled to depart before the beginning of regular working hours, or 
    if there will be a significant savings in time, a Government motor 
    vehicle may be issued at the close of the preceding working day. 
    Similarly, when scheduled to return after the close of working hours, 
    the motor vehicle may be returned the next regular working day. This 
    use of a Government motor vehicle is not regarded as prohibited by 31 
    U.S.C. 1344 (25 Comp. Gen. 844).
    
    
    Sec. 109-6.400-50  Instructions to DOE passenger carrier operators.
    
        DOE offices shall ensure that DOE employees operating Government 
    motor vehicles are informed concerning:
        (a) The statutory requirement that Government motor vehicles shall 
    be used only for official purposes;
        (b) Personal responsibility for safe driving and operation of 
    Government motor vehicles, and for compliance with Federal, state, and 
    local laws and regulations, and all accident reporting requirements;
        (c) The need to possess a valid state, District of Columbia, or 
    commonwealth operator's license or permit for the type of vehicle to be 
    operated and some form of agency identification;
        (d) The penalties for unauthorized use of Government motor 
    vehicles;
        (e) The prohibition against providing transportation to strangers 
    or hitchhikers;
        (f) The proper care, control and use of Government credit cards;
    
    [[Page 19625]]
    
        (g) Mandatory use of seat belts by each employee operating or 
    riding in a Government motor vehicle;
        (h) The prohibition against the use of tobacco products in GSA-
    Interagency Fleet Management System (IFMS) motor vehicles;
        (i) Any other duties and responsibilities assigned to operators 
    with regard to the use, care, operation, and maintenance of Government 
    motor vehicles;
        (j) The potential income tax liability when they use a Government 
    motor vehicle for transportation between residence and place of 
    employment; and
        (k) Protection for DOE employees under the Federal Tort Claims Act 
    when acting within the scope of their employment.
    
    
    Sec. 109-6.402  Policy.
    
        (a) It is DOE policy that Government motor vehicles operated by DOE 
    employees are to be used only for official Government purposes or for 
    incidental purposes as prescribed in this section. Official use does 
    not include use of vehicles between residence and place of employment 
    unless provided for in accordance with paragraph (b) of this section. 
    The Director, Office of Administrative Services and heads of field 
    organizations for their respective organizations shall establish 
    appropriate controls to ensure that the use of a Government motor 
    vehicle for transportation between an employee's residence and place of 
    employment is in accordance with the provisions of 41 CFR 101-6.4 and 
    this subpart.
        (b) The use of Government motor vehicles between an employee's 
    residence and place of employment (home-to-work) is limited to:
        (1) The Secretary of Energy; and
        (2) Those persons engaged in field work as determined by the 
    Secretary of Energy in accordance with 41 CFR 101-6.403(b).
        (c) It is DOE policy that space in a Government motor vehicle used 
    for home-to-work transportation may be shared with a spouse, relative, 
    or friend in accordance with the restrictions contained in 41 CFR 101-
    6.402(f).
        (d) A Departmental official who is authorized home-to-work 
    transportation is permitted to use Government-owned or leased motor 
    vehicles for non-official purposes incidental to the official use of 
    the vehicle, provided that the incremental cost (e.g., driver time and 
    mileage) of such use is de minimis or such costs are outweighed by 
    other considerations, such as the efficient use of the official's time.
    
    
    Sec. 109-6.450  Statutory provisions.
    
        (a) In accordance with 31 U.S.C. 1349(b), any officer or employee 
    of the Government who willfully uses or authorizes the use of a 
    Government passenger motor vehicle for other than official purposes 
    shall be suspended from duty by the head of the department concerned, 
    without compensation, for not less than one month and shall be 
    suspended for a longer period or summarily removed from office if 
    circumstances warrant.
        (b) Under the provisions of 18 U.S.C. 641, any person who knowingly 
    misuses any Government property (including Government motor vehicles) 
    may be subject to criminal prosecution and, upon conviction, to fines 
    or imprisonment.
    
    SUBCHAPTER E--SUPPLY AND PROCUREMENT
    
    PART 109-25--GENERAL
    
    Subpart 109-25.1--General Policies
    
    Sec.
    109-25.100  Use of Government personal property and nonpersonal 
    services.
    109-25.103  Promotional materials, trading stamps, or bonus goods.
    109-25.103-1  General.
    109-25.104  Acquisition of office furniture and office machines.
    109-25-109  Laboratory and research equipment.
    109-25-109-1  Identification of idle equipment.
    109-25-109-2  Equipment pools.
    
    Subpart 109-25.3--Use Standards
    
    109-25.302  Office furniture, furnishings, and equipment.
    109-25.350  Furnishing of Government clothing and individual 
    equipment.
    
    Subpart 109-25.4--Replacement Standards
    
    109-25.401  General.
    109-25.401-50  Replacement approvals.
    
        Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
    7254).
    
    Subpart 109-25.1--General Policies
    
    
    Sec. 109-25.100  Use of Government personal property and nonpersonal 
    services.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall ensure to restrict the use of Government property/
    services to officially designated activities.
    
    
    Sec. 109-25.103  Promotional materials, trading stamps, or bonus goods.
    
    
    Sec. 109-25.103-1  General.
    
        DOE offices and designated contractors shall establish procedures 
    for the receipt and disposition of promotional materials, trading 
    stamps, or bonus goods consistent with the provisions of 41 CFR 101-
    25.103.
    
    
    Sec. 109-25.104  Acquisition of office furniture and office machines.
    
        DOE offices and designated contractors shall make the determination 
    as to whether requirements can be met through the utilization of DOE 
    owned furniture and office machines.
    
    
    Sec. 109-25.109  Laboratory and research equipment.
    
        The provisions of 41 CFR 101-25.109 and this section apply to 
    laboratory and research equipment in the possession of DOE field 
    organizations and designated contractors.
    
    
    Sec. 109-25.109-1  Identification of idle equipment.
    
        (a) At a minimum, management walk-throughs shall be conducted to 
    provide for coverage of all operating and storage areas at least once 
    every two years to identify idle and unneeded personal property. The 
    submission to the head of the laboratory or facility of a report of 
    walk-throughs conducted shall be at the discretion of the laboratory or 
    facility management. However, DOE field organizations may require 
    designated contractors to submit a report of walk-throughs to the 
    OPMOs. Equipment identified as idle and unneeded shall be redeployed, 
    reassigned, placed in equipment pools, or excessed, as appropriate. All 
    walk-throughs shall be documented to include, at a minimum, the 
    identity of the participants, areas covered, findings, recommendations, 
    corrective action plans, and results achieved. The documentation shall 
    be made available for review by appropriate contractor management, DOE 
    offices, and audit teams.
        (b) Members of management walk-through inspection teams should be 
    coordinated with the property administrator and the OPMO.
        (c) OPMOs shall periodically review walk-through procedures and 
    practices of DOE offices and designated contractors to determine their 
    effectiveness.
    
    
    Sec. 109-25.109-2  Equipment pools.
    
        (a)-(c) [Reserved]
        (d) The report on the use and effectiveness of equipment pools 
    shall be submitted to the head of the DOE office at the discretion of 
    that official. However, documentation of evaluations of pools shall be 
    maintained and made available for review by appropriate contractor 
    management, DOE offices, and audit teams.
        (e) Heads of field organizations shall require periodic independent 
    reviews of equipment pool operations.
    
    [[Page 19626]]
    
    Subpart 109-25.3--Use Standards
    
    
    Sec. 109-25.302  Office furniture, furnishings, and equipment.
    
        The Director, Office of Administrative Services, heads of field 
    organizations, and designated contractors shall establish criteria for 
    the use of office furniture, furnishings, and equipment.
    
    
    Sec. 109-25.350  Furnishing of Government clothing and individual 
    equipment.
    
        (a) Government-owned clothing and individual equipment may be 
    furnished to employees:
        (1) For protection from physical injury or occupational disease; or
        (2) When employees could not reasonably be required to furnish them 
    as a part of the personal clothing and equipment needed to perform the 
    regular duties of the position to which they are assigned or for which 
    services were engaged.
        (b) This section does not apply to uniforms or uniform allowances 
    under the Federal Employees Uniform Allowance Act of 1954, as amended.
    
    Subpart 109-25.4--Replacement Standards
    
    
    Sec. 109-25.401  General.
    
    
    Sec. 109-25.401-50  Replacement approvals.
    
        The Director, Office of Administrative Services and heads of field 
    organizations are authorized to approve replacement of office machines, 
    furniture, and materials handling equipment.
    
    PART 109-26--PROCUREMENT SOURCES AND PROGRAM
    
    Subpart 109-26.2--Federal Requisitioning System
    
    Sec.
    109-26.203  Activity address codes.
    
    Subpart 109-26.5--GSA Procurement Programs
    
    109-26.501  Purchase of new motor vehicles.
    109-26.501-1  General.
    109-26.501-4  Submission of orders.
    109-26.501-50  Authority and allocations for the acquisition of 
    passenger motor vehicles.
    109-26.501-51  Used vehicles.
    109-26.501-52  Justification for purchase.
    109-26.501-53  Acquisitions by transfer.
    109-26.501-54  Communications equipment.
    
        Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
    7254).
    
    Subpart 109-26.2--Federal Requisitioning System
    
    
    Sec. 109-26.203  Activity address codes.
    
        (a) DOE field organizations designated by OCMA are responsible for 
    processing routine activity code related transactions for specified 
    groupings of field organizations. Each field organization in a 
    specified grouping will forward their activity address code related 
    transactions to the grouping's lead organization for processing. Each 
    lead organization shall designate a point of contact who will:
        (1) Verify the need, purpose, and validity of each transaction; and
        (2) Be the specified grouping's authorized point of contact for 
    dealing directly with GSA.
        (b) OCMA is responsible for:
        (1) All policy matters related to the issuance and control of 
    activity address codes within DOE; and
        (2) Furnishing the identity of the lead field organization points 
    of contact to GSA.
    
    Subpart 109-26.5--GSA Procurement Programs
    
    
    Sec. 109-26.501  Purchase of new motor vehicles.
    
    
    Sec. 109-26.501-1  General.
    
        (a) [Reserved].
        (b) Motor vehicles may be purchased directly rather than through 
    GSA when a waiver has been granted by GSA. The waiver request should be 
    submitted directly to GSA and a copy forwarded to the DPMO. However, 
    where GSA refuses to grant a waiver and it is believed that procurement 
    through GSA would adversely affect or otherwise impair a program, the 
    DPMO may, upon written request of the head of the DOE field 
    organization, grant the authority for direct purchase of general 
    purpose motor vehicles. Upon receipt of written authorization from the 
    DPMO, the head of the field organization may authorize direct purchase 
    of special purpose vehicles. The purchase price for passenger motor 
    vehicles shall not exceed any statutory limitation in effect at the 
    time the purchase is made.
    
    
    Sec. 109-26.501-4  Submission of orders.
    
        An original and two copies of requisitions for passenger motor 
    vehicles and law enforcement motor vehicles shall be forwarded with 
    justification for purchase to the DPMO, for approval and submission to 
    GSA. Requisitions for all other types of motor vehicles shall be 
    submitted directly to GSA.
    
    
    Sec. 109-26.501-50  Authority and allocations for the acquisition of 
    passenger motor vehicles.
    
        (a) Authority for the acquisition of passenger motor vehicles is 
    contained in the Department's annual appropriation act.
        (b) DOE offices shall include in their budget submissions the 
    number of passenger motor vehicles to be purchased during the fiscal 
    year. The procurements will be identified as either additions to the 
    motor vehicle fleet or replacement vehicles. A copy of the motor 
    vehicle portion of the submission should be submitted to the DPMO.
        (c) To assure that DOE does not exceed the number of passenger 
    motor vehicles authorized to be acquired in any fiscal year, the Deputy 
    Assistant Secretary for Procurement and Assistance Management or 
    designee shall allocate to and inform the field organizations in 
    writing of the number of passenger motor vehicles which may be acquired 
    under each appropriation. These allocations and the statutory cost 
    limitations imposed on these motor vehicles shall not be exceeded.
        (d) The motor vehicle fleet manager shall provide written 
    certification to the OPMO that disposition action has been taken on 
    replaced passenger motor vehicles. Such certification shall be provided 
    no later than 30 days after the disposition of the vehicle. Replaced 
    passenger motor vehicles shall not be retained in service after receipt 
    of the replacement vehicle.
    
    
    Sec. 109-26.501-51  Used vehicles.
    
        Normally, DOE does not purchase or authorize contractors to 
    purchase used motor vehicles. However, the Director, Office of 
    Administrative Services and heads of field organizations may authorize 
    the purchase of used motor vehicles where justified by special 
    circumstances, e.g., when new motor vehicles are in short supply; motor 
    vehicles are to be used for experimental or test purposes; or motor 
    vehicles are acquired from exchange/sale. The statutory passenger motor 
    vehicle allocation requirements shall apply to any purchase of used 
    passenger motor vehicles except in the case of motor vehicles to be 
    used exclusively for experimental or test purposes.
    
    
    Sec. 109-26.501-52  Justification for purchase.
    
        (a) Requisitions for additions to the passenger motor vehicle fleet 
    must contain adequate written justification of need. Such 
    justifications shall be prepared by the motor vehicle fleet manager and 
    approved by the OPMO, and should include:
        (1) A statement as to why the present fleet size is inadequate to 
    support requirements;
        (2) Efforts made to achieve maximum use of on-hand motor vehicles 
    through
    
    [[Page 19627]]
    
    pool arrangements, shuttle buses, and taxicabs;
        (3) The programmatic requirement for the motor vehicles and the 
    impact on the program/project if the requisitions are not filled;
        (4) The established DOE or local utilization objectives used to 
    evaluate the utilization of passenger motor vehicles and whether the 
    objectives have been approved by the OPMO; and
        (5) The date of the last utilization review and the number of 
    passenger motor vehicles which did not meet the established utilization 
    objectives and the anticipated mileage to be achieved by the new motor 
    vehicles.
        (b) Requisitions for replacement passenger motor vehicles should 
    include a statement that utilization, pools, shuttle buses and taxicabs 
    have been considered by the motor vehicle fleet manager and the OPMO. 
    Specific information on the identification, age and mileage of the 
    motor vehicles should be included. When a passenger motor vehicle being 
    replaced does not meet Federal replacement standards, a description of 
    the condition of the vehicle should also be provided.
    
    
    Sec. 109-26.501-53  Acquisitions by transfer.
    
        (a) The acquisition of passenger motor vehicles by transfer from 
    another Government agency or DOE organization shall be within the 
    allocations prescribed in Sec. 109-26.501-50 of this subpart.
        (b) Passenger motor vehicles may be acquired by transfer provided 
    they are:
        (1) Considered as an addition to the motor vehicle fleet of the 
    receiving office;
        (2) Acquired for replacement purposes and an equal number of 
    replaced motor vehicles are reported for disposal within 30 days;
        (3) For temporary emergency needs exceeding three months and 
    approved in writing by the DPMO; or
        (4) For temporary emergency needs of three months or less in lieu 
    of commercial rentals. These transfers will not count toward the 
    allocation.
    
    
    Sec. 109-26.501-54  Communications equipment.
    
        Communications equipment considered to be essential for the 
    accomplishment of security and safety responsibilities is exempt from 
    the requirements of 41 CFR 101-26.501. The Fleet Manager shall approve 
    the installation of communications equipment in motor vehicles.
    
    PART 109-27--INVENTORY MANAGEMENT
    
    Sec.
    109-27.000-50  Definitions.
    
    Subpart 109-27.1--Stock Replenishment
    
    109-27.102  Economic order quantity principle.
    109-27.102-1  Applicability.
    109-27.102-50  Systems contracting.
    109-27.102-51  Policy.
    109-27.102-52  Implementation.
    
    Subpart 109-27.2--Management of Shelf-Life Materials
    
    109-27.202  Applicability.
    
    Subpart 109-27.3--Maximizing Use of Inventories
    
    109-27.302  Applicability.
    
    Subpart 109-27.4--Elimination of Items from Inventory
    
    109-27.402  Applicability.
    
    Subpart 109-27.50--Inventory Management Policies, Procedures, and 
    Guidelines
    
    109-27.5001  Objectives.
    109-27.5002  Stores inventory turnover ratio.
    109-27.5003  Stock control.
    109-27.5004  Sub-stores.
    109-27.5005  Shop, bench, cupboard or site stock.
    109-27.5006  Stores catalogs.
    109-27.5007  Physical inventories.
    109-27.5007-1  Procedures.
    109-27.5007-2  Inventory adjustments.
    109-27.5008  Control of drug substances and potable alcohol.
    109-27.5009  Control of hypodermic needles and syringes.
    109-27.5010  Containers returnable to vendors.
    109-27.5011  Identification marking of metals and metal products.
    109-27.5011-1  General.
    109-27.5011-2  Exception.
    
    Subpart 109-27.51--Management of Precious Metals
    
    109-27.5100  Scope of subpart.
    109-27.5101  Definition.
    109-27.5102  Policy.
    109-27.5103  Precious Metals Control Officer.
    109-27.5104  Practices and procedures.
    109-27.5104-1  Acquisitions.
    109-27.5104-2  Physical protection and storage.
    109-27.5104-3  Perpetual inventory records.
    109-27.5104-4  Physical inventories.
    109-27.5104-5  Control and issue of stock.
    109-27.5104-6  Control by using organization.
    109-27.5105  Management reviews and audits.
    109-27.5106  Precious metals pool.
    109-27.5106-1  Purpose.
    109-27.5106-2  Withdrawals.
    109-27.5106-3  Returns.
    109-27.5106-4  Withdrawals/returns forecasts.
    109-27.5106-5  Assistance.
    109-27.5107  Recovery of silver from used hypo solution and scrap 
    film.
    
        Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
    7254).
    
    PART 109-27--INVENTORY MANAGEMENT
    
    
    Sec. 109-27.000-50  Definitions.
    
        As used in this part the following definitions apply:
        Inventories mean stocks of stores, construction, supplies, and 
    parts used in support of DOE programs.
        Inventory management means the efficient use of methods, procedures 
    and techniques for recording, analyzing, and adjusting inventories in 
    accordance with established policy. The following related functions are 
    included:
        (1) Providing adequate protection against misuse, theft, and 
    misappropriation.
        (2) Providing accurate analyses of quantities to determine 
    requirements so that only minimal obsolescence losses will be 
    encountered, while ensuring adequate inventory levels to meet program 
    schedules.
        (3) Providing adequate and accessible storage facilities and 
    services based upon analyses of program requirements so that a minimum 
    and economical amount of time is required to service the program.
        Stock record means a device for collecting, storing, and providing 
    historical data on recurring transactions for each line item of 
    inventory.
        Sub-store means a geographically removed part of the main store's 
    operation conducted as a subordinate element of it and subject to the 
    same management policies and inventory controls.
        Systems contracting means a materials management purchasing 
    technique for the purchase of general, common-use, and repetitive 
    supply items in a particular product family. An example is office 
    supplies, purchased from a commercial vendor, that are needed for 
    immediate use instead of purchasing in bulk for future use, storing in 
    warehouses, and issuing to customers by use of a requisitioning system. 
    Systems contracting and just-in-time contracting are synonymous.
    
    Subpart 109-27.1--Stock Replenishment
    
    
    Sec. 109-27.102   Economic order quantity principle.
    
    
    Sec. 109-27.102-1   Applicability.
    
        Replenishment of inventories of stock items having recurring 
    demands will be by use of the economic order quantity (EOQ) principle. 
    However, when considered more suitable, designated contractors may use 
    other generally accepted approaches to EOQ.
    
    [[Page 19628]]
    
    Sec. 109-27.102-50   Systems contracting.
    
        Systems contracting may be used instead of or along with EOQ once a 
    determination is made that such a system is feasible and cost 
    effective, and that adequate controls are in place to ensure proper 
    use.
    
    
    Sec. 109-27.102-51   Policy.
    
        Systems contracting for supply operations is a proven cost-
    effective approach to meeting procurement needs and may be implemented 
    in DOE offices and designated contractors wherever significant cost 
    savings to the Government will result. Impacts on local suppliers and 
    small and disadvantaged business concerns should be considered in the 
    overall business strategy.
    
    
    Sec. 109-27.102-52   Implementation.
    
        (a) DOE OPMOs shall establish required property management controls 
    relative to the implementation of systems contracting.
        (b) DOE offices and designated contractors operating a materials 
    management function who have not performed an initial feasibility study 
    for the implementation of systems contracting shall perform such a 
    study for selected commodity groups. The study may be accomplished over 
    a period of time, until all commodity groups have been considered. The 
    study should address functional requirements, activity levels of 
    commodity groups and individual items, and potential impacts on local 
    suppliers and small and disadvantaged businesses. An industrial 
    relations analysis on existing labor relations and union contracts may 
    also be necessary.
        (c) As required in the DEAR, DOE offices and designated contractors 
    are required to consider the use of GSA supply sources when 
    economically advantageous to the Government. These sources must be 
    considered in the conduct of the feasibility study.
        (d) DOE contracting offices shall evaluate the initial cost benefit 
    studies performed by contractors to verify the savings and other 
    benefits of systems contracting, and shall approve its implementation. 
    In those instances where a cost benefit study has previously been 
    performed, the DOE contracting office shall ensure that those studies 
    have been evaluated and the approval to proceed with systems 
    contracting has been provided to the contractor in writing.
        (e) DOE offices shall periodically reevaluate systems contracting 
    operations conducted by their office and designated contractors to 
    ensure that required property management controls are being followed.
    
    Subpart 109-27.2--Management of Shelf-Life Materials
    
    
    Sec. 109-27.202   Applicability.
    
        When considered more suitable, designated contractors may use other 
    generally accepted approaches to the management of shelf-life 
    materials.
    
    Subpart 109-27.3--Maximizing Use of Inventories
    
    
    Sec. 109-27.302   Applicability.
    
        When considered more suitable, designated contractors may use other 
    generally accepted approaches to maximizing use of inventories.
    
    Subpart 109-27.4--Elimination of Items From Inventory Sec. 109-
    27.402 Applicability
    
        When considered more suitable, designated contractors may use other 
    generally accepted approaches to determine which items should be 
    eliminated from inventory.
    
    Subpart 109-27.50--Inventory Management Policies, Procedures, and 
    Guidelines
    
    
    Sec. 109-27.5001  Objectives.
    
        Necessary inventories shall be established and maintained at 
    reasonable levels, consistent with DOE requirements, applicable laws 
    and regulations, and the following objectives:
        (a) The maintenance of adequate stock levels through accurate 
    analyses of quantities to determine requirements and stock 
    replenishments so that only minimal obsolescence losses will be 
    encountered while ensuring adequate inventory levels to meet program 
    schedules;
        (b) The protection of materials against misuse, theft, and 
    misappropriation;
        (c) The maintenance of an efficient operation; and
        (d) The standardization of inventories to the greatest extent 
    practicable.
    
    
    Sec. 109-27.5002  Stores inventory turnover ratio.
    
        Comparison of investment in stores inventories to annual issues 
    shall be made to assure that minimum inventories are maintained for the 
    support of programs. This comparison may be expressed either as a 
    turnover ratio (dollar value of issues divided by dollar value of 
    inventory) or in the average number of month's supply on hand. Turnover 
    or number of month's supply is calculated only on current-use 
    inventory. Performance goals, i.e., a six months investment or a 
    turnover ratio of 2.0, shall be established for each stores using 
    activity. It is recognized, however, that extenuating operating 
    circumstances may preclude the achievement of such objectives.
    
    
    Sec. 109-27.5003  Stock control.
    
        (a) Stock control shall be maintained on the basis of stock record 
    accounts of inventories on hand, on order, received, issued, and 
    disposed of, and supported by proper documents in evidence of these 
    transactions. Stock record accounts shall be available for review and 
    inspection.
        (b) Personal property under stock control for greater than 90 days 
    shall be maintained in stock record accounts.
    
    
    Sec. 109-27.5004  Sub-stores.
    
        (a) Sub-stores shall be established when necessary to expedite 
    delivery of materials and supplies to the users, serve emergencies, 
    provide economy in transportation, reduce shop and site stocks, and 
    enable stores personnel to provide assistance in obtaining materials 
    and supplies as needed.
        (b) Items stored for issue in the sub-stores shall be treated as 
    inventory items for control and reporting purposes. Stock records shall 
    be integrated with central stock records so that the total amount on 
    hand of any item at all locations is known.
    
    
    Sec. 109-27.5005  Shop, bench, cupboard or site stock.
    
        Shop, bench, cupboard or site stocks are an accumulation of small 
    inventories of fast-moving materials at the point of use. Normally, 
    these inventories are expensed at time of issue from controlled stores. 
    However, when stocks of such inventories are not consumed or do not 
    turn over in a reasonable period of time, which normally should not 
    exceed 90 days, these items should be subject to the required physical 
    controls and recorded in the proper inventory account.
    
    
    Sec. 109-27.5006  Stores catalogs.
    
        A stores catalog for customer use that lists items available from 
    stock shall be established for each stores operation. Exceptions to 
    this requirement are authorized where establishment of a catalog is 
    impracticable or uneconomical because of small total value or number of 
    items involved, or temporary need for the facility.
    
    
    Sec. 109-27.5007  Physical inventories.
    
    
    Sec. 109-27.5007-1  Procedures.
    
        The following procedures shall be established for taking physical 
    inventory of stocks subjected to quantity
    
    [[Page 19629]]
    
    controls as well as those under financial control:
        (a) Completion of a physical inventory not less frequently than 
    every twelve months.
        (b) Reconciliation of inventory quantities with the stock records.
        (c) Preparation of a report of the physical inventory results.
    
    
    Sec. 109-27.5007-2  Inventory adjustments.
    
        Discrepancies between physical inventories and stock records shall 
    be adjusted and the supporting adjustment records shall be reviewed and 
    approved by a responsible official at least one supervisory level above 
    the supervisor in charge of the warehouse or storage facility. Items on 
    an adjustment report which are not within reasonable tolerances for 
    particular items shall be thoroughly investigated before report 
    approval. Adjustment reports shall be retained on file for inspection 
    and review.
    
    
    Sec. 109-27.5008  Control of drug substances and potable alcohol.
    
        Effective procedures and practices shall provide for the management 
    and physical security of controlled substances and potable alcohol from 
    receipt to the point of use. Such procedures shall, as a minimum, 
    provide for safeguarding, proper use, adequate records, and compliance 
    with applicable laws and regulations. Controls and records of potable 
    alcohol shall be maintained on quantities of one quart and above.
    
    
    Sec. 109-27.5009  Control of hypodermic needles and syringes.
    
        Effective procedures and practices shall provide for the management 
    and physical security of hypodermic needles and syringes to prevent 
    illegal use. Controls shall include supervisory approval for issue, 
    storage in locked repositories, and the rendering of the items useless 
    prior to disposal.
    
    
    Sec. 109-27.5010  Containers returnable to vendors.
    
        Containers furnished by vendors shall be administratively and 
    physically controlled before and after issuance. Prompt action shall be 
    taken to return such containers to vendors for credit after they have 
    served their intended use.
    
    
    Sec. 109-27.5011  Identification marking of metals and metal products.
    
    
    Sec. 109-27.5011-1  General.
    
        Metals and metal products shall be identified and marked in 
    accordance with applicable Federal standards. This requirement applies 
    to direct charges as well as to items procured for store, shop or floor 
    stock, or for use on construction projects. Additional markings not 
    covered by Federal standards should be used to show special properties, 
    corrosion data, or test data as required. The preferred process is for 
    the marking to be done in the manufacturing process, but it may be 
    applied by suppliers when circumstances warrant.
    
    
    Sec. 109-27.5011-2  Exception.
    
        Exceptions to the marking requirement may be made when:
        (a) It is necessary to procure small quantities from suppliers not 
    equipped to do the marking;
        (b) It would delay delivery of emergency orders; or
        (c) Procurement is from DOE or other Federal agency excess.
    
    Subpart 109-27.51--Management of Precious Metals
    
    
    Sec. 109-27.5100  Scope of subpart.
    
        This subpart provides policies, principles, and guidelines to be 
    used in the management of purchased and recovered precious metals used 
    to meet research, development, production, and other programmatic 
    needs.
    
    
    Sec. 109-27.5101  Definition.
    
        Precious metals means uncommon and highly valuable metals 
    characterized by their superior resistance to corrosion and oxidation. 
    Included are gold, silver, and the platinum group metals--platinum, 
    palladium, rhodium, iridium, ruthenium and osmium.
    
    
    Sec. 109-27.5102  Policy.
    
        DOE organizations and contractors shall establish effective 
    procedures and practices for the administrative and physical control of 
    precious metals in accordance with the provisions of this subpart.
    
    
    Sec. 109-27.5103  Precious Metals Control Officer.
    
        Each DOE organization and contractor holding precious metals shall 
    designate in writing a Precious Metals Control Officer. This individual 
    shall be the organization's primary point of contact concerning 
    precious metals control and management, and shall be responsible for 
    the following:
        (a) Assuring that the organization's precious metals activities are 
    conducted in accordance with Departmental requirements.
        (b) Maintaining of an accurate list of the names of precious metals 
    custodians.
        (c) Providing instructions and training to precious metals 
    custodians and/or users as necessary to assure compliance with 
    regulatory responsibilities.
        (d) Insuring that physical inventories are performed as required 
    by, and in accordance with, these regulations.
        (e) Witnessing physical inventories.
        (f) Performing periodic unannounced inspections of a custodian's 
    precious metals inventory and records.
        (g) Conducting an annual review of precious metals holdings to 
    determine excess quantities.
        (h) Preparing and submitting to the Business Center for Precious 
    Metals Sales and Recovery the annual forecast of anticipated 
    withdrawals from, and returns to, the DOE precious metals pool.
        (i) Conducting a program for the recovery of silver from used hypo 
    solution and scrap film in accordance with 41 CFR 101-45.10 and 
    Sec. 109-45.10 of this chapter.
        (j) Preparing and submitting of the annual report on recovery of 
    silver from used hypo solution and scrap film as required by Sec. 109-
    45.1002-2 of this chapter.
        (k) Developing and issuing current authorization lists of persons 
    authorized by management to withdraw precious metals from stockrooms.
    
    
    Sec. 109-27.5104  Practices and procedures.
    
    
    Sec. 109-27.5104-1  Acquisitions.
    
        DOE organizations and contractors shall contact the Business Center 
    for Precious Metals Sales and Recovery to determine the availability of 
    precious metals prior to acquisition on the open market.
    
    
    Sec. 109-27.5104-2  Physical protection and storage.
    
        Precious metals shall be afforded exceptional physical protection 
    from time of receipt until disposition. Precious metals not in use 
    shall be stored in a noncombustible combination locked repository with 
    access limited to the designated custodian and an alternate. When there 
    is a change in custodian or alternate having access to the repository, 
    the combination shall be changed immediately.
    
    
    Sec. 109-27.5104-3  Perpetual inventory records.
    
        Perpetual inventory records shall be maintained as specified in 
    Chapter V of DOE Order 534.1, Accounting.
    
    
    Sec. 109-27.5104-4  Physical inventories.
    
        (a) Physical inventories shall be conducted annually by custodians, 
    and witnessed by the Precious Metals Control Officer or his designee.
        (b) Precious metals not in use shall be inspected and weighed on 
    calibrated
    
    [[Page 19630]]
    
    scales. The inventoried weight and form shall be recorded on the 
    physical inventory sheets by metal content and percent of metal. Metals 
    in use in an experimental process or contaminated metals, neither of 
    which can be weighed, shall be listed on the physical inventory sheet 
    as observed and/or not observed as applicable.
        (c) Any obviously idle or damaged metals should be recorded during 
    the physical inventory. Justification for further retention of idle 
    metals shall be required from the custodian and approved one level 
    above the custodian, or disposed of in accordance with established 
    procedures.
        (d) The dollar value of physical inventory results shall be 
    reconciled with the financial records. All adjustments shall be 
    supported by appropriate adjustment reports, and approved by a 
    responsible official.
    
    
    Sec. 109-27.5104-5  Control and issue of stock.
    
        Precious metals in stock are metals held in a central location and 
    later issued to individuals when authorized requests are received. The 
    following control procedures shall be followed for such metals:
        (a) Stocks shall be held to a minimum consistent with efficient 
    support to programs.
        (b) The name and organization number of each individual authorized 
    to withdraw precious metals, and the type and kind of metals, shall be 
    prominently maintained in the stockroom. This authorization shall be 
    issued by the Precious Metals Control Officer or his designee and 
    updated annually. Issues of metals will be made only to authorized 
    persons.
        (c) Accurate records of all receipts, issues, returns, and 
    disposals shall be maintained in the stockroom.
        (d) Receipts for metal issues and returns to stock shall be 
    provided to users. Such receipts, signed by the authorized requesting 
    individual and the stockroom clerk, shall list the requesting 
    organization, type and form of metal, quantity, and date of 
    transaction.
    
    
    Sec. 109-27.5104-6  Control by using organization.
    
        (a) After receipt, the using organization shall provide necessary 
    controls for precious metals. Materials shall be stored in a non-
    combustible, combination locked repository at all times except for 
    quantities at the actual point of use.
        (b) Each using organization shall maintain a log showing the 
    individual user, type and form of metal, and the time, place, and 
    purpose of each use. The log shall be kept in a locked repository when 
    not in use.
        (c) The logs and secured locked storage facilities are subject to 
    review by the Precious Metals Control Officer and other audit or review 
    staffs as required.
        (d) Cognizant Departmental managers are responsible for assuring 
    that minimum quantities of precious metals are withdrawn consistent 
    with work requirements and that quantities excess to requirements are 
    promptly returned to the stockroom.
        (e) Employee termination and transfer procedures shall include 
    clearance for precious metals possession.
    
    
    Sec. 109-27.5105  Management reviews and audits.
    
        (a) Unannounced inspections of custodian's precious metals 
    inventory and records may be conducted between scheduled inventories.
        (b) DOE organizations and contractors holding precious metals shall 
    annually review the quantity of precious metals on hand to determine if 
    the quantity is in excess of program requirements. Precious metals 
    which are not needed for current or foreseeable requirements shall be 
    promptly reported to the DOE precious metals pool. The results of this 
    annual review are to be documented and entered into the precious metals 
    inventory records.
    
    
    Sec. 109-27.5106  Precious metals pool.
    
    
    Sec. 109-27.5106-1  Purpose.
    
        The purpose of the precious metals pool is to recycle, at a minimum 
    cost to pool participants, DOE-owned precious metals within the 
    Department and to dispose of DOE-owned precious metals that are excess 
    to DOE needs. However, if the pool is unable to accept any potential 
    precious metal return, the using activity will dispose of the precious 
    metals through the disposal process specified in subchapter H of the 
    FPMR and this regulation.
    
    
    Sec. 109-27.5106-2  Withdrawals.
    
        Pure metals, parts, fabricated products, catalysts, or solutions, 
    are generally available and the Business Center for Precious Metals 
    Sales and Recovery can provide assistance in supplying such 
    requirements. Metals can be shipped to any facility to fulfill 
    fabrication requirements.
    
    
    Sec. 109-27.5106-3  Returns.
    
        All excess precious metals must be returned to the precious metals 
    pool except as noted in Sec. 109-27.5106-1 of this subpart. The pool is 
    entirely dependent on metal returns; therefore, metal inventories 
    should be maintained on an as-needed basis, and any excess metals must 
    be returned to the pool for recycling. With the exception of silver, 
    this includes precious metals in any form, including shapes, scrap, or 
    radioactively contaminated. Only high grade nonradioactively 
    contaminated silver should be included. Procedures have been developed 
    by the precious metals pool contractor for metal returns, including 
    storing, packaging, shipping, and security.
    
    
    Sec. 109-27.5106-4  Withdrawals/returns forecasts.
    
        The Business Center for Precious Metals Sales and Recovery will 
    request annually from each DOE field organization its long-range 
    forecast of anticipated withdrawals from the pool and returns to the 
    pool.
    
    
    Sec. 109-27.5106-5  Assistance.
    
        The Business Center for Precious Metals Sales and Recovery operates 
    the precious metals pool. DOE organizations and contractors may obtain 
    specific information regarding the operation of the precious metals 
    pool (operating contractor's name, address, and telephone number; 
    processing charges; etc.) by contacting the Chief, Property Management 
    Branch, Oak Ridge Operations Office.
    
    
    Sec. 109-27.5107  Recovery of silver from used hypo solution and scrap 
    film.
    
        The requirements for the recovery of silver from used hypo solution 
    and scrap film are contained in Sec. 109-45.1003 of this chapter.
    
    PART 109-28--STORAGE AND DISTRIBUTION
    
    Sec.
    109-28.000-50  Policy.
    109-28.000-51  Storage guidelines.
    
    Subpart 109-28.3--Customer Supply Centers
    
    109-28.306  Customer supply center (CSC) accounts and related 
    controls.
    109-28.306-3  Limitations on use.
    109-28.306-5  Safeguards.
    
    Subpart 109-28.50--Management of Equipment Held for Future Projects
    
    109-28.5000  Scope of subpart.
    109-28.5001  Definition.
    109-28.5002  Objective.
    109-28.5003  Records.
    109-28.5004  Justification and review procedures.
    109-28.5005  EHFFP program review.
    109-28.5006  Utilization.
    
    Subpart 109-28.51--Management of Spare Equipment
    
    109-28.5100  Scope of subpart.
    109-28.5101  Definition.
    109-28.5102  Exclusions.
    109-28.5103  Management policy.
    
    
    [[Page 19631]]
    
    
        Authority: 42 U.S.C. 7254.
    
    
    Sec. 109-28.000-50  Policy.
    
        DOE offices and designated contractors shall:
        (a) Establish storage space and warehousing services for the 
    receipt, storage, issue, safekeeping and protection of Government 
    property;
        (b) Provide storage space and warehousing services in the most 
    efficient manner consistent with program requirements; and
        (c) Operate warehouses in accordance with generally accepted 
    industrial management practices and principles.
    
    
    Sec. 109-28.000-51  Storage guidelines.
    
        (a) Indoor storage areas should be arranged to obtain proper stock 
    protection and maximum utilization of space within established floor 
    load capacities.
        (b) Storage yards for items not requiring covered protection shall 
    be protected by locked fenced enclosures to the extent necessary to 
    protect the Government's interest.
        (c) Storage areas shall be prominently posted to clearly indicate 
    that the property stored therein is U.S. Government property, with 
    entrance to such areas restricted to authorized personnel only.
        (d) Property in storage must be protected from fire, theft, 
    deterioration, or destruction. In addition certain items require 
    protection from dampness, heat, freezing, or extreme temperature 
    changes. Other items must be stored away from light and odors, 
    protected from vermin infestation, or stored separately because of 
    their hazardous characteristics.
        (e) Hazardous or contaminated property, including property having a 
    history of use in an area where exposure to contaminated property may 
    have occurred, shall not be commingled with non-contaminated property, 
    but stored separately in accordance with instructions from the 
    environmental, safety, and health officials.
        (f) Unless inappropriate or impractical until declared excess, 
    nuclear-related and proliferation-sensitive property shall be 
    identified as such by use of a certification tag signed by an 
    authorized program official (designated in writing with signature cards 
    on file in the personal property management office). Such personal 
    property shall not be commingled with other personal property, but 
    stored separately in accordance with instructions from the cognizant 
    program office.
    
    Subpart 109-28.3--Customer Supply Centers
    
    
    Sec. 109-28.306  Customer supply center (CSC) accounts and related 
    controls.
    
    
    Sec. 109-28.306-3  Limitations on use.
    
        DOE offices and designated contractors shall establish internal 
    controls for ensuring that the use of CSC accounts is limited to the 
    purchase of items for official Government use.
    
    
    Sec. 109-28.306-5  Safeguards.
    
        DOE offices and designated contractors shall establish internal 
    controls for ensuring that the customer access codes assigned for their 
    accounts are properly protected.
    
    Subpart 109-28.50--Management of Equipment Held for Future Projects
    
    
    Sec. 109-28.5000  Scope of subpart.
    
        This subpart provides policies, principles, and guidelines to be 
    used in the management of equipment held for future projects (EHFFP).
    
    
    Sec. 109-28.5001  Definition.
    
        Equipment held for future projects means items being retained, 
    based on approved justifications, for a known future use, or for a 
    potential use in planned projects.
    
    
    Sec. 109-28.5002  Objective.
    
        The objective of the EHFFP program is to enable DOE offices and 
    contractors to retain equipment not in use in current programs but 
    which has a known or potential use in future DOE programs, while 
    providing visibility on the types and amounts of equipment so retained 
    through review and reporting procedures. It is intended that equipment 
    be retained where economically justifiable for retention, considering 
    cost of maintenance, replacement, obsolescence, storage, deterioration, 
    or future availability; made available for use by others; and promptly 
    excessed when no longer needed.
    
    
    Sec. 109-28.5003  Records.
    
        Records of all EHFFP shall be maintained by the holding 
    organization, including a listing of items with original date of 
    classification as EHFFP; initial justifications for retaining EHFFP; 
    rejustifications for retention; and documentation of reviews made by 
    higher levels of management.
    
    
    Sec. 109-28.5004  Justification and review procedures.
    
        Procedures shall provide for the following:
        (a) The original decision to classify and retain equipment as EHFFP 
    shall be justified in writing, providing sufficient detail to support 
    the need for retention of the equipment. This justification will cite 
    the project for which retained, the potential use to be made of the 
    equipment, or other reasons for retention.
        (b) The validity of the initial classification EHFFP shall be 
    reviewed by management at a level above that of the individual making 
    the initial determination.
        (c) Retention of equipment as EHFFP must be rejustified annually to 
    ensure that original justifications remain valid. The rejustifications 
    will contain sufficient detail to support retention.
        (d) When equipment is retained as EHFFP for longer than one year, 
    the annual rejustification shall be reviewed at a level of management 
    at least two levels above that of the individual making the 
    determination to retain the EHFFP. Equipment retained as EHFFP for 
    longer than three years should be approved by the head of the DOE field 
    organization.
    
    
    Sec. 109-28.5005  EHFFP program review.
    
        OPMOs or on-site DOE property administrators shall conduct periodic 
    reviews to ensure that the EHFFP program is being conducted in 
    accordance with established procedures and this subpart. Included in 
    the review will be proper determinations of property as EHFFP, the 
    validity of justifications for retaining EHFFP, and the inclusion of 
    EHFFP in management walk-throughs as prescribed in Sec. 109-25.109-1 of 
    this chapter.
    
    
    Sec. 109-28.5006  Utilization.
    
        It is DOE policy that, where practicable and consistent with 
    program needs, EHFFP be considered as a source of supply to avoid or 
    postpone acquisition.
    
    Subpart 109-28.51--Management of Spare Equipment
    
    
    Sec. 109-28.5100  Scope of subpart.
    
        This subpart provides policy guidance to be used in the management 
    of spare equipment.
    
    
    Sec. 109-28.5101  Definition.
    
        Spare equipment means items held as replacement spares for 
    equipment in current use in DOE programs.
    
    
    Sec. 109-28.5102  Exclusions.
    
        The following categories of equipment will not be considered spare 
    equipment:
        (a) Equipment installed for emergency backup, e.g., an emergency 
    power facility, or an electric motor or a pump, any of which is in 
    place and electrically connected.
    
    [[Page 19632]]
    
        (b) Equipment items properly classified as stores inventory.
    
    
    Sec. 109-28.5103  Management policy.
    
        (a) Procedures shall require the maintenance of records for spare 
    equipment, cross-referenced to the location in the facility and the 
    engineering drawing number. The purpose for retention shall be in the 
    records.
        (b) Reviews shall be made based on technical evaluations of the 
    continued need for the equipment. The reviews should be held 
    biennially. In addition, individual item levels shall be reviewed when 
    spare equipment is installed for use, the basic equipment is removed 
    from service, or the process supported is changed.
        (c) Procedures shall be established to provide for the 
    identification and reporting of unneeded spare equipment as excess 
    property.
    
    PART 109-30--FEDERAL CATALOG SYSTEM
    
    Sec.
    109-30.001-50  Applicability.
    
        Authority: 42 U.S.C. 7254.
    
    
    Sec. 109-30.001-50  Applicability.
    
        The provisions of 41 CFR part 101-30 do not apply to designated 
    contractors.
    
    SUBCHAPTER G--AVIATION, TRANSPORTATION, AND MOTOR VEHICLES
    
    PART 109-37--[RESERVED]
    
    PART 109-38--MOTOR EQUIPMENT MANAGEMENT
    
    Sec.
    109-38.000  Scope of part.
    109-38.000-50  Policy.
    
    Subpart 109-38.0--Definition of Terms
    
    109-38.001  Definitions.
    
    Subpart 109-38.1--Fuel Efficient Motor Vehicles
    
    109-38.104  Fuel efficient passenger automobiles and light trucks.
    109-38.105  Agency purchase and lease of motor vehicles.
    109-38.106  Leasing of motor vehicles.
    
    Subpart 109-38.2--Registration, Identification, and Exemptions
    
    109-38.200  General requirements.
    109-38.201  Registration and inspection.
    109-38.201-50  Registration in foreign countries.
    109-38.202  Tags.
    109-38.202-2  Outside the District of Columbia.
    109-38.202-3  Records.
    109-38.202-50  Security.
    109-38.203  Agency identification.
    109-38.204  Exemptions.
    109-38.204-1  Unlimited exemptions.
    109-38.204-3  Requests for exempted motor vehicles in the District 
    of Columbia.
    109-38.204-4  Report of exempted motor vehicles.
    109-38.204-50  Records of exempted motor vehicles.
    
    Subpart 109-38.3--Official Use of Government Motor Vehicles
    
    109-38.300  Scope.
    109-38.301  Authorized use.
    109-38.301-1  Contractors' use.
    109-38.301-1.50  Authorization for transportation between residence 
    and place of employment.
    109-38.301-1.51  Emergency use.
    109-38.301-1.52  Maintenance of records.
    109-38.301-1.53  Responsibilities of motor vehicle operators.
    
    Subpart 109-38.4--Use and Replacement Standards
    
    109-38.401  Use standards.
    109-38.401-2  Use of self-service pumps.
    109-38.402  Replacement standards.
    109-38.402-50  Prompt disposal of replaced motor vehicles.
    109-38.403  Responsibility for damages.
    109-38.403-1  Policy.
    109-38.403-2  Responsibility.
    109-38.403-3  Exceptions.
    
    Subpart 109-38.5--Scheduled Maintenance
    
    109-38.502  Guidelines.
    109-38.502-50  DOE guidelines.
    
    Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles
    
    109-38.701  Transfer of title for Government-owned motor vehicles.
    109-38.701-50  Authority to sign Standard Form 97, The United States 
    Government Certificate to Obtain Title to a Vehicle.
    
    Subpart 109-38.8--Standard Form 149, U.S. Government National Credit 
    Card
    
    109-38.800  General.
    109-38.801  Obtaining SF 149, U.S. Government National Credit Card.
    
    Subpart 109-38.9--Federal Motor Vehicle Fleet Report
    
    109-38.902  Records.
    109-38.903  Reporting of data.
    109-38.903-50  Reporting DOE motor vehicle data.
    
    Subpart 109-38.51--Utilization of Motor Equipment
    
    109-38.5100  Scope of subpart.
    109-38.5101  Policy.
    109-38.5102  Utilization controls and practices.
    109-38.5103  Motor vehicle utilization standards.
    109-38.5104  Other motor equipment utilization standards.
    109-38.5105  Motor vehicle local use objectives.
    109-38.5106  Application of motor vehicle use goals.
    
    Subpart 109-38.52--Watercraft
    
    109-38.5200  Scope of subpart.
    109-38.5201  Definition.
    109-38.5202  Watercraft operations.
    109-38.5203  Watercraft identification and numbers.
    
        Authority: 42 U.S.C. 7254.
    
    Sec. 109-38.000  Sec. Scope of part.
    
    
    109-38.000-50  Policy.
    
        Motor vehicles and watercraft shall be acquired, maintained, and 
    utilized in support of DOE programs in the minimum quantity required 
    and in the most efficient manner consistent with program requirements, 
    safety considerations, fuel economy, and applicable laws and 
    regulations.
    
    Subpart 109-38.0--Definition of Terms
    
    
    Sec. 109-38.001  Definitions.
    
        Experimental vehicles means vehicles acquired solely for testing 
    and research purposes or otherwise designated for experimental 
    purposes. Such vehicles are to be the object of testing and research as 
    differentiated from those used as vehicular support to testing and 
    research. Experimental vehicles are not to be used for passenger 
    carrying services unless required as part of a testing/evaluation 
    program, and they are not subject to statutory price limitations or 
    authorization limitations.
        Motor equipment means any item of equipment which is self-propelled 
    or drawn by mechanical power, including motor vehicles, motorcycles and 
    scooters, construction and maintenance equipment, materials handling 
    equipment, and watercraft.
        Motor vehicle means any equipment, self-propelled or drawn by 
    mechanical power, designed to be operated principally on highways in 
    the transportation of property or passengers.
        Special purpose vehicles means vehicles which are used or designed 
    for specialized functions. These vehicles include, but are not limited 
    to: Trailers, semi-trailers, other types of trailing equipment; trucks 
    with permanently mounted equipment (such as aerial ladders); 
    construction and other types of equipment set forth in Federal Supply 
    Classification Group (FSCG) 38; material handling equipment set forth 
    in FSCG 39; and fire fighting equipment set forth in FSCG 42. For 
    reporting purposes within DOE, motorcycles, motor scooters and all 
    terrain vehicles will also be reported as special purpose vehicles.
    
    Subpart 109-38.1--Fuel Efficient Motor Vehicles
    
    
    Sec. 109-38.104  Fuel efficient passenger automobiles and light trucks.
    
        (a) [Reserved]
        (b) All requests to purchase passenger automobiles larger than 
    class IA, IB, or
    
    [[Page 19633]]
    
    II (small, subcompact, or compact) shall be forwarded with 
    justification to the DPMO for approval and certification for compliance 
    with the fuel economy objectives listed in 41 CFR 101-38.104.
        (b)(1)-(b)(4) [Reserved]
        (5) Requests to exempt certain light trucks from the fleet average 
    fuel economy calculations shall be forwarded with justification to the 
    DPMO for approval.
    
    
    Sec. 109-38.105  Agency purchase and lease of motor vehicles.
    
        (a) DOE activities shall submit a copy of all motor vehicle leases 
    and purchases not procured through the GSA Automotive Commodity Center 
    to GSA.
        (b)-(c) [Reserved]
        (d) DOE activities desiring to renew a commercial lease shall 
    submit the requirement in writing to the DPMO for approval prior to 
    submission by field offices to GSA.
        (e) DOE activities shall submit a copy of all lease agreements to 
    GSA.
    
    Subpart 109-38.2--Registration, Identification, and Exemptions
    
    
    Sec. 109-38.200  General requirements.
    
        (a)-(e) [Reserved]
        (f) Requests made pursuant to 41 CFR 101-38.200(f) for exemption 
    from the requirement for displaying U.S. Government tags and other 
    identification on motor vehicles, except for those vehicles exempted in 
    accordance with Sec. 109-38.204-1 of this subpart, shall be submitted 
    through normal administrative channels to the DPMO for approval. Each 
    approved exemption must be renewed annually, and the DPMO shall be 
    notified promptly when the need for a previously authorized exemption 
    no longer exists. Copies of certifications and cancellation notices 
    required to be furnished to GSA pursuant to 41 CFR 101-38.200(f) will 
    be transmitted to GSA by the DPMO.
        (g) Requests for temporary removal and substitution of Government 
    markings shall be submitted with justification to the DPMO for review 
    and approval. Copies of the determination and justification required to 
    be furnished to GSA will be transmitted to GSA by the DPMO.
    
    
    Sec. 109-38.201  Registration and inspection.
    
    
    Sec. 109-38.201-50  Registration in foreign countries.
    
        Motor vehicles used in foreign countries are to be registered and 
    carry license tags in accordance with the existing motor vehicle 
    regulations of the country concerned. The person responsible for a 
    motor vehicle in a foreign country shall make inquiry at the United 
    States Embassy, Legation, or Consulate concerning the regulations that 
    apply to registration, licensing, and operation of motor vehicles and 
    shall be guided accordingly.
    
    
    Sec. 109-38.202  Tags.
    
    
    Sec. 109-38.202-2  Outside the District of Columbia.
    
        The Director of Administrative Services and heads of field 
    organizations shall make the determination concerning the use of tags 
    outside the District of Columbia.
    
    
    Sec. 109-38.202-3  Records.
    
        (a) The DPMO assigns ``blocks'' of U.S. Government license tag 
    numbers to DOE organizations and maintains a current record of such 
    assignments. Additional ``blocks'' will be assigned upon request.
        (b) Each DOE direct operation and designated contractor shall 
    maintain a current record of individual assignments of license tags to 
    the motor vehicles under their jurisdiction.
    
    
    Sec. 109-38.202-50  Security.
    
        Unissued license tags shall be stored in a locked drawer, cabinet, 
    or storage area with restricted access to prevent possible fraud or 
    misuse. Tags which are damaged or unusable will be safeguarded until 
    destroyed.
    
    
    Sec. 109-38.203  Agency identification.
    
        Standard DOE motor vehicle window decals (DOE Form 1530.1), and 
    door decals to be used only on vehicles without windows (DOE Form 
    1530.2), are available from the Office of Administrative Services, 
    Logistics Management Division, Headquarters, using DOE Form 4250.2, 
    ``Requisition for Supplies, Equipment or Services'', or as directed by 
    that office.
    
    
    Sec. 109-38.204  Exemptions.
    
    
    Sec. 109-38.204-1  Unlimited exemptions.
    
        (a)-(f) [Reserved]
        (g) The Director, Office of Administrative Services and heads of 
    field organizations for their respective organizations may approve 
    exemptions from the requirement for the display of U.S. Government 
    license tags and other official identification for motor vehicles used 
    for security or investigative purposes.
    
    
    Sec. 109-38.204-3  Requests for exempted motor vehicles in the District 
    of Columbia.
    
        The Director, Office of Administrative Services is designated to 
    approve requests for regular District of Columbia license tags, and 
    furnishes annually the name and specimen signature of each 
    representative authorized to approve such requests to the District of 
    Columbia Department of Transportation.
    
    
    Sec. 109-38.204-4  Report of exempted motor vehicles.
    
        DOE offices shall provide upon request the necessary information to 
    the DPMO to enable that office to submit a report of exempted vehicles.
    
    
    Sec. 109-38.204-50  Records of exempted motor vehicles.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall maintain records of motor vehicles exempted from 
    displaying U.S. Government license tags and other identification. The 
    records shall contain a listing, by type, of each exempted motor 
    vehicle operated during the previous fiscal year, giving information 
    for each motor vehicle on hand at the beginning of the year and each of 
    those newly authorized during the year, including:
        (a) Name and title of authorizing official (including any 
    authorization by Headquarters and GSA);
        (b) Date exemption was authorized;
        (c) Justification for exemption and limitation on use of the 
    exempted motor vehicle;
        (d) Date of discontinuance for any exemption discontinued during 
    the year; and
        (e) Probable duration of exemptions for motor vehicles continuing 
    in use.
    
    Subpart 109-38.3--Official Use of Government Motor Vehicles
    
    
    Sec. 109-38.300  Scope.
    
        This subpart prescribes the requirements governing the use of 
    Government motor vehicles for official purposes by designated 
    contractors.
    
    
    Sec. 109-38.301  Authorized use.
    
        The use of Government motor vehicles by officers and employees of 
    the Government is governed by the provisions of 41 CFR 101-6.4 and 
    section 109-6.4 of this chapter.
    
    
    Sec. 109-38.301-1  Contractors' use.
    
        Heads of field organizations shall ensure that provisions of the 
    FPMR concerning contractor use of Government motor vehicles are 
    complied with by their designated contractors.
    
    
    Sec. 109-38.301-1.50  Authorization for transportation between 
    residence and place of employment.
    
        (a) Government motor vehicles shall not be used for transportation 
    between residence and place of employment by
    
    [[Page 19634]]
    
    designated contractor personnel except under extenuating circumstances 
    specifically provided for under the terms of the contract. Examples of 
    circumstances eligible for prior approval of home-to-work motor vehicle 
    use which would be appropriate to include in the terms of the contract 
    include: use related to safety or security operations, use related to 
    compelling operational considerations, and use determined as cost 
    effective to DOE's interest. Under no circumstances shall the comfort 
    and convenience, or managerial position, of contractor employees be 
    considered justification for authorization of use.
        (b) The use of Government motor vehicles for transportation between 
    residence and place of employment (including sporadic use) by 
    designated contractor personnel shall be approved in writing by the 
    Head of the field organization or designee, with delegation no lower 
    than the Assistant Manager for Administration at the Operations Offices 
    or the equivalent position at other DOE contracting activities provided 
    that the individual is a warranted contracting officer. The 
    contractor's request for approval shall include the name and title of 
    the employee, the reason for the use, and the expected duration of the 
    use. Each authorization is limited to one year, but can be extended for 
    an unlimited number of additional one-year periods.
    
    
    Sec. 109-38.301-1.51  Emergency use.
    
        (a) Procedures for authorization of designated contractor use of 
    Government motor vehicles in emergencies, including unscheduled 
    overtime situations at remote sites where prior approval is not 
    possible, shall be included in a contractor's approved property 
    management procedures. The procedures shall include examples of 
    emergency situations warranting such use. Records detailing instances 
    of emergency use shall be maintained and review of all such emergency 
    or overtime use must be certified through established audit procedures 
    on at least an annual basis by the OPMO.
        (b) In limiting the use of Government motor vehicles to official 
    purposes, it is not intended to preclude their use in emergencies 
    threatening loss of life or property. Such use shall be documented and 
    the documentation retained for three years.
    
    
    Sec. 109-38.301-1.52  Maintenance of records.
    
        Designated contractors shall maintain logs or other records on the 
    use of a Government motor vehicle for transportation between an 
    employee's residence and place of employment. As a minimum, these logs 
    shall indicate the employee's name, date of use, time of departure and 
    arrival, miles driven, and names of other passengers. Cognizant finance 
    offices shall be provided with applicable data on employees who utilize 
    Government motor vehicles for such transportation for purposes of the 
    Deficit Reduction Act of 1984 concerning the taxation of fringe 
    benefits.
    
    
    Sec. 109-38.301-1.53  Responsibilities of motor vehicle operators.
    
        Designated contractors shall assure that their employees are aware 
    of their responsibilities, identical to those listed in Sec. 109-6.400-
    50 of this chapter for DOE employees, concerning the use and operation 
    of Government motor vehicles.
    
    Subpart 109-38.4--Use and Replacement Standards
    
    
    Sec. 109-38.401  Use standards.
    
    
    Sec. 109-38.401-2  Use of self-service pumps.
    
        It is DOE policy that motor vehicle operators shall use self-
    service pumps in accordance with the provisions of 41 CFR 101-38.401-2.
    
    
    Sec. 109-38.402  Replacement standards.
    
        (a) [Reserved]
        (b) Motor vehicles may be replaced without regard to the 
    replacement standards in 41 CFR 101-38.402 only after certification by 
    the Director of Administrative Services or the Head of the field 
    organization for their respective organizations that a motor vehicle is 
    beyond economical repair due to accident damage or wear caused by 
    abnormal operating conditions.
    
    
    Sec. 109-38.402-50  Prompt disposal of replaced motor vehicles.
    
        A replaced motor vehicle shall be removed from service and disposed 
    of prior to or as soon as practicable after delivery of the replacement 
    motor vehicle to avoid concurrent operation of both motor vehicles.
    
    
    Sec. 109-38.403  Responsibility for damages.
    
    
    Sec. 109-38.403-1  Policy.
    
        The policy for assigning responsibility for vehicle damage is to 
    recover from users the costs for damages which would adversely affect 
    the vehicle's resale.
    
    
    Sec. 109-38.403-2  Responsibility.
    
        The designated contractor will charge the using organization all 
    costs resulting from damage, including vandalism, theft and parking lot 
    damage to a DOE vehicle which occurs during the period that the vehicle 
    is assigned to an employee of that organization. The charges recovered 
    by the designated maintenance operation will be used to repair the 
    vehicle. Other examples for which organizations will be charged are as 
    follows:
        (a) Damage caused by misuse or abuse inconsistent with normal 
    operation and local conditions; or
        (b) Repair costs which are incurred as a result of user's failure 
    to obtain required preventative maintenance; or
        (c) Unauthorized purchases or repairs, including credit card 
    misuse, provided there is a clear, flagrant, and documented pattern of 
    such occurrences.
    
    
    Sec. 109-38.403-3  Exceptions.
    
        Exceptions to Sec. 109-38.403-2 of this subpart are as follows:
        (a) As the result of the negligent or willful act of a party other 
    than the organization or it's employee, and the responsible party can 
    be determined; or
        (b) As a result of mechanical failure and the employee was not 
    otherwise negligent. Proof of the failure must be provided; or
        (c) As a result of normal wear comparable to similar vehicles.
    
    Subpart 109-38.5--Scheduled Maintenance
    
    
    Sec. 109-38.502  Guidelines.
    
    
    Sec. 109-38.502-50  DOE guidelines.
    
        (a) Whenever practicable and cost effective, commercial service 
    facilities shall be utilized for the maintenance of motor vehicles.
        (b) Individual vehicle maintenance records shall be kept to provide 
    records of past repairs, as a control against unnecessary repairs and 
    excessive maintenance, and as an aid in determining the most economical 
    time for replacement.
        (c) One-time maintenance and repair limitations shall be 
    established by the motor equipment fleet manager. To exceed repair 
    limitations, approval of the motor equipment fleet manager is required.
        (d) Warranties.
        (1) Motor vehicles under manufacturer's warranty shall be repaired 
    under the terms of the warranty.
        (2) When motor vehicles are maintained in Government repair 
    facilities in isolated locations that are distant from franchised 
    dealer facilities, or when it is not practical to return the vehicles 
    to a dealer, a billback agreement shall be sought from manufacturers to 
    permit warranty work to be performed on a reimbursable basis.
    
    [[Page 19635]]
    
    Subpart 109-38.7--Transfer, Storage, and Disposal of Motor Vehicles
    
    
    Sec. 109-38.701  Transfer of title for Government-owned motor vehicles.
    
    
    Sec. 109-38.701-50  Authority to sign Standard Form 97, The United 
    States Government Certificate to Obtain Title to a Vehicle.
    
        The Standard Form (SF) 97 shall be signed by an appropriate 
    contracting officer. The Director, Office of Administrative Services 
    and heads of field organizations for their respective organizations may 
    delegate the authority to sign SF 97 to responsible DOE personnel under 
    their jurisdiction.
    
    Subpart 109-38.8--Standard Form 149, U.S. Government National 
    Credit Card
    
    
    Sec. 109-38.800  General.
    
        (a)--(c) [Reserved]
        (d) The Director, Office of Administrative Services and heads of 
    field organizations for their respective organizations shall be 
    responsible for establishing procedures to provide for the 
    administrative control of fleet credit cards. Administrative control 
    shall include, as a minimum:
        (1) A reconciliation of on-hand credit cards with the inventory 
    list provided by GSA,
        (2) Providing motor vehicle operators with appropriate instructions 
    regarding the use and protection of credit cards against theft and 
    misuse,
        (3) The taking of reasonable precautions in the event an SF 149 or 
    SF 149A is lost or stolen to minimize the opportunity of purchases 
    being made by unauthorized persons, including notification to the 
    paying office of the loss or theft,
        (4) Validation of credit card charges to ensure they are for 
    official use only items, and
        (5) Being on the alert for any unauthorized bills.
    
    
    Sec. 109-38.801  Obtaining SF 149, U.S. Government National Credit 
    Card.
    
        DOE offices electing to use national credit cards shall request the 
    assignment of billing address code numbers from the DPMO. Following the 
    assignment, DOE organizations shall submit orders for issuance of 
    national credit cards in accordance with the instructions provided by 
    GSA.
    
    Subpart 109-38.9--Federal Motor Vehicle Fleet Report
    
    
    Sec. 109-38.902  Records.
    
        The Director, Office of Administrative Services and OPMOs for their 
    respective organizations shall establish adequate records for 
    accounting and reporting purposes.
    
    
    Sec. 109-38.903  Reporting of data.
    
    
    Sec. 109-38.903-50  Reporting DOE motor vehicle data.
    
        (a) DOE offices and designated contractors operating DOE-owned or 
    commercially-leased motor vehicles shall prepare the following reports 
    using SF 82, Agency Report of Motor Vehicle Data or DOE approved 
    equivalent, for the entire fleet including security vehicles.
        (1) DOE Report of Motor Vehicle Data.
        (2) DOE Report of Truck Data.
        (b) Designated contractors shall submit the reports to the DOE 
    contracting office for review and approval. DOE offices shall submit 
    reports, including designated contractor reports, to the DPMO by 
    November 15 of each year.
        (c) Copies of the report forms may be obtained by contacting the 
    DPMO.
        (d) Personal computer generated reports are acceptable provided 
    that the standard report format is followed.
    
    Subpart 109-38.51--Utilization of Motor Equipment
    
    
    Sec. 109-38.5100  Scope of subpart.
    
        This subpart prescribes policies and procedures concerning the 
    utilization of motor equipment.
    
    
    Sec. 109-38.5101  Policy.
    
        It is DOE policy to keep the number of motor vehicles and other 
    motor equipment at the minimum needed to satisfy programmatic 
    requirements. To attain this goal, controls and practices shall be 
    established which will achieve the most practical and economical 
    utilization of motor equipment. These controls and practices apply to 
    all DOE-owned and commercially leased motor equipment and to GSA 
    Interagency Fleet Management System motor vehicles.
    
    
    Sec. 109-38.5102  Utilization controls and practices.
    
        Controls and practices to be used by DOE organizations and 
    designated contractors for achieving maximum economical utilization of 
    motor equipment shall include, but not be limited to:
        (a) The maximum use of motor equipment pools, taxicabs, shuttle 
    buses, or other common service arrangements;
        (b) The minimum, practicable assignment of motor equipment to 
    individuals, groups, or specific organizational components;
        (c) The maintenance of individual motor equipment use records, such 
    as trip tickets or vehicle logs, or hours of use, as appropriate, 
    showing sufficiently detailed information to evaluate appropriateness 
    of assignment and adequacy of use being made. If one-time use of a 
    motor vehicle is involved, such as assignments from motor pools, the 
    individual's trip records must, as a minimum, identify the motor 
    vehicle and show the name of the operator, dates, destination, time of 
    departure and return, and mileage;
        (d) The rotation of motor vehicles between high and low mileage 
    assignments where practicable to maintain the fleet in the best overall 
    replacement age and mileage balance and operating economy;
        (e) The charging, if considered feasible, to the user organization 
    for the cost of operating and maintaining motor vehicles assigned to 
    groups or organizational components. These charge-back costs should 
    include all direct and indirect costs of the motor vehicle fleet 
    operation as determined by the field organization and contractor 
    finance and accounting functions;
        (f) The use of dual-purpose motor vehicles capable of hauling both 
    personnel and light cargo whenever appropriate to avoid the need for 
    two motor vehicles when one can serve both purposes. However, truck-
    type or van vehicles shall not be acquired for passenger use merely to 
    avoid statutory limitations on the number of passenger motor vehicles 
    which may be acquired;
        (g) The use of motor scooters and motorcycles in place of higher 
    cost motor vehicles for certain applications within plant areas, such 
    as mail and messenger service and small parts and tool delivery. Their 
    advantage, however, should be weighed carefully from the standpoint of 
    overall economy (comparison with cost for other types of motor 
    vehicles) and increased safety hazards, particularly when mingled with 
    other motor vehicle traffic; and
        (h) The use of electric vehicles for certain applications. The use 
    of these vehicles is encouraged wherever it is feasible to use them to 
    further the goal of fuel conservation.
    
    
    Sec. 109-38.5103  Motor vehicle utilization standards.
    
        (a) The following average utilization standards are established for 
    DOE as objectives for those motor vehicles operated generally for those 
    purposes for which acquired:
        (1) Sedans and station wagons, general purpose use--12,000 miles 
    per year.
        (2) Light trucks (4 x 2's) and general purpose vehicles, one ton 
    and under
    
    [[Page 19636]]
    
    (less than 12,500 GVWR)--10,000 miles per year.
        (3) Medium trucks and general purpose vehicles, 1\1/2\ ton through 
    2\1/2\ ton (12,500 to 23,999 GVWR)--7,500 miles per year.
        (4) Heavy trucks and general purpose vehicles, three ton and over 
    (24,000 GVWR and over)--7,500 miles per year.
        (5) Truck tractors--10,000 miles per year.
        (6) All-wheel-drive vehicles--7,500 miles per year.
        (7) Other motor vehicles--No utilization standards are established 
    for other trucks, ambulances, buses, law enforcement motor vehicles, 
    and special purpose vehicles. The use of these motor vehicles shall be 
    reviewed at least annually by the motor equipment fleet manager and 
    action shall be taken and documented to verify that the motor vehicles 
    are required to meet programmatic, health, safety, or security 
    requirements.
        (b) When operating circumstances prevent the above motor vehicle 
    utilization standards from being met, local use objectives must be 
    established and met as prescribed in Sec. 109-38.5105 of this subpart.
    
    
    Sec. 109-38.5104  Other motor equipment utilization standards.
    
        No utilization standards are established for motor equipment other 
    than motor vehicles. Each DOE office should establish through an 
    agreement between the fleet manager and the OPMO utilization criteria 
    for other motor equipment including heavy mobile equipment and review, 
    adjust, and approve such criteria annually. Utilization of various 
    classifications of other motor equipment can be measured through 
    various statistics including miles, hours of use, number of trips, and 
    fuel consumption. A utilization review of other motor equipment shall 
    be performed at least annually by the motor equipment fleet manager to 
    justify retainment or disposition of excess equipment not needed to 
    fulfill Departmental, programmatic, health, safety, or security 
    requirements.
    
    
    Sec. 109-38.5105  Motor vehicle local use objectives.
    
        (a) Individual motor vehicle utilization cannot always be measured 
    or evaluated strictly on the basis of miles operated or against any 
    Department-wide mileage standard. For example, light trucks 
    specifically fitted for use by a plumber, welder, etc., in the 
    performance of daily work assignments, would have uniquely tailored use 
    objectives, different from those set forth for a truck used for general 
    purposes. Accordingly, efficient local use objectives, which represent 
    practical units of measurement for motor vehicle utilization and for 
    planning and evaluating future motor vehicle requirements, must be 
    established and documented by the Organizational Motor Equipment Fleet 
    Manager. The objectives should take into consideration past 
    performance, future requirements, geographical disbursement, and 
    special operating requirements.
        (b) These objectives shall be reviewed and adjusted as appropriate, 
    but not less often than annually, by the motor equipment fleet manager. 
    The reviews shall be documented. The Organizational Motor Equipment 
    Fleet Manager is responsible for reviewing and approving in writing all 
    proposed local use objectives.
    
    
    Sec. 109-38.5106  Application of motor vehicle use goals.
    
        (a) At least annually, the motor equipment fleet manager will 
    review motor vehicle utilization statistics and all motor vehicles 
    failing to meet the applicable DOE utilization standard or local use 
    objective must be identified.
        (b) Prompt action must be initiated to:
        (1) Reassign the underutilized motor vehicles;
        (2) Dispose of the underutilized motor vehicles; or
        (3) Obtain a special justification from users documenting their 
    continued requirement for the motor vehicle and any proposed actions to 
    improve utilization. Any requirement for underutilized motor vehicles 
    which the motor equipment fleet manager proposes to continue in its 
    assignment, must be submitted in writing to the Organizational Motor 
    Equipment Fleet Manager for approval.
        (c) Both Department-wide standards and local use objectives should 
    be applied in such a manner that their application does not stimulate 
    motor vehicle use for the purpose of meeting the objective. The 
    ultimate standard against which motor vehicle use must be measured is 
    that the minimum number of motor vehicles will be retained to satisfy 
    program requirements.
    
    Subpart 109-38.52--Watercraft
    
    
    Sec. 109-38.5200  Scope of subpart.
    
        This subpart establishes basic policies and procedures that apply 
    to the management of watercraft operated by DOE organizations and 
    designated contractors. The head of each Departmental organization 
    operating watercraft shall issue such supplemental instructions as may 
    be needed to ensure the efficient use and management of watercraft.
    
    
    Sec. 109-38.5201  Definition.
    
        As used in this subpart the following definition applies:
        Watercraft means any vessel used to transport persons or material 
    on water.
    
    
    Sec. 109-38.5202  Watercraft operations.
    
        (a) No person may operate a watercraft on a waterway until skill of 
    operation and basic watercraft knowledge have been demonstrated.
        (b) Operators of watercraft shall check the vessel to ensure that 
    necessary equipment required by laws applicable to the area of 
    operation are present, properly stowed, and in proper working order.
        (c) Operators shall comply with all applicable Federal, state, and 
    local laws pertaining to the operation of watercraft.
        (d) Operators shall not use watercraft or carry passengers except 
    in the performance of official Departmental assignments.
    
    
    Sec. 109-38.5203  Watercraft identification and numbers.
    
        Watercraft in the custody of DOE or designated contractors shall 
    display identifying numbers, whether issued by the U.S. Coast Guard, 
    State, or local field organization, in accordance with applicable 
    requirements.
    
    PART 109-39--INTERAGENCY FLEET MANAGEMENT SYSTEMS
    
    Subpart 109-39.1--Establishment, Modification, and Discontinuance of 
    Interagency Fleet Management Systems
    
    Sec.
    109-39.101  Notice of intention to begin a study.
    109-39.101-1  Agency cooperation.
    109-39.103  Agency appeals.
    109-39.105  Discontinuance or curtailment of service.
    109-39.105-2  Agency requests to withdraw participation.
    109-39.106  Unlimited exemptions.
    109-39.107  Limited exemptions.
    
    Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
    System Vehicles
    
    109-39.300  General.
    109-39.301  Utilization guidelines.
    
        Authority: 42 U.S.C. 7254.
    
    [[Page 19637]]
    
    Subpart 109-39.1--Establishment, Modification, and Discontinuance 
    of Interagency Fleet Management Systems
    
    
    Sec. 109-39.101  Notice of intention to begin a study.
    
    
    Sec. 109-39.101-1  Agency cooperation.
    
        The Director, Office of Administrative Services and heads of field 
    organizations for their respective organizations shall designate 
    representatives to coordinate with GSA concerning the establishment of 
    a GSA fleet management system to serve their organization.
    
    
    Sec. 109-39.103  Agency appeals.
    
        The Director, Office of Administrative Services and heads of field 
    organizations for their respective organizations may appeal, or request 
    exemption from, a determination made by GSA concerning the 
    establishment of a fleet management system. A copy of the appeal or 
    request shall be forwarded to the DPMO.
    
    
    Sec. 109-39.105  Discontinuance or curtailment of service.
    
    
    Sec. 109-39.105-2  Agency requests to withdraw participation.
    
        Should circumstances arise that would tend to justify 
    discontinuance or curtailment of participation by a DOE organization of 
    a given interagency fleet management system, the participating 
    organization should forward complete details to the DPMO for 
    consideration and possible referral to the Administrator of General 
    Services.
    
    
    Sec. 109-39.106  Unlimited exemptions.
    
        The Director, Office of Administrative Services and heads of field 
    organizations for their respective organizations shall make the 
    determination that an unlimited exemption from inclusion of a motor 
    vehicle in a fleet management system is warranted. A copy of the 
    determination shall be forwarded to GSA and to the DPMO.
    
    
    Sec. 109-39.107  Limited exemptions.
    
        The Director, Office of Administrative Services and heads of field 
    organizations for their respective organizations shall seek limited 
    exemptions from the fleet management system.
    
    Subpart 109-39.3--Use and Care of GSA Interagency Fleet Management 
    System Vehicles
    
    
    Sec. 109-39.300  General.
    
        (a)-(c) [Reserved]
        (d) Motor equipment fleet managers shall ensure that operators and 
    passengers in GSA Interagency Fleet Management System (IFMS) motor 
    vehicles are aware of the prohibition against the use of tobacco 
    products in these vehicles.
    
    
    Sec. 109-39.301  Utilization guidelines.
    
        DOE activities utilizing GSA IFMS motor vehicles will receive and 
    review vehicle utilization statistics in order to determine if miles 
    traveled justify vehicle inventory levels. Activities should retain 
    justification for the retention of vehicles not meeting DOE utilization 
    guidelines or established local use objectives, as appropriate. Those 
    vehicles not justified for retention shall be returned to the issuing 
    GSA interagency fleet management center.
    
    PART 109-40--TRANSPORTATION AND TRAFFIC MANAGEMENT
    
    Subpart 109-40.1--General Provisions
    
    Sec.
    109-40.000  Scope of part.
    109-40.000-50  Applicability to contractors.
    109-40.102  Representation before regulatory bodies.
    109-40.103  Selection of carriers.
    109-40.103-1  Domestic transportation.
    109-40.103-2  Disqualification and suspension of carriers.
    109-40.103-3  International transportation.
    109-40.104  Use of Government-owned transportation equipment.
    109-40.109  Utilization of special contracts and agreements.
    109-40.110  Assistance to economically disadvantaged transportation 
    businesses.
    109-40.110-1  Small business assistance.
    109-40.110-2  
        Minority business enterprises.
    109-40.112  Transportation factors in the location of Government 
    facilities.
    109-40.113  Insurance against transportation hazards.
    
    Subpart 109-40.3--Traffic Management
    
    109-40.301  Traffic management functions administration.
    109-40.302  Standard routing principle.
    109-40.303-3  Most fuel efficient carrier/mode.
    109-40.304  Rate tenders to the Government.
    109-40.305-50  Negotiations involving national security.
    109-40.306-1  Recommended rate tender format.
    109-40.306-2  Required shipping documents and annotations.
    109-40.306-3   Distribution.
    
    Subpart 109-40.50--Bills of Lading
    
    109-40.5000  Scope of subpart.
    109-40.5001  Policy.
    109-40.5002  Applicability.
    109-40.5003  Commercial bills of lading.
    109-40.5004  Government bills of lading.
    109-40.5005   Description of property for shipment.
    
    Subpart 109-40.51--Price-Anderson Coverage Certifications for Nuclear 
    Shipments
    
    109-40.5100  Scope of subpart.
    109-40.5101  Policy.
    
        Authority: Sec. 161, as amended, 68 Stat. 948; 42 U.S.C. 2201; 
    sec. 205, as amended, 63 Stat. 390; 40 U.S.C. 486; sec. 644, 91 
    Stat. 585, 42 U.S.C. 7254.
    
    Subpart 109-40.1--General Provision
    
    
    Sec. 109-40.000  Scope of part.
    
        This part describes DOE regulations governing transportation and 
    traffic management activities. It also covers arrangements for 
    transportation and related services by bill of lading. These 
    regulations are designed to ensure that all transportation and traffic 
    management activities will be carried out in the manner most 
    advantageous to the Government in terms of economy, efficiency, 
    service, environment, safety and security.
    
    
    Sec. 109-40.000-50  Applicability to contractors.
    
        DOE-PMR 109-40, Transportation and Traffic Management, should be 
    applied to cost-type contractors' transportation and traffic management 
    activities. Departure by cost-type contractors from the provisions of 
    these regulations may be authorized by the contracting officer provided 
    the practices and procedures followed are consistent with the basic 
    policy objectives in these regulations and DOE Order 460.2, 
    Departmental Materials Transportation and Packaging Management, except 
    to the extent such departure is prohibited by statute or executive 
    order.
    
    
    Sec. 109-40.102  Representation before regulatory bodies.
    
        Participation in proceedings related to carrier applications to 
    regulatory bodies for temporary or permanent authority to operate in 
    specified geographical locations shall be confined to statements or 
    testimony in support of a need for service and shall not extend to 
    support of individual carriers or groups of carriers.
    
    
    Sec. 109-40.103  Selection of carriers.
    
    
    Sec. 109-40.103-1  Domestic transportation.
    
        (a) Preferential treatment, normally, shall not be accorded to any 
    mode of transportation (motor, rail, air, water) or to any particular 
    carrier when arranging for domestic transportation services. However 
    where, for valid reasons, a particular mode of transportation or a 
    particular carrier within that mode must be used to meet specific 
    program requirements and/or limitations, only that mode or carrier 
    shall be considered.
    
    [[Page 19638]]
    
    Examples of valid reasons for considering only a particular mode or 
    carrier are:
        (1) Where only a certain mode of transportation or individual 
    carrier is able to provide the needed service or is able to meet the 
    required delivery date; and
        (2) Where the consignee's installation and related facilities 
    preclude or are not conducive to service by all modes of 
    transportation.
        (b) The following factors are considered in determining whether a 
    carrier or mode of transportation can meet DOE's transportation service 
    requirements for each individual shipment:
        (1) Availability and suitability of carrier equipment;
        (2) Carrier terminal facilities at origin and destination;
        (3) Pickup and delivery service, if required;
        (4) Availability of required or accessorial and special services, 
    if needed;
        (5) Estimated time in transit;
        (6) Record of past performance of the carrier; and
        (7) Availability and suitability of transit privileges.
    
    
    Sec. 109-40.103-2  Disqualification and suspension of carriers.
    
        Disqualification and suspension are measures which exclude carriers 
    from participation, for temporary periods of time, in DOE traffic. To 
    ensure that the Government derives the benefits of full and free 
    competition of interested carriers, disqualification and suspension 
    shall not apply for any period of time longer than necessary to protect 
    the interests of the Government.
    
    
    Sec. 109-40.103-3  International transportation.
    
        See 4 CFR 52.2 for a certificate required in nonuse of U.S. flag 
    vessels or U.S. flag certificated air carriers.
        (a) U.S.-flag ocean carriers. Arrangements for international ocean 
    transportation services shall be made in accordance with the provisions 
    of section 901(b) of the Merchant Marine Act of 1936, as amended (46 
    U.S.C. 1241(b)) concerning the use of privately owned U.S.-flag 
    vessels.
        (b) U.S.-flag certificated air carriers. Arrangements for 
    international air transportation services shall be made in accordance 
    with the provisions of section 5(a) of the International Air 
    Transportation Fair Competition Practices Act of 1974 (49 U.S.C. 1517), 
    which requires the use of U.S.-flag certificated air carriers for 
    international travel of persons or property to the extent that services 
    by these carriers is available.
    
    
    Sec. 109-40.105  Use of Government-owned transportation equipment.
    
        The preferred method of transporting property for the Government is 
    through use of the facilities and services of commercial carriers. 
    However, Government vehicles may be used when they are available to 
    meet emergencies and accomplish program objectives which cannot be 
    attained through use of commercial carriers.
    
    
    Sec. 109-40.109  Utilization of special contracts and agreements.
    
        From time to time special transportation agreements are entered 
    into on a Government-wide or DOE-wide basis and are applicable, 
    generally, to DOE shipments. The HQ DOE Manager, Transportation 
    Operations and Traffic, will distribute information on such agreements 
    to field offices as it becomes available.
    
    
    Sec. 109-40.110  Assistance to economically disadvantaged 
    transportation businesses.
    
    Sec. 109-40.110-1  Small business assistance.
    
        Consistent with the policies of the Government with respect to 
    small businesses, DOE shall place with small business concerns a fair 
    proportion of the total purchases and contracts for transportation and 
    related services such as packing and crating, loading and unloading, 
    and local drayage.
    
    
    Sec. 109-40.110-2  Minority business enterprises.
    
        Minority business enterprises shall have the maximum practical 
    opportunity to participate in the performance of Government contracts. 
    DOE shall identify transportation-related minority enterprises and 
    encourage them to provide services that will support DOE's 
    transportation requirements.
    
    
    Sec. 109-40.112   Transportation factors in the location of Government 
    facilities.
    
        Transportation rate, charges, and commercial carrier transportation 
    services shall be considered and evaluated prior to the selection of 
    new site locations and during the planning and construction phases in 
    the establishment of leased or relocated Government installations or 
    facilities to ensure that consideration is given to the various 
    transportation factors that may be involved in this relocation or 
    deactivation.
    
    
    Sec. 109-40.113   Insurance against transportation hazards.
    
        The policy of the Government with respect to insurance of its 
    property while in the possession of commercial carriers is set forth in 
    41 CFR 1-19.107.
    
    Subpart 109-40.3--Traffic Management
    
    
    Sec. 109-40.301   Traffic management functions administration.
    
        The DOE traffic management functions are accomplished by 
    established field traffic offices under provisions of appropriate 
    Departmental directives and Headquarters' staff traffic management 
    supervision.
    
    
    Sec. 109-40.302   Standard routing principle.
    
        (a) Shipments shall be routed using the mode of transportation, or 
    individual carriers within the mode, that can provide the required 
    service at the lowest overall delivered cost to the Government.
        (b) When more than one mode of transportation, or more than one 
    carrier within a mode, can provide equally satisfactory service at the 
    same overall cost the traffic shall be distributed as equitably as 
    practicable among the modes and among the carriers within the modes.
    
    
    Sec. 109-40.303-3   Most fuel efficient carrier/mode.
    
        When more than one mode, or more than one carrier within a mode, 
    can satisfy the service requirements of a specific shipment at the same 
    lowest aggregate delivered cost, the carrier/mode determined to be the 
    most fuel efficient will be selected. In determining the most fuel 
    efficient carrier/mode, consideration will be given to such factors as 
    use of the carrier's equipment in ``turn around'' service, proximity of 
    carrier equipment to the shipping activity, and ability of the carrier 
    to provide the most direct service to the destination points.
    
    
    Sec. 109-40.304   Rate tenders to the Government.
    
        Under the provisions of section 10721 of the Interstate Commerce 
    Act (49 U.S.C. 10721), common carriers are permitted to submit to the 
    Government tenders which contain rates lower than published tariff 
    rates available to the general public. In addition, rates tenders may 
    be applied to shipments other than those made by the Government 
    provided the total benefits accrue to the Government; that is, provided 
    the Government pays the charges or directly and completely reimburses 
    the party that initially bears the freight charges (323 ICC 347 and 332 
    ICC 161).
    
    [[Page 19639]]
    
    Sec. 109-40.305-50   Negotiations involving national security.
    
        Title 49 U.S.C., section 10721(b)(2) provides that rate tenders to 
    the Government must be filed by the carriers within the Interstate 
    Commerce Commission unless a carrier is advised by the U.S. Government 
    that disclosure of a quotation or tender of a rate established * * * 
    for transportation provided to the U.S. Government would endanger the 
    National security. Carriers will be informed by the negotiating 
    official if any quotation or tender to the Department of Energy 
    involves such information.
    
    
    Sec. 109-40.306-1   Recommended rate tender format.
    
        Only those rate tenders which have been submitted by the carriers 
    in writing shall be considered for use. Carriers should be encouraged 
    to use the format ``Uniform Tender of Rates and/or Charges for 
    Transportation Services'' when preparing and submitting rate tenders to 
    the Government. Rate tenders that are ambiguous in meaning shall be 
    resolved in favor of the Government.
    
    
    Sec. 109-40.306-2   Required shipping documents and annotations.
    
        (a) To qualify for transportation under section 10721 rates, 
    property must be shipped by or for the Government on:
        (1) Government bills of lading;
        (2) Commercial bills of lading endorsed to show that these bills of 
    lading are to be converted to Government bills of lading after delivery 
    to the consignee;
        (3) Commercial bills of lading showing that the Government is 
    either the consignor or the consignee and endorsed with the following 
    statement:
    
        Transportation hereunder is for the U.S. Department of Energy, 
    and the actual total transportation charges paid to the carrier(s) 
    by the consignor or consignee are assignable to, and are to be 
    reimbursed by, the Government.
    
        (b) When a rate tender is used for transportation furnished under a 
    cost-reimbursable contract, the following endorsement shall be used on 
    covering commercial bills of lading:
    
        Transportation hereunder is for the U.S. Department of Energy, 
    and the actual total transportation charges paid to the carrier(s) 
    by the consignor or consignee are to be reimbursed by the 
    Government, pursuant to cost-reimbursable contract number (insert 
    contract number). This may be confirmed by contacting the agency 
    representative at (name and telephone number).
        See 332 ICC 161.
    
        (c) To ensure proper application of a Government rate tender on all 
    shipments qualifying for their use, the issuing officer shall show on 
    the bills of lading covering such shipments the applicable rate tender 
    number and carrier identification, such as: ``Section 10721 tender, ABC 
    Transportation Company, ICC No. 374.'' In addition, if commercial bills 
    of lading are used, they shall be endorsed as specified above.
    
    
    Sec. 109-40.306-3   Distribution.
    
        Each agency receiving rate tenders shall promptly submit one signed 
    copy to the Transportation and Public Utilities Service (WIT), General 
    Services Administration, Washington, DC 20407. Also, two copies 
    (including at least one signed copy) shall be promptly submitted to the 
    General Services Administration (TA), Chester A. Arthur Building, 
    Washington, DC 20406.
    
    Subpart 109-40.50--Bills of Lading
    
    
    Sec. 109-40.5000   Scope of subpart.
    
        This subpart sets forth the requirements under which commercial or 
    Government bills of lading may be used.
    
    
    Sec. 109-40.5001   Policy.
    
        Generally DOE cost-type contractors will use commercial bills of 
    lading in making shipments for the account of DOE. Cost-type 
    contractors may be authorized by the contracting officer to use 
    Government bills of lading if such use will be advantageous to the 
    Government. Such authorizations shall be coordinated with the HQ DOE 
    Manager, Transportation Operations and Traffic.
    
    
    Sec. 109-40.5002   Applicability.
    
        The policy and procedures set forth in this subpart shall be 
    applied when DOE's cost-type contractors use commercial bills of 
    lading.
    
    
    Sec. 109-40.5003   Commercial bills of lading.
    
        (a) DOE's cost-type contractors using commercial bills of lading in 
    making shipments for the account of DOE shall include the following 
    statement on all commercial bills of lading:
    
        This shipment is for the account of the U.S. Government which 
    will assume the freight charges and is subject to the terms and 
    conditions set forth in the standard form of the U.S. Government 
    bills of lading and to any available special rates or charges.
    
        (b) The language in paragraph (a) of this section may be varied 
    without materially changing its substance to satisfy the needs of 
    particular cost-type contractors for the purpose of obtaining the 
    benefit of the lowest available rates for the account of the 
    Government.
        (c) Where practicable, commercial bills of lading shall provide for 
    consignment of a shipment to DOE c/o the cost-type contractor or by the 
    contractor ``for the DOE.''
        (d) Commercial bills of lading exceeding $10,000 issued by cost-
    type contractors shall be annotated with a typewritten, rubber stamp, 
    or similar impression containing the following wording:
    
        Equal Employment Opportunity. All provisions of Executive Order 
    11246, as amended by Executive Order 11375, and of the rules, 
    regulations, and relevant orders of the Secretary of Labor are 
    incorporated herein.
    
    
    Sec. 109-40.5004   Government bills of lading.
    
        In those instances where DOE cost-type contractors are authorized 
    to use Government bills of lading, specific employees of cost-type 
    contractors will be authorized by the contracting officer to issue such 
    Government bills of lading (see Title V, U.S. Government Accounting 
    Office Policy and Procedures Manual for Guidance of Federal Agencies).
    
    
    Sec. 109-40.5005   Description of property for shipment.
    
        (a) Each shipment shall be described on the bill of lading or other 
    shipping document as specified by the governing freight classification, 
    carrier's tariff, or rate tender. Shipments shall be described as 
    specifically as possible. Trade names such as ``Foamite'' or 
    ``Formica,'' or general terms such as ``vehicles,'' ``furniture,'' or 
    ``Government supplies,'' shall not be used as bill of lading 
    descriptions.
        (b) A shipment containing hazardous materials, such as explosives, 
    radioactive materials, flammable liquids, flammable solids, oxidizers, 
    or poison A or poison B, shall be prepared for shipment and described 
    on bills of lading or other shipping documents in accordance with the 
    Department of Transportation Hazardous Materials Regulation, 49 CFR, 
    parts 100-189.
    
    Subpart 109-40.51--Price-Anderson Coverage Certifications for 
    Nuclear Shipments
    
    
    Sec. 109-40.5100   Scope of subpart.
    
        This subpart sets forth the policy for issuance of certifications 
    regarding Price-Anderson coverage of particular shipments of nuclear 
    materials.
    
    
    Sec. 109-40.5101   Policy.
    
        Upon request of a carrier, an appropriate certification will be 
    issued by an authorized representative of the DOE to the carrier 
    regarding the applicability of Price-Anderson indemnity to a particular 
    shipment. Copies of such certifications, if performed by a Field 
    Manager or a DOE
    
    [[Page 19640]]
    
    cost-type contractor, shall be provided to the HQ DOE Manager, 
    Transportation Operations and Traffic.
    
    SUBCHAPTER H--UTILIZATION AND DISPOSAL
    
    PART 109-42--UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND 
    CERTAIN CATEGORIES OF PROPERTY
    
    Subpart 109-42.11--Special Types of Hazardous Material and Certain 
    Categories of Property
    
    Sec.
    109-42.1100.50  Scope of subpart.
    109-42.1100.51  Policy.
    109-42.1102-8  United States Munitions List items which require 
    demilitarization.
    109-42.1102-51  Suspect personal property.
    109-42.1102-52  Low level contaminated personal property.
    
        Authority: 40 U.S.C. 486(c).
    
    Subpart 109-42.11--Special Types of Hazardous Material and Certain 
    Categories of Property
    
    
    Sec. 109-42.1100.50   Scope of subpart.
    
        This subpart sets forth policies and procedures for the utilization 
    and disposal outside of DOE of excess and surplus personal property 
    which has been radioactively or chemically contaminated.
    
    
    Sec. 109-42.1100.51   Policy.
    
        When the holding organization determines it is appropriate to 
    dispose of contaminated personal property, it shall be disposed of by 
    DOE in accordance with appropriate Federal regulations governing 
    radiation/chemical exposure and environmental contamination. In special 
    cases where Federal regulations do not exist or apply, appropriate 
    state and local regulations shall be followed.
    
    
    Sec. 109-42.1102-8   United States Munitions List items which require 
    demilitarization.
    
        Heads of field organizations shall determine demilitarization 
    requirements regarding combat material and military personal property 
    using DoD 4160.21-M-1, Defense Demilitarization Manual as a guide.
    
    
    Sec. 109-42.1102-51   Suspect personal property.
    
        (a) Excess personal property (including scrap) having a history of 
    use in an area where radioactive or chemical contamination may occur 
    shall be considered suspect and shall be monitored using appropriate 
    instruments and techniques by qualified personnel of the DOE office or 
    contractor generating the excess.
        (b) With due consideration to the economic factors involved, every 
    effort shall be made to reduce the level of contamination of excess or 
    surplus personal property to the lowest practicable level. Contaminated 
    personal property that exceeds applicable contamination standards shall 
    not be utilized or disposed outside DOE.
        (c) If contamination is suspected and the property is of such size, 
    construction, or location as to make testing for contamination 
    impossible, the property shall not be utilized or disposed outside of 
    DOE.
    
    
    Sec. 109-42.1102-52  Low level contaminated personal property.
    
        If monitoring of suspect personal property indicates that 
    contamination does not exceed applicable standards, it may be utilized 
    and disposed of in the same manner as uncontaminated personal property, 
    provided the guidance in Sec. 109-45.5005-1(a) of this chapter has been 
    considered. However, recipients shall be advised where levels of 
    radioactive contamination require specific controls for shipment as 
    provided in Department of Transportation Regulations (49 CFR parts 171-
    179) for shipment of radioactive personal property. In addition, when 
    any contaminated personal property is screened within DOE, reported to 
    GSA, or otherwise disposed of, the kind and degree of contamination 
    must be plainly indicated on all pertinent documents.
    
    PART 109-43--UTILIZATION OF PERSONAL PROPERTY
    
    Sec.
    109-43.001  Definition.
    
    Subpart 109-43.1--General Provisions
    
    109-43.101  Agency utilization reviews.
    109-43.103  Agency utilization officials.
    
    Subpart 109-43.3--Utilization of Excess
    
    109-43.302  Agency responsibility.
    109-43.302-50  Utilization by designated contractors.
    109-43.304  Reporting requirements.
    109-43.304-1  Reporting.
    109-43.304-1.50  DOE reutilization screening.
    109-43.304-1.51  Transfers within DOE.
    109-43.304-2  Form and distribution of reports.
    109-43.304-4  Property at installations due to be discontinued.
    109-43.305  Property not required to be formally reported.
    109-43.305-50  Nuclear-related and proliferation-sensitive personal 
    property.
    109-43.307  Items requiring special handling.
    109-43.307-2  Hazardous materials.
    109-43.307-2.50  Monitoring of hazardous personal property.
    109-43.307-2.51  Holding hazardous personal property.
    109-43.307-3  Conditional gifts for defense purposes.
    109-43.307-4  Conditional gifts to reduce the public debt.
    109-43.307-50  Export controlled personal property.
    109-43.307-51  Classified personal property.
    109-43.307-52  Nuclear-related or proliferation-sensitive personal 
    property.
    109-43.307-53  Automatic Data Processing Equipment (ADPE).
    109-43.307-54  Unsafe personal property.
    109-43.312  Use of excess personal property on cost-reimbursement 
    contracts.
    109-43.313  Use of excess personal property on cooperative 
    agreements.
    109-43.314  Use of excess personal property on grants.
    109-43.315  Certification of non-Federal agency screeners.
    
    Subpart 109-43.5--Utilization of Foreign Excess Personal Property
    
    109-43.502  Holding agency responsibilities.
    
    Subpart 109-43.47--Reports
    
    109-43.4701  Performance reports.
    
    Subpart 109-43.50--Utilization of Personal Property Held for Facilities 
    in Standby
    
    109-43.5000  Scope of subpart.
    Sec. 109-43.5001  Definition.
    109-43.5002  Reviews to determine need for retaining items.
    
        Authority: 40 U.S.C. 486(c).
    
    
    109-43.001  Definition.
    
        DOE screening period means the period of time that reportable 
    excess personal property is screened throughout DOE for reutilization 
    purposes and, for selected items, through the Used Energy-Related 
    Laboratory Equipment (ERLE) Grant Program.
    
    Subpart 109-43.1--General Provisions
    
    
    Sec. 109-43.101  Agency utilization reviews.
    
        DOE offices and designated contractors are responsible for 
    continuously surveying property under their control to assure maximum 
    use, and shall promptly identify property that is excess to their needs 
    and make it available for use elsewhere.
    
    
    Sec. 109-43.103  Agency utilization officials.
    
        The DPMO is designated as the DOE National Utilization Officer.
    
    Subpart 109-43.3--Utilization of Excess
    
    
    Sec. 109-43.302  Agency responsibility.
    
    
    Sec. 109-43.302-50  Utilization by designated contractors.
    
        Heads of field organizations may authorize designated contractors 
    to
    
    [[Page 19641]]
    
    perform the functions pertaining to the utilization of excess personal 
    property normally performed by a Federal agency, provided the 
    designated contractors have written policies and procedures.
    
    
    Sec. 109-43.304  Reporting requirements.
    
    
    Sec. 109-43.304-1  Reporting.
    
    
    Sec. 109-43.304-1.50  DOE reutilization screening.
    
        (a) Prior to reporting excess personal property to GSA, reportable 
    personal property shall be screened for reutilization within DOE 
    through the Reportable Excess Automated Property System (REAPS) for a 
    30-day period. REAPS also provides for a 15-day expedited screening 
    period for certain categories of personal property for economic 
    development and to satisfy urgent conditions.
        (b) An additional 30-day screening period shall be allocated for 
    items eligible for screening by educational institutions through ERLE.
        (c) Items in FSCG 66 (Instruments and Laboratory Equipment), 70 
    (General Purpose Information Processing Equipment (including 
    firmware)), and 99 (Miscellaneous) are reportable when the unit 
    acquisition cost is $1,000 or more.
        (d) In exceptional or unusual cases when time is critical, 
    screening of excess property may be accomplished by telegram or 
    facsimile with due consideration given to the additional costs 
    involved. Examples of situations when this method of screening would be 
    used are when there is a requirement for quick disposal actions due to 
    unplanned contract terminations or facilities closing; to alleviate the 
    paying of storage costs; when storage space is critical; to process 
    exchange/sale transactions; property dangerous to public health and 
    safety; property determined to be classified or otherwise sensitive for 
    reasons of national security (when classified communications facilities 
    are used); or for hazardous materials which may not be disposed of 
    outside of the Department.
        (e) Concurrent DOE and Federal agency screening generally shall not 
    be conducted.
    
    
    Sec. 109-43.304-1.51  Transfers within DOE.
    
        Transfers within DOE generally shall be effected by completion of a 
    SF-122, Transfer Order Excess Personal Property. Except for those 
    designated contractors authorized by the DOE contracting office to 
    execute transfer orders, transfers to DOE contractors must be approved 
    by the cognizant DOE property administrator for the contractor 
    receiving the property.
    
    
    Sec. 109-43.304-2  Form and distribution of reports.
    
        Reportable property will be electronically reported by REAPS 
    directly to GSA following internal DOE and ERLE screening.
    
    
    Sec. 109-43.304-4  Property at installations due to be discontinued.
    
        When closing installations, DOE offices shall work with the 
    appropriate GSA regional offices to develop site utilization and 
    disposal programs:
        (a) In developing a disposal program, property shall be determined 
    to be excess to DOE needs before reporting it to GSA.
        (b) If a deviation from DOE policy or procedures is required, prior 
    written approval of the Deputy Assistant Secretary for Procurement and 
    Assistance Management shall be obtained.
        (c) When deviation from existing GSA regulations is involved, 
    approval by the appropriate GSA regional office will be sufficient to 
    validate the disposition. A copy of the GSA approval should be 
    forwarded for information to the DPMO.
    
    
    Sec. 109-43.305  Property not required to be formally reported.
    
        (a) [Reserved]
        (b) Equipment, parts, accessories, jigs and components which are of 
    special design, composition, or manufacture and which are intended for 
    use only by specific DOE installations (such as spare parts for 
    equipment used in atomic processes) are not reportable and shall not be 
    formally screened within DOE or reported to GSA.
    
    
    Sec. 109-43.305-50  Nuclear-related and proliferation-sensitive 
    personal property.
    
        Nuclear-related and proliferation-sensitive property is not 
    reportable and shall not be formally screened within DOE or reported to 
    GSA.
    
    
    Sec. 109-43.307  Items requiring special handling.
    
    
    Sec. 109-43.307-2  Hazardous materials.
    
    
    Sec. 109-43.307-2.50  Monitoring of hazardous personal property.
    
        To provide assurance that hazardous personal property is not being 
    inadvertently released from the site by transfer or sale to the public, 
    all hazardous or suspected hazardous personal property shall be checked 
    for contamination by environmental, safety, and health officials. 
    Contamination-free personal property will be tagged with a 
    certification tag authorizing release for transfer or sale. 
    Contaminated personal property will be referred back to the program 
    office for appropriate action.
    
    
    Sec. 109-43.307-2.51  Holding hazardous personal property.
    
        Excess or surplus hazardous personal property shall not be 
    commingled with non-hazardous personal property while waiting 
    disposition action.
    
    
    Sec. 109-43.307-3  Conditional gifts for defense purposes.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall take appropriate action as required when 
    conditional gifts are offered.
    
    
    Sec. 109-43.307-4  Conditional gifts to reduce the public debt.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall take appropriate action as required when 
    conditional gifts are offered.
    
    
    Sec. 109-43.307-50  Export controlled personal property.
    
        (a) When personal property that is subject to export controls is 
    being exported directly by DOE (e.g., a transfer of nuclear equipment 
    or materials as part of a program of cooperation with another country), 
    DOE or the DOE contractor must obtain the necessary export license.
        (b) When personal property subject to export controls is 
    transferred under work-for-others agreements, co-operative agreements, 
    or technical programs, the recipients will be informed in writing that:
        (1) The property is subject to export controls;
        (2) They are responsible for obtaining export licenses or 
    authorizations prior to transferring or moving the property to another 
    country; and
        (3) They are required to pass on export control guidance if they 
    transfer the property to another domestic or foreign recipient.
    
    
    Sec. 109-43.307-51  Classified personal property.
    
        Classified personal property which is excess to DOE needs shall be 
    stripped of all characteristics which cause it to be classified, or 
    otherwise rendered unclassified, as determined by the cognizant program 
    office, prior to any disposition action. The cognizant program office 
    shall certify that appropriate action has been taken to declassify the 
    personal property as required. Declassification shall be accomplished 
    in a manner which will preserve, so far as practicable, any civilian 
    utility or commercial value of the personal property.
    
    [[Page 19642]]
    
    Sec. 109-43.307-52  Nuclear-related or proliferation-sensitive personal 
    property.
    
        (a) Recognizing that property disposal officials will not have the 
    technical knowledge to identify nuclear-related and proliferation-
    sensitive personal property, all such personal property shall be 
    physically tagged with a certification signed by an authorized program 
    official at time of determination by the program office of the personal 
    property as excess. Such an authorized official should be designated in 
    writing with signature cards on file in the property office.
        (b) Nuclear-related and proliferation-sensitive personal property 
    which is excess to DOE needs shall be stripped of all characteristics 
    which cause it to be nuclear-related or proliferation-sensitive 
    personal property, as determined by the cognizant program office, prior 
    to disposal. The cognizant program office shall certify that 
    appropriate actions have been taken to strip the personal property as 
    required, or shall provide the property disposal office with adequate 
    instructions for stripping the items. Such action shall be accomplished 
    in a manner which will preserve, so far as practicable, any civilian 
    utility or commercial value of the personal property.
    
    
    Sec. 109-43.307-53  Automatic data processing equipment (ADPE).
    
        All ADPE shall be sanitized before being transferred into excess to 
    ensure that all data, information, and software has been removed from 
    the equipment. Designated computer support personnel must indicate that 
    the equipment has been sanitized by attaching a certification tag to 
    the item. Sanitized ADPE will be utilized and disposed in accordance 
    with the provisions of the FPMR.
    
    
    Sec. 109-43.307-54  Unsafe personal property.
    
        Personal property that is considered defective or unsafe must be 
    mutilated prior to shipment for disposal.
    
    
    Sec. 109-43.312  Use of excess personal property on cost-reimbursement 
    contracts.
    
        (a) [Reserved]
        (b) It is DOE policy for designated contractors to use Government 
    excess personal property to the maximum extent possible to reduce 
    contract costs. However, the determination required in 41 CFR 101-
    43.312(b) does not apply to such contracts, and a DOE official is not 
    required to execute transfer orders for authorized designated 
    contractors. The procedures prescribed in 41 CFR 101-43.309-5 for 
    execution of transfer orders apply.
    
    
    Sec. 109-43.313  Use of excess personal property on cooperative 
    agreements.
    
        (a)--(c) [Reserved].
        (d) Heads of field organizations shall ensure that required records 
    are maintained in a current status.
    
    
    Sec. 109-43.314  Use of excess personal property on grants.
    
        (a)-(e) [Reserved]
        (f) Heads of field organizations shall ensure that the records 
    required by 41 CFR 101-43.314(f) are maintained.
    
    
    Sec. 109-43.315  Certification of non-Federal agency screeners.
    
        (a)-(c) [Reserved]
        (d) Contracting officers shall maintain a record of the number of 
    certified non-Federal agency screeners operating under their authority 
    and shall immediately notify the appropriate GSA regional office of any 
    changes in screening arrangements.
    
    Subpart 109-43.5--Utilization of Foreign Excess Personal Property
    
    
    Sec. 109-43.502  Holding agency responsibilities.
    
        (a) [Reserved]
        (b) Property which remains excess after utilization screening 
    within the general foreign geographical area where the property is 
    located shall be reported to the accountable field office or 
    Headquarters program organization for consideration for return to the 
    United States for further DOE or other Federal utilization. The 
    decision to return property will be based on such factors as 
    acquisition cost, residual value, condition, usefulness, and cost of 
    transportation.
    
    Subpart 109-43.47--Reports
    
    
    Sec. 109-43.4701  Performance reports.
    
        (a) and (b) [Reserved]
        (c) The annual report of personal property furnished (e.g., 
    transfers, gifts, loans, leases, license agreements, and sales) to non-
    Federal recipients, including elementary and secondary schools, is 
    furnished to GSA by the DPMO. Feeder reports, using the format 
    illustrated below, shall be submitted to the DPMO by November 15 of 
    each year.
        (1) Field office feeder reports shall include the following:
        (i) Data for all excess personal property obtained from other 
    Federal agencies and furnished to any DOE offsite or designated 
    contractor or financial assistance recipient;
        (ii) Data for all DOE personal property no longer needed by a DOE 
    direct operation and subsequently furnished to any DOE offsite or 
    designated contractor or financial assistance recipient.
        (iii) Data for all personal property furnished to elementary and 
    secondary schools and non-profit organizations under initiatives to 
    support science and mathematics education.
        (2) Field office feeder reports shall not include data for 
    contractor inventory which is declared excess and subsequently 
    redistributed through REAPS (or other means within DOE) to other DOE 
    contractors or designated contractors' subcontractors.
        (3) The feeder report from the Office of Science Education 
    Programs, using the following format, will include data for all 
    personal property furnished to non-federal recipients and institutions 
    of higher learning under the ERLE Grant Program.
    
    ----------------------------------------------------------------------------------------------------------------
                                                                        Original cost of       Digit federal supply 
        Name and address of recipient         Recipient's status            property           classification group 
    ----------------------------------------------------------------------------------------------------------------
                                                                                                                    
    ----------------------------------------------------------------------------------------------------------------
    
    Subpart 109-43.50--Utilization of Personal Property Held for 
    Facilities in Standby
    
    
    Sec. 109-43.5000  Scope of subpart.
    
        This subpart supplements 41 CFR part 101-43 by providing policies 
    and procedures for the economic and efficient utilization of personal 
    property associated with facilities placed in standby status.
    
    
    Sec. 109-43.5001  Definition.
    
        Facility in standby means a complete plant or section of a plant, 
    which is neither in service or declared excess.
    
    
    Sec. 109-43.5002  Reviews to determine need for retaining items.
    
        Procedures and practices shall require an initial review at the 
    time the plant is placed in standby to determine which items can be 
    made available for use elsewhere within the established start-up 
    criteria; periodic reviews (no less than biennially) to determine need 
    for continued retention of property; and special reviews when a change 
    in start-up time is made or when circumstances warrant. Such procedures 
    should recognize that:
        (a) Equipment, spares, stores items, and materials peculiar to a 
    plant should be retained for possible future operation of the plant;
        (b) Where practicable, common-use stores should be removed and used 
    elsewhere; and
        (c) Uninstalled equipment and other personal property not required 
    should be utilized elsewhere on-site or be disposed of as excess.
    
    [[Page 19643]]
    
    PART 109-44--DONATION OF PERSONAL PROPERTY
    
    Subpart 109-44.7--Donations of Property to Public Bodies
    
    Sec.
    109-44.701  Findings justifying donation to public bodies.
    109-44.702  Donations to public bodies.
    109-44.702-3  Hazardous materials.
    
        Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).
    
    Subpart 109-44.7--Donations of Property to Public Bodies
    
    
    Sec. 109-44.701  Findings justifying donation to public bodies.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall appoint officials to make required findings and 
    reviews.
    
    
    Sec. 109-44.702  Donations to public bodies.
    
    
    Sec. 109-44.702-3  Hazardous materials.
    
        The Director, Office of Administrative Services and heads of field 
    organizations shall be responsible for the safeguards, notifications, 
    and certifications required by 41 CFR part 101-42 and part 109-42 of 
    this chapter, as well as compliance with all other requirements 
    therein.
    
    PART 109-45--SALE, ABANDONMENT, OR DESTRUCTION OF PERSONAL PROPERTY
    
    Subpart 109-45.1--General
    
    Sec.
    109-45.105  Exclusions and exemptions.
    109-45.105-3  Exemptions.
    
    Subpart 109-45.3--Sale of Personal Property
    
    109-45.300-50  Sales by designated contractors.
    109-45.301-51  Export/import clause.
    109-45.302  Sale to Government employees.
    109-45.302-50  Sales to DOE employees and designated contractor 
    employees.
    109-45.303  Reporting property for sale.
    109-45.303-3  Delivery.
    109-45.304  Sales methods and procedures.
    109-45.304-2  Negotiated sales and negotiated sales at fixed prices.
    109-45.304-2.50  Negotiated sales and negotiated sales at fixed 
    prices by designated contractors.
    109-45.304-6  Reviewing authority.
    109-45.304-50  Processing bids and awarding of contracts.
    109-45.304-51  Documentation.
    109-45.309  Special classes of property.
    109-45.309-2.50  Hazardous property.
    109-45.309-51  Export controlled property.
    109-45.309-52  Classified property.
    109-45.309-53  Nuclear-related or proliferation-sensitive property.
    109-45.309-54  Automatic Data Processing Equipment (ADPE).
    109-45.310  Antitrust laws.
    109-45.317  Noncollusive bids and proposals.
    
    Subpart 109-45.6--Debarred, Suspended, and Ineligible Contractors
    
    109-45.601  Policy.
    109-45.602  Listing debarred or suspended contractors.
    
    Subpart 109-45.9--Abandonment or Destruction of Personal Property
    
    109-45.901  Authority to abandon or destroy.
    109-45.902  Findings justifying abandonment or destruction.
    109-45.902-2  Abandonment or destruction without notice.
    
    Subpart 109-45.10--Recovery of Precious Metals
    
    109-45.1002  Agency responsibilities.
    109-45.1002-3  Precious metals recovery program monitor.
    109-45.1003  Recovery of silver from precious metals bearing 
    materials.
    109-45.1004  Recovery and use of precious metals through the DOD 
    Precious Metals Recovery Program.
    
    Subpart 109-45.47--Reports
    
    109-45.4702  Negotiated sales reports.
    
    Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
    Contaminated Personal Property
    
    109-45.5005  Disposal.
    109-45.5005-1  General.
    
    Subpart 109-45.51--Disposal of Excess and Surplus Personal Property in 
    Foreign Areas
    
    109-45.5100  Scope of subpart.
    109-45.5101  Authority.
    109-45.5102  General.
    109-45.5103  Definitions.
    109-45.5104  Disposal.
    109-45.5104-1  General.
    109-45.5104-2  Methods of disposal.
    109-45.5105  Reports.
    
        Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c), para. 
    101-45.400-45.405 also issued under sec. 307, 49 Stat. 880; 40 
    U.S.C. 3041.
    
    Subpart 109-45.1--General
    
    
    Sec. 109-45.105  Exclusions and exemptions.
    
    
    Sec. 109-45.105-3  Exemptions.
    
        GSA, by letter dated May 28, 1965, exempted contractor inventory 
    held by DOE designated contractors from the GSA conducted sales 
    provisions of 41 CFR 101-45.
    
    Subpart 109-45.3--Sale of Personal Property
    
    
    Sec. 109-45.300-50  Sales by designated contractors.
    
        Sales of surplus contractor inventory will be conducted by 
    designated contractors when heads of field organizations determine that 
    it is in the best interest of the Government. OPMOs and appropriate 
    program officials shall perform sufficient oversight over these sales 
    to ensure that personal property requiring special handling or program 
    office certification is sold in accordance with regulatory 
    requirements.
    
    
    Sec. 109-45.301-51  Export/import clause.
    
        The following clause shall be included in all sales invitations for 
    bid:
    
        Personal property purchased from the U.S. Government may or may 
    not be authorized for export/import from/into the country where the 
    personal property is located. If export/import is allowed, the 
    purchaser is solely responsible for obtaining required clearances or 
    approvals. The purchaser also is required to pass on DOE's export 
    control guidance if the property is resold or otherwise disposed.
    
    
    Sec. 109-45.302  Sale to Government employees.
    
    
    Sec. 109-45.302-50  Sales to DOE employees and designated contractor 
    employees.
    
        (a) DOE employees and employees of designated contractors shall be 
    given the same opportunity to acquire Government personal property as 
    is given to the general public, provided the employees warrant in 
    writing prior to award that they have not either directly or 
    indirectly:
        (1) Obtained information not otherwise available to the general 
    public regarding usage, condition, quality, or value of the personal 
    property, or
        (2) Participated in:
        (i) The determination to dispose of the personal property;
        (ii) The preparation of the personal property for sale; and
        (iii) Determining the method of sale.
        (b) Excess or otherwise unusable special, fitted clothing and other 
    articles of personal property, acquired for the exclusive use of an 
    individual employee, may be sold to the employee for the best price 
    obtainable when the property is no longer required by the holding 
    organization or the employee is terminated.
    
    
    Sec. 109-45.303  Reporting property for sale.
    
    
    Sec. 109-45.303-3  Delivery.
    
        (a)-(b) [Reserved].
        (c) Guidelines for signature authorization and control of blank 
    copies of Standard Form 97, United States Government Certificate to 
    Obtain Title to a Vehicle are contained in subpart 109-38.7 of this 
    chapter.
    
    
    Sec. 109-45.304  Sales methods and procedures.
    
    
    Sec. 109-45.304-2  Negotiated sales and negotiated sales at fixed 
    prices.
    
        (a)(1) [Reserved].
        (2) The head of each field organization shall designate a 
    responsible person to approve
    
    [[Page 19644]]
    
    negotiated sales by DOE direct operations.
        (3) Requests for prior approval of negotiated sales by DOE direct 
    operations shall be submitted with justification to the OPMO for review 
    and forwarding to GSA for approval.
        (b) [Reserved]
    
    
    Sec. 109-45.304-2.50  Negotiated sales and negotiated sales at fixed 
    prices by designated contractors.
    
        (a) Negotiated sales by designated contractors of surplus 
    contractor inventory may be made when the DOE contracting officer 
    determines and documents prior to the sale that the use of this method 
    of sale is justified on the basis of the circumstances enumerated 
    below, provided that the Government's interests are adequately 
    protected. These sales shall be at prices which are fair and reasonable 
    and not less than the proceeds which could reasonably be expected to be 
    obtained if the personal property was offered for competitive sale. 
    Specific conditions justifying negotiated sales include:
        (1) No acceptable bids have been received as a result of 
    competitive bidding under a suitable advertised sale;
        (2) Personal property is of such small value that the proceeds to 
    be derived would not warrant the expense of a formal competitive sale;
        (3) The disposal will be to a state, territory, possession, 
    political subdivision thereof, or tax-supported agency therein, and the 
    estimated fair market value of the personal property and other 
    satisfactory terms of disposal are obtained by negotiation;
        (4) The specialized nature and limited use potential of the 
    personal property would create negligible bidder interest;
        (5) Removal of the personal property would result in a significant 
    reduction in value, or the accrual of disproportionate expense in 
    handling; or
        (6) It can be clearly established that such action is in the best 
    interests of the Government.
        (b) When determined to be in the best interests of the Government, 
    heads of field organizations may authorize fixed-price sales of surplus 
    contractor inventory by designated contractors provided:
        (1) The fair market value of the item to be sold does not exceed 
    $15,000;
        (2) Adequate procedures for publicizing such sales have been 
    established;
        (3) The sales prices are not less than could reasonably be expected 
    if competitive bid sales methods were employed and the prices have been 
    approved by a reviewing authority designated by the head of the field 
    organization; and
        (4) The warranty prescribed in Sec. 109-45.302-50(a) of this 
    subpart is obtained when sales are made to employees.
    
    
    Sec. 109-45.304-6  Reviewing authority.
    
        The reviewing authority may consist of one or more persons 
    designated by the head of the field organization.
    
    
    Sec. 109-45.304-50  Processing bids and awarding of contracts.
    
        The procedures established in 48 CFR 14.4 and 48 CFR 914.4 shall be 
    made applicable to the execution, receipt, safeguarding, opening, 
    abstraction, and evaluation of bids and awarding contracts, except that 
    in evaluating bids and awarding contracts, disposal under conditions 
    most advantageous to the Government based on high bids received shall 
    be the determining factor.
    
    
    Sec. 109-45.304-51  Documentation.
    
        Files pertaining to surplus property sales shall contain copies of 
    all documents necessary to provide a complete record of the sales 
    transactions and shall include the following as appropriate:
        (a) A copy of the request/invitation for bids if a written request/ 
    invitation for bids is employed. A list of items or lots sold, 
    indicating acquisition cost, upset price and sales price indicated.
        (b) A copy of the advertising literature distributed to prospective 
    bidders.
        (c) A list of prospective bidders solicited.
        (d) An abstract of bids received.
        (e) Copies of bids received, including Standard Form 119, 
    Contractor's Statement of Contingent or Other Fees, together with other 
    relevant information.
        (f) A statement concerning the basis for determination that 
    proceeds constitute a reasonable return for property sold.
        (g) When appropriate, full and adequate justification for not 
    advertising the sale when the fair market value of property sold in 
    this manner in any one case exceeds $1,000.
        (h) A justification concerning any award made to other than the 
    high bidder.
        (i) The approval of the reviewing authority when required.
        (j) A copy of the notice of award.
        (k) All related correspondence.
        (l) In the case of auction or spot bid sales, the following 
    additional information should be included:
        (1) A summary listing of the advertising used (e.g., newspapers, 
    radio, television, and public postings).
        (2) The names of the prospective bidders who attended the sale.
        (3) A copy of any pertinent contract for auctioneering services and 
    related documents.
        (4) A reference to files containing record of deposits and 
    payments.
    
    
    Sec. 109-45.309  Special classes of property.
    
    
    Sec. 109-45.309-2.50  Hazardous property.
    
        Hazardous property shall be made available for sale only after the 
    review and certification requirements of Sec. 109-43.307-2.50 of this 
    subpart have been met.
    
    
    Sec. 109-45.309-51  Export controlled property.
    
        Export controlled property shall be made available for sale only 
    after the export license requirements of Sec. 109-43.307-50 of this 
    subpart have been met.
    
    
    Sec. 109-45.309-52  Classified property.
    
        Classified property shall be made available for sale only after the 
    declassification requirements of Sec. 109-43.307-51 of this subpart 
    have been met.
    
    
    Sec. 109-45.309-53  Nuclear-related or proliferation sensitive 
    property.
    
        Nuclear-related or proliferation-sensitive property shall be made 
    available for sale only after the stripping and certification 
    requirements of Sec. 109-43.307-52 of this subpart have been met.
    
    
    Sec. 109-45.309-54  Automatic Data Processing Equipment (ADPE).
    
        ADPE shall be made available for sale only after the sanitizing and 
    certification requirements of Sec. 109-43.307-53 of this subpart have 
    been met.
    
    
    Sec. 109-45.310  Antitrust laws.
    
        DOE offices shall submit to the Deputy Assistant Secretary for 
    Procurement and Assistance Management any request for a proposed sale 
    of a patent, process, technique, or invention, regardless of cost; or 
    of surplus personal property with a fair market value of $3,000,000 or 
    more.
    
    
    Sec. 109-45.317  Noncollusive bids and proposals.
    
        (a) [Reserved]
        (b) The head of the field organization shall make the determination 
    required in 41 CFR 101-45.317(b). This authority cannot be redelegated.
    
    Subpart 109-45.6--Debarred, Suspended, and Ineligible Contractors
    
    
    Sec. 109-45.601  Policy.
    
        (a)-(b) [Reserved]
        (c) The Director, Office of Administrative Services and heads of
    
    [[Page 19645]]
    
    field organization shall make the compelling reason determination when 
    entering into a contract for the purchase of surplus Government 
    personal property by a debarred or suspended contractor.
        (d) The Deputy Assistant Secretary for Procurement and Assistance 
    Management shall make the determination for simultaneously debarring 
    and suspending a contractor from the purchase of surplus Federal 
    personal property and the award of sales contracts.
    
    
    Sec. 109-45.602  Listing debarred or suspended contractors.
    
        (a) [Reserved]
        (b) The Director, Office of Administrative Services and heads of 
    field organizations shall establish procedures to ensure that listed 
    contractors are not awarded contracts.
    
    Subpart 109-45.9--Abandonment or Destruction of Personal Property
    
    
    Sec. 109-45.901  Authority to abandon or destroy.
    
        Personal property in the possession of DOE offices or designated 
    contractors may be abandoned or destroyed provided that a written 
    determination has been made by the OPMO that property has no commercial 
    value or the estimated cost of its continued care and handling would 
    exceed the estimated proceeds from its sale.
    
    
    Sec. 109-45.902  Findings justifying abandonment or destruction.
    
    
    Sec. 109-45.902-2  Abandonment or destruction without notice.
    
        The head of the field organization shall designate an official to 
    make the findings justifying abandonment or destruction without public 
    notice of personal property. The OPMO shall review and coordinate on 
    the findings.
    
    Subpart 109-45.10--Recovery of Precious Metals
    
    
    Sec. 109-45.1002  Agency responsibilities.
    
        The Director, Office of Administrative Services and heads of field 
    organizations are responsible for establishing a program for the 
    recovery of precious metals.
    
    
    Sec. 109-45.1002-3  Precious metals recovery program monitor.
    
        The DPMO shall be the precious metals recovery program monitor.
    
    
    Sec. 109-45.1003  Recovery of silver from precious metals bearing 
    materials.
    
        The Director, Office of Administrative Services and heads of field 
    organizations are responsible for the establishment and maintenance of 
    a program for silver recovery from used hypo solution and scrap film.
    
    
    Sec. 109-45.1004  Recovery and use of precious metals through the DOD 
    Precious Metals Recovery Program.
    
        DOE operates its own precious metals pool and therefore does not 
    participate in the DOD Precious Metals Recovery Program. See Sec. 109-
    27.5106 of this chapter for guidance on operation of the DOE precious 
    metals pool.
    
    Subpart 109-45.47--Reports
    
    
    Sec. 109-45.4702  Negotiated sales reports.
    
        The report of negotiated sales shall be submitted by DOE offices to 
    the DPMO by November 15 of each year for furnishing to GSA.
    
    Subpart 109-45.50--Excess and Surplus Radioactively and Chemically 
    Contaminated Personal Property
    
    
    Sec. 109-45.5005  Disposal.
    
    
    Sec. 109-45.5005-1  General.
    
        (a) Nuclear-related, proliferation-sensitive, low level 
    contaminated property, and classified personal property shall not be 
    transferred, sold, exchanged, leased, donated, abandoned, or destroyed 
    without approval of the cognizant program office. Disposal of this 
    personal property is subject to the restrictions contained in 
    applicable sections of part 109-42 and Secs. 109-43.307-50, 109-43.307-
    51, and 109-43.307-52 of this chapter, and applicable sections of 41 
    CFR part 101-42.
        (b) Personal property that is considered defective or unsafe must 
    be mutilated prior to shipment for disposal.
    
    Subpart 109-45.51--Disposal of Excess and Surplus Personal Property 
    in Foreign Areas
    
    
    Sec. 109-45.5100  Scope of subpart.
    
        This subpart sets forth policies and procedures governing the 
    disposal of DOE-owned foreign excess and surplus personal property.
    
    
    Sec. 109-45.5101  Authority.
    
        The policies and procedures contained in this subpart are issued 
    pursuant to the provisions of 40 USC 471, Federal Property and 
    Administrative Services Act of 1949, as amended. Title IV of the Act 
    entitled ``Foreign Excess Property'' provides that, except where 
    commitments exist under previous agreements, all excess personal 
    property located in foreign areas shall be disposed of by the owning 
    agency, and directs that the head of the agency conform to the foreign 
    policy of the United States in making such disposals.
    
    
    Sec. 109-45.5102  General.
    
        Disposal of Government-owned personal property in the custody of 
    DOE organizations or its contractors in foreign areas shall be made in 
    an efficient and economical manner, and in conformance with the foreign 
    policy of the United States.
    
    
    Sec. 109-45.5103  Definitions.
    
        As used in this subpart, the following definitions apply:
        Foreign means outside the United States, Puerto Rico, American 
    Samoa, Guam, the Trust Territory of the Pacific Islands, and the Virgin 
    Islands.
        Foreign service post means the local diplomatic or consular post in 
    the area where the excess personal property is located.
    
    
    Sec. 109-45.5104  Disposal.
    
    
    Sec. 109-45.5104-1  General.
    
        Foreign excess personal property which is not required for transfer 
    within DOE or to other U.S. Government agencies, except for the 
    personal property identified in Sec. 109-45.5005-1(a) of this part, 
    shall be considered surplus and may be disposed of by transfer, sale, 
    exchange, or lease, for cash, credit, or other property and upon such 
    other terms and conditions as may be deemed proper. Such personal 
    property may also be donated, abandoned, or destroyed under the 
    conditions specified in Sec. 109-45.5105-2(c) of this subpart. Most 
    foreign governments have indicated to the U.S. State Department that 
    they wish to be consulted before U.S. Government property is disposed 
    of in their countries (except in the case of transfers to other U.S. 
    Government agencies). Matters concerning customs duties and taxes, or 
    similar charges, may require prior agreement with the foreign 
    government involved. The State Department shall be contacted in regard 
    to these issues. Whenever advice or approval of the State Department is 
    required by this subpart, it may be obtained either through the foreign 
    service post in the foreign area involved or from the State Department 
    in Washington, DC. If the issue is to be presented to the State 
    Department in Washington, DC, it shall be referred through appropriate 
    administrative channels to the Deputy Assistant Secretary for 
    Procurement and Assistance Management for review, coordination, and 
    handling.
    
    [[Page 19646]]
    
    Sec. 109-45.5104-2  Methods of disposal.
    
        (a) Sales of foreign surplus personal property shall be conducted 
    in accordance with the following guidelines:
        (1) Generally, all sales of foreign surplus personal property shall 
    be conducted under the competitive bid process unless it is 
    advantageous and more practicable to the Government not to do so. When 
    competitive bids are not solicited, reasonable inquiry of prospective 
    purchasers shall be made in order that sales may be made on terms most 
    advantageous to the U.S. Government.
        (2) In no event shall any personal property be sold in foreign 
    areas without a condition which states that its importation into the 
    United States is forbidden unless the U.S. Secretary of Agriculture (in 
    the case of any agricultural commodity, food, cotton, or woolen goods), 
    or the U.S. Secretary of Commerce (in the case of any other property), 
    has determined that the importation of such property would relieve 
    domestic shortages or otherwise be beneficial to the economy of the 
    United States.
        (3) Sales documents shall provide that the purchaser must pay any 
    import duties or taxes levied against personal property sold in the 
    country involved and further provide that the amount of this duty or 
    tax shall not be included as a part of the price paid the U.S. 
    Government for the personal property. In the event the levy is placed 
    upon the seller by law, the buyer will be required to pay all such 
    duties or taxes and furnish the seller copies of his receipts prior to 
    the release of the personal property to him. However, if the foreign 
    government involved will not accept payment from the buyer, the seller 
    will collect the duties or taxes and turn the amounts collected over to 
    the foreign government. Accounting for the amounts collected shall be 
    coordinated with the disbursing officer of the nearest United States 
    foreign service post. The property shall not be released to the 
    purchaser until the disposal officer is satisfied that there is no 
    responsibility for payment by the United States (as contrasted to 
    collection by the United States) of taxes, duties, excises, etc.
        (4) Certain categories of personal property, including small arms 
    and machine guns; artillery and projectiles; ammunition, bombs, 
    torpedoes, rockets and guided missiles; fire control equipment and 
    range finders; tanks and ordnance vehicles; chemical and biological 
    agents, propellants and explosives; vessels of war and special naval 
    equipment; aircraft and all components, parts and accessories for 
    aircraft; military electronic equipment; aerial cameras, military 
    photo-interpretation, stereoscopic plotting and photogrammetry 
    equipment; and all material not enumerated which is included in the 
    United States Munitions List, 22 CFR 121.01, and is subject to disposal 
    restrictions. Advance approval must be obtained from the State 
    Department for the sale of all such articles. Therefore, prior to the 
    sale of any of the articles enumerated in the U.S. Munitions List, the 
    foreign service post in the area shall be consulted.
        (5) Prior to the sale of personal property which has a total 
    acquisition cost of $250,000 or more, plans for such sale shall be 
    reported to the DPMO with ample time to allow consideration of possible 
    foreign policy issues and advice thereon from the State Department (see 
    section 109-45.5106(a) of this subpart). All proposed sales, regardless 
    of the total acquisition cost of the personal property involved, which 
    the head of the DOE foreign office believes might have a significant 
    economic or political impact in a particular area, shall be discussed 
    with the foreign service post.
        (b) While there is authority for exchange or lease of foreign 
    surplus personal property, such authority shall be exercised only when 
    such action is clearly in the best interests of the U.S. Government. 
    Disposals by exchange are subject to the same requirements as disposals 
    by sale under Sec. 109-45.5105-2(a) of this subpart.
        (c)(1) Foreign excess or surplus personal property (including 
    salvage and scrap) may be donated, abandoned, or destroyed provided:
        (i) The property has no commercial value or the estimated cost of 
    its care and handling would exceed the estimated proceeds from its 
    sale; and
        (ii) A written finding to that effect is made and approved by the 
    Deputy Assistant Secretary for International Energy Policy, Trade and 
    Investment.
        (2) No personal property shall be abandoned or destroyed if 
    donation is feasible. Donations under these conditions may be made to 
    any agency of the U.S. Government, or to educational, public health, or 
    charitable nonprofit organizations.
        (3) Foreign excess personal property may also be abandoned or 
    destroyed when such action is required by military necessity, safety, 
    or considerations of health or security. A written statement explaining 
    the basis for disposal by these means and approval by the Deputy 
    Assistant Secretary for International Energy Policy, Trade and 
    Investment is required.
        (4) Property shall not be abandoned or destroyed in a manner which 
    is detrimental or dangerous to public health and safety, or which will 
    cause infringement on the rights of other persons.
    
    
    Sec. 109-45.5105  Reports.
    
        (a) Proposed sales of foreign surplus personal property having an 
    acquisition cost of $250,000 or more shall be reported to the DPMO and 
    should include all pertinent data, including the following:
        (1) The description of personal property to be sold, including:
        (i) Identification of personal property (description should be in 
    terms understandable to persons not expert in technical nomenclature). 
    Personal property covered by the U.S. Munitions List and regulations 
    pertaining thereto (as published in 22 CFR 121.01) should be clearly 
    identified;
        (ii) Quantity;
        (iii) Condition; and
        (iv) Acquisition cost.
        (2) The proposed method of sale (e.g., sealed bid, negotiated sale, 
    etc.)
        (3) Any currency to be received and payment provisions (i.e., U.S. 
    dollars, foreign currency, or credit, including terms of the proposed 
    sale).
        (4) Any restrictions on use of personal property to be sold (such 
    as resale of property, disposal as scrap, demilitarization, etc.).
        (5) Any special terms or conditions of sale.
        (6) The categories of prospective purchasers (e.g., host country, 
    other foreign countries, special qualifications, etc.).
        (7) How taxes, excises, duties, etc., will be handled.
        (b) Instructions for reporting foreign excess utilization and 
    disposal transactions are contained in Chapter III of DOE Order 534.1, 
    Accounting.
    
    PART 109-46--UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT 
    TO EXCHANGE/SALE AUTHORITY
    
    Sec.
    109-46.000  Scope of part.
    109-46.000-50  Applicability.
    
    Subpart 109-46.2--Authorization
    
    109-46.202  Restrictions and limitations.
    109-46.203  Special authorizations.
    
        Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).
    
    
    Sec. 109-46.000  Scope of part.
    
    
    Sec. 109-46.000-50  Applicability.
    
        (a) Except as set forth in paragraphs (a)(1)-(a)(5), the 
    requirements of FPMR Part 101-46 and this part are not
    
    [[Page 19647]]
    
    applicable to designated contractors. Designated contractors shall 
    comply with the following FPMR requirements:
        (1) 101-46.200
        (2) 101-46.201-1
        (3) 101-46.202(b)(2), (3), (4), (5), (6), and (7)
        (4) 101-46.202(c)(1), (2), (4), (5), (6), (7), (10), (11), and (12)
        (5) 101-46.202(d)
        (b) Items in the following Federal Supply Classification Groups 
    (FSCG) are not eligible for processing under the exchange/sale 
    provision. Requests for waivers must be processed through the DPMO to 
    GSA.
    
    Description
    
    FSCG
    10  Weapons
    11  Nuclear ordnance
    12  Fire control equipment
    14  Guided missiles
    15  Aircraft and airframe structural components (except FSC Class 
    1560, Airframe structural components)
    20  Ship and marine equipment
    22  Railway equipment
    41  Firefighting, rescue, and safety equipment
    
    Subpart 109-46.2--Authorization
    
    
    Sec. 109-46.202  Restrictions and limitations.
    
        (a), (b), (c)(1)-(c)(9) [Reserved]
        (c)(10) The Director, Office of Administrative Services and heads 
    of field organizations for their respective organizations shall 
    designate an official to make the certification that a continuing valid 
    requirement exists for excess personal property acquired and placed in 
    official use for less than one year but no longer required and is to be 
    disposed of under the exchange/sale provisions.
        (c)(11) [Reserved]
        (c)(12) Heads of field organizations shall make the determination 
    concerning demilitarization of combat material.
    
    
    Sec. 109-46.203  Special authorizations.
    
        (a) [Reserved]
        (b) The Director, Office of Administrative Services and heads of 
    field organizations for their respective organizations shall designate 
    an official to make the certification concerning the exchange of 
    historic items for historical preservation or display.
    
    PART 109-48--UTILIZATION, DONATION, OR DISPOSAL OF ABANDONED AND 
    FORFEITED PERSONAL PROPERTY
    
    Sec.
    109-48.000  Scope of part.
    109-48.000-50  Applicability.
    
    Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
    Property
    
    109-48.101  Forfeited or voluntarily abandoned property.
    109-48.101-6  Transfer to other Federal agencies.
    
        Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).
    
    
    Sec. 109-48.000  Scope of part.
    
    
    Sec. 109-48.000-50  Applicability.
    
        This part is applicable to contractor operations where the 
    abandoned or forfeited personal property is found on premises owned or 
    leased by the Government that are managed and operated by designated 
    contractors.
    
    Subpart 109-48.1--Utilization of Abandoned and Forfeited Personal 
    Property
    
    
    Sec. 109-48.101  Forfeited or voluntarily abandoned property.
    
    
    Sec. 109-48.101-6  Transfer to other Federal agencies.
    
        (a)-(e) [Reserved]
        (d) Transfer orders for forfeited or voluntarily abandoned 
    distilled spirits, wine, and malt beverages for medicinal, scientific, 
    or mechanical purposes or any other official purposes for which 
    appropriated funds may be expended by a Government agency shall be 
    forwarded through normal administrative channels for signature by the 
    DPMO and for subsequent forwarding to GSA for release.
        (f) Transfer orders for reportable forfeited drug paraphernalia 
    shall be forwarded through normal administrative channels for signature 
    by the DPMO and for subsequent forwarding to GSA for approval.
    
    PART 109-50--SPECIAL DOE DISPOSAL AUTHORITIES
    
    Sec.
    109-50.000  Scope of part.
    109-50.001  Applicability.
    
    Subpart 109-50.1--Used Energy-Related Laboratory Equipment Grant 
    Program
    
    109-50.100  Scope of subpart.
    109-50.101  Applicability.
    109-50.102  General.
    109-50.103  Definitions.
    109-50.104  Equipment which may be granted.
    109-50.105  Equipment which may not be granted.
    109-50.106  Procedure.
    109-50.107  Reporting.
    
    Subpart 109-50.2--Math and Science Equipment Gift Program
    
    109-50.200  Scope of subpart.
    109-50.201  Applicability.
    109-50.202  Definitions.
    109-50.203  Eligible equipment.
    109-50.204  Limitations.
    109-50.205  Procedure.
    109-50.206  Reporting.
    
    Subpart 109-50.3--[Reserved]
    
    Subpart 109-50.4--Programmatic Disposal to Contractors of DOE Property 
    in a Mixed Facility
    
    109-50.400  Scope of subpart.
    109-50.401  Definitions.
    109-50.402  Submission of proposals.
    109-50.403  Need to establish DOE program benefit.
    
    Subpart 109-50.48--Exhibits
    
    109-50.4800  Scope of subpart.
    109-50.4801  Equipment Gift Agreement.
    
        Authority: Sec. 644, Pub. L. 95-91, 91 Stat. 599 (42 U.S.C. 
    7254); sec. 31, Atomic Energy Act, as amended; Energy Reorganization 
    Act of 1974, secs. 103 and 107; Title III, Department of Energy 
    Organization Act; E.O. 12999; sec. 3710(i), Stevenson-Wydler 
    Technology Innovation Act, as amended (15 U.S.C. 3710(i)); Pub. L. 
    101-510, Department of Energy Science Education Enhancement Act; 
    Pub. L. 102-245, American Technologies Preeminence Act of 1991 (15 
    U.S.C. 3701); Office of Energy Research Financial Assistance 
    Regulations (10 CFR part 605).
    
    
    Sec. 109-50.000  Scope of part.
    
        This part provides guidance on the policies, practices, and 
    procedures for the disposal of DOE property under special legislative 
    authorities.
    
    
    Sec. 109-50.001  Applicability.
    
        The provisions of this part apply to direct DOE operations and to 
    designated contractors only when specifically provided for in the 
    appropriate subpart.
    
    Subpart 109-50.1--Used Energy-Related Laboratory Equipment Grant 
    Program
    
    
    Sec. 109-50.100  Scope of subpart.
    
        This subpart provides guidance on the granting of used energy-
    related laboratory equipment to universities and colleges and other 
    nonprofit educational institutions of higher learning in the United 
    States for use in energy-oriented educational programs.
    
    
    Sec. 109-50.101  Applicability.
    
        This subpart is applicable to DOE offices and designated 
    contractors.
    
    
    Sec. 109-50.102  General.
    
        DOE, to encourage research and development in the field of energy, 
    awards grants of excess energy-related laboratory equipment to eligible 
    institutions for use in energy-oriented educational programs. Under the 
    Used Energy-Related Laboratory Equipment (ERLE) Grant Program, grants 
    of used energy-related equipment excess to the requirements of DOE 
    offices and designated contractors may be made to eligible institutions 
    prior to reporting the equipment to GSA for reutilization screening.
    
    [[Page 19648]]
    
    Sec. 109-50.103  Definitions.
    
        As used in this subpart the following definitions apply: Book value 
    means acquisition cost less depreciation. DOE Financial Assistance 
    Rules (10 CFR part 600) means the DOE regulation which establishes a 
    uniform administrative system for application, award, and 
    administration of assistance awards, including grants and cooperative 
    agreements.
        Eligible institution means any nonprofit educational institution of 
    higher learning, such as universities, colleges, junior colleges, 
    hospitals, and technical institutes or museums located in the United 
    States and interested in establishing or upgrading energy-oriented 
    education programs.
        Energy-oriented education program means one that deals partially or 
    entirely in energy or energy-related topics.
    
    
    Sec. 109-50.104  Equipment which may be granted.
    
        Generally, equipment items classified in FSCG 66, Instruments and 
    Laboratory Equipment, are eligible for granting under this program. 
    Other selected items designated by the Office of Laboratory Policy and 
    Infrastructure Management and approved by the DPMO, are made available 
    under the program.
    
    
    Sec. 109-50.105  Equipment which may not be granted.
    
        Equipment which will not be granted include:
        (a) Any equipment determined to be required by DOE direct 
    operations or DOE designated contractors; or
        (b) General supplies, such as Bunsen burners, hoods, work benches; 
    office equipment and supplies; furniture; drafting supplies; 
    refrigerators; tools; presses; lathes; furnaces; hydraulic and 
    mechanical jacks; cranes; and hoists.
    
    
    Sec. 109-50.106  Procedure.
    
        (a) After DOE utilization screening through REAPS, items eligible 
    for ERLE grants are extracted from the REAPS system and provided to the 
    Office of Energy Research by electronic means.
        (b) The Office of Energy Research provides this information to 
    prospective grantees through an automated system.
        (c) The following periods have been established during which time 
    equipment will remain available to this program prior to reporting it 
    to GSA for reutilization by other Federal agencies:
        (1) Thirty days from the date DOE utilization screening is 
    completed to permit suitable time for eligible institutions to review 
    and earmark the desired equipment.
        (2) An additional thirty days after the equipment is earmarked to 
    permit the eligible institutions to prepare and submit an equipment 
    proposal request and to provide time for field organizations to review 
    and evaluate the proposal and take appropriate action.
        (d) Upon approval of the proposal, a grant will be issued to the 
    institution upon completion.
        (e) A copy of the completed grant, shall be used to transfer title 
    and drop accountability of the granted equipment from the financial 
    records.
        (f) The cost of care and handling of personal property incident to 
    the grant shall be charged to the receiving institution. Such costs may 
    consist of packing, crating, shipping and insurance, and are limited to 
    actual costs. In addition, where appropriate, the cost of any repair 
    and/or modification to any equipment shall be borne by the recipient 
    institution.
    
    
    Sec. 109-50.107  Reporting.
    
        (a) Gifts made under this program shall be included in the annual 
    report of property transferred to non-Federal recipients, as required 
    by 41 CFR 101-43.4701(c) and 109-43.4701(c).
        (b) A copy of each equipment agreement shall be forwarded to the 
    Director, Office of Laboratory Policy and Infrastructure Management.
    
    Subpart 109-50.2--Math and Science Equipment Gift Program
    
    
    Sec. 109-50.200  Scope of subpart.
    
        This subpart provides guidance on providing gifts of excess and/or 
    surplus education related and Federal research equipment to elementary 
    and secondary educational institutions or nonprofit organizations for 
    the purpose of improving math and science curricula or conducting of 
    technical and scientific education and research activities.
    
    
    Sec. 109-50.201  Applicability.
    
        The provisions of this subpart are applicable to DOE offices and 
    designated contractors.
    
    
    Sec. 109-50.202  Definitions.
    
        As used in this subpart the following definitions apply:
        DOE Field Organizations means the DOE Federal management 
    activities, including Operations Offices, Field Offices, Area Offices, 
    Site Offices, Energy Technology Centers, and Project Offices staffed by 
    Federal employees.
        Education-related and Federal research equipment includes but is 
    not limited to DOE-owned property in FSCG 34, 36, 41, 52, 60, 61, 66, 
    67, 70, and 74 (See 41 CFR 101-43.4801(d)), and other related 
    equipment, which is deemed appropriate for use in improving math and 
    science curricula or activities for elementary and secondary school 
    education, or for the conduct of technical and scientific education and 
    research activities.
        Eligible recipient means local elementary and secondary schools and 
    nonprofit organizations.
        Elementary and secondary schools means individual public or private 
    educational institutions encompassing kindergarten through twelfth 
    grade, as well as public school districts.
        Facilities under DOE Field Organization cognizance means national 
    laboratories, production plants, and project sites managed and operated 
    by DOE contractors or subcontractors.
    
    
    Sec. 109-50.203  Eligible Equipment.
    
        (a) Education-related and research equipment will include, but is 
    not limited to the following FSCGs:
    
    FSCG and Description
    
    34 Metalworking Machinery.
    36 Special Industry Machinery.
    41 Refrigeration, Air Conditioning and Air Circulating Equipment.
    52 Measuring Tools
    60 Fiber Optics Materials, Components, Assemblies and Accessories.
    61 Electric Wire, and Power and Distribution Equipment.
    66 Instruments and Laboratory Equipment.
    67 Photographic Equipment.
    70 General Purpose Automatic Data Processing Equipment (Including 
    Firmware), Software, Supplies and Support Equipment
    74 Office Machines, Text Processing Systems and Visible Record 
    Equipment.
    
        (b) Other related equipment may be provided if deemed appropriate 
    and approved by the Director, Office of Laboratory Policy and 
    Infrastructure Management.
    
    
    Sec. 109-50.204  Limitations.
    
        (a) Excess and/or surplus education-related and Federal research 
    equipment at DOE Field Organizations and cognizant facilities is 
    eligible for transfer as a gift under this program. However, safety, 
    environmental, and health matters must be considered.
        (b) Title to the equipment will transfer upon the recipient's 
    written acknowledgement of receipt.
        (c) The Director, Office of Laboratory Policy and Infrastructure 
    Management may authorize gifts of excess and/or surplus education-
    related and Federal research equipment by signature on the appropriate 
    gift instrument where the book value of an item of equipment exceeds 
    $25,000 or the cumulative book value of the gifts under this program to 
    any one institution exceeds $25,000.
    
    [[Page 19649]]
    
    HCA or designee may authorize gifts of excess and/or surplus education-
    related and Federal research equipment of lesser individual and 
    cumulative book value by signature on the appropriate gift instrument. 
    Delegations by the HCA to authorize gifts of excess and/or surplus 
    education related and Federal research equipment shall be in writing to 
    a specific individual, for a specified period of time, and for a 
    specified (or unlimited) level of authority.
        (d) Gifts shall be serviceable and in working order. Disposal 
    Condition Codes 1 and 4, as defined in 41 CFR 101-43.4801(e), meet this 
    criteria. Serviceability of equipment should be verified before the 
    gift is made to the eligible recipient.
    
    
    Sec. 109-50.205  Procedure.
    
        (a) The DOE facility will set aside an appropriate amount of excess 
    and/or surplus education-related and Federal research equipment for 
    transfer under this program.
        (b) A list of available education-related and Federal research 
    equipment will be prepared and distributed to eligible recipients and 
    the chief State School Board Officer.
        (c) Precollege institutions with partnership arrangements with the 
    DOE or its facilities (e.g., an adopted school) may receive gifts of 
    equipment in support of the partnership.
        (d) Precollege institutions not in a partnership with DOE may 
    receive equipment at the recommendation of the chief State School Board 
    Officer. The Chief State School Board Officer will determine which 
    schools within the state will receive which equipment. Consideration 
    for placement of the equipment should be based on:
        (1) The elementary or secondary schools determined to have the 
    greatest need; or
        (2) Recipients of federally funded math and science projects where 
    the equipment would further enhance the progress of the project.
        (e) Eligible recipients will have 30 days to select and freeze, on 
    a first come, first serve basis, the items desired and submit a request 
    for selected items stating:
        (1) Why the gift is needed; and
        (2) How the gift will be used to improve math and science curricula 
    or in the conduct of technical and scientific education and research 
    activities.
        (f) The cost of shipping should be minimal and not more than the 
    actual equipment value.
        (g) An Equipment Gift Agreement will be prepared and used to 
    provide the gift to eligible recipients. The gift agreement will be in 
    the format provided in section 109-50.4801 of this subchapter. The 
    agreement shall be numbered for control purposes, and signed by the 
    Director, Office of Laboratory Policy and Infrastructure Management or 
    the HCA or designee, as appropriate, and an appropriate official 
    representing the eligible recipient.
    
    
    Sec. 109-50.206  Reporting.
    
        (a) Gifts made under this program shall be included in the annual 
    report of property transferred to non-Federal recipients, as required 
    by 41 CFR 101-43.4701(c) and Sec. 109-43.4701(c) of this chapter.
        (b) A copy of each equipment agreement shall be forwarded to the 
    Director, Office of Laboratory Policy and Infrastructure Management.
    
    Subpart 109-50.3--[Reserved]
    
    Subpart 109-50.4--Programmatic Disposal to Contractors of DOE 
    Property in a Mixed Facility
    
    
    Sec. 109-50.400  Scope of subpart.
    
        This subpart contains policy to be followed when it is proposed to 
    sell or otherwise transfer DOE personal property located in a mixed 
    facility to the contractor who is the operator of that facility.
    
    
    Sec. 109-50.401  Definitions.
    
        As used in this subpart, the following definitions apply;
        Contractor means the operator of the mixed facility.
        DOE property means DOE-owned personal property located in a mixed 
    facility.
        Mixed facility means a partly DOE-owned and partly contractor-owned 
    facility. For purposes of this subpart, however, this definition does 
    not apply to such a facility operated by an educational or other 
    nonprofit institution under a basic research contract with DOE.
    
    
    Sec. 109-50.402  Submission of proposals.
    
        Proposals involving programmatic disposals of DOE personal property 
    located in mixed facilities to contractors operating that facility 
    shall be forwarded through the appropriate program organization to the 
    DPMO, for review and processing for approval. Each such request shall 
    include all information necessary for a proper evaluation of the 
    proposal. The proposal shall include, as a minimum:
        (a) The purpose of the mixed facility;
        (b) The description, condition, acquisition cost, and present use 
    of the DOE personal property involved.
        (c) The programmatic benefits which could accrue to DOE from the 
    disposal to the contractor (including the considerations which become 
    important if the disposal is not made);
        (d) The appraised value of the DOE personal property (preferably by 
    independent appraisers); and
        (e) The proposed terms and conditions of disposal including:
        (1) Price;
        (2) Priority to be given work for DOE requiring the use of the 
    transferred property, and including the basis for any proposed charge 
    to DOE for amortizing the cost of plant and equipment items;
        (3) Recapture of the property if DOE foresees a possible future 
    urgent need; and
        (4) Delivery of the property, whether ``as is-where is,'' etc.
    
    
    Sec. 109-50.403  Need to establish DOE program benefit.
    
        When approval for a proposed programmatic disposal of DOE personal 
    property in a mixed facility is being sought, it must be established 
    that the disposal will benefit a DOE program. For example, approval 
    might be contingent on showing that:
        (a) The entry of the contractor as a private concern into the 
    energy program is important and significant from a programmatic 
    standpoint; and
        (b) The sale of property to the contractor will remove obstacles 
    which otherwise discourage entry into the field.
    
    Subpart 109-50.48--Exhibits
    
    
    Sec. 109-50.4800  Scope of subpart.
    
        This subpart exhibits information referenced in the text of part 
    109-50 of this chapter that is not suitable for inclusion elsewhere in 
    that part.
    
    
    Sec. 109-50.4801  Equipment Gift Agreement.
    
        (a) The following Equipment Gift Agreement format will be used to 
    provide gifts of excess and/or surplus equipment to eligible recipients 
    under the Math and Science Equipment Gift Program (see subpart 109-50.2 
    of this chapter).
    
    EQUIPMENT GIFT AGREEMENT
    
    ----------------------------------------------------------------------
    (Reference Number)
    
    Between The U.S. Department of Energy and
    
    ----------------------------------------------------------------------
    (Name of Eligible Recipient)
    
    I. Purpose
    
        The Department of Energy shall provide as a gift, excess and/or 
    surplus education-related and Federal research equipment to (Name of 
    Eligible Recipient), hereafter referred to as the Recipient, for the 
    purpose
    
    [[Page 19650]]
    
    of improving the Recipient's math and science education curricula or 
    for the Recipient's conduct of technical and scientific education 
    and research activities.
    
    II. Authority
    
        Federal agencies have been directed, to the maximum extent 
    permitted by law, to give highest preference to elementary and 
    secondary schools in the transfer or donation of education-related 
    Federal equipment, at the lowest cost permitted by law. Furthermore, 
    subsection 11(i) of the Stevenson Wydler Technology Innovation Act 
    of 1980, as amended (15 U.S.C. 3710 (i)), authorizes the Director of 
    a laboratory, or the head of any Federal agency or department to 
    give excess research equipment to an educational institution or 
    nonprofit organization for the conduct of technical and scientific 
    education and research activities.
    
    III. Agreement
    
        A. The Department of Energy agrees to provide the equipment 
    identified in the attached equipment gift list, as a gift for the 
    purpose of improving the Recipient's math and science curricula or 
    for the Recipient's conduct of technical and scientific education 
    and research activities.
        B. Title to the education-related and Federal research 
    equipment, provided as a gift under this agreement, shall vest with 
    the Recipient upon the Recipient's written acknowledgement of 
    receipt of the equipment. The acknowledgement shall be provided to 
    (Name of the DOE signatory) at (address).
        C. The Recipient will be responsible for any repair and 
    modification costs to any equipment received under this gift.
        D. The Recipient hereby releases and agrees to hold the 
    Government, the Department of Energy, or any person acting on behalf 
    of the Department of Energy harmless, to the extent allowable by 
    State law, for any and all liability of every kind and nature 
    whatsoever resulting from the receipt, shipping, installation, 
    operation, handling, use, and maintenance of the education-related 
    and Federal Research equipment provided as a gift under this 
    agreement.
        E. The Recipient agrees to use the gift provided herein for the 
    primary purpose of improving the math and science curricula or for 
    the conduct of technical and scientific education and research 
    activities.
        F. The Recipient agrees to provide for the return of the 
    equipment if such equipment, while still usable, has not been placed 
    in use for its intended purpose within one year after receipt from 
    the Department of Energy.
    
    ----------------------------------------------------------------------
    (U.S. Department of Energy Office)
    
    ----------------------------------------------------------------------
    (Name and Address of Recipient)
    
    ----------------------------------------------------------------------
    (Signature of HCA or Designee)
    
    ----------------------------------------------------------------------
    (Signature of Official)
    
    ----------------------------------------------------------------------
    (Typed Name)
    
    ----------------------------------------------------------------------
    (Typed Name)
    
    ----------------------------------------------------------------------
    (Typed Title)
    
    ----------------------------------------------------------------------
    (Typed Title)
    
    ----------------------------------------------------------------------
    (Date)
    
    (Date)
    
        (b) The list of gifts that accompanies the Equipment Gift 
    Agreement shall contain the Gift Agreement reference number, name of 
    the eligible recipient, and the name of the DOE office. In addition, 
    the following information shall be provided for each line item 
    provided as a gift: DOE ID number, description (name, manufacturer, 
    model number, serial number, etc.), FSC code, quantity, location, 
    acquisition date, and acquisition cost.
    
    [FR Doc. 98-9659 Filed 4-17-98; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Effective Date:
5/20/1998
Published:
04/20/1998
Department:
Energy Department
Entry Type:
Rule
Action:
Final Rule.
Document Number:
98-9659
Dates:
This final rule will be effective May 20, 1998.
Pages:
19614-19650 (37 pages)
RINs:
1991-AA28: Department of Energy Property Management Regulations; Miscellaneous Personal Property
RIN Links:
https://www.federalregister.gov/regulations/1991-AA28/department-of-energy-property-management-regulations-miscellaneous-personal-property
PDF File:
98-9659.pdf
CFR: (330)
41 CFR 1530.2)
49 CFR 43.312(b)
41 CFR 6.402(f)
41 CFR 205
41 CFR 25.103
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