Distribution of Federal surplus property to State and local organizations : source book : amendments to the Federal prop...

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Title:
Distribution of Federal surplus property to State and local organizations : source book : amendments to the Federal property and administrative services act of 1949 made by Public Law 94-519 (with regulations and statutes)
Physical Description:
v, 181 p. : ; 24 cm.
Language:
English
Creator:
United States -- Congress. -- House. -- Committee on Government Operations
Publisher:
U.S. Govt. Print. Off.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Surplus government property -- Law and legislation -- United States   ( lcsh )
Surplus military property -- Law and legislation -- United States   ( lcsh )
Genre:
bibliography   ( marcgt )
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
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CIS Microfiche Accession Numbers: CIS 77 H402-1
General Note:
Reuse of record except for individual research requires license from Congressional Information Service, Inc.
General Note:
Issued Dec. 1976.
General Note:
At head of title: Committee print. 94th Congress, 2d session. House of Representatives.
Statement of Responsibility:
Committee on Government Operations, U.S. House of Representatives.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 022369380
oclc - 03768278X
Classification:
lcc - KF49
System ID:
AA00025882:00001

Full Text

-,4/


19
*


94th Congress 1
2d Session I


COMMITTEE PRINT]


HOUSE OF REPRESENTATIVES


C/S /27;'


HYQ' i -/


DISTRIBUTION OF FEDERAL SURPLUS
PROPERTY TO STATE AND LOCAL
ORGANIZATIONS




SOURCE BOOK: AMENDMENTS TO THE FEDERAL
PROPERTY AND ADMINISTRATIVE SERVICES
ACT OF 1949 MADE BY PUBLIC LAW 94-519
(WITH RELATED REGULATIONS AND STATUTES)
!



COMMITTEE ON GOVERNMENT OPERATIONS
U.S. HOUSE OF REPRESENTATIVES


DECEMBER 1976




Printed for the use of the Committee on Government Operations

U.S. GOVERNMENT PRINTING OFFICE


79-6000


WASHINGTON : 1976


For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 Price $1.90


7*


/


F









COMMITTEE ON GOVERNMENT OPERATIONS


JACK BROOKS, Texas, Chairman


L. H. FOUNTAIN, North Carolina
JOHN E. MOSS, California
DANTE B. FASCELL, Florida
WILLIAM S. MOORHEAD, Pennsylvania
WM. J. RANDALL, Missouri
BENJAMIN S. ROSENTHAL, New York
JIM WRIGHT, Texas
FERNAND J. ST GERMAIN, Rhode Island
FLOYD V. HICKS, Washington
DON FUQUA, Florida
JOHN CONYERS, JR., Michigan
BELLA S. ABZUG, New York
JAMES V. STANTON, Ohio
LEO J. RYAN, California
CARDISS COLLINS, Illinois
JOHN L. BURTON, California
RICHARDSON PREYER, North Carolina
MICHAEL HARRINGTON, Massachusetts
ROBERT F. DRINAN, Massachusetts
EDWARD MEZVINSKY, Iowa
BARBARA JORDAN, Texas
GLENN ENGLISH, Oklahoma
ELLIOTT H. LEVITAS, Georgia
DAVID W. EVANS, Indiana
ANTHONY MOFFETT, Connecticut
ANDREW MAGUIRE, New Jersey
LES ASPIN, Wisconsin


FRANK HORTON, New York
JOHN N. ERLENBORN, Illinois
JOHN W. WYDLER, New York
CLARENCE J. BROWN, Ohio
GILBERT GUDE, Maryland
PAUL N. McCLOSKEY, JS., California
SAM STEIGER, Arizona
GARRY BROWN, Michigan
CHARLES THONE, Nebraska
ALAN STEELMAN, Texas
JOEL PRITCHARD, Washington
EDWIN B. FORSYTHE, New Jersey
ROBERT W. KASTEN, JR., Wisconsin
WILLIS D. GRADISON, Ja., Ohio


WILLIAM M. JONES, General Counsel
JOHN E. MOORE, Staff Administrator
WILLIAM H. COPENHAVER, Associate Counsel
LYNNE HIGGINBOTHAM, Clerk
J. P. CARLSON, Minority Counsel


GOVERNMENT ACTIVITIES AND TRANSPORTATION SUBCOMMITTEE
WM. J. RANDALL, Missouri, Chairman


CARDISS COLLINS, Illinois
GLENN ENGLISH, Oklahoma
BELLA S. ABZUG, New York
RICHARDSON PREYER, North Carolina
DAVID W. EVANS, Indiana
FLOYD V. HICKS, Washington
LES ASPIN, Wisconsin


CHARLES THONE, Nebraska
EDWIN B. FORSYTHE, New Jersey
WILLIS D. GRADISON, JR., Ohio


EX OFFICIO


JACK BROOKS, Texas


FRANK HORTON, New York


MILES Q. ROMNEY, Counsel
BRUCE BUTTERWORTH, Research Assistant
MARJORIE A. EAGLE, Clerk
RICHARD M. TEMPERO, Minority Professional Staff


(II)









PREFACE


For the past 32 years, the Federal Government has been making
its surplus personal property available for donation to State and local
governments and public and nonprofit organizations. The program
has been of great benefit to the recipients and has provided an efficient
method of disposing of surplus property. But, unfortunately, its
effectiveness has been reduced over the years by the development of
separate distribution systems operated by various Federal agencies.
Public Law 94-519, enacted October 17, 1976, is designed to consoli-
date the many existing systems into one and to restore the effectiveness
of the program.
The new law will not take full effect until 1 year after enactment.
In the belief that the many officials, organizations and individuals
affected by the law will want to become acquainted with it, the House
Government Operations Committee is issuing this publication, which
contains the text of Public Law 94-519, the sections of the Federal
Property and Administrative Services Act of 1949 which it amends or
affects, the House and Senate reports on the legislation, and certain
Federal regulations that apply to the existing I)rogranm.
Public Law 94-519 provides for the distribution of property based
on a detailed State plan, developed under State law in accord with
certain Federal guidelines. Central to the success of the new program is
the relationship between thle States and the Federal Government.
which the statute establishes as a full l)artnership. It is expected that
under the revised program more usable property will be available for
donation and that it will be distributed to eligible recipients with a
greater assurance of equity than at present.
The committee has every expectation that Public Law 94-519 will
produce needed improvement in the donable property program. To
assure that result, the committee plans a continuing review of the
administration and implementation of the law. Further oversight and
evaluation will be provided under the statute by the Administrator
of General Services and the Comptroller General.
JACK BROOKS, Chairman.
(M)




















Digitized by the Internet Archive
in 2013














http://archive.org/details/butionoffe00unit











CONTENTS


Page
Preface ---------------------------------------------------------- III
1. Text of Public Law 94-519---------------------------------------- 1
2. The Federal Property and Administrative Services Act of 1949 as
amended:
Sections 2 and 3--------------------------------------------- 9
Title II---------------------------------------------------- 11
Title IV--------------------------------------------------- 46
Title VI--------------------- ------------------------------ 49
3. ext of H.R. 14451 showing the Senate amendments to the House bill-_ 57
4. House Report No. 94-1429------------------------ ---------------- 76
5. Senate Report No. 94-1323 -------------------------------------- 106
6. Pertinent General Services Administration regulations in effect on the
date of enactment-------------------------------------------- 136
7. Pertinent Department of Health. Education, and Welfare regulations in
effect on the (late of enactment------------------------------------ 161
8. Related statutes governing disposal of surplus property for public air-
ports --------------------------------------------------------177
















PUBLIC LAW 94-519--OCT. 17, 1976


Public Law 94-519
94th Congress


An Act


To amend the Federal Property and Administrative Services Act of 1949 to permit
the donation of Federal surplus personal property to the States and local
organizations for public purposes, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 203 of
the Federal Property and Administrative Services Act of 1949 (40
U.S.C. 484) is amended as follows:
(1) Subsection (j) is amended to read as follows:
"(j) (1) Under such regulations as he may prescribe, the Adminis-
trator is authorized in his discretion to transfer, without cost (except
for costs of care and handling), any personal property under the
control of any executive agency which has been determined to be
surplus property to the State agency in each State designated under
State law as the agency responsible for the fair and equitable distribu-
tion, through donation, of all property transferred in accordance with
the provisions of paragraphs (2) and (3) of this subsection. In deter-
mining whether the property is to be transferred for donation under
this subsection, no distinction shall be made between property capi-
talized in a working-capital fund established under section 2208 of
title 10, United States Code, or any similar fund, and any other
property.
"(2) In the case of surplus personal property under the control of
the Department of Defense, the Secretary of Defense shall determine
whether such property is usable and necessary for educational activi-
ties which are of special interest to the armed services, such as mari-
time academies, or military, naval, Air Force, or Coast Guard
preparatory schools. If the Secretary determines that such property
is usable and necessary for said purposes, the Secretary shall allocate
it for transfer by the Administrator to the appropriate State agency
for distribution, through donation, to such educational activities. If
the Secretary determines that such property is not usable and neces-
sary for such purposes, it may be disposed of in accordance with
paragraph (3) of this subsection.
"(3) Except for surplus personal property transferred pursuant
to paragraph (2) of this subsection, the Administrator shall, pursuant
to criteria which are based on need and utilization and established
after such consultation with State agencies as is feasible, allocate such
property among the 'States in a fair and equitable basis (taking into
account the condition of the property as well as the original acquisi-
tion cost thereof), and transfer to the State agency property selected
by it for distribution through donation within the State-
(A) to any public agency for use in carrying out or promoting
for the residents of a given political area one or more public
purposes, such as conservation, economic development, education,
parks and recreation, public health, and public safety; or
"(B) to nonprofit educational or public health institutions or
organizations, such as 'medical institutions, hospitals, clinics,
health centers, schools, colleges, universities, schools for the men-
tally retarded, schools for the physically handicapped, child


Oct. 17, 1976
[H.R. 14451]


Federal surplus
property.
Donation to
States and local
organizations.








*


(1)


90 STAT. 2451









PUBLIC LAW 94-519-OCT. 17, 1976


26 USC 501.


care centers, radio and television stations licensed by the Federal
Communications Commission as educational radio or educa-
tional television stations, museums attended by the public, and
libraries serving free all residents of a community, district, State,
or region, which are exempt from taxation under section 501
of the Internal Revenue Code of 1954, for purposes of education
or public health (including research for any such purpose).
The Administrator, in allocating and transferring property under
this paragraph, shall give fair consideration, consistently with the
established criteria, to expressions of need and interest on the part
of public agencies and other eligible institutions within that State,
and shall give special consideration to requests by eligible recipients,
transmitted through the State agency, for specific items of property.
"(4) (A) Before property may be transferred to any State agency,
such State shall develop, according to State law, a detailed pTan of
operation, developed in conformity with the provisions of this subsec-
tion, which shall include adequate assurance that the State agency has
the necessary organizational and operational authority and capability,
including staff, facilities, means and methods of financing, and pro-
cedures with respect to: accountability, internal and external audits,
cooperative agreements, compliance and utilization reviews, equitable
distribution and property disposal, determination of eligibility, and
assistance through consultation with advisory bodies and public and
private groups. The chief executive officer shall certify and submit
the plan to the Administrator. In the event that a State legislature
has not developed, according to State law, a State plan within two
hundred and seventy calendar days after the date of enactment of
this Act, the chief executive officer of the State shall approve, and
submit to the Administrator, a temporary State plan. No such plan,
and no major amendment thereof, shall be filed with the Adminis-
trator until sixty days after general notice of the proposed plan or
amendment, has been published and interested persons have been
given at least thirty days during which to submit, comments. In devel-
oping and implementing the State plan, the relative needs and
resources of all public agencies and other eligible institutions within
the State shall be taken into consideration. The Administrator may
consult with interested Federal agencies for purposes of obtaining
their views concerning the administration and operation of this
subsection.
"(B) The State plan shall provide for the fair and equitable dis-
tribution of property within such State based on the relative needs
and resources of interested public agencies and other eligible institu-
tions within the State and their abilities to utilize the property.
"(C) (i) The State plan of operation shall require the State agency
to utilize a management control system and accounting system for
donable property transferred under this section of the same types
as are required by State law for State-owned property, except that
the State agency, with the approval of the chief executive officer of
the State, may elect, in lieu of such systems, to utilize such other
management control and accounting systems as are effective to govern
the utilization, inventory control, accountability, and disposal of
property under this subsection.
"(ii) The State plan of operation shall require the State agency to
provide for the return of donable property for further distribution if
such property, while still usable, has not been placed in use for the
purpose for which it was donated within one year of donation or ceases
to be used by the donee for such purposes within one year of being
placed in use.


90 STAT. 2452









PUBLIC LAW 94-519-OCT. 17, 1976 90 STAT. 2453

"(iii) The. State plan shall require the State agency, insofar as
practicable, to select property requested by a public agency or other
eligible institution within the State and, if so requested by the
recipient, to arrange shipment of that property, when acquired,
directly to the recipient.
"(D) Where the State agency is authorized to assess and collect
service charges from participating recipients to cover direct and
reasonable indirect costs of its activities, the method of establishing
such charges shall be set out in the State plan of operation. Such
charges shall be fair and equitable and shall be based on services per-
formed by the State agency, including, but not limited to, screening,
packing, crating, removal, and transportation.
"(E) The State plan of operation shall provide that the State
agency may impose reasonable terms, conditions, reservations, and
restrictions on the use of property to be donated under paragraph (3)
of this subsection and shall impose such terms, conditions, reservations,
and restrictions in the case of any passenger motor vehicle and any
item of other property having a unit acquisition cost of $3,000 or more.
If the Administrator finds that an item or items have characteristics
that require special handling or use limitations, he may impose appro-
priate conditions on the donation of such property.
"(F) The State plan of operation shall provide that surplus prop-
erty which the State agency determines cannot, be utilized by eligible
recipients shall be disposed of-
"(i) subject to the disapproval of the Administrator within
thirty days after notice to him, through transfer by the State
agency to another State agency or through abandonment or
destruction where the property has no commercial value or the
estimated cost of its continued care and handling would exceed
the estimated proceeds from its sale; or
"(ii) otherwise pursuant to the provisions of this Act under
such terms and conditions and in such manner as may be prescribed
by the Administrator.
Notwithstanding sections 204 and 402(c) of this Act, the Adminis- 40 USC 485,
trator, from the proceeds of sale of any such property, may reimburse 512.
the State agency for such expenses relating to the care. and handling
of such property as he shall deem appropriate.
"(5) As used in this subsection, (A) the term 'public agency' means "Public agency."
any State, political subdivision thereof (including any unit of local
government or economic development district), or any department,
agency, instrumentality thereof (including instrumentalities created
by compact or other agreement between States or political subdivi-
sions), or any Indian tribe, band, group, pueblo, or community located
on a State reservation and (B) the term 'State' means the several "State."
States, the District of Columbia, the Commonwealth of Puerto Rico,
Virgin Islands, Guam, and American Samoa.".
(2) Subsection (k) is amended-
(A) in the first sentence of paragraph (4), immediately follow-
ing the word "subsection", by adding ", except with respect to
personal property transferred pursuant to subsection (j)";
(B) in subparagraph (4)(C), by inserting "or" immediately
after the semicolon;
S(C) in subparagraph (4) (D), immediately following the words
armed forces", by striking out."; or" and inserting in lieu thereof
a period; and
(D) by striking out subparagraph (4) (E).
(3) Subsection (n) is amended to read as follows:









90 STAT. 2454






















Report to
Congress.









40 USC 484 note.


40 USC 484.


PUBLIC LAW 94-519-OCT. 17, 1976


"(n) For the purpose of carrying into effect the provisions of sub-
section (j), the Administrator or the head of any Federal agency
designated by the Administrator, and, with respect to subsection
(k) (1), the Secretary of Health, Education, and Welfare or the head
of any Federal agency designated by the Secretary, are authorized to
enter into cooperative agreements with State surplus property distribu-
tion agencies designated in conformity with subsection (j). Such coop-
erative agreements may provide for utilization by such Federal agency,
with or without payment or reimbursement, of the property, facilities,
personnel, and services of the State agency in carrying out any such
program, and for making available to such State agency, with or
without payment or reimbursement, property, facilities, personnel, or
services of such Federal agency in connection with such utilization.
Payment or reimbursement, if any, from the State agency shall be
credited to thle fund or appropriation against which charges would be
made if no payment or reimbursement were received. In addition, under
such cooperative agreements and subject to such other conditions as
may be imposed by the Administrator, or with respect to subsection
(k)(1) by the Secretary of Health, Education, and Welfare, any
surplus property transferred to the State agency for distribution
pursuant to subsection (j)(3) may be retained by the State agency
for use in performing its functions. Unless otherwise directed by the
Administrator, title to property so retained shall vest in the State
agency.".
(4) Subsection (o) is amended to read as follows:
"(o) The Administrator with respect to personal property donated
under subsection (j), and the head of each executive agency disposing
of real property utinder subsection (k), shall submit during the calendar
quarter following the close of each fiscal year a report to the Senate
(or to the Secretary of the Senate if the Senate is not in session) and
to the House of Representatives (or to the Clerk of the House if the
House is not in session) showing the acquisition cost of all personal
property so donated and of all real property so disposed of during the
preceding fiscal year. Such reports shall also show donations and
transfers of property according to State, and may include such other
information and recommendations as the Administrator or other exec-
utive agency head concerned deems appropriate.".
SEC. 2. Except to the extent that the Administrator of General Serv-
ices, in the case of specific items or categories of property, has deter-
mined otherwise, no term, condition, reservation, or restriction imposed
pursuant to subsection (j) (5) of section 203 of the Federal Property
and Administrative Services Act of 1949 (as in effect prior to the date
of enactment of this Act), on the use of any item of personal property
donated pursuant to subsection (j) (3) or (j) (4) of section 203 prior
to the effective date of this Act as provided in section 9(a), shall
remain in effect beyond the thirtieth day after such effective date. This
section shall not be deemed to terminate any civil or criminal liability
arising out of a violation of such a term, condition, reservation, or
restriction which occurred prior to such effective date if a judicial
proceeding to enforce such liability is pending on such effective date,
or is commenced within one year after such date.
SEC. 3. Section 202 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 483) is amended by adding the follow-
ing new subsections:
"(d) Notwithstanding any other provisions of law, Federal agencies
are prohibited from obtaining excess personal property for purposes
of furnishing such property to grantees of such agencies, except as
follows:









PUBLIC LAW 94-519-OCT. 17, 1976


"(1) Under such regulations as the Administrator may pre-
scribe, any Federal agency may obtain excess personal property
for purposes of furnishing it to any institution or organization
which is a public agency or is nonprofit and exempt from taxation
under section 501 of the Internal Revenue Code of 1954, and which
is conducting a federally sponsored project pursuant to a grant
made for a specific purpose with a specific termination made:
Provided, That-
"(A) such property is to be furnished for use in connection
with the grant; and
"(B) the sponsoring Federal agency pays an amount
equal to 25 per centum of the original acquisition cost (except
for costs of care and handling) of the excess property fur-
nished, such funds to be covered into the Treasury as miscel-
laneous receipts.
Title to excess property obtained under this paragraph shall vest
in the grantees and shall be accounted for and disposed of in
accordance with procedures governing the accountability of per-
sonal property acquired under grant agreements.
"(2) Under such regulations and restrictions as the Admin-
istrator may prescribe, the provisions of this subsection shall not
apply to the following:
"(A) property furnished under section 608 of the Foreign
Assistance Act of 1961, as amended, where and to the extent
that the Administrator of General Services determines that
the property to be furnished under such Act is not needed for
donation pursuant to section 203 (j) of this Act;
"(B) scientific equipment furnished under section 11(e)
of the National Science Foundation Act of 1950, as amended
(42 U.S.C. 1870(e));
"(C) property furnished under section 203 of the Depart-
ment of Agriculture Organic Act of 1944 (16 U.S.C. 580a),
in connection with the Cooperative Forest Fire Control Pro-
gram, where title is retained in the United States; or
"(D) property furnished in connection with grants to
Indian tribes as defined in section 3(c) of the Indian Financ-
ing Act (25 U.S.C. 1452(c)).
This paragraph shall not preclude any Federal agency obtaining
property and furnishing it to a grantee of that agency under para-
graph (1) of this subsection.
"(e) Each executive agency shall submit during the calendar quar-
ter following the close of each fiscal year a report to the Administrator
showing, with respect to personal property-
"(1) obtained as excess property or as personal property deter-
mined to be no longer required for-the purposes of the appropria-
tion from which it was purchased, and
"(2) furnished in any manner whatsoever within the United
States to any recipient other than a Federal agency,
the acquisition cost, categories of equipment, recipient of all such
property, and such other information as the Administrator may
require. The Administrator shall submit a report to the Senate (or to
the Secretary of the Senate if the Senate is not in session) and to the
House of Representatives (or to the Clerk of the House if the House
is not in session) summarizing and analyzing the reports of the execu-
tive agencies.".
SEc. 4. Section 402 (c) of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 512(c)) is amended by striking out


Regulations.


26 USC 501.












Regulations.


22 USC 2358.

Ante, p. 2451.
S










Report to
Administrator.







Report to
Congress.


90 STAT. 2455









90 STAT. 245(






40 USC 483c.





















Repeal.
42 USC 3193.
Transfer of
personnel,
records, etc.
40 USC 484c.














40 USC 476.


i


PUBLIC LAW 94-519-OCT. 17, 1976


"whenever the head of the executive agency concerned determines that
it is in the interest of the United States to do so" and inserting in lieu
thereof ", whenever the head of the executive agency concerned, or the
Administrator after consultation with such agency head, determines
that return of the property to the United States for such handling is
in the interest of the United States".
SEC. 5. Notwithstanding any other provision of law, and except as
the Administrator of General Services may otherwise provide on
recommendation of the head of an affected Federal agency, excess
personal property acquired by a Federal agency pursuant to the
authority of section 202 of the Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 483) and furnished to and held by
a grantee of such agency prior to the effective date of this Act (as
provided in section 9(b)) under grants made pursuant to programs
established by law shall be regarded as surplus property. The Admin-
istrator of General Services upon receipt of a certification by the
head of an agency that the property is being used by the grantee for
the purposes for which it was furnished shall transfer title to the
property to the grantee. The grantor agency shall survey Federal
property acquired from excess sources in the possession of its grantees
and shall notify the Administrator of General Services, not later than
two hundred and forty days from the date of enactment of this Act,
of those items of property which are being used by each grantee for
the purpose for which it was furnished, and those items which are
not being used by each grantee. If the property is not being so used,
the Administrator shall transfer such property to an appropriate
State agency, upon its request, for distribution in accordance with
subsection 203 (j) of the Federal Property and Administrative Services
Act of 1949 (40 U.S.C. 484(j)). Property not so transferred shall be
otherwise disposed of pursuant to the provisions of that Act.".
SEC. 6. Section 514 of the Public Works and Economic Development
Act of 1965 (88 Stat. 1162) is repealed.
SEC. 7. (a) So much of the personnel, property, records, and unex-
pended balance of appropriations, allocations, and other funds as are,
in the judgment of the Director of the Office of Management and
Budget, employed, used, held, available, or to be made available in
relation to those personal property functions which the Secretary of
Health, Education, and Welfare was authorized to perform under
section 203 of the Federal Property and Administrative Services Act
of 1949 (40 U.S.C. 484) immediately prior to the date of enactment
of this Act and which under this Act become vested in the Admin-
istrator of General Services shall be transferred to the General Services
Administration at such time or times as the Director shall direct.
(b) Such further measures and dispositions as the Director of the
Office of Management and Budget deems necessary to effectuate trans-
fers referred to in subsection (a) of this section shall be carried out
in such manner as the Director shall direct.
SEC. 8. Title VI of the Federal Property and Administrative
Services Act of 1949 is amended by adding after section 605 the fol-
lowing new section:
"SEX DISCRIMINATION
"SEc. 606. No individual shall on the ground of sex be excluded
from participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity carried on or receiving
Federal assistance under this Act. This provision shall be enforced
through agency provisions and rules similar to those already estab-










PUBLIC LAW 94-519-OCT. 17, 1976

lished with respect to racial and other discrimination under title VI
of the Civil Rights Act of 1964. However, this remedy is not exclusive
and will not prejudice or remove any other legal remedies available
to any individual alleging discrimination.".
SEC. 9. The provisions of this Act shall become effective one year
after the date of enactment of this Act.
SEC. 10. Not later than thirty months after the effective date of
this Act, and biennially thereafter, the Administrator and the Comp-
troller General of the United States shall each transmit to the Congress
reports which cover the two-year period from such effective date and
contain (1) a full and independent evaluation of the operation of this
Act, (2) the extent to which the objectives of this Act have been
fulfilled, (3) how the needs served by prior Federal personal property
distribution programs have been met, (4) an assessment of the degree
to which the distribution of surplus property has met the relative
needs of the various public agencies and other eligible institutions,
and (5) such recommendations as the Administrator and the Comp-
troller General, respectively, determine to be necessary or desirable.


90 STAT. 2457,


42 USC 2000d.


Effective date.
40 USC 484 note.
Reports to
Congress.
40 USC 493.


Approved October 17, 1976.


LEGISLATIVE HISTORY:


HOUSE REPORT No. 94-1429 (Comm. on Government Operations).
SENATE REPORT No. 94-1323 (Comm. on Government Operations).
CONGRESSIONAL RECORD, Vol. 122 (1976):
Aug. 24, considered and passed House.
Sept. 28, considered and passed Senate, amended.
Sept 29, House agreed to Senate amendments.















SECTIONS 2 AND 3 AND TITLES II, IV, AND VI OF THE
FEDERAL PROPERTY AND ADMINISTRATIVE SERV-
ICES ACT OF 1949, AS AMENDED*


DECLARATION OF POLICY


SEC. 2. It is the intent of the Congress in enacting this
legislation to provide for the Government an economical
and efficient system for (a) the procurement and supply
of personal property and nonpersonal services, including
related functions such as contracting, inspection, storage,
issue, specifications, property identification and classifica-
tion, transportation and traffic management, establish-
ment of pools or systems for transportation of Govern-
ment personnel and property by motor vehicle within
specific areas, management of public utility services, re-
pairing and converting, establishment of inventory levels.
establishment of forms and procedures, and representa-
tion before Federal and State regulatory bodies; (b) the
utilization of available property; (c) the disposal of sur-
plus property; and (d) records management.


DEFINITIONS


SEC. 3. As used in titles I through VI of this Act-
(a) The term "executive agency" means any executive
department or independent establishment in the executive
branch of the Government, including any wholly owned
Government corporation.
(b) The term "Federal agency" means any executive
agency or any establishment in the legislative or judicial
branch of the Government (except the Senate, the House
of Representatives, and the Architect of the Capitol and
any activities under his direction).
(c) The term "Administrator" means the Administra-
tor of General Services provided for in title I hereof.
(d) The term "property" means any interest in prop-
erty except (1) the public domain; lands reserved or dedi-
cated for national forest or national park purposes; min-
erals in lands or portions of lands withdrawn or reserved
from the public domain which the Secretary of the Inte-
rior determines are suitable for disposition under the pub-
lic land mining and mineral leasing laws; and lands with-


40 U.S.C. 472


*NOTB.-This compilation includes the amendments made by Public Law 94-541 as well
as those made by Public Law 94-519.
(9)


40 U.S.C. 471





10


drawn or reserved from the public domain except lands
or portions of lands so withdrawn or reserved which the
Secretary of the Interior, with the concurrence of the
Administrator, determines are not suitable for return to
the public domain for disposition under the general
public-land laws because such lands are substantially
changed in character by improvements or otherwise; (2)
naval vessels of the following categories: Battleships,
cruisers, aircraft carriers, destroyers, and submarines;
and (3) records of the Federal Government.
(e) The term "excess property" means any property
utinder the control of any Federal agency which is not re-
quired for its needs and the discharge of its responsibil-
ities, as determined by the head thereof.
(f) The term "foreign excess property" means any ex-
cess property located outside the States of the Union, the
District of Columbia, Puerto Rico, American Samoa.
Guam, the Trust Territory of the Pacific Islands, and the
Virgin Islands.
(g) The term "surplus property" means any excess
property not required for the needs and the discharge of
the responsibilities of all Federal agencies, as determined
by the Administrator.
(h) The term "care and handling" includes completing,
repairing, converting, rehabilitating, operating, preserv-
ing, protecting, insuring, packing, storing, handling, con-
serving, and transporting excess and surplus property,
and, in the case of property whjch is dangerous to public
health or safety, destroying or rendering innocuous such
property.
(i) The term "person" includes any corporation, part-
nership, firm, association, trust, estate, or other entity.
(j) The term nonpersonall services" means such con-
tractual services, other than personal and professional
services, as the Administrator shall designate.
(k) The term "contractor inventory" means (1) any
property acquired by and in the possession of a contrac-
tor or subcontractor under a contract pursuant to the
terms of which title is vested in the Government, and in
excess of the amounts needed to complete full perform-
ance under the entire contract; and (2) any property
which the Government is obligated or has tle option to
take over under any type of contract as a result either of
any changes in the specifications or plans thereunder or of
the termination of such contract (or subcontract there-
under), prior to completion of the work, for the conven-
ience or at the option of the Government.
(1) The term "motor vehicle" means any vehicle, self-
propelled or drawn by mechanical power, designed and
operated principally for highway transportation of
property or passengers, exclusive of any vehicle designed







or used for military field training, combat, or tactical
purposes, or used principally within the confines of a
regularly established military post, camp, or depot, and
any vehicle regularly used by an agency in the perform-
ance of investigative, law enforcement, or intelligence
duties if the head of such agency determines that ex-
clusive control of such vehicle is essential to the effective
performance of such duties.
*

TITLE II-PROPERTY MANAGEMENT

PROCUREMENT, WAREIHOUSING, AND RELATED ACTIVITIES

SEC. 201. (a) The Administrator shall, in respect of
executive agencies, and to the extent that lie determines
that. so doing is advantageous to the Government in terms
of economy, efficiency, or service, and with due regard to
the program activities of the agencies concerned-
(1) subject to regulations prescribed by the Ad-
ministrator for Federal Procurement Policy pursu-
ant to the Office of Federal Procurement Policy Act.
prescribe policies and methods of procurement and
supply of personal property and nonpersonal serv-
ices, including related functions such as contracting.
inspection, storage, issue, property identification and
classification, transportation and traffic management,
management of public utility services, and repairing
and converting; and
(2) operate, and, after consultation with the execii-
tive agencies affected, consolidate, take over, or ar-
range for the operation by any executive agency of
warehouses, suppy centers, repair shops, fuel yards.
and other similar facilities; and
(3) procure and supply personal property and
nonpersonal services for thle use of executive agencies
in the proper discharge of their responsibilities, and
perform functions related to procurement and supply
such as those mentioned above in subparagraph (1) :
Provided, That contracts for public utility services
may be made for periods not exceeding ten years; and
(4) with respect to transportation and other public
utility services for the use of executive agencies,
represent such agencies in negotiations with carriers
and other public utilities and in proceedings involv-
ing carriers or other public utilities before Federal
and State regulatory bodies;
Provided, That the Secretary of Defense may from time
to time, and unless the President shall otherwise direct,
exempt the Department of Defense from action taken or


79-600 0 77 2


40 U.S.C. 481





12


which may be taken by the Administrator under clauses
(1), (2), (3) and (4) above whenever he determines such
exemption to be in the best interests of national security.
(b) The Administrator shall as far as practicable pro-
vide any of the services specified in subsection (a) of this
section to any other Federal agency, mixed ownership
corporation (as defined in the Government Corporation
Control Act), or the District of Columbia, upon its re-
quest.
(c) In acquiring personal property, any executive
agency, under regulations to be prescribed by the Ad-
ilinistrator, subject to regulations prescribed by the
Administrator for Fe(leral 1Procurement Policy pursuant
to the Office of Federal Procurement Policy Act, may
exchange or sell similar items and may apply the ex-
change allowance or proceeds of sale in such cases in
whole or in part payment for the property acquired:
Prorided, That any transaction carried out under the
authority of this subsection shall be evidenced in writing.
(d) In conformity with policies prescribed by the Ad-
ministrator under subsection (a), any executive agency
may utilize the services, work, materials, and equipment
of any other executive agency, with the consent of such
other executive agency, for the inspection of l)ersonal
property incident to the procurement thereof, and not-
withstanding section 3678 of the Revised Statutes (31
U.S.C. 628) or any other provision of law such other
executive agency may furnish such services, work. ma-
terials. and equipment for that purpose without reim-
bursement or transfer of funds.
(e) Whenever the head of any executive agency de-
termines that the remaining storage or shelf life of any
medical materials or medical supl)plies held by such
agency for national emergency purposes is of too short
duration to justify their continued retention for such
purposes and that their transfer or disposal would be
in the interest of the United States, such materials or
supplies shall be considered for the purposes of section
202 of this Act to be excess property. In accordance with
the regulations of the Administrator, such excess mate-
rials or supplies may thereupon be transferred to or
exchanged with any other Federal agency for other
medical materials or supplies. Any proceeds derived
from such transfers may be credited to the current appli-
cable appropriation or fund of the transferor agency
and shall be available only for the purchase of medical
materials or supplies to be held for national emergency
purposes. If such materials or supplies are not trans-
ferred to or exchanged with any other Federal agency,
they shall be disposed of as surplus property. To the
greatest extent practicable, the head of the executive





13


agency holding such medical materials or supplies shall
make the determination provided for in the first sentence
of this subsection at such times as to insure that such
medical materials or medical supplies can be transferred
or otherwise disposed of in sufficient time to permit their
use before their shelf life expires and they are rendered
unfit for human use.

PROPERTY UTILIZATION
SEc. 202. (a) (1) Subject to the provisions of para-
graph (2) of this subsection, in order to minimize ex-
penditures for property, the Administrator shall
prescribe policies and methods to promote the maximum
utilization of excess property by executive agencies,
and he shall provide for the transfer of excess prop-
erty among Federal agencies and to the organizations
specified in section 109(f). The Administrator, with the
approval of the Director of the Bureau of the Budget,
shall prescribe the extent of reimbursement for such
transfers of excess property: Pi-oided, That reimburse-
ment shall be required of the fair value, as determined
by the Administrator, of any excess property transferred
whenever net proceeds are requested pursuant to section
204(c) or whenever either the transferor or the trans-
feree agency (or the organizational unit affected) i, sub-
ject to the Government Corporation Control Act (59
Stat. 597, 31 U.S.C. 841) or is an organization specified
in section 109(f) ; and the excess property determined
by the Administrator to be suitable for distribution
through the supply centers of the General Services Ad-
ministration shall be retransferred as prices fixed by the
Administrator with due regard to prices established in
accordance with section 109(b).
(2) The Administrator shall prescribe such procedures
as may be necessary in order to transfer without compen-
sation to the Secretary of the Interior excess real prop-
erty located within the reservation of any group, band,
or tribe of Indians which is recognized as eligible for
services by the Bureau of Indian Affairs. Such excess
real property shall be held in trust by the Secretary for
the benefit and use of the group, band, or tribe of
Indians. within whose reservation such excess real prop-
erty is located: Provided, That such transfers of real
property within the State of Oklahoma shall be made to
the Secretary of the Interior to be held in trust for Okla-
homa Indian tribes recognized by the Secretary of the
Interior when such real property (1) is located within
boundaries of former reservations in Oklahoma as de-
fined by the Secretary of Interior and when such real
property was held in trust by the United States for an


40 U.S.C. 483







Indian tribe at the time of acquisition by the United
States, or (2) is contiguous to real property presently
held in trust by the United States for an Oklahoma
Indian tribe and was at any time held in trust by the
United States for an Indian tribe.
(b) Each executive agency shall (1) maintain adequate
inventory controls and accountability systems for the
property under its control, (2) continuously survey
property under its control to determine which is excess
property, and promptly report such property to the Ad-
ininistrator, (3) perform the care and handling of such
excess property, and (4) transfer or dispose of such
property as promptly as possible in accordance with au-
thority delegated and regulations prescribed by the
Administrator.
(c) Each executive agency shall, as far as practicable,
(1) make reassignments of property among activities
within the agency when such property is determined to
be no longer required for the purposes of the appropri-
ation from which it was purchased, (2) transfer excess
property under its control to other Federal agencies and
to organizations specified in section 109(f), and (3)
obtain excess property from other Federal agencies.
(d) Notwithstanding any other provisions of law, Fed-
eral agencies are prohibited from obtaining excess per-
sonal property for purposes of furnishing such property
to grantees of such agencies, except as follows:
(1) Under such regulations as the Administrator
may prescribe, any Federal agency may obtain excess
personal property for purposes of furnishing it to
any institution or organization which is a public
agency or is nonprofit and exempt from taxation
under section 501 of the Internal Revenue Code of
1954, and which is conducting a federally sponsored
project pursuant to a grant made for a specific pur-
pose with a specific termination made: Provided,
That-
(A) such property is to be furnished for use
in connection with the grant; and
(B) the sponsoring Federal agency pays an
amount equal to 25 per centum of the original
acquisition cost (except for costs of care and
handling) of the excess property furnished, such
funds to be covered into the Treasury as miscel-
laneous receipts.
Title to excess property obtained under this para-
graph shall vest in the grantees and shall be ac-
counted for and disposed of in accordance with pro-
cedures governing the accountability of personal
property acquired under grant agreements.







(2) Under such regulations and restrictions as the
Administrator may prescribe, the provisions of this
subsection shall not, apply to the following:
(A) property furnished utinder section 608 of
the Foreign Assistance Act of 1961, as amended,
where and to the extent that the Administrator
of General Services determines that the property
to be furnished under such Act is not needed for
donation pursuant, to section 203 (j) of this Act;
(B) scientific equipment furnished under sec-
tion 11(e) of the National Science Foundation
Act of 1950, as amended (42 U.S.C. 1870(e));
(C) property furnished under section 203 of
the Department of Agriculture Organic Act of
1944 (16 U.S.C. 580a), in connection with the
Cooperative Forest Fire Control Program,
where title is retained in the United States; or
(D) property furnished in connection with
grants to Indian tribes as defined in section 3(c)
of the Indian Financing Act (25 U.S.C. 1452
(c)).
This paragraph shall not preclude any Federal
agency obtaining property and furnishing it to a
grantee of that agency under paragraph (1) of this
subsection.
(e) Each executive agency shall submit during the cal-
endar quarter following the close of each fiscal year a
report to the Administrator showing, with respect to
personal property-
(1) obtained as excess property or as personal
property determined to be no longer required for the
purposes of the appropriation from which it was
purchased, and
(2) furnished in any manner whatsoever within
the United States to any recipient other than a Fed-
eral agency,
the acquisition cost, categories of equipment, recipient of
all such property, and such other information as the Ad-
ministrator may require. The Administrator shall submit
a report to the Senate (or to the Secretary of the Senate
if the Senate is not in session) and to the House of Repre-
sentatives (or to the Clerk of the House if the House is
not in session) summarizing and analyzing the reports of
the executive agencies.
(g) Whenever the Administrator determines that the
temporary assignment or reassignment of any space in ex-
cess real property to any Federal agency for office, storage,
or related facilities would be more advantageous than the
permanent transfer of such property, he may make such
assignment or reassignment for such period of time as he


















40 U.S.C. 484


shall determine and obtain, in the absence of appropri-
ation available to him therefore, appropriate reimburse-
ment from the using agency for the expense of main-
taining such space.
(h) The Administrator may authorize the abandon-
ment, destruction, or donation to public bodies of
property which has no commercial value or of which the
estimated cost of continued care and handling would
exceed the estimated proceeds from its sale.

DISPOSAL OF SURPLUS PROPERTY
SEC. 203. (a) Except as otherwise provided in this sec-
tion, the Administrator shall have supervision and direc-
tion over the disposition of surplus property. Such prop-
erty shall be disposed of to such extent, at such time, in
such areas, by such agencies, at such terms and conditions,
and in such manner, as may be prescribed in or pursuant
to this Act.
(b) The care and handling of surplus property, pend-
ing its disposition, and the disposal of surplus property,
may be performed by the General Services Administra-
tion or, when so determined by the Administrator, by the
executive agency in possession thereof or by any other
executive agency consenting thereto.
(c) Any executive agency designated or authorized by
the Administrator to dispose of surplus property may do
so by sale, exchange, lease, permit, or transfer, for cash,
credit, or other property, with or without warranty, and
upon such other terms and conditions as the Adminis-
trator deems proper, and it may execute such documents
for the transfer of title or other interest in property and
take such other action as it deems necessary or proper to
dispose of such property under the provisions of this title.
(d) A deed, bill of sale, lease, or other instrument exe-
cuted by or on behalf of any executive agency purporting
to transfer title or any other interest in surplus property
under this title shall be conclusive evidence of compliance
with the provisions of this title insofar as concerns title or
other interest of any bona fide grantee or transferee for
value and without notice of lack of such compliance.
(e) (1) All disposals or contracts for disposal of surplus
property (other than by abandonment, destruction, dona-
tion, or through contract brokers) made or authorized by
the Administrator shall be made after publicly adver-
tising for bids, under regulations prescribed by the
Administrator, except as provided in paragraphs (3) and
(5) of this subsection.
(2) Whenever public advertising for bids is required
under paragraph (1) of this subsection-
(A) the advertisement for bids shall be made at
such time previous to the disposal or contract,







through such methods, and on such terms and condi-
tions as shall permit that full and free competition
which is consistent with the value and nature of the
property involved;
(B) all bids shall be publicly disclosed at the time
and place stated in the advertisement;
(C) award shall be made with reasonable prompt-
ness by notice to the responsible bidder whose bid,
conforming to the invitation for bids, will be most
advantageous to the Government, price and other
factors considered: Provided, That all bids may be
rejected when it is in the public interest to do so.
(3) Disposals and contracts for disposal may be negoti-
ated, under regulations prescribed by the Administrator.
without regard to paragraphs (1) and (2) of this sub-
section but subject to obtaining such competition as is
feasible under the circumstances, if-
(A) necessary in the public interest during the
period of a national emergency declared by the
President or the Congress, with respect to a par-
ticular lot or lots of personal property or, for a
period not exceeding three months, with respect to
a specifically described category or categories of
personal property as determined by the Adminis-
trator;
(B) the public health, safety, or national security
will thereby be promoted by a particular disposal of
personal property;
(C) public exigency will not admit of the delay in-
cident to advertising certain personal property;
(D) the personal property involved is of a nature
and quantity which, if disposed of under paragraphs
(1) and (2) of this subsection, would cause such an
impact on an industry or industries as adversely to
affect the national economy, and the estimated fair
market value of such property and other satisfactory
terms of disposal can be obtained by negotiation;
(E) the estimated fair market value of the prop-
erty involved does not exceed $1,000;
(F) bid prices after advertising therefore are not
reasonable (either as to all or some part of the prop-
erty) or have not been independently arrived at in
open competition;
(G) with respect to real property only, the char-
acter or condition of the property or unusual cir-
cumstances make it impractical to advertise publicly
for competitive bids and the fair market value of
the property and other satisfactory terms of disposal
can be obtained by negotiation;
(H) the disposal will be to States, Territories,
possessions, political subdivisions thereof, or tax-





18


supported agencies therein, and the estimated fair
market value of the property and other satisfactory
terms of disposal are obtained by negotiation; or
(I) otherwise authorized by this Act or other law.
(4) Disposals and contracts for disposal of surplus
real and related personal property through contract
realty brokers employed by the Administrator shall be
made in the manner followed in similar commercial
transactions under such regulations as may be prescribed
by the Administrator: Provided, That such regulations
shall require that wide public notice of availability of
the property for disposal be given by the brokers.
(5) Negotiated sales of personal property at fixed
prices may be made by the Administrator either directly
or through the use of disposal contractors without regard
to the limitations set forth in paragraphs (1) and (2)
of this subsection: Provided, That such sales shall be
publicized to the extent consistent with the value and
nature of the property involved, that the prices estab-
lished shall reflect the estimated fair market value there-
of, and that such sales shall be limited to those categories
of personal property as to which the Administrator
determines that such method of disposal will best serve
the interests of the Government.
(6) Except as otherwise provided by this paragraph,
an explanatory statement of the circumstances of each
disposal by negotiation of any real or personal property
having a fair market value in excess of $1,000 shall be
prepared. Each such statement shall be transmitted to
the appropriate committees of the Congress in advance
of such disposal, and a copy thereof shall be preserved
in the files of the executive agency making such disposal.
No such statement need be transmitted to any such com-
mittee with respect to any disposal of personal property
made under paragraph (5) at a fixed price, or to property
disposals authorized by any other provision of law to be
made without advertising.
(7) Section 3709, Revised Statutes, as amended (41
U.S.C. 5), shall not apply to disposals or contracts for
disposal made under this subsection.
(f) Subject to regulations of the Administrator, any
executive agency may authorize any contractor with such
agency or subcontractor thereunder to retain or dispose
of any contractor inventory.
(g) The Administrator, in formulating policies with
respect to the disposal of surplus agricultural commodi-
ties, surplus foods processed from agricultural com-
modities, and surplus cotton or woolen goods, shall con-
sult with the Secretary of Agriculture. Such policies
shall be so formulated as to prevent surplus agricultural
commodities, or surplus food processed from agricultural
commodities, from being dumped on the market in a







disorderly manner and disrupting the market prices for
agricultural commodities.
(h) Whenever the Secretary of Agriculture deter-
mines such action to be required to assist him in carry-
ing out his responsibilities with respect to price support
or stabilization, the Administrator shall transfer with-
out charge to the Department of Agriculture any sur-
plus agricultural commodities, foods, or cotton or woolen
goods to be disposed of. Receipts resulting from disposal
by the Department of Agriculture under this subsection
shall be deposited pursuant to any authority available to
the Secretary of Agriculture, except that net proceeds
of any sale of surplus property so transferred shall be
credited pursuant to section 204(c), when applicable.
Surplus farm commodities so transferred shall not be
sold, other than for export, in quantities in excess of. or
at prices less than, those applicable with respect to sales
of such commodities by the Commodity Credit
Corporation.
(i) The Secretary of Commerce shall dispose of sur-
plus vessels of one thousand five hundred gross tons or
more which the Secretary determines to be merchant ves-
sels or capable of conversion to merchant use, and such
vessels shall be disposed of only in accordance with the
provisions of the Merchant Marine Act, 1936, as
amended, and other laws authorizing the sale of such
vessels.
(j) (1) Under such regulations as he may prescribe,
the Administrator is authorized in his discretion to trans-
fer, without cost (except for costs of care and handling),
any personal property under the control of any executive
agency which has been determined to be surplus property
to the State agency in each State designated under State
law as the agency responsible for the fair and equitable
distribution, through donation, of all property trans-
ferred in accordance with the provisions of paragraphs
(2) and (3) of this subsection. In determining whether
the property is to be transferred for donation under this
subsection, no distinction shall be made between property
capitalized in a working-capital fund established under
section 2208 of title 10, United States Code, or any simi-
lar fund, and any other property.
(2) In the case of surplus personal property under
the control of the Department of Defense, the Secretary
of Defense shall determine whether such property is
usable and necessary for educational activities which are
of special interest to the armed services, such as mari-
time academies, or military, naval, Air Force, or Coast
Guard preparatory schools. If the Secretary determines
that such property is usable and necessary for said pur-
poses, the Secretary shall allocate it for transfer by the
Administrator to the appropriate State agency for dis-





20


tribution, through donation, to such educational activi-
ties. If the Secretary determines that such property is
not usable and necessary for such purposes, it may be
disposed of in accordance with paragraph (3) of this
subsection.
(3) Except for surplus personal property transferred
pursuant to paragraph (2) of this subsection, the Ad-
ministrator shall, pursuant to criteria which are based on
need and utilization and established after such consulta-
tion with State agencies as is feasible, allocate such
property among the States in a fair and equitable basis
(taking into account the condition of the property as well
as the original acquisition cost thereof), and transfer to
the State agency property selected by it for distribution
through donation within the State-
(A) to any public agency for use in carrying out
or promoting for the residents of a given political
area one or more public purposes, such as conserva-
tion, economic development, education, parks and
recreation, public health, and public safety; or
(B) to nonprofit educational or public health in-
stitutions or organizations, such as medical institu-
tions, 'hospitals, clinics, health centers, schools, col-
leges, universities, schools for the mentally retarded,
schools for the physically handicapped, child care
centers, radio and television stations licensed by the
Federal Communications Commission as educational
radio or educational television stations, museums at-
tended by the public, and libraries serving free all
residents of a community, district, State, or region,
which are exempt from taxation under section 501
of the Internal Revenue Code of 1954, for purposes
of education or public health (including research for
any such purpose).
The Administrator, in allocating and transferring prop-
erty under this paragraph, shall give fair consideration,
consistently with the established criteria, to expressions
of need and interest on the part of public agencies and
other eligible institutions within that State, and shall give
special consideration to requests by eligible recipients.
transmitted through the State agency, for specific items
of property.
(4) (A) Before property may be transferred to any
State agency, such State shall develop, according to State
law, a detailed plan of operation, developed in conformity
with the provisions of this subsection, which shall include
adequate assurance that the State agency has the neces-
sary organizational and operational authority and ca-
pability, including staff, facilities, means and methods of
financing, and procedures with respect to: accountability,
internal and external audits, cooperative agreements,
compliance and utilization reviews, equitable distribution





21

and property disposal, determination of eligibility, and
assistance through consultation with advisory bodies and
public and private groups. The chief executive officer
shall certify and submit the plan to the Administrator.
In the event that a State legislature has not developed,
according to State law, a State plan within two hundred
and seventy calendar days after the date of enactment of
this Act, the chief executive officer of the State shall ap-
prove, and submit to theAdministrator, a temporary State
plan. No such plan, and no major amendment thereof,
shall be filed with the Administrator until sixty days
after general notice of the proposed plan or amendment
has been published and interested persons have been
given at least thirty days during which to submit com-
ments. In developing and implementing the State plan,
the relative needs and resources of all public agencies and
other eligible institutions within the State shall be taken
into consideration. The Administrator may consult with
interested Federal agencies for purposes of obtaining
their views concerning the administration and operation
of this subsection.
(B) The State plan shall provide for the fair and
equitable distribution of property within such State based
on the relative needs and resources of interested public
agencies and other eligible institutions within the State
and their abilities to utilize the property.
(C) (i) The State plan of operation shall require the
State agency to utilize a management control system and
accounting system for donable property transferred
under this section of the same types as are required by
State law for State-owned property, except that the State
agency, with the approval of the chief executive officer of
the State, may elect, in lieu of such systems, to utilize such
other management control and accounting systems as are
effective to govern the utilization, inventory control, ac-
countability, and disposal of property under this
subsection.
(ii) The State plan of operation shall require the State
agency to provide for the return of donable property for
further distribution if such property, while still usable,
has not been placed in use for the purpose for which it was
donated within one year of donation or ceases to be used
by the donee for such purposes within one year of being
placed in use.
(iii) The State plan shall require the State agency,
insofar as 'practicable, to select property requested by
a public agency or other eligible institution within the
State and, if so requested by the recipient, to arrange
shipment of that property, when acquired, directly to the
recipient.
(D) Where the State agency is authorized to assess
and collect service charges from participating recipients





22


to cover direct and reasonable indirect costs of its activi-
ties, the method of establishing such charges shall be set
out in the State plan of operation. Such charges shall be
fair and equitable and shall be based on services per-
formed by the State agency, including, but not limited
to, screening, packing, crating, removal, and
transportation.
(E) The State plan of operation shall provide that the
State agency may impose reasonable terms, conditions,
reservations, and restrictions on the use of property to be
donated under paragraph (3) of this subsection and shall
impose such terms, conditions, reservations, and restric-
tions in the case of any passenger motor vehicle and any
item of other property having a unit acquisition cost of
$3,000 or more. If the Administrator finds that an item
or items have characteristics that require special handling
or use limitations, he may impose appropriate conditions
on the donation of such property.
(F) The State plan of operation shall provide that
surplus property which the State agency determines can-
not be utilized by eligible recipients shall be disposed
of-
(i) subject to the disapproval of the Administrator
within thirty days after notice to him, through trans-
fer by the State agency to another State agency or
through abandonment or destruction where the prop-
erty has no commercial value or the estimated cost
of its continued care and handling would exceed the
estimated proceeds from its sale; or
(ii) otherwise pursuant to the provisions of this
Act utinder such terms and conditions and in such
manner as may be prescribed by the Administrator.
Notwithstanding sections 204 and 402(c) of this Act, the
Administrator, from the proceeds of sale of any such
property, may reimburse the State agency for such ex-
penses relating to the care and handling of such property
as he shall deem appropriate.
(5) As used in this subsection, (A) the term "public
agency" means any State, political subdivision thereof
(including any unit of local government or economic de-
velopment district), or any department, agency, instru-
mentality thereof (including instrumentalities created by
compact or other agreement between States or political
subdivisions), or any Indian tribe, band, group, pueblo,
or community located on a State reservation and (B) the
term "State" means the several States, the District of
Columbia, the Commonwealth of Puerto Rico, Virgin
Islands, Guam, and American Samoa.
(k) (1) Under such regulations as he may prescribe, the
Administrator is authorized, in his discretion, to assign
to the Secretary of Health, Education, and Welfare for
disposal such surplus real property, including buildings,





23


fixtures, and equipment situated thereon, as is recom-
mended by the Secretary of Health, Education, and
Welfare as being needed for school, classroom, or other
educational use, or for use in the protection of public
health, including research.
(A) Subject to the disapproval of the Adminis-
trator within thirty days after notice to him by the
Secretary of Health, Education, and Welfare of a
proposed transfer of property for school, classroom,
or other educational use, the Secretary of Health.
Education, and Welfare, through such officers or em-
ployees of the Department of Health, Education, and
Welfare as he may designate, may sell or lease such
real property including buildings, fixtures, and
equipment situated thereon, for educational purposes
to the States and their political subdivisions and
instrumentalities, and tax-supported educational in-
stitutions, and to other nonprofit educational institu-
tions which have been held exempt from taxation
under section 101(6) of the Internal Revenue Code.
(B) Subject to the disapproval of the Adminis-
trator within thirty days after notice to him by the
Secretary of Health, Education, and Welfare of a
proposed transfer of property for public-health use.
the Secretary of Health, Education, and Welfare,
through such officers or employees of the Department
of Health, Education, and Welfare as he may desig-
nate, may sell or lease such real property for public-
health purposes, including research, to the States and
their political subdivisions and instrumentalities,
and to tax-supported medical institutions, and to
hospitals or other similar institutions not operated
for profit which have been held exempt from taxa-
tion under section 101(6) of the Internal Revenue
Code.
(C) In fixing the sale or lease value of property to
be disposed of under subparagraph (A) and sub-
paragraph (B) of this paragraph, the Secretary of
Health, Education, and Welfare shall take into con-
sideration any benefit which has accrued or may
accrue to the United States from the use of such
property by any such State, political subdivision, in-
strumentality, or institution.
(D) "States" as used in this subsection includes the
District of Columbia, the Commonwealth of Puerto
Rico, and the Territories and possessions of the
United States.
(2) Under such regulations as he may prescribe, the
Administrator is authorized, in his discretion, to assign to
the Secretary of the Interior for disposal, such surplus
real property, including buildings, fixtures, and equip-
ment situated thereon, as is recommended by the Secre-





24


tary of the Interior as needed for use as a public park or
recreation area.
(A) Subject to the disapproval of the Administra-
tor within thirty days after notice to him by the
Secretary of the Interior of a proposed transfer of
property for public park or public recreational use,
the Secretary of the Interior, through such officers
or employees of the Department of the Interior as
he may designate, may sell or lease such real prop-
erty, including buildings, fixtures, and equipment
situated thereon, for public park or public recrea-
tional purposes to any State, political subdivision,
instrumentalities thereof, or municipality.
(B) In fixing the sale or lease value of property
to be disposed of under subparagraph (A) of this
paragraph, the Secretary of the Interior shall take
into consideration any benefit which has accrued or
may accrue to the United States from the use of such
property by any such State, political subdivision,
instrumentality, or municipality.
(C) The deed of conveyance of any surplus real
property disposed of under the provisions of this
subsection-
(i) shall provide that all such property shall
be used and maintained for the purpose for
which it was conveyed in perpetuity, and that in
the event that such property ceases to be used or
maintained for such purpose during such period,
all or any portion of such property shall in its
then existing condition, at the option of the.
United States, revert to the United States; and
(ii) may contain such additional terms, res-
ervations, restrictions, and conditions as may be
determined by the Secretary of the Interior to
be necessary to safeguard the interests of the
UTnited States.
(D) "States" as used in this subsection includes
the District of Columbia, the Commonwealth of
Puerto Rico. and the territories and possessions of
the United States.
(3) Without monetary consideration to the United
States, the Administrator may convey to any State, po-
litical subdivision, instrumentalities thereof, or munici-
pality, all of the right, title, and interest of the United
States in and to any surplus real and related personal
property which the Secretary of the Interior has deter-
mined is suitable and desirable for use as a historic mon-
ument, for the benefit of the public. No property shall be
determined to be suitable or desirable for use as a historic
monument except in conformity with the recommenda-
tion of the Advisory, Board on National Parks. Historic
Sites. Buildings and Monuments established by section 3





25


of the Act entitled "An Act for the preservation of his-
toric American sites, buildings, objects, and antiquities of
national significance, and for other purposes", approved
August 21, 1935 (49 Stat. 666), and only so much of any
such property shall be so determined to be suitable or
desirable for such use as is necessary for the preservation
and proper observation of its historic features.
(A) The Administrator may authorize use of any
property conveyed under this subsection or the Surplus
Property Act of 1944, as amended, for revenue-produc-
ing activities if the Secretary of the Interior (i) deter-
mines that such activities are compatible with use of the
property for historic monument purposes, (ii) approves
the grantee's plan for repair, rehabilitation, restoration,
and maintenance of the property, and (iii) approves the
grantee's plan for financing repair, rehabilitation, resto-
ration, and maintenance of the property. The Secretary
shall not approve a financial plan unless it provides that
incomes in excess of costs of repair, rehabilitation, res-
toration, and maintenance shall be used by the grantee
only for public historic preservation, park, or recrea-
tional purposes. The Administrator may not authorize
any uses under this subsection until the Secretary has
examined and approved the accounting and financial pro-
cedures used by the grantee. The Secretary may period-
ically audit the records of the grantee, directly related to
the property conveyed.
(B) The deed of conveyance of any surplus real prop-
erty disposed of under the provisions of this subsection-
(i) shall provide that all such property shall be
used and maintained -for historic monument pur-
poses in perpetuity, and that in the event that the
property ceases to be used or maintained for that
purpose, all or any portion of the property shall, in
its then existing condition, at the option of the
United States, revert to the United States; and
(ii) may contain such additional terms, reser-
vations, restrictions, and conditions as may be de-
termined by the Administrator to be necessary to
safeguard the interests of the United States.
(C) "States" as used in this subsection, includes the
District of Columbia, the Commonwealth of Puerto Rico,
and the territories and possessions of the United States.
(4) Subject to the disapproval of the Administrator
within thirty days after notice to him of any action to be
taken under this subsection, except with respect to per-
sonal property transferred pursuant to subsection (j)-
(A) The Secretary of Health, Education, and
Welfare, through such officers or employees of the
Department of Health, Education, and Welfare as he
may designate, in the case of property transferred





26


pursuant to the Surplus Property Act of 1944, as
amended, and pursuant to this Act, to States, politi-
cal subdivisions, and instrumentalities thereof, and
tax-supported and other nonprofit educational insti-
tutions for school, classroom, or other educational
use;
(B) the Secretary of Health, Education, and Wel-
fare, through such officers or employees of the De-
partment of Health, Education, and Welfare as he
may designate, in the case of property transferred
pursuant to the Surplus Property Act of 1944, as
amended, and pursuant to this Act, to States, politi-
cal subdivsions and instrumentalities thereof, tax-
supported medical institutions, and to hospitals and
other similar institutions not operated for profit, for
use in the protection of public health (including
research);
(C) the Secretary of the Interior, in the case of
property transferred pursuant to the Surplus Prop-
erty Act of 1944, as amended; and pursuant to this
Act, to States, political subdivisions, and instrumen-
talities thereof, and municipalities for use as a public
park, public recreational area, or historic monument
for the benefit of the public; or
(D) the Secretary of Defense, in the case of prop-
erty transferred pursuant to the Surplus Property
Act of 1944, as amended, to States, political subdivi-
sions, and tax-supported instrumentalities thereof
for use in the training and maintenance of civilian
components of the armed forces.
is authorized and directed-
(i) to determine and enforce compliance with the
terms, conditions, reservations, and restrictions, con-
tained in any instrument by which such transfer was
made;
(ii) to reform, correct, or 'amend any such instru-
ment by the execution of a corrective, reformative, or
amendatory instrument where necessary to correct
such instrument or to conform such transfer to the
requirements of applicable law; and
(iii) to (I) grant releases from any of the terms.
conditions, reservations, and restrictions contained
in, and (II) convey, quitclaim,or release to the trans-
feree or other eligible user any right or interest re-
served to the United States by. any instrument by
which such transfer was made. if he determines that
the property so transferred no longer serves the pur-
pose for which it was transferred, or that such re-
lease, conveyance, or quitclaim deed will not prevent
accomplishment of the purpose for which such prop-
erty was so transferred: Provided, That any such





27


release, conveyance, or quitclairm deed may be
granted on, or made subject to, such terms and condi-
tions as he shall deem necessary to protect or advance
the interests of the United States.
(1) Under such regulations as he may prescribe, the
Administrator is authorized in his discretion to donate
to the American National Red Cross, for charitable pur-
poses, such property, which was processed, produced, or
donated by the American National Red Cross, as shall
have been determined to be surplus property.
(min) The Administrator is authorized to take possession
of abandoned and other unclaimed property on premises
owned or leased by the Government, to determine when
title thereto vested in the United States, and to utilize.
transfer or otherwise dispose of such property. Former
owners of such property upon proper claim filed within
three years from the date of vesting of title in the United
States shall be paid the proceeds realized from the dis-
position of such property or, if the property is used or
transferred, the fair value therefore as of the time title was
vested in the United States as determined by the Admin-
istrator, less in either case the costs incident to the care
and handling of such property as determined by the
Administrator.
(n) For the purpose of carrying into effect the provi-
sions of subsection (j), the Administrator or the head of
any Federal agency designated by the Administrator,
and, with respect to subsection (k) (1), the Secretary of
Health, Education, and Welfare or the head of any Fed-
eral agency designated by the Secretary, are authorized
to enter into cooperative agreements with State surplus
property distribution agencies designated in conformity
with subsection (j). Such cooperative agreements may
provide for utilization by such Federal agency, with or
without payment or reimbursement, of the property, fa-
cilities, personnel, and services of the State agency in
carrying out any such program, and for making available
to such State agency, with or without payment or reim-
bursement, property, facilities, personnel, or services of
such Federal -agency in connection with such utilization.
Payment or reimbursement, if any, from the State agency
shall be credited to the fund or appropriation against
which charges would be made if no payment or reim-
bursement were received. In addition, under such coop-
erative agreements and subject to such other conditions
as may be imposed by the Administrator, or with respect
to subsection (k) (1) by the Secretary of Health, Educa-
tion, and Welfare, any surplus property transferred to
the State agency for distribution pursuant to subsection
(j) (3) may be retained by the State agency for use in
performing its functions. Unless otherwise directed by


79-600 0 77 3





28


40 U.S.C. 485


the Administrator, title to property so retained shall vest
in the State agency.
(o) The Administrator with respect to personal prop-
erty donated under subsection (j), and the head of each
executive agency disposing of real property under sub-
section (k), shall submit during the calendar quarter
following the close of each fiscal year a report to the
Senate (or to the Secretary of the Senate if the Senate
is not in session) and to the House of Representatives
(or to the Clerk of the House if the House is not in
session) showing the acquisition cost of all personal prop-
erty so donated and of all real property so disposed of
during the preceding fiscal year. Such reports shall also
show donations and transfers of property according to
State, and may include such other information and rec-
ommendations as the Administrator or other executive
agency head concerned deems appropriate.

PROCEEDS FROM TRANSFER OR DISPOSITION OF PROPERTY
SEC. 204. (a) All proceeds under this title from any
transfer of excess property to a Federal agency for its
use, or from any sale, lease, or other disposition of sur-
plus property, shall be covered into the Treasury as
miscellaneous receipts, except as provided in subsections
(b), (c), (d), and (e) of this section.
(b) All the proceeds of such dispositions of surplus
real and related personal property made by the Adminis-
trator of General Services shall be set aside in a separate
fund in the Treasury. Not more than an amount to be
determined quarterly by the Director of the Bureau of
the Budget may be obligated from such fund by the
Administrator to pay the direct expenses incurred for
the utilization of excess property and the disposal of
surplus property under this Act for fees of appraisers,
auctioneers, and realty brokers, and for advertising and
surveying. Such payments from this fund may be used
either to pay such expenses directly or to reimburse the
fund or appropriation initially bearing such expenses.
Fees paid to appraisers, auctioneers, and brokers shall
be in accordance with the scale of fees customarily paid
for such services in similar commercial transactions, and
in no event shall more than 12 per centum of the proceeds
of all dispositions within each fiscal year of surplus real
and related personal property be paid out of such pro-
ceeds under this authorization to meet direct expenses
incurred in connection with such dispositions. Periodi-
cally, but not less often than once each year, any excess
funds beyond current operating needs shall be trans-
ferred from the fund to miscellaneous receipts: Pro-
vided, That a report of receipts, disbursements, and
transfers to miscellaneous receipts under this authori-





29


zation shall be made annually in connection with the
budget estimates to the Director of the Bureau of the
Budget and to the Congress.
(c) Where the property transferred or disposed of
was acquired by the use of funds either not appropriated
from the general fund of the Treasury or appropriated
therefrom but by law reimbursable from assessment, tax,
or other revenue or receipts, then the net proceeds of the
disposition or transfer shall be credited to the reimburs-
able fund or appropriation or paid to the Federal agency
which determined such property to be excess: Provided,
That the proceeds shall be credited to miscellaneous
receipts in any case when the agency which determined
the property to be excess shall deem it uneconomical or
impractical to ascertain the amount of net proceeds. As
used in this subsection, the term "net proceeds of the
disposition or transfer" means the proceeds of the dis-
position or transfer minus all expenses incurred for care
and handling and disposition or transfer.
(d) Any Federal agency disposing of surplus prop-
erty under this title (1) may deposit, in a special account
with the Treasurer of the United States, such amount of
the proceeds of such dispositions as it deems necessary
to permit appropriate refunds to purchasers when any
disposition is rescinded or does not become final, or pay-
ments for breach of any warranty, and (2) may with-
draw therefrom amounts so to be refunded or paid, with-
out regard to the origin of the funds withdrawn.
(e) Where any contract entered into by an executive
agency or any subcontract under such contract authorizes
the proceeds of any sale of property in the custody of
the contractor or subcontractor to be credited to the price
or cost of the work covered by such contract or subcon-
tract, the proceeds of any such sale shall be credited in
accordance with the contract or subcontract.
(f) Any executive agency entitled to receive cash
under any contract covering the lease, sale or other
disposition of surplus property may in its discretion
accept in lieu of cash, any property determined by the
President to be strategic or critical material at the pre-
vailing market price thereof at the time the cash payment
or payments became or become due.
(g) Where credit has been extended in connection
with any disposition of surplus property under this title
or by War Assets Administration (or its predecessor
agencies) under the Surplus Property Act of 1944, or
where such disposition has been by lease or permit, the
Administrator shall administer and manage such credit,
lease, or permit, and any security therefore, and may
enforce, adjust, and settle any right of the Government
with respect thereto in such manner and upon such terms
as he deems in the best interest of the Government.





30


POLICIES, REGULATIONS, AND DELEGATIONS


40 U.S.C. 486


SEC. 205. (a) The President may prescribe such poli-
cies and directives, not inconsistent with the provisions
of this Act, as he shall deem necessary to effectuate the
provisions of this Act, which policies and directives shall
govern the Administrator and executive agencies in
carrying out their respective functions hereunder.
(b) The Comptroller General after considering the
needs and requirements of the executive agencies shall
prescribe principles and standards of accounting for
property, cooperate with the Administrator and with
the executive agencies in the development of property
accounting systems, and approve such systems when
deemed to be adequate and in conformity with pre-
scribed principles and standards. From time to time the
General Accounting Office shall examine such property
accounting systems as are established by the executive
agencies to determine the extent of compliance with
prescribed principles and standards and approved sys-
tems, and the Comptroller General shall report to the
Congress any failure to comply with such principles and
standards or to-adequately account for property.
(c) The Administrator shall prescribe such regulations
as he deems necessary to effectuate his functions under
this Act, and the head of each executive agency shall
cause to be issued such orders and directives as such head
deems necessary to carry out such regulations.
(d) The Administrator is authorized to delegate and
to authorize successive redelegation of any authority
transferred to or vested in him by this Act (except for
the authority to issue regulations on matters of policy
having application to executive agencies, the authority
contained in section 106, and except as otherwise pro-
vided in this Act) to any official in the General Services
Administration or to the head of any other Federal
agency.
(e) With respect to any function transferred to or
vested in the General Services Administration or the
Administrator by this Act, the Administrator may (1)
direct the undertaking of its performance by the Gen-
eral Services Administration or by any constituent
organization therein which he may designate or estab-
lish; or (2) designate and authorize any executive
agency to perform such function for itself; or (3) desig-
nate and authorize any other executive agency to per-
form such function; or (4) provide for such perform-
ance by any combination of the foregoing methods. Any
designation or assignment of functions or delegation of
authority to another executive agency under this section
shall be made only with the consent of the executive
agency concerned or upon direction of the President.







(f) When any executive agency (including the Gen-
eral Services Administration and constituent organiza-
tions thereof) is authorized and directed by the Admin-
istrator to carry out any function under this Act, the
Administrator may, with the approval of the Director
of the Bureau of the Budget, provide for the transfer
of appropriate personnel, records, property, and allo-
cated funds of the General Services Administration, or
of such other executive agency as has theretofore carried
out such function, to the executive agency so authorized
and directed.
(g) The Administrator may establish advisory com-
mittees to advise with him with respect to any function
transferred to or vested in the Administrator by this Act.
The members thereof shall serve without compensation
but shall be entitled to transportation and not to exceed
$25 per diem in lieu of subsistence, as authorized bv sec-
tion 5 of the Act of August 2, 1946 (5 U.S.C. 73b-2),
for persons so serving.
(h) The Administrator shall advise and consult with
interested Federal agencies with a view to obtaining their
advice and assistance in carrying out the purposes of this
Act.
(i) If authorized by the Administrator, officers and
employees of the General Services Administration having
investigatory functions are empowered, while engaged in
the performance of their duties in conducting investiga-
tions, to administer oaths to any person.

SURVEYS, .STANDARDIZED AND CATALOGING
SEC. 206. (a) As he may deem necessary for the effectu-
ation of his functions under this title, and after adequate
advance notice to the executive agencies affected, and
with due regard to the requirements of the Department
of Defense as determined by the Secretary of Defense.
the Administrator is authorized (1) to make surveys of
Government property and property management prac-
tices and obtain reports thereon from executive agencies;
(2) to cooperate with executive agencies in the establish-
ment of reasonable inventory levels for property stocked
by them and from time to time report any excessive stock-
ing to the Congress and to the Director of the Bureau of
the Budget; (3) to establish and maintain such uniform
Federal supply catalog system as may be appropriate to
identify and classify personal property under the control
of Federal agencies: Provided, That the Administrator
and the Secretary of Defense shall coordinate the cata-
loging activities of the General Services Administration
and the Department of Defense so as to avoid unneces-
sary duplication; and (4) subject to regulations promul-
gated by the Administrator for Federal Procurement


40 U.S.C. 487





32


40 U.S.C. 488


Policy pursuant to the Office of Federal Procurement
Policy Act, to prescribe standardized forms and proce-
dures, except such as the Comptroller General is au-
thorized by law to prescribe, and standard purchase
specifications.
(b) Each Federal agency shall utilize such uniform
Federal supply catalog system and standardized forms
and procedures and standard purchase specifications, ex-
cept as the Administrator, taking into consideration effi-
ciency, economy, and other interests of the Government,
shall otherwise provide.
(c) The General Accounting Office shall audit all types
of property accounts and transactions at such times and
in such manner as determined by the Comptroller Gen-
eral. Such audit shall be conducted as far as practicable
at the place or places where the property or records of
the executive agencies are kept and shall include but not
necessarily be limited to an evaluation of the effectiveness
of internal controls and audits, and a general audit of the
discharge of accountability for Government-owned or
controlled property based upon generally accepted prin-
ciples of auditing.

APPLICABILITY OF ANTITRUST LAWS
SEC. 207. (a) Except as provided by subsection (c), no
executive agency shall dispose of any plant, plants, or
other property to any private interest until such agency
has received the advice of the Attorney General on the
question whether such disposal would tend to create or
maintain a situation inconsistent with the antitrust laws.
Whenever any such disposal is contemplated by any
executive agency, such agency shall transmit promptly
to the Attorney General notice of such proposed disposal
and the probable terms or conditions thereof. If such
notice is given by any executive agency other than the
General Services Administration, a copy of such notice
shall be transmitted simultaneously to the Administra-
tor. Within a reasonable time, in no event to exceed sixty
days, after receipt of such notification, the Attorney Gen-
eral shall advise the Administrator and any other in-
terested executive agency whether, so far as he can deter-
mine, the proposed disposition would tend to create or
maintain a situation inconsistent with the antitrust laws.
(b) Upon request made by the Attorney General, the
Administrator or any other executive agency shall
furnish or cause to be furnished to the Attorney General
such information as the Administrator or such other
executive agency may possess which the Attorney Gen-
eral determines to be appropriate or necessary to enable
him to give the advice required by this section, or to
determine whether any other disposition or proposed dis-





33


position of surplus property violates or would violate
any of the antitrust laws.
(c) This section shall not apply to the disposal of-
(1) real property if the aggregate amount of the
original acquisition cost of such property to the
Government and all capital expenditures made by
the Government with respect thereto is less than
$1,000,000; or
(2) personal property (other than a patent,
process, technique, or invention) with an acquisition
cost of less than $3,000,000.
(d) Nothing contained in this Act shall impair, amend,
or modify any of the antitrust laws or limit or prevent
the application of any such law to any person who ac-
quires in any manner any property under the provisions
of this Act.
As used in this section, the term "antitrust laws" in-
cludes the Act of July 2, 1890 (ch. 647, 26 Stat. 209), as
amended; the Act of October 15, 1914 (ch. 323, 38 Stat.
730), as amended; the Federal Trade Commission Act
(38 Stat. 717), as amended; and sections 73 and 74 of the
Act of August 27, 1894 (28 Stat. 570), as amended.
SEC. 208. (a) The Administrator is authorized, sub-
ject to the civil-service and classification laws, to appoint
and fix the compensation of such personnel as may be
necessary to carry out the provisions of titles I, II, III,
V, and VI of this Act.
(b) To such extent as he finds necessary to carry out
the provisions of titles I, II, III, V, and VI of this Act,
the Administratoi is hereby authorized to procure the
temporary (not in excess of one year) or intermittent
services of experts or consultants or organizations
thereof, including stenographic reporting services, by
contract or appointment, and in such cases such service
shall be without regard to the civil-service and classifi-
cation laws, and, except in the case of stenographic re-
porting services by organizations, without regard to
section 3709, Revised Statutes, as amended (41 U.S.C. 5).
(c) Notwithstanding the provisions of section 1222 of
the Revised Statutes (10 UT.S.C. 576) or of any other
provision of law, the Administrator in carrying out the
functions imposed upon him by this Act is authorized
to utilize in his agency the services of officials, officers.
and other personnel in other executive agencies, includ-
ing personnel of the armed services, with the consent of
the head of the agency concerned.

CIVIL REMEDIES AND PENALTIES
SEC. 209. (a) Where any property is transferred or 40o u.s.c. 490
disposed of in accordance with this Act and any regu-
lations prescribed hereunder, no officer or employee of





34


the Government shall (1) be liable with respect to such
transfer or disposition except for his own fraud, or (2)
be accountable for the collection of any purchase price
for such property which is determined to be uncollecti-
ble by the Federal agency responsible therefore.
(b) Every person who shall use or engage in, or cause
to be used or engaged in, or enter into an agreement,
combination, or conspiracy to use or engage in or to
cause to be used or engaged in, any fraudulent trick,
scheme, or device, for the purpose of securing or obtain-
ing, or aiding to secure or obtain, for any person any
payment, property, or other benefits from the United
States or any Federal agency in connection with the
procurement, transfer, or disposition of property
hereunder-
(1) shall pay to the United States the sum of
$2,000 for each such act, and double the amount of
any damage which the United States may have sus-
tained by reason thereof, together with the cost of
suit; or
(2) shall, if the United States shall so elect, pay
to the United States, as liquidated damages, a sum
equal to twice the consideration agreed to be given
by the Unllited States or any Federal agency to such
person or by such person to the United States or
any Federal agency, as the case may be; or
(3) shall, if the United States shall so elect, re-
store to the United States the money or property
thus secured and obtained and the United States
shall retain as liquidated damages any property,
money, or other consideration given to the United
States or any Federal agency for such money or
property, as the case may be.
(c) The several district courts of the United States,
the District Court of the United States for the District
of Columbia, and the several district courts of the Ter-
ritories and possessions of the United States, within
whose jurisdictional limits the person, or persons, doing
or committing such act, or any one of them, resides or
shall be found, shall wheresoever such act may have been
done or committed, have full power and jurisdiction to
hear, try, and determine such suit, and such person or
persons as are not inhabitants of or found within the dis-
trict in which suit is brought may be brought in by order
of the court to be served personally or by publication or
in such other reasonable manner as the court may direct.
(d) The civil remedies provided in this section shall
be in addition to all other criminal penalties and civil
remedies provided by law.





35


OPERATION OF BUILDINGS AND RELATED ACTIVITIES
SEC. 210. (a) Whenever and to the extent that the Ad-
ministrator has been or hereafter may be authorized by
any provision of law other than this subsection to main-
tain, operate, and protect any building, property, or
grounds situated in or outside the District of Columbia,
including the construction, repair, preservation, demoli-
tion, furnishing, and equipment thereof, he is authorized
in the discharge of the duties so conferred upon him-
(1) to purchase, repair, and clean uniforms for
civilian employees of the General Services Admin-
istration who are required by law or regulation to
wear uniform clothing;
(2) to furnish arms and ammunition for the pro-
tection force maintained by the General Services
Administration;
(3) to pay ground rent for buildings owned by
the United States or occupied by Federal agencies,
and to pay such rent in advance when required by
law or when the Administrator shall determine such
action to be in the public interest;
(4) to employ and pay personnel employed in
connection with the functions of operation, main-
tenance, and protection of property at such per diem
rates as may be approved by the Administrator, not
exceeding rates currently paid by private industry
for similar services in the place where such services
are performed;
(5) without regard to the provisions of section
322 of the Act of June 30, 1932 (47 Stat. 412), as
amended, to pay rental, and to make repairs, altera-
tions, and improvements under the terms of any lease
entered into by, or transferred to, the.General Serv-
ices Administration for the housing of any Federal
agency which on June 30, 1950, was specifically ex-
empted by law from the requirements of said section;
(6) to obtain payments, through advances or
otherwise, for services, space, quarters, maintenance,
repair, or other facilities furnished, on a reimburs-
able basis, to any other Federal agency, or any
mixed-ownership corporation (as defined in the
Government Corporation Control Act), or the Dis-
trict of Columbia, and to credit such payments to the
applicable appropriation of the General Services
Administration;
(7) to make changes in, maintain, and repair the
pneumatic tube system connecting buildings owned
by the United States or occupied by Federal agencies


40 U.S.C. 489





36


in New York City installed under franchise of the
city of New York, approved June 29, 1909, and June
11, 1928, and to make payments of any obligations
arising thereunder in accordance with the provisions
of the Acts approved August 5, 1909 (36 Stat. 120),
and May 15,1928 (45 Stat. 533) ;
(8) to repair, alter, and improve rented premises,
without regard to the 25 per centum limitation of
section 322 of the Act of June 30,1932 (47 Stat. 412),
as amended, upon a determination by the Adminis-
trator that by reason of circumstances set forth in
such determination the execution of such work, with-
out reference to such limitation, is advantageous to
the Government in terms of economy, efficiency, or
national security: Provided, That such determina-
tion shall show that the total cost (rentals, repairs,
alterations, and improvements) to the Government
for the expected life of the lease shall be less than
the cost of alternative space which needs no such
repairs, alterations, or improvements. A copy of
every such determination so made shall be furnished
to the General Accounting Office;
(9) to pay sums in lieu of taxes on real property
declared surplus by Government corporations, pur-
suant to the Surplus Property Act of 1944, where
legal title to such property remains in any such
Government corporation;
(10) .to furnish utilities and other services where
such utilities and other services are not provided
from other sources to persons, firms, or corporations
occupying or utilizing plants or portions of plants
which constitute (A) a part of the National Indus-
trial Reserve pursuant to the National Industrial
Reserve Act of 1948, or (B) surplus real property,
and to credit the amounts received therefrom to the
applicable appropriation of the General Services
Administration;
(11) at the direction of the Secretary of Defense,
to use proceeds received from insurance against dam-
age to properties of the National Industrial Reserve
for repair or restoration of the damaged properties;
(12) to acquire, by purchase, condemnation, or
otherwise, real estate and interests therein;
(13) to enter into leases of Federal building sites
and additions to sites, including improvements there-
on, until they are needed for construction purposes,
at their fair rental value and upon such other terms
and conditions as the Administrator deems in the
public interest pursuant to the provisions of section
203(e) hereof. Such leases may be negotiated with-
out public advertising for bids if the lessee is the
former owner from whom the property was acquired







by the United States or his tenant in possession, and
the lease is negotiated incident to or in connection
with the acquisition of the property. Rentals received
under leases executed pursuant to this paragraph
may be deposited into the Buildings Management
Fund established by subsection (f) of this section;
(14) to enter into contracts for periods not exceed-
ing three years for the inspection, maintenance, and
repair of fixed equipment in such buildings which
are federally owned;
(15) to render direct assistance to and perform
special services for the Inaugural Committee (as de-
fined in the Act of August 6, 1956, 70 Stat. 1049)
during an inaugural period in connection with Presi-
dential inaugural operations and functions, includ-
ing employment of personal services without regard
to the civil service and classification laws; provide
Government-owned and leased space for personnel
and parking; pay overtime to guard and custodial
forces; erect and remove stands and platforms; pro-
vide and operate first-aid stations; provide furniture
and equipment; and provide other incidental serv-
ices in the discretion of the Administrator;
(16) to enter into leases of space on major pe-
destrian access levels and courtyards and rooftops
of any public building with persons, firms, or or-
ganizations engaged in commercial, cultural, educa-
tional or recreational activities (as defined in section
105 of the Public Buildings Cooperative Use Act of
1976). The Administrator shall establish a rental
rate for such leased space equivalent to the prevail-
ing commercial rate for comparable space devoted
to a similar purpose in the vicinity of the public
building. Such leases may be negotiated without
competitive bids, but shall contain such terms and
conditions and be negotiated pursuant to such pro-
cedures as the Administrator deems necessary to pro-
mote competition and to protect the public interest;
(17) to make available, on occasion, or to lease at
such rates and on such other terms and conditions as
the Administrator deems to be in the public interest,
auditoriums, meeting rooms, courtyards, rooftops,
and lobbies of public buildings to persons, firms, or
organizations engaged in cultural, educational, or
recreational activities (as defined in section 105 of
the Public Buildings Cooperative Use Act of 1976)
that will not disrupt the operation of the building;
(18) to deposit into the fund established by sub-
section (f) of this section all sums received under
leases or rentals executed pursuant to paragraphs
(16) and (17) of this subsection, and each sum
shall be credited to the appropriation made for such





38


fund applicable to the operation of such building;
and
(19) to furnish utilities, maintenance, repair, and
other services to persons, firms, or organizations leas-
ing space pursuant to paragraphs (16) and (17) of
this subsection. Such services may be provided dur-
ing and outside of regular working hours of Federal
agencies.
(b) At the request of any Federal agency or any
mixed-ownership corporation (as defined in the Govern-
ment Corporation Control Act), or the District of
Columbia, the Administrator is hereby authorized to
operate, maintain, and protect any building owned by
the United States (or, in the case of any wholly owned
or mixed-ownership Government corporation, by such
corporation) and occupied by the agency or instru-
mentality making such request.
(c) At the request of any Federal agency or any
mixed-ownership corporation (as defined in the Govern-
ment Corporation Control Act), or the District of
Columbia, the Administrator is hereby authorized (1) to
acquire land for buildings and projects authorized by
the Congress; (2) to make or cause to be made, under
contract or otherwise, surveys and test borings and to
prepare plans and specifications for such buildings and
projects prior to the approval by the Attorney General
of the title to the sites thereof; and (3) to contract for,
and to supervise, the construction and development and
the equipping of such buildings or projects. Any sum
available to any such Federal agency or instrumentality
for any such building or project may be transferred by
such agency to the General Services Administration in
advance for such purposes as the Administrator shall
determine to be necessary, including the payment of
salaries and expenses of personnel engaged in the prepa-
ration of plans and specifications or in field supervision,
and for general office expenses to be incurred in the
rendition of any such service.
(d) Whenever the Director of the Bureau of the
Budget shall determine such action to be in the interest
of economy or efficiency, he shall transfer to the Admin-
istrator all functions then vested in any other Federal
agency with respect to the operation, maintenance, and
custody of any office building owned by the United
States or any wholly owned Government corporation, or
any office building or part thereof occupied by any Fed-
eral agency under any lease, except that no transfer
shall be made under this subsection-
(1) of any post-office building unless the Director
shall first determine that such building is not used
predominantly for post-office purposes, and func-
tions which are transferred hereunder to the Admin-







istrator with respect to any post-office building may
be delegated by him only to another officer or em-
ployee of the General Services Administration or
to the Postmaster General;
(2) of any building located in any foreign
country;
(3) of any building located on the grounds of any
fort, camp, post, arsenal, navy yard, naval training
station, airfield, proving ground, military supply
depot, or school, or of any similar facility of the
Department of Defense, unless and to such extent
as a permit for its use by another agency or agen-
cies shall have been issued by the Secretary of De-
fense or his duly authorized representative;
(4) of any building which the Director of the
Bureau of the Budget finds to be a part of a group
of buildings which are (A) located in the same
vicinity, (B) utilized wholly or predominantly for
the special purposes of the agency having custody
thereof, and (C) not generally suitable for the use
of other agencies; or
(5) of the Treasury Building, the Bureau of En-
graving and Printing Building, the buildings occu-
pied by the National Bureau of Standards, and the
buildings under the jurisdiction of the regents of
the Smithsonian Institution.
(e) Notwithstanding any other provision of law, the
Administrator is authorized, in accordance with policies
and directives pOescribed by the President under section
205(a) and after consultation with the heads of the
executive agencies affected, to assign and reassign space
of all executive agencies in Government-owned and
leased buildings in and outside the District of Columbia
upon a determination by the Administrator that such
assignment or reassignment is advantageous to the Gov-
ernment in terms of economy, efficiency, or national
security. The Administrator shall, where practicable,
give priority in the assignment of space on any major
pedestrian access level not leased under the terms of sub-
section (a) (16) or (a) (17) of this section in such build-
ings to Federal activities requiring regular contact with
members of the public. To the extent such space is un-
available, the Administrator shall provide space with
maximum ease of access to building entrances.
(f) (1) There is hereby established in the Treasury of
the United States on such date as may be determined by
the Administrator, a fund into which there shall be depos-
ited the following revenues and collections:
(A) User charges made pursuant to subsection (j)
of this section payable in advance or otherwise.





40


(B) Proceeds with respect to building sites author-
ized to be leased pursuant to subsection (a) of this
section.
(C) Receipts from carriers and others for loss of,
or damage to, property belonging to the fund.
(2) Moneys deposited into the fund shall be available
for expenditure for real property management and re-
lated activities in such amounts as are specified in annual
appropriations Acts without regard to fiscal year
limitations.
(3) There are hereby merged with the fund established
under this subsection, unexpended balances of (A) the
Buildings Management Fund (including any surplus
therein), established pursuant to this subsection prior to
its amendment by the Public Buildings Amendments of
1972; (B) the Construction Services Fund, created by
section 9 of the Act of June 14, 1946 (60 Stat. 259), as
amended; and (C) any funds appropriated to General
Services Administration under the headings "Repair and
Improvement of Public Buildings", "Construction, Pub-
lic Buildings Projects", "Sites and Expenses, Public
Buildings Projects", "Construction, Federal Office Build-
ing Numbered 7, Washington, District of Columbia", and
"Additional Court Facilities", in any appropriation Act,
for the years prior to the fiscal year in which the fund
becomes operational. The fund shall assume all the liabili-
ties, obligations, and commitments of the said (1) Build-
ings Management Fund, (2) Construction Services
Fund, and (3) the appropriations specified in (C)
hereof.
(4) There is authorized to be appropriated to the fund
for the fiscal year in which the fund becomes operational,
and for the succeeding fiscal year, such advances to the
fund as may be necessary to carry out its purposes. Such
advances shall be repaid within 30 years, with interest at
a rate not less than a rate determined by the Secretary of
the Treasury taking into consideration the current aver-
age market yield on outstanding marketable obligations
of the United States with remaining period to maturity
comparable to the average maturities of such advances
adjusted to the nearest one-eighth of 1 per centum.
(5) In any fiscal year there may be deposited to mis-
cellaneous receipts in the Treasury of the United States
such amount as may be specified in appropriation Acts.
(6) Nothing in this section shall preclude the Admin-
istrator from providing special services not included in
the standard level user charge on a reimbursable basis
and such reimbursements may be credited to the fund
established under this subsection.
(g) Whenever an agency, or an organizational unit
thereof, occupying a substantial and identifiable segment
of space (building, floor, wing, and so forth) in a loca-





41


tion controlled for purposes of assignment of space by the
Administrator, is moved to such a substantial and iden-
tifiable segment of space in the same or another location
so controlled by the Administrator, furniture and fur-
nishings used by the moving agency or unit shall be
moved only if the Administrator, after consultation with
the head of the agency concerned, and with due regard
for the program activities of such agency, shall deter-
mine that suitable replacements cannot more economical-
ly and efficiently be made available in the new space. In
the absence of such determination, suitable furniture and
furnishings for the new space shall be provided, as the
Administrator shall determine to be more economical and
efficient, (1) from stocks under the control of the moving
agency or (2) from stocks available to the Administra-
tor, but the same or similar items shall not be provided
from both sources. When furniture and furnishings are
provided for the new space from stocks available to the
Administrator, the items so provided shall remain in the
control of the Administrator, and the furniture and fur-
nishings previously used by the moving agency or unit
and not moved to the new space shall pass to the control
of the Administrator without reimbursement. When fur-
niture and furnishings not so moved are carried as assets
of a revolving or working capital fund at the time they
pass to the control of the Administrator, the net book
value thereof shall be written off and the capital of the
fund diminished Ly the amount of such write-off. When
furniture or furnishings which have been purchased
from trust funds pass to the control of the Administrator
pursuant to this subsection, reimbursement shall be made
by the Administrator for the fair market value of such
furniture and furnishings.
(h) (1) The Administrator is authorized to enter into
lease agreements with any person, copartnership, corpo-
ration, or other public or private entity, which do not
bind the Government for periods in excess of twenty
years for each such lease agreement, on such terms as he
deems to be in the interest of the United States and nec-
essary for the accommodation of Federal agencies in
buildings and improvements which are in existence or to
be erected by the lessor for such purposes and to assign
and reassign space therein to Federal agencies.
(2) If the unexpired portion of any lease of space to
the Government is determined by the Administrator to
be surplus property and the property is thereafter dis-
posed of by sublease by the Administrator, the Adminis-
trator is authorized, notwithstanding section 204(a), to
deposit rental received in the buildings management fund
(40 U.S.C. 490(f)) and defray from the fund any costs
necessary to provide services to the Government's lessee





42


and to pay the rent not otherwise provided for on the
lease of the space to the Government.
(i) (1) Any executive agency is authorized to install,
repair, and replace sidewalks around buildings, installa-
tions, properties, or grounds under the control of such
agency and owned by the United States within the sev-
eral States, the District of Columbia, the Commonwealth
of Puerto Rico, and the possessions of the United States,
by reimbursement to a State or political subdivision
thereof, the District of Columbia, the Commonwealth of
Puerto Rico, and a possession of the United States, or
otherwise.
(2) Installation, repair, and replacement under this
subsection shall be performed in accordance with regu-
lations to be prescribed by the Administrator of General
Services with the approval of the Director of the Bureau
of the Budget.
(3) Funds appropriated to the agency for installation,
repair, and maintenance, generally, shall be available for
expenditure to accomplish the purposes of this
subsection.
(4) Nothing contained herein shall increase or enlarge
the tort liability of the United States for injuries to per-
sons or damages to property beyond such liability pres-
ently existing by virtue of any other law.
(j) The Administrator is authorized and directed to
charge anyone furnished services, space, quarters, main-
tenance, repair, or other facilities (hereinafter referred
to as space and services), at rates to be determined by
the Administrator from time to time and provided for
in regulations issued by him. Such rates and charges
shall approximate commercial charges for comparable
space and services, except that with respect to those
buildings for which the Administrator of General Serv-
ices is responsible for alternations only (as the term
"alter" is defined in section 13(5) of the Public Buildings
Act of 1959 (73 Stat. 479), as amended (40 U.S.C. 612
(5)), the rates charged the occupant for such services
shall be fixed by the Administrator so as to recover only
the approximate applicable cost incurred by him in pro-
viding such alterations. The Administrator may exempt
anyone from the charges required by this subsection if
he determines that such charges would be infeasible or
impractical. To the extent any such exemption is granted,
appropriations to the General Services Administration
are authorized to reimburse the fund for any loss of
revenue.
(k) Any executive agency, other than the General
Services Administration, which provides to anyone space
and services set forth in subsection (j) of this section,
is authorized to charge the occupant for such space and
services at rates approved by the Administrator. Moneys





43


derived by such executive agency from such rates or fees
shall be credited to the appropriation or fund initially
charged for providing the service, except that amounts
which are in excess of actual operating and maintenance
costs of providing the service shall be credited to mis-
cellaneous receipts unless otherwise authorized by law.

MOTOR VEHICLE IDENTIFICATION AND OPERATION
SEC. 211. (a) In order to carry out the policy, expressed 40 U.s.c. 491
in section 2 of this Act, to provide for an economical and
efficient system for transportation of Government per-
sonnel and property, it is further intended by the Con-
gress in enacting this section to (1) provide for the
proper identification of Government motor vehicles; (2)
establish effective means of limiting their use to official
governmental purposes; (3) reduce the number of Gov-
ernment-owned vehicles to the minimum necessary for
transaction of the public business; (4) provide wherever
practicable for centrally operated interagency pools or
systems for local transportation of Government personnel
and property and (5) establish procedures to insure safe
operation of motor vehicles on Government business.
(b) Subject to regulations issued by the President pur-
suant to subsection (c), the Administrator shall in re-
spect of executive agencies, and to the extent that he
determines that so doing is advantageous to the Govern-
ment in terms of economy, efficiency, or service, after
consultation with and with due regard to the program
activities of the agencies concerned, (1) consolidate, take
over, acquire, or arrange for the operation by any execu-
tive agency of, motor vehicles and other related equip-
ment and supplies for the purpose of establishing motor
vehicle pools and systems to serve the needs of executive
agencies; and (2) provide for the establishment, main-
tenance, and operation (including servicing and storage)
of motor vehicle pools or systems for transportation of
property or passengers, and for furnishing such motor
vehicle and related services to executive agencies. Such
motor vehicle services may be furnished, as determined
by the Administrator, through the use, under rental or
other arrangements, of motor vehicles of private fleet
operators, taxicab companies, local, or interstate common
carriers, or Government-owned motor vehicles, or com-
binations thereof. The Administrator shall, so far as
practicable, provide any of the services specified in this
subsection to any Federal agency, mixed ownership cor-
poration (as defined in the Government Corporation
Control Act), or the District of Columbia, upon its
request.


79-600 0 77 4





44


(c) The President shall, within ninety days after the
effective date of this section, issue regulations under this
section to establish procedures for the taking effect of de-
terminations made by the Administrator pursuant to
subsection (b). Such regulations shall provide for ade-
quate notice to executive agencies of any determinations
affecting them or their functions; for independent re-
view and decision as directed by the President of any
determination not mutually agreed upon between the
Administrator and the agency concerned, including ex-
emption of any agency, in whole or in part, from any
determination; and for enforcement of determinations
becoming effective utinder such regulations. No determi-
nation made pursuant to subsection (b) shall be binding
upon any agency except as provided in such regulations.
(d) The General Supply Fund provided for in section
109 shall be available for use by or under the direction
and control of the Administrator for paying all elements
of cost (including the purchase or rental price of motor
vehicles and other related equipment and supplies) inci-
dent to the establishment, maintenance, and operation
(including servicing and storage) of motor vehicle pools
or systems for transportation of property or passengers,
and to the furnishing of such motor vehicles and equip-
ment and 'related services pursuant to subsection (b).
Payments by requisitioning agencies so served shall be
at prices fixed by the Administrator at levels which will
recover so far as practicable all such elements of cost:
Provided, That the purchase price of motor vehicles and
other equipment specified in this subsection shall be re-
covered only through charge for the cost of amortization:
And provided further, That such costs shall be deter-
mined in accordance with the accrual accounting method
and financial reports shall be prepared on the basis of
such accounting.
(e) Any determination made by the Administrator
pursuant to subsection (b) shall set forth in writing an
analytical justification for the establishment, mainte-
nance, and operation of each such motor vehicle pool and
system. Such justification shall include a detailed com-
parison of estimated costs of present and proposed modes
of operation, and a showing that savings can be realized
by the establishment, maintenance, and operation of such
pool or system.
(f) Whenever any such motor vehicle pool or system
has been established pursuant to subsection (b), the Ad-
ministrator shall maintain accurate records of the cost of
its establishment, maintenance, and operation. If, during
any reasonable period, not exceeding two successive fiscal
years, no actual savings are realized on the basis of the
accounting for costs provided in subsection (d) the Ad-
ministrator shall discontinue such motor vehicle pool or







system, and shall return to the agency or agencies in-
volved motor vehicles and related equipment and sup-
plies similar in kind and of a value reasonably compar-
able to the value of the motor vehicles and related
equipment and supplies theretofore received by the Ad-
ministrator from such agency or agencies.
(g) Whenever the Administrator takes over pursuant
to subsection (b) any motor vehicle or other related
equipment or supplies from any Government corpora-
tiorn, or from any other agency if such vehicle, equip-
ment or supplies have been acquired by such agency
through expenditures made from, and not therefore re-
imbursed to, any revolving or trust fund authorized by
law, the Administrator shall reimburse such corporation
or fund by an amount equal to the fair market value of
the vehicle, equipment or supplies so taken over. If
thereafter, pursuant to subsection (f),the Administrator
returns to such corporation or agency any motor vehicle.
equipment or supplies, the Administrator shall be reim-
bursed by the payment to him, by such corporation or
from such fund, of an amount equal to the fair market
value of the vehicle, equipment or supplies so returned.
(h) When reimbursement is not required under sub-
section (g), the value, as determined by the Adminis-
trator, of any motor vehicle or other related equipment
or supplies taken over under authority of subsection (b)
may be added to the capital of the General Supply Fund,
and in the event that property similar in kind is subse-
quently returned pursuant to subsection (f), the value
thereof may be deducted from the General Supply Fund.
(i) The Administrator, in the operation of motor ve-
hicle pools or systems, may make provision for the fur-
nishing, sale, and use of script, tokens, tickets, and
similar devices for the making of payment by using
agencies for services rendered by the Administrator in
the transportation of property or passengers.
(j) The United States Civil Service Commission shall
issue regulations to govern executive agencies in author-
izing civilian personnel to operate Government-owned
motor vehicles for official purposes within the States
of the Union, the District of Columbia, Puerto Rico, and
the possessions of the United States. Such regulations
shall prescribe standards of physical fitness for au-
thorized operators and may require operators and pros-
pective operators to obtain such State and local licenses
or permits" as would be required for the operation by
them of similar vehicles for other than official purposes.
The head of each executive agency shall issue such orders
and directives as may be necessary to comply with such
regulations and shall make appropriate provision therein
for periodically testing the physical fitness of operators





46


40 U.S.C. 492


and prospective operators and for the suspension and
revocation of authorizations to operate.
(k) Under regulations prescribed by the Administra-
tor, every motor vehicle acquired and used for official
purposes within the United States, its Territories, or
possessions, by any Federal agency or the District of
Columbia shall be conspicuously identified by showing
thereon either (1) the full name of the department, estab-
lishment, corporation, or agency by which it is used and
the service in which it is used, or (2) a title descriptive
of the service in which it is used if such title readily
identifies the department, establishment, corporation, or
agency concerned, and the legend "For official use only":
Provided, That the regulations issued pursuant to this
section may provide for exemptions from the require-
ment of this section when conspicuous identification
would interfere with the purpose for which a vehicle is
acquired and used.
(1) Whenever, during the regular course of his duties,
there shall come to the knowledge of the Administrator
any violation of the provisions of sections 5 of the Act
of July 16, 1914, as amended (5 U.S.C. 78), cr of section
641 of title 18 of the United States Code involving the
conversion by a Government official or employee of a
Government owned or leased motor vehicle to his own
use or the use of others, the Administrator shall report
such violation to the head of the agency in which the
official or employee concerned is employed, for further
investigation and either appropriate disciplinary action
under such section 5 or, where appropriate, referral to
the Attorney General for prosecution under such section
641.
(m) [Repealed.]

REPORTS TO CONGRESS
SEC. 212. The Administrator shall submit a report to
the Congress, in January of each year and at such other
times as he may deem it desirable, regarding the admin-
istration of his functions under this Act, together with
such recommendations for amendments to this Act as he
may deem appropriate as the result of the administra-
tion of such functions, at which time he shall also cite the
laws becoming obsolete by reason of passage or operation
of the provisions of this Act.
*
TITLE IV-FOREIGN EXCESS PROPERTY


DISPOSAL OF FOREIGN EXCESS PROPERTY


41 U.S.C. 511


SSEC. 401. Each executive agency having foreign excess
property shall be responsible for the disposal thereof:
Provided, That (a) the head of each such executive






47


agency shall, with respect to the disposition of such prop-
erty, conform to the foreign policy of the United States;
(b) the Secretary of State shall have the authority to
use foreign currencies and credits acquired by the United
States under section 402 (b) of this Act in order to effec-
tuate the purposes of section 32(b) (2) of the Surplus
Property Act of 1944, as amended, and the Foreign Serv-
ice Buildings Act of May 7,1926, as amended (including
Public Law 547, Seventy-ninth Congress (60 Stat. 663).),
and for the purpose of paying any other governmental
expenses payable in local currencies, and the authority
to amend, modify, and renew agreements in effect on the
effective date of this Act; (c) any foreign currencies or
credits acquired by the Department of State pursuant to
such agreements shall be administered in accordance with
procedures that may from time to time be established bv
the Secretary of the Treasury and, if and when reduced
to United States currency, shall be covered into the
Treasury as miscellaneous receipts; and (d) the Depart-
ment of State shall, except to such extent as the President
shall otherwise determine, continue to perform other
functions with respect to agreements for the disposal of
foreign excess property in effect on the effective date of
this Act.
METHODS AND TERMS OF DISPOSAL
SEC. 402.(a) Foreign excess property not disposed of
under subsections .(b) and (c) of this section may be dis-
posed of (1) by sale, exchange, lease, or transfer, for
cash, credit, or other property, with or without warranty,
and upon such other terms and conditions as the head of
the executive agency concerned deems proper; but in no
event shall any property be sold without a condition for-
bidding its importation into the United States, unless the
Secretary of Agriculture (in the case of any agricultural
commodity, food, or cotton or woolen goods) or the Sec-
retary of Commerce (in the case of any other property)
determines that the importation of such property would
relieve domestic shortages or otherwise be beneficial to
the economy of this country, or (2) for foreign currencies
or credits, or substantial benefits or the discharge of
claims resulting from the compromise or settlement of
such claims by any executive agency in accordance with
the law, whenever the head of the executive agency con-
cerned determines that it is in the interest of the United
States to do so. Such property may be disposed of without
advertising when the head of the executive agency con-
cerned finds so doing to be most practicable and to be
advantageous to the Government. The head of each exec-
utive agency responsible for the disposal of foreign excess
property may execute such documents for the transfer of
title or other interest in property and take such other


41 U.S.C. 512






48


40 U.S.C. 513


action as he deems necessary or proper to dispose of such
property; and may authorize the abandonment, destruc-
tion, or donation of foreign excess property under his
control which hlias no commercial value or the estimated
cost of care and handling of which would exceed the esti-
mated proceeds from its sale.
(b) Any executive agency having in any foreign coun-
try any medical materials or supplies not disposed of
under subsection (c) of this section, which, if situated
within the United States, would be available for donation
pursuant to section 203 of this Act, may donate such ma-
terials or supplies without cost (except for costs of care
and handling), for use in any foreign country, to non-
profit medical or health organizations, including those
qualified to receive assistance under sections 214(b) and
607 of the Foreign Assistance Act of 1961, as amended
(22 U.S.C. 2174(b) and 2357).
(c) Under such regulations as the Administrator shall
prescribe pursuant to this subsection, any foreign excess
property may be returned to the United States for han-
dling as excess or surplus property under the provisions
of sections 202, 203(j), and 203(1) of this Act, whenever
the head of the executive agency concerned, or the Ad-
ministrator after consultation with such agency head,
determines that return of the property to the United
States for such handling is in the interest of the United
States: Prodided, That regulations prescribed pursuant
to this subsection shall require that the transportation
costs incident to such return shall be borne by the Federal
agency, State agency, or donee receiving the property.

PROCEEDS, FOREIGN CURRENCIES

SEC. 403. Proceeds from the sale, lease, or other disposi-
tion of foreign excess property, (a) shall, if in the form
of foreign currencies or credits, be administered in ac-
cordance with procedures that may from time to time be
established by the Secretary of the Treasury, and (b)
shall, if in United States currency, or when any proceeds
in foreign currencies or credits shall be reduced to United
States currency, be covered into the Treasury as miscel-
laneous receipts: Provided, That the provisions of section
204(b) (which by their terms apply to property disposed
of under title II) shall be applicable to proceeds of for-
eign excess property disposed of for United States cur-
rency under this title IV: And provided further, That
any executive agency disposing of foreign excess prop-
erty under this title (1) may deposit, in a special account
with the Treasurer of the United States, such amount of
the proceeds of such dispositions as it deems necessary
to permit appropriate refunds to purchasers when any





49

disposition is rescinded or does not become final, or pay-
ments for breach of any warranty, and (2) may withdraw
therefrom amounts so to be refunded or paid, without
regard to the origin of the funds withdrawn.

MISCELLANEOUS PROVISIONS
SC. 404. (a) The President may prescribe such policies,
not inconsistent with the provisions of this title, as he
shall deem necessary to effectuate the provisions of this
title, which provisions shall guide each executive agency
in carrying out its functions hereunder.
(b) Any authority conferred upon any executive agency
or the head thereof by the provisions of this title may be
delegated, and successive redelegation thereof may be au-
thorized, by such head to any official in such agency or to
the head of any other executive agency.
(c) The head of each executive agency responsible for
the disposal of foreign excess property hereunder may, as
may be necessary to carry out his functions under this
title, (1) subject to the civil-service and classification
laws, appoint and fix the compensation of personnel, and
(2) without regard to the civil-service and classification
laws, appoint and fix the compensation of personnel out-
side the States of the Union and the District of Columbia.
(d) The head of each executive agency responsible for
the disposal of foreign excess property utinder this title
shall submit a report to Congress in January of each year
or at such other time or times as he may deem desirable
relative to its activities under this title, together with any
appropriate recommendations.
(e) There shall be transferred from the Department of
State to each other executive agency affected by this title
such records, property, personnel, obligations, commit-
ments, and unexpended balances of appropriations, al-
locations, and other funds, available or to be made avail-
able, as the Director of the Bureau of the Budget shall
determine to relate to functions of such agency under this
title which have heretofore been administered by the
Department of State.


40 U.S.C. 514


TITLE VI-GENERAL PROVISIONS


APPLICABILITY OF EXISTING PROCEDURES
SEc. 601. All policies, procedures, and directives pre- 40 u.s.c. 473
scribed-
(a) by either the Director, Bureau of Federal Sup-
ply, or the Secretary of the Treasury and relating to
any function transferred to or vested in the Adminis-
trator, by the provisions of this Act;





50


(b) by any officer of the Government under the
authority of the Surplus Property Act of 1944, as
amended, or under other authority with respect to
surplus property or foreign excess property;
(c) by or under authority of the Federal Works
Administrator or the head of any constituent agency
of the Federal Works Agency; and
(d) by the Archivist of the United States or any
other officer or body whose functions are transferred
by title I of this Act,
in effect upon the effective date of this Act and not incon-
sistent herewith, shall remain in full force and effect un-
less and until superseded, or except as they may be
amended, under the authority of this Act or under other
appropriate authority.
REPEAL AND SAVING PROVISIONS

SEC. 602. (a) There are hereby repealed-
(1) the Surplus Property Act of 1944, as amended
(except sections 13(d), 13(g), 13(h), 28, and 32(b)
(2)), and sections 501 and 502 of Reorganization
Plan Numbered 1 of 1947: Provided, That, with re-
spect to the disposal under this Act of any surplus
real estate, all priorities and preferences provided for
in said Act, as amended, shall continue in effect until
12 o'clock noon (eastern standard time), Decem-
ber 31,1949;
(2) that portion of the Act entitled "An Act mak-
ing supplemental appropriations for the Executive
Office and sundry independent executive bureaus,
boards, commissions, and offices, for the fiscal year
ending June 30, 1949, and for other purposes", ap-
proved June 30, 1948 (Public Law 862, Eightieth
Congress), as amended, appearing under the caption
"Surplus property disposal";
(3) the Act entitled "An Act to authorize the Sec-
retary of War to dispose of material no longer needed
by the Army", approved February 28,1936 (49 Stat.
1147; 10 U.S.C. 1258);
(4) the Act entitled "An Act to authorize the Sec-
retary of the Navy to dispose of material no longer
needed by the Navy", approved May 22, 1930, as
amended (46 Stat. 378; 34 U.S.C. 546c);
(5) section of the Act of July 11, 1919 (41 Stat.
67; 40 U.S.C. 311);
(6) the first and second provisos contained in the
fifth paragraph under the heading "Division of Sup-
ply" in section 1 of the Act of December 20,1928 (45
Stat. 1030; 40 U.S.C. 311a);
(7) the Act entitled "An Act to authorize the Sec-
retary of the Army, the Secretary of the Navy, and







the Secretary of the Air Force to donate excess and
surplus property for educational purposes", ap-
proved July 2, 1948 (Public Law 889, Eightieth
Congress) ;
(8) Section 203 of the Act of June 26, 1943 (57
Stat. 195, as amended; 5 U.S.C. 118d-1);
(9) the Act of April 15,1937 (50 Stat. 64; 5 U.S.C.
118d) ;
(10) the second proviso contained in the paragraph
of the Act of August 10, 1912 (37 Stat. 296; 5 U.S.C.
545), headed "Contingent expenses, Department of
Agriculture'";
(11) the second proviso contained in the twentieth
paragraph of section 1 of the Act of March 2, 1917
(39 Stat. 973; 5 U.S.C. 494);
(12) the twenty-sixth paragraph under the head-
ing "National Parks" of the Act of January 24,
1923 (42 Stat. 1215; 16 U.S.C. 9);
(13) the fifth paragraph under the heading "Ex-
periments and demonstrations in livestock production
in the cane-sugar and cotton districts of the United
States" of the Act of June 30, 1914 (38 Stat. 441;
5 U.S.C. 546);
(14) the proviso contained in the second paragraph
under the heading "Library, Department of Agricul-
ture" of the Act of March 4, 1915 (38 Stat. 1107; 5
U.S.C. 548);
(15) the second proviso contained in the second
paragraph under the heading "Clothing and camp
and garrison equipage" of section 1 of the Act of Au-
gust 29, 1916 (39 Stat. 635; 10 U.S.C. 1271);
(16) the Act of May 11, 1939 (53 Stat. 739; 10
U.S.C. 1271a);
(17) the fifth paragraph under the heading "Office
of the Chief Signal Officer" of the Act of May 12.
1917 (40 Stat. 43, as amended; 10 U.S.C. 1272);
(18) the third proviso contained in the second
paragraph under the heading "Office of the Chief
Signal Officer" of the Act of March 4,1915 (38 Stat.
1064; 10 U.S.C. 1273);
(19) the fourteenth paragraph under the heading
"Smithsonian Institution" of section 1 of the Act of
March 3, 1915 (38 Stat. 839; 20 U.S.C. 66);
(20) the second paragraph under the heading
"Government hospital for the insane" of section 1 of
the Act of August 1, 1914 (38 Stat. 649; 24 U.S.C.
173);
(21) the second paragraph under the heading
"Saint Elizabeth Hospital" of section 1 of the Act of
June 12, 1917 (40 Stat. 153; 24 U.S.C. 174);





52


(22) the proviso contained in the second paragraph
under the heading "Bureau of Supplies and Ac-
counts" of the Act of August 22, 1912 (37 Stat. 346;
34 U.S.C. 531a);
(23) the second proviso of the first paragraph
under the heading "Bureau of Yards and Docks" of
the Act of August 29, 1916 (34 U.S.C. 532);
(24) the proviso contained in the second paragraph
under the heading "Maintenance, Quartermaster's
Department, Marine Corps" of the Act of March 4,
1917 (39 Stat. 1189; 34 U.S.C. 723);
(25) the twentieth paragraph under the heading
"Bureau of Mines" of section 1 of the Act of July 19,
1919 (41 Stat. 200; 40 U.S.C. 118);
(26) the first sentence of section 5 of the Act of
March 4, 1915 (38 Stat. 1161; 41 U.S.C. 26);
(27) the third paragraph under the heading "In-
terstate Commerce Commission" of section 1 of the
Act of August 1, 1914 (38 Stat. 627; 49 U.S.C. 58);
(28) the Act of June 6, 1941 (55 Stat. 247; 14
U.S.C. 31b);
(29) section 4 of the Act of June 17, 1910 (36 Stat.
531; 41 U.S.C. 7);
(30) the Act of February 27, 1929; (45 Stat. 1341;
41 U.S.C. 7a, 7b, 7c, and 7d);
(31) section 1 of the Act of May 14,1935 (49 Stat.
234; 41 U.S.C. 7c-1);
(32) the Act entitled "An Act to establish a Na-
tional Archives of the United States Government.
and for other purposes", approved June 19, 1934
48 Stat. 1122-1124, as amended; 44 U.S.C. 300, 300a,
300c-k); and
(33) section 4 of the Act of February 3, 1905 (33
Stat. 687, as amended; 5 U.S.C. 77).
(34) Sections l(c); 205 (a), (b), (c), (d), (e),and
(f); 206, 207, 208, and 209; and the second proviso
contained in section 203 of the joint resolution of
July 18,1939 (53 Stat. 1062).
(b) There are hereby superseded-
(1) the provisions of the first, third, and fifth para-
graphs of section 1 of Executive Order Numbered
6166 of June 10, 1933, insofar as they relate to any
function now administered by the Bureau of Fed-
eral Supply except functions with respect to standard
contract forms; and
(2) sections 2 and 4 of the Act entitled "An Act
to provide for the disposal of certain records of the
United States Government", approved July 7, 1943
(57 Stat. 381, as amended; 44 U.S.C. 367 and 369),
to the extent that the provisions thereof are incon-
sistent with the provisions of title V of this Act.





53


(c) The authority conferred by this Act shall be in
addition and paramount to any authority conferred by
any other law and shall not be subject to the provisions
of any law inconsistent herewith, except as provided by
the Office of Federal Procurement Policy Act, and except
that sections 205 (b) and 206(c) of this Act shall not be
applicable to any Government corporation or agency
which is subject to the Government Corporation Control
Act (59 Stat. 597; 31 U.S.C. 841).
(d) Nothing in this Act shall impair or affect any au-
thority of-
(1) the President under the Philippine Property
Act of 1946 (60 Stat. 418; 22 U.S.C. 1381);
(2) any executive agency with respect to any phase
(including, but not limited to, procurement, storage.
transportation, processing, and disposal) of any pro-
gram conducted for purposes of resale, price support,
grants to farmers, stabilization, transfer to foreign
governments, or foreign aid, relief, or rehabilitation:
Provided, That the agency carrying out such pro-
gram shall, to the maximum extent practicable, con-
sistent with the fulfillment of the purposes of the
program and the effective and efficient conduct of its
business, coordinate its operations with the require-
ments of this Act and the policies and regulations
prescribed pursuant thereto;
(3) any executive agency named in the Armed
Services Procurement Act of 1947, and the head
thereof, with respect to the administration of said
Act;
(4) the Department of Defense with respect to
property required for or located in occupied
territories;
(5) the Secretary of Defense with respect to the ad-
ministration of the National Industrial Reserve Act
of 1948;
(6) the President with respect to the administra-
tion of the Strategic and Critical Materials Stock Pil-
ing Act (60 Stat. 596);
(7) the Secretary of State under the Foreign Serv-
ice Buildings Act of May 7, 1926, as amended;
(8) the Secretary of the Army, the Secretary of
the Navy, and the Secretary of the Air Force with
respect to the administration of section 1 (b) of the
Act entitled "An Act to expedite the strengthening of
the national defense", approved July 2,1940 (54 Stat.
712);
(9) the Secreta.ry of Agriculture or the Depart-
ment of Agriculture under (A) the National School
Lunch Act (60 Stat. 230); (B) the Farmers Home
Administration Act of 1946 (60 Stat. 1062); (C) the


40 U.S.C. 474







40 U.S.C. 474





54


Act of August 31, 1947, Public Law 298, Eightieth
Congress, with respect to the disposal of labor supply
centers, and labor homes, labor camps, or facilities;
(D) section 32of the Act of August 24, 1935 (49 Stat.
774), as amended, with respect to the exportation and
domestic consumption of agricultural products; or
(E) section 201 of the Agricultural Adjustment Act
of 1938 (52 Stat. 36) or section 203(j) of the Agricul-
tural Marketing Act of 1946 (60 Stat. 1082);
(10) the Secretary of Agriculture, Farm Credit
Administration, or any farm credit board under
section 6(b) of the Farm Credit Act of 1937 (50 Stat.
706), with respect to the acquisition or disposal of
property;
(11) the Department of Housing and Urban Devel-
opment or any officer thereof with respect to the dis-
posal of residential property, or of other property
(real or personal) held as part of or acquired for or
in connection with residential property, or in connec-
tion with the insurance of mortgages, loans, or sav-
ings and loan accounts under the National Housing
Act;
(12) the Tennessee Valley Authority with respect
to nonpersonal services, with respect to the matters
referred to in section 201 (a) (4), and with respect to
any property acquired or to be acquired for or in
connection with any program of processing, manu-
facture, production, or force account construction:
Provided, That the Tennessee Valley Authority
shall to the maximum extent that it may deem prac-
ticable, consistent with the fulfillment of the purpose
of its program and the effective and efficient conduct
of its business, coordinate its operations with the
requirements of this Act and the policies and regu-
lations prescribed pursuant thereto;
(13) the Atomic Energy Commission;
(14) the Administrator of the Federal Aviation
Agency or the Chief of the Weather Bureau with re-
spect to the disposal of airport property and airway
property for use as such property. For the purpose
of this paragraph the terms "airport property" and
"airway property" shall have the respective mean-
ings ascribed to them in the International Aviation
Facilities Act (62 Stat. 450);
(15) the United States Postal Service;
(16) the Secretary of Commerce with respect to
the construction, reconstruction, and reconditioning
(including outfitting and equipping incident to the
foregoing), the acquisition, procurement, operation.
maintenance, preservation, sale, lease, or charter of
any merchant vessel or of any shipyard, ship site,





55


terminal, pier, dock, warehouse, or other installation
necessary or appropriate for the carrying out of any
program of such Commission authorized by law, or
nonadministrative activities incidental thereto: Pro-
vided, That the Secretary of Commerce shall to the
maximum extent that it may deem practicable, con-
sistent with the fulfillment of the purposes of such
programs and the effective and efficient conduct of
such activities, coordinate its operations with the
requirements of this Act, and the policies and reg-
ulations prescribed pursuant thereto;
(17) the Central Intelligence Agency;
(18) the Joint Committee on Printing, under the
Act entitled "An Act providing for the public print-
ing and binding and the distribution of public doc-
uments" approved January 12, 1895 (28 Stat. 601),
as amended or any other Act;
(19) for such period of time as the President may
specify, any other authority of any executive agency
which the President determines within one year after
the effective date of this Act should, in the public
interest, stand unimpaired by this Act; or
(20) the Secretary of the Interior with respect to
procurement for program operations under the Bon-
neville Project Act of 1937 (50 Stat. 731), as
amended.
(e) No provision of this Act, as amended, shall apply
to the Senate or the House of Representatives (including
the Architect of the Capitol and any building, activity, or
function under his direction), but any of the services and
facilities authorized by this Act to be rendered or fur-
nished shall, as far as practicable, be made available to
the Senate, the House of Representatives, or the Archi-
tect of the Capitol, upon their request, and, if payment
would be required for the rendition or furnishing of a
similar service or facility to an executive agency, pay-
ment therefore shall be made by the recipient thereof,
upon presentation of proper vouchers, in advance or by
reimbursement (as may be agreed upon by the Admin-
istrator and the officer or body making such request).
Such payment may be credited to the applicable appro-
priation of the executive agency receiving such payment.
(f) Section 3709, Revised Statutes, as amended (41
U.S.C. 5), is amended by striking out "$100" wherever it
appears therein and inserting in lieu thereof "$500".
AUTHORIZATIONS FOR APPROPRIATIONS AND TRANSFER
AUTHORITY
SEc. 603.: (a) There are hereby authorized to be ap- 40 U.S.C. 475
propriated such sums as may be necessary to carry out






56


40 U.S.C. 471
note


the provisions of this Act, including payment in ad-
vance, when authorized by the Administrator, for library
memberships in societies whose publications are available
to members only, or to members at a price lower than
that charged to the general public.
(b) When authorized by the Director of the Bureau of
the Budget, any Federal agency may use, for the disposi-
tion of property under this Act, and for its care and han-
dling pending such disposition, any funds heretofore or
hereafter appropriated, allocated, or available to it for
purposes similar to those provided for in sections 201,
202,203, and 205 of this Act.

SEPARABILITY

SEc. 604. If any provision of this Act, or the applica-
tion thereof to any person or circumstances, is held
invalid, the remainder of this Act, and the application
of such provision to other persons or circumstances, shall
not be affected thereby.


EFFECTIVE DATE


40 U.S.C. 471
note


SEC. 605. This Act shall become effective on July 1,
1949, except that the provisions of section 602(a) (2)
(repealing prior law relating to the disposition of the
affairs of the War Assets Administration) shall become
effective on June 30, 1949.

SEX DISCRIMINATION
SEC. 606. No individual shall on the ground of sex be
excluded from participation in, be denied the benefits of,
or be subjected to discrimination under any program or
activity carried on or receiving Federal assistance under
this Act. This provision shall be enforced through agency
provisions and rules similar to those already established
with respect to racial and other discrimination under
title VI of the Civil Rights Act of 1964. However, this
remedy is not exclusive and will not prejudice or remove
any other legal remedies available to any individual
alleging discrimination.




57


[H.R. 14451 as passed by the Senate and the House of Repre-
sentatives showing in italics and linetype the Senate amend-
ments to the House bill.]
[Omit the part struck through and insert the part printed in Italic]


AN ACT


To amend


the Federal


Property


and Administrative


Services


Act of 1949 to permit the donation of Federal surplus per-
sonal property to the States and local organizations for public
purposes, and for other purposes.

1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assemnibled,


3 That section 203 of thle Federal Property


and Administra-


4 tive Services Act of 1949


(40 IU.S.C. 484)


is amended as


5 follows:


Subsection


(J)


is amended to read as follows:


7 "(j) (1) Jnd
8 the Administrator

9 fer, without cost


ler such regulations as he nmay


prescribe,


is authorized in his discretion to trans-

(except for costs of care and handling),


II


(1)





58


2

1 any personal property under the control of any execu-

2 tive agency which has been determined to be surplus

3 property to the State agency in each Stale designated under

4 State lawv as the agency responsible for the fair" and equitable

5 distribution, through donation, of all property transferred in

6 accordance with the provisions of paragraphs (2) and (3)

7 of this subsection. In determining whether thlie property is to

8 be transferred for donation under this subsection, no

9 distinction shall be made between property capitalized in

10 a working-capital fund established under section 2208 of

11 title 10, United States Code, or any similar fund, and any

12 other property.

13, -. (2) In the case of surplus personal property under the

14 control of the Department of Defense, the Secretary of De-

15 fense shall deterinie whether such propertyis usable and
-* * * ,. ; I ,:
16 necessary for educational activities which arc of special in-

17 terest to the armed services, such as maritime academies, or
v I I .i ;- ** *' .> ..* * ** S* '.' '
18 military, naval, Air Force, or Coast Guard preparatory

19 schools. If the Secretary determines that such property is

20 usable and necessary for said purposes, the Secretary shall

21 allocate it for transfer by the Administrator to the appro-

22. private State agency for distribution, through donation, to
'II
23 such educational activities. If the Secretary determines that

24 suiich 1)roperty is not usable and necessary for such purposes,





59


3

1 it may be disposed of in accordance with paragraph (3) of

2 this subsection.

3 "(3) Except1 for surplus personal property transferred
4 pursuant to paragraph (2) of this subsection, the Adminis-

5 trator shall, pursuant to criteria which are based on need and

6 utilization and established after such consultation with State
7 agencies as is feasible, allocate such property among the

8 State States in a fair and equitable basis (taking into
9 account the condition of the property as well as the original

10 acquisition cost thereof), and transfer to the State agency
11 property selected by it for distribution through donation

12 within the State- -

13 "(A) t6 any public agency for use in carrying out
14 or promoting for the residents of a given political area
15 one or more public purposes, such as conservation, eco-

16. nomic development, education, parks and recreation,

17 public health, and public safety; or A "

18 "(B) to nonprofit educational or public health insti-

19 tutions or organizations, such as medical institutions, hos-

20 pitals, clinics, health centers, schools, colleges, universi-
21 .ties, schools for the mentally retarded, schools for the

22 physically handicapped, child care centers, radio and
23 television stations licensed 'by the Federal Oommunica-

24 tions Commission as educational radio or educational


79-600 0 77 5





60


1*1

1 television stations, museums attended by the public, and

2 libraries serving free all residents of a community, dis-
3 trict, State, or region, which are exempt from taxation

4 under section 501 of the Internal Revenue Code of

5 1954, for purposes of education or public health (in-
6 eluding research for any such purpose)

7jhe Adm444iittoi, w ift loeM+tt m+d t4il werrmiig pAopeity

8 utde* this parag"..., shift gie fr eoM*d4 aton, -(eonsit-
9 ntly with the estahbliied e-eei to cxp:csHio, tas-

10 mted trough the Stfte agency, of Reed ati4 meres eon

1j1 the pant of pale agencies o+ ethe g institutions
12 mw4tin that State. The Administrator, in allocating and

13 transferring property under this paragraph, shall give
14 fair. consideration, consistently with the established criteria,

15. to, expressions. of'need and interest on, the part of public

16.: agencies and other. eligible institutions within that State,
17 and shall give special consideration to requests by eligible

18, 'recipients, transmitted through the State agency, for specific

.19 items of property. ..

20 .; (4).(A) Before property may be transferred to any
21 State agency, the ehief e-xeeative offiee-r of such State shall

22 approve a-n4 sthlim4t to the Aihmnistrator develop, accord-

23:, ing to State law, a detailed plan of operation, developed

24 in conformity with the provisions of this subsection, which
25 shall include adequate assurance that thei State agency has





61

5

1. the necessary organiational and operational authority and

2 capability, including staff! facilities, means and methods
3 of financing, and procedures with respect to: accountability,
4 internal arid external audits, cooperative agreements, coni-
5 pliancc and utilization reviews, equitable distribution and

6 property disposal, determination of eligibility, and assist-
7 ance through consultation with advisory bodies arid public
8 and private groups. The chief executive officer shall certify
9 and submit the plan to the Administrator. In the event that
10 a State legislature has not developed, according to. Slate
11 law, a State plan within two hundred and seventfy calendar
12 days after the date of enact meni of this Act, the chief execu-
13 tive officer of the State shall approve, and submit to the
14 Administrator, a temporary State plan. No such plan, and
15 no major amendment thereof, shall be filed with the Ad-
16 ministrator until sixty days after general notice of the
17 proposed plan or amendment has been published and inter-

18 ested persons have been .given at least thirty days during

19 which to submit comments. In developing and implement-
20 ing the State plan, the relative needs and resources of all
21 public agencies and other eligible institutions within the.
22 State shall be taken into consideration. The Administrator
23 may consult with interested Federal agencies for purposes
24 of obtaining their views concerning the administration and.

25 operation of this subsection.





62


6

1 "(B) The State plan shall provide for the fair and
2 equitable distribution of property within such State based
3 on the relative needs and resources of interested public
4 agencies and other eligible institutions within the State and
5 their abilities to utilize the property.
6 "-)- (C) (i) The State plan of operation shall require
7 the State agency to utilize a management control system and
8 accounting system for donable property transferred under
9 this section of the same types as arc required by State
10 law for State-owned property, except that the State agency,
11 with the approval of the chief executive officer of the State,
12 may elect, in lieu. of such systems, to utilize such other
13 management control and accounting systems as are effective
14 to govern the utilization, inventory control, accountability,
15 and disposal of property under this subsection.
16 "(ii) The State plan of operation shall require the State
17 agency to provide for the return of donable property for
18 further distribution if such property, while still usable, has
19 not been placed in use for the purpose for which it was
20 donated within one year of donation or ceases to be used
21 by the donee for such purposes within one year of being
22 placedinuse. .
23 "(iii) The State plan shall require the State agency,
24 insofar as practicable, to select property requested by a
25 public agency or other eligible institution within the Staute





63


7
1 and, if so requested by the recipient, to arrange shipment

2 of that property, when acquired, directly to the recipient.
3 "-(0- (D) Where the State agency is authorized to as-
4 sess and collect service charges from participating recipients
5 to cover direct and reasonable indirect costs of its activities,
6 the method of establishing such charges shall be set out in
Sthe State plan of operation. Such charges shall be fair and

.8 equitable and shall be based on services performed by the
SState agency, including, but not limited to, screening, pack-

10 ing, crating, removal, and transportation..

11 "-(-- (E) The State plan of operation shall provide
12 that the State agency may impose reasonable terms, con-

13 editions, reservations, and restrictions on the use of property
14 to be donated under paragraph (3) of this subsection and
.15 shall impose such terms, conditions, reservations, and restric-

16 tions in the case of any passenger motor vehicle and anyv
.17. item ,of other property having a unit acquisition cost of

18 $3,000 or more. If the Administrator finds that an item or
i
19 items have characteristics that require special handling or

20 use limitations, he may impose appropriate conditions on the

21 donation of such property... ., r

22 4) (F) The State plan of operation shall provide that
23 surplus property which the State agency determines cannot

24 be utilized by eligible recipients shall be disposed of-

25 "(i) subject to disapproval of tho Admiristrator





64

8
1 within thirty days after notice to him, through transfer

2 by the State agency to another State agency or through
:: abandonment or destruction where the property has
4 no commercial value or the estimated cost of its con-
5 tinued care and handling would exceed the estimated

6 proceeds from its sale; or
7 "(ii) otherwise pursuant to the provisions of this

8 Act under such terms and conditions and in such manner
9 as may be prescribed by thle Administrator.
10 Notwithstanding sections 204 and 402 (c) of this Act, the
11 Administrator, from the proceeds of sale of any such prop-

12 erty, inay reimburse the State agency for such expenses
13 relating to the care and handling of such property as he
14 shall deem appropriate. .

15 "(5) As used in this subsection, (A) the term 'public
16 agency' means any State, political subdivision thereof (in-
17 eluding any unit of local government or economic develop-
18 ment district), or any department, agency, instrumentality
19 thereof (including instrumentalities created by compact or

20 other agreement between States or political subdivisions),
21 or any Indian tribe, band, group, pueblo, or community
22 located on a State reservation and (B) the term 'State'
23 means the several States, the D)istrict of Columbia, the
24 Commonwealth of Puerto Rico, Virgin Islands, Guam, and
25 American Samoa.".





65


9
1 (2) Subsection (k) is amended-
2 (A) in the first sentence of paragraph (4), irm-
3 mediately following the word "subsection", by adding
4 ", except with respect to personal property transferred
5 pursuant to subsection (j)";
6 (B) in subparagraph (4) (0), by inserting "or"
7 immnunediately after the semicolon; .. :.
8 (C) in subparagraph (4) (D), immediately fol-
9 lowing the words "armed forces", 'by striking out ";
10 or" and inserting in lieu thereof a period; and
11 (D) by striking out subparagraph (4).(E).
12 (3) Subsectioa (n) is amended to read as follows:
13 "(n) For the purpose of carrying into effect the provi-
14 sons of subsection (j), the Administrator or the head of any
15 Federal agency designated by the Administrator, and, with
16 respect to subsection (k) (1), the Secretary of Health, Edu-
17 cation, and Welfare or the head of any Federal agency
18 designated by the Secretary, are authorized to enter into
19' Cooperative agreements with State surplus property distriba.-
20 tion agencies designated in conformity with sabsection (j)
21 Such cooperative agreements may provide for utilization by
22 such Federal agency, with or without payment or reimburse-
23 mont, of the property, facilities, personnel, and services of the
24 State agency in carrying out any such program, and for mak-
25 ing available to such State agency, with or without payment





66


10
1 or reimbursement, property, facilities, personnel, or services
2 of such Federal agency in connection with such utilizatioli.
r3 Payment or reimbursement; if any, from the State agency
4: sliall be credited to the fund or appropriation against which
5 charges would 'be made if no payment or reimbursement
6 were received. In addition, aider such cooperative agree-
7 ments and subject to such other conditions as may be inm-
-8, pdserd by the Administrator, or Wvith respect, to subsection
;2 :(k) (1)i by the-'Secrcty of Iealth, Ediucatioi:n, and Wel-

10 fare,-'an3' urpTlus property ''tran.4ftred to the; State agency
11 foa l distribution pursuant to subsection .() (3) may be re-
12 tahied by the State agency for use- in perfonning its fuic-

13 'tiohs; Unless btherwisc' directed .by. the- Administrator, title
fl to property "so retain'6d'shall vesti, iii the State' agency.".

15" '1 4) Subsection (o) '..is namended- to 'tead as follows:
i1 (t) 'The Admiinistrator with respect to personal prop-
t v 1" r
17 '-rty donated&unde' subsection '(j); and-'the-bead of 'each
*" '.i i. r" *
18. executive agency disposing. of realty property under subsec-
V6 tin (k), sLhl) submit during the calendar.' quhtArler following
2b.! tie 'lose obf each fiscal year'a report to the Senate (or to the
M1 -Secretary of thf 'Seiate if the Sehateis not in session) and
2 o '5 ihe House f Representatives (oir to the rClerk of the
23 1Hlouse if the houstie is not in session) showing the acquisi-
24 tlion 'cost of all personal property so donated and of all real
.'pr,6iifty so disposed of during the preceding fiscal year.





67


11
1 Suchl reports shall also show donations aiid transfers of
-2 property according to State, and may include such other ia-
3 formation and recommendations as the Admninistrator or
":4 oilier executive agency head concerned deems appropriate.".
5 ,. Sic. 2. Except to the extent that thlie Administrator
6 of General Services, in the case of specific items or categories
.7 of property, has determined otherwise, no ferm, condition

!18. reservation, or restriction imposed pursuant to subsection
9 (j) (5) of section 203 of the Federal Property and Adninis-
10 trative Services Act of 1949 (as in effect prior to the date of
II enactment of this Act), on the use of any item of .personal
12 property donated pursuant to subsection (j) (3) or (j) (4)
13. of section 203 prior to the effective date of this Act as pro-
14 vided in section 9(a), shall remain in effect beyond the
15. thirtieth day after such effective date. This section shall not
16, be deemed to terminate any civil or criminal liability arising
17 {outl of a violation of such a'term, condition, reservation, or
18' :restriction which occurred prior.to .such effective date if' a
19. judicial proceeding to enforce such liability is pending on
2b'Qsuch effective'date, or is commenced within one year after
21' such date :- "* "' d ;. i"
2-2. 'SEC. 3. Section 202 of the Federal Property and Ad-
23 ministrative Services Act of 1949 (40 U.S.O. 483) 'is
24 amended by adding the following new subsections:.
21 :. -. ,(d) Notwithstanding any, other provisions of law, Fed-





68


12
1 eral agencies are prohibited from obtaining excess personal

2 property for purposes of furnishing such property to grantees
3 of such agencies, except as follows:

4 "(1) Under such regulations as the Administrator
5 may prescribe, any Federal agency may obtain excess
6 personal property for purposes of furnishing it to any
7 institution or organization which is a public agency or
8 is nonprofit and exempt from taxation under section
9 501 of the Internal Revenue Code of 1954, and which

10 is conducting a federally sponsored project pursuant to
11 a grant made for a specific purpose with a specific termi-
12 nation made: Provided, That-
13 "(A) such property is to be furnished for use
14 in connection with grant; and
15 "(B) the sponsoring Federal agency pays an
16 amount equal to 25 per centum of the original acqui-
17 sitioncost (except for costs of care and handling) of
18 the excess property furnished, such funds to be cov-

19 ered into the Treasury as miscellaneous receipts.
20 Title to excess property obtained under this paragraph
21 shall vest in the grantees and shall be accounted for and
22* disposed of in accordance with procedures governing
23 the accountability of personal property acquired under
24 grant agreements. .
25 "(2) Under such regulations and restrictions as the





69

13
Administrator may prescribe, the provisions of this
2. subsection shall not apply to the following:
3 "(A) property furnished under section .608 of
4 the Foreign Assistance Act of 1961, as amended.
5 where and to the extent that the Administrator of
6 General Services determines that the property to be
7 furnished utinder such Act is not needed for donation
8 pursuant to section 203 (j) of this Act;
9 .: (B) scientific equipment furnished under sec-

10 tion 11 (e) of the National Science Foundation Act
11 'of 1950, as amended -44- 4.8.4 1870He), whee

12 title is ietained ea tie UJted States%; (42 U.S.C.
13 '1870(e));
14 '" "(O) property furnished under section 203 of

15 the Department of Agriculture Organic Act of 1944
16 (16 U.S.C. 580a), in connection with the Coopera-
17 '" tive Forest Fire Control Program, where title is

18 detained in the United States; or -
19 -'- "(D) property furnished in connection with

20 :. ..grants to Indian tribes as defined in section 3 (c) of
21 the Indian Financing Act (25 U.S.C. 1452 (c)).

22 This paragraph shall not preclude any Federal agency
23 obtaining property and furnishing it to a grantee of that
24 agency under paragraph (1) of this subsection.
25 "(e) Each executive agency shall submit during the cal-





70

14
1 endar quarter following the close of each fiscal year a report

2 to the Administrator showing, with respect to personal prop-
3 erty-
4 "(1) obtained as excess property or as personal
5 property determined to be no longer required for the

6 purposes of the appropriation from which it was pur-
7" chased, and .

8 "(2) furnished in any manner whatsoever within
-9 the United States to any recipient other than a Federal

10 agency, ..
11 the acquisition cost, categories of equipment, recipient of all

12 such property, and such other information as the Adiniis-
13 trator may require. The Administrator shall submit a report

14 to the Senate (or to the Secretary of the Senate if the Senate
15 is not in session) and to the House of Representatives (or to

16 the Clerk of the House if the House is not in session) summa-
17 rizing and analyzing the reports of the executive agencies.".

18 SEC. 4. Section 402 (c) of the Federal Property and
19 ,Admistrative Seices Act of 1949 (40 U.S.O. 512 (c)) is

20 amended by striking out "whenever the head of the executive
21* agency concerned determines that it is in the interest of the

22 United States to do so" and inserting in lieu thereof ", when-
23" ever the head of the executive agency concerned, or the
24 Administrator after consultation with such agency head,





71


15
1 determines liat return of the property to the United States

2 for such handling is in the interest of the United States".
3 SEc. 5. Notwithstanding any other provision of law,
4 and except as the Administrator of General Services may
5 otherwise provide on recommendation of the head of an
6 affected Federal agency, excess personal property acquired
7 by a Federal agency pursuant to the authority of section 202

8 of the Federal Properly and Administrative Services Act
9 of 1949 (40 U.S.G. 483) and furnished to and held by a

10 grantee of such agency prior to the effective date of this Act
11 (as provided in section 9 (b)) under grants made pursuant

12 to programs established by law shall be regarded as surplus
13 property. The Administrator of General Services upon re-

14 ceipt of a certification by the head of an agency that the

15 property is being used by the grantee for the purposes for
16 which it was furnished shall transfer title to the property to
17 the grantee. The grantor agency shall survey Federal prop-

18 erty acquired from excess sources in the possession of its
19 grantees and shall notify the Administrator of General Serv-
20 iees, not later than two hundred and forty days from the
21 date of enactment of this Act, of those items of property
22 which are being used by each grantee for the purpose for
23 which it was furnished, and those items which arc not being
24 used by each grantee. If the property is not being so used,








16
1 the Administrator shall transfer such property to an appro-
2 private State agency, upon its request, for distribution in
3 accordance with subsection 203 (j) of the Federal Property
4 and Administrative Services Act, of 1949 (40 U.S.C. 484
5 (j)). Property not so transferred shall be otherwise dis-
6 posed of pursuant to the provisions of that Act.
7 SEC. 6. Section 514 of the Public Works and Economic
8 Development Act of 1965 (88 Stat. 11 62) is repealed.
9 SEc. 7. (a) So much of the personnel, property, records,
10 and unexpended balance of appropriations, allocations, and
11 other funds as are, in the judgment of the Director of tie
12 Office of Management and Budget, employed, used, held,
13 available, or to be made available in relation to those per-

14 sonal property functions which the Secretary of Health,
15 Education, and Welfare was authorized to perform under
16 section 203 of the Federal Property and Administrative
17 Services Act of 1949 (40 U.S.C. 484) immediately prior to
18 the date of enactment of this Act and which under this Act
19 become vested in the Administrator of General Services shall
20 be transferred to the General Services Administration at such
21 time or times as the Director shall direct.
22 (b) Such further measures and dispositions as the
23 Director of tlhe Office of Management and Budget deems
24 necessary to effectuate transfers referred to in subsection (a)





73


17

1 of this section shall be carried out in such manner as the

2 Director shall dh-ect.

3 SEC. 8. Title VI of the Federal Property and Adminis-

4 tr-ative Services Act of 1949 is amended by adding after

5 section 605 the following new section:

6 "SEX DISCRIMINATION

7 "SEC.,. 606. No ill(dividual shall on the ground of sex be

8 excluded from participation in, be denied tlhe benefits of, or

9 be subjected to discrimination under any program or activity

10 carried on or receiving Federal assistance under this Act.

11 This provision shall be enforced through agency provisions
a
12 and rules similar to those already established with respect

13 to racial and other discrimination under title VI of the Civil

14 Rights Act of 1964. However, this remedy is not exclusive

15 and will not prejudice or remove any other legal remedies

16 available to any individual alleging discrimination.".

17 W -(a)- Eept as provided hi subsection -(7 the

18 prison of this A-et shall become effective o ft the ep ation

19 f the one .himdred f-f- eighty day period whk begins
.2O t 4ft-e f natn e O s A"-e .

21 44 The provisions ef section a of th1s Aet reltiag to

22 h4e prolibition the oltainig of ex-eess personal prope

23 by" grawnne of Federmi a- es ftt 4 of seetien T f this Art

24 relatiwg to the transfer of title to smfrh property to previous
C.





74


18
1 g-antesc shall become elffetive eoft the exNpiratio of 4ie three
2 htmdf eday period w bI heg@is on the d*ate of enactmeen

3 of giis A et
4 SEC. 9. The provisions of this Act shall become effective
5 one year after the date of enactment of this Act.
6 S 4-0. "-oNv iatef th th -'enfs f4tei- the effeetive
7 djte 4f this Ac4 -cae p'aisde4 ini seetion 9-(4))- the -ATHi+i*-
8 kt-tio fsh*-sMi 4fl uIit t oflges a report whv ehveis the
*9 two-year period fiem sueeh effeet4vee dtte aftd eentains -(-1-- a
10 f*Il ftaH4 dcpcndent cal4utAiet of 4te epe atoii of th4s Aet,

11 +-)- the ext!cn to which the objectives of this Art h*wr-e bee
12 fufi-4ed, -(4, how needs served hy pioer 4 e4erA perefti
13 property diStribeia progiftans htave heeft fHet, aft -(4)-
14 Steh ,e.mm ,nd ,tion as the Adinei to,- detea e- ae
35- neeessafy of 4esiable.

16 .SEc. 10. Not later than thirty months after the effective
17 date of this Act, and biennially thereafter, the Administrator
18 and the Comptroller General of the United States shall each
,19 transmit to the Congress reports which cover the two-year

20 period from such effective date and contain (1) a full and
21 independent evaluation of the operation of this Act, (2)
22 the extent to which the objectives of this Act have been fulfilled,
23 (3) how the needs served by prior Federal personal property
24 distribution programs have been met, (4) an assessment of
25 the degree to which the dhi.,1ribution of surplus properly has








19

I met the relative needs of the various public agencies and other

2 eligible institutions, and (5) such recommendations as the

3 Administrator and the Comnptroller General, respectively,

4 determinne to be necessary or desirable.

Passed ithe House of Representatives August 24, 1976.

Attest: EDMUND L. IIENSHAW, JR.,
Clerk.


79-600 0 77 6





76


94TH VONOGRESS HOUSE OF REPRESENTATIVES RmEorT
2d Se88ssion No. 94-1429




DISTRIBUTION OF FEDERAL SURPLUS PROPERTY TO
STATE AND LOCAL ORGANIZATIONS


AUGUST 13,1976.-Committed to the Committee of the Whole House
on the State of the Union and ordered to be printed


Mr. BROOKS, from the Committee on Government Operations,
submitted the following

REPORT
[To accompany H.R. 14451]
The Committee on Government Operations. to whom was referred
the bill (H.R. 14451) to amend the Federal Property and Adminis-
trative Services Act of 1949 to permit the donation of Federal surplus
personal property to the States and local organizations for public
purposes, and for other purposes. having considered the same, report
favorably thereon with amendments and recommend that the bill as
amended do pass.
The amendments (all of which are technical, typographical, or
conforming in nature) are as follows:
Page 3, line 16, strike out "organizations" and insert in lieu thereof
"organizations,".
Page 4, line 24, insert "or amendment" after "plan".
Page 5, line 5, strike out "inventory".
Page 10, lines 6 and 7, strike out "the effective date of the first section
of this Act" and insert in lieu thereof "the effective date of this Act
as provided in section 9 (a)".
Page 10, lines 8 and 9, strike out "the effective date of this Act as
provided in section 9(a)" and insert in lieu thereof "such effective
date".
Page 10, lines 12 and 13, strike out "the effective date of this Act
as provided in section 9(a)" and insert in lieu thereof "such effective
date".
Page 10, line 14, strike out "the effective date of this Act" and insert
in lieu thereof "such effective date".
(1)






77


2

I. PURPOSE OF THE BlL
It is the purpose of H.R. 14451, by bringing together many similar
but separate programs, to establish an orderly, efficient, and fair
system for distributing by donation Federal surplus personal prop-
erty to public or nonprofit institutions for uses of a public character.
The bill does not deal with real property.
For many years, unneeded Government property has been a form
of substantial Federal assistance to State and local organizations.
There are now more than two dozen separate programs of this kind
in various agencies. Currently, such property distributions are running
at the rate of approximately $600 million annually in terms of the
original acquisition cost to the Government.
Some of these programs are statutory. Others are the result of
administrative interpretations of general statutory provisions. Yet, in
each case property comes from the same sources and is for the most
part used by similar local entities, namely, public bodies and educa-
tional or public health institutions. Each of these many programs is
independently managed by a different Federal agency. The fragmenta-
tion has caused waste, inefficiency, and inequitable distribution. Con-
flict, competition, and confusion prevail among Federal agencies and
their property recipients. Lack of knowledge and understanding is
widespread concerning applicable law, procedures, and policies. There
is urgent need now to group these programs together in an orderly
system, to make one Federal agency primarily responsible for overall
guidance, to give the States a larger role in distribution and admin-
istration, and to bring about the regular reporting to Congress of
enough information so it can perform properly its oversight function
in relation to this Federal assistance. The bill seeks to fulfill that need.
H.R. 14451 consists chiefly of amendments to the Federal Property
and Administrative Services Act of 1949. It was this Committee's pred-
ecessor, the Committtee on Expenditures in the Executive Depart-
ments, which reported to the House in May of 1949 that landmark leg-
islation. Today, the Committee submits this report on H.R. 14451 in
furtherance of the Congressional policy and intent declared in section 2
of the 1949 Act "to provide for the Government an economical and
efficient system for . the utilization of available property [and] the
disposal of surplus property."'

II. BACKGROUND
H.R. 14451 deals with personal property (equipment and supplies)
that Federal agencies no longer need for their own use. This includes
excess property (which one Federal agency no longer needs but an-
other agency may) and surplus property (which no Federal agency
needs). The distinction is fundamental, since the Federal Property
Act and other legislation, as well as regulations, treat the two types
differently.
Section 3 of the Federal Property Act defines excess property as
"any property under the control of any Federal agency which is not
required for its needs and the discharge of its responsibilities, as deter-
mined by the head thereof."

...' House Report No. 670, 81st Cong., 1st Sems., to accompany H.R. 4754.






78


3

The term "surplus property" is defined as "any excess property not
required for the needs and the discharge of the responsibilities of all
Federal agencies, as determined by the Administrator [of General
Services]."2
Excess property and surplus property are in separate stages of the
disposal process. Property cannot be declared surplus until it has been
declared excess and screened then for further Federal utilization.
The 1949 Act expressly promotes utilization of excess property by
Federal agencies "in order to minimize expenditures for property."
The Act provides that personal property once declared surplus may
be donated for educational, public health, civil defense, and certain
other purposes.4 Property remaining after donation is generally sold
through public advertising.
Congress had recognized very early that, if surplus property were
sold, the average rate of return against original Government acquisi-
tion costs would be low and would not match the benefits from donat-
ing the property for special local users of a public character. The
Surplus Property Act of 1944 authorized the transfer of surplus prop-
erty to State and local entities for educational or public health use.
The means of transfer was by sale or lease, but subject to a public
benefit discount which might be as much as 100 percent.5
Important amendments were added to the program in 1955. They
were to clarify the availability of certain surplus property capitalized
in working capital funds, to fix controls and reduce administrative
costs, to provide for closer Federal and State cooperation, and to set
out certain reporting requirements.6
In 1956 the Federal Property Act was amended to make local
civil defense activity an eligible purpose under the donation program.
It was also that 1956 amendment which imposed a Federal require-
ment that surplus property be transferred to the State agency desig-
nated under State law for distributing surplus property.7 In com-
pliance with this requirement, such agencies were set up in all States.
The 1949 Act requires that actual donation of property be effected
'by the Administrator of General Services. But the general adminis-
tration of the Federal donation program is assigned to the Secretary
of Heatlh, Education, and Welfare because recipients of the property
under the original program were those fulfilling educational or public
health purposes. Local management activity, however, is performed
by the State surplus property agencies just referred to.
About ten years ago, the donation of surplus personal property
ceased to be the sole method whereby property unneeded by Federal
agencies for their own use could be distributed to non-Federal users.
Agencies began to adopt the practice of lending property to State and
local organizations which held grants from those agencies. This method

240 TT.S.C. Sec. 472.
8 40 t.S.C. 482.
4 40 U.S.C. sec. 483(j).
5 Public Law 457. 78th Cone.. 2nd Sess. ; 58 Stat. 766. The 1944 Act was amended in
1947 to authorize the donation of surplus real and personal property for public airport
purposes, a provision not repealed by the 1949 Federal Property Act. See section 602(a) (1)
of the 1949 Act and 50 U.S.C. App.. sec. 1622(g).
IP.L. 61. 84th Cone.. June 3. 1955: 69 Stat. 83. See H. Report No. 206. 84th Cong. and
the Informative hearings: "Utilization of Surplus Property for Educational and Public
Health Purposes." Hearings before the Special Subcommittee on Donable Property of the
Committee on Government Operations. House of Representatives, 84th Congress, 1st Ses-
sion. on H.R. 3322. February 15. 17, and 21. 1955.
7P.L. 655. 84th Congress; July 3, 1956; 70 Stat. 493. See H. Report No. 1455, 84th
Cong.






79


4

involves taking property before it is declared surplus and while still
classified as excess. An agency planning to turn property over to one
of its grantees picks up property as soon as it has been declared excess
by the original controlling agency. A series of administrative decisions
and interpretations have supported this as a permissible type of fur-
ther Federal utilization of excess property, even though such property
is not taken for direct or internal use of the acquiring Federal agency.8
In 1965, GSA published a Federal Property Management Regulation
stating that the "use of excess personal property shall be considered
by Federal agencies in their cost-reimbursement type contracts and
grants which are made pursuant to programs established by law and
for which funds are appropriated by the Congress." 9
When an agency obtains excess property to provide it to one of its
grantees, it participates in the first phase of screening and is therefore
able to obtain desirable items before they can be declared surplus
property. Yet most of such grantees are either public or private educa-
tional or public health institutions which would qualify to obtain
property outright under the statutory donation program had it been
allowed to become surplus.
Institutions holding Federal grants have found it more convenient
to obtain property by loan from their grantor agencies. The grantees
actually have employed their own non-Federal screeners to search out,
identify, and "freeze" desirable excess property. The sponsoring Fed-
eral agency then requests its transfer from GSA and thereupon lend
it to the grantee.10
However, problems have arisen with the control, use, and account-
ing of property on loan to grantees. In 1972, for example, the Depart-
ment of Health, Education, and Welfare was the sponsor of many
grantees which held property from excess sources. The Department
found it was unable to maintain proper controls and accountability,
and the Secretary decided that excess property would no longer be
acquired as an adjunct of grant assistance within the Department.
HEW has held to this policy ever since, despite strong pressure from
many institutions to change. Similarly, a decision was made by the
Environmental Protection Agency to terminate its excess property
program for grantees in 1973.
On January 7,1974, an 11-agency study group formed in November
1972 and chaired by GSA reported on the utilization of excess prop-
erty and the donation of surplus property."1 It had undertaken the
review because of inadequacies in the distribution of excess and surplus
property among Federal and non-Federal activities. The report rec-
ommended, for the short term, that GSA immediately tighten its regu-
lations for grantee utilization of excess property so that excess prop-
erty would eventually be limited to Federal agency direct use. The

8 See "Distribution of Federal Surplus Property to State and Local Orrani'ations."
Hearings before a subcommittee of the Committee on Government Operations. House of
Representatives, 94th Cong.. 1 st SePs.. on H.R. 9152 and H.R. 9593. September 30 and
October 2. 1975. at nages 442-452. Hereafter they will be referred to as "hearings."
943 F.R. 19075. December 2. 1965. In 1974 GSA revised the regulation. Grantees were
limited to those receiving projectt grants." that Is. those made for a specific purpose with
established termination dates. More exact procedures with respect to grantor and grantee
were imposed. GSA regards the Administrator's authority under the Federal Pronertv Act
to be broad enough to enable him to exclude grantees from getting excess property by
regulation. (See hearlns. page 53.)
10 Cf. 41 CFR 101-43.320(h) et seq.
11 The report entitled "Recommendations of the Ad Hoc Interagency Study Group on
Utilization of Excess Federal Property" Is printed In the hearings, beginning at p. 397.
A summary is printed at pp. 57-58.






80


5

study group made long-term recommendations for substantial legis-
lative restructuring of the excess utilization and surplus donation pro-
grams. The Federal Property Act would be amended to provide for
a donation program to benefit State and local entities which would
cover a wider range of public uses and users and which also would place
the overall responsibility for guiding the broadened program on GSA.
The HEW functions with their personnel and funding would be trans-
ferred to GSA.
The short-term recommendation was in part carried out in June of
1974 by an extensive revision of the Federal Property Management
Regulations to tighten up grantee utilization of excess property.12
GSA then began the drafting of proposed language to carry out
the legislative recommendation in the Ad Hoc Study Group's Report.
The Department of Health, Education, and Welfare undertook a sep-
arate drafting task.
The Ad Hoc Interaaency Study Group was composed of 19 techni-
cal and legal specialists representing the Office of Management and
Budget, the National Science Foundation, the Department of Labor,
the Office of Economic Opportunity, Defense Civil Preparedness
Agency, the Department of Health, Education, and Welfare, the De-
partment of Commerce, the Environmental Protection Agency, the
Small Business Administration, the General Services Administration,
and ACTION. Serving on the Subcommittee on Donations was the
Director of the Maryland State Agency for Surplus Property.13
The report, of the Study Group listed five general problems:
(1) Proliferation of property screeners with no certification, and
uncertainty as to who is authorized to screen and freeze excess prop-
erty.
(2) Lack of proper inventory controls and accountability by some
Federal agencies.
(3) Grantees' using their grants frequently to acquire more than the
dollar value of their grants in excess property.
(4) No strong cost accounting system to determine how much grantee
programs cost to operate, with few real benchmarks to measure the cost
of grantee programs-against benefit.
(5) Inadequate review and compliance programs by grantor Fed-
eral agencies.
Thus. a long-term recommendation of the Ad Hoc Interagency
Study Group was to eliminate the acquisition of excess personal prop-
ertv bv Federal agencies for use of their grantees.
During this period of 1973-1974. the Senate initiated legislation to
extend the surplus property donation program to cover law enforce-
ment and criminal justice purposes so that local entities serving such
purposes would become eligible, like schools, hospitals, and civil de-
fense units, to obtain surplus property through the State surplus
pronertv agencies.
The Crime Control Act of 1973 (Public LTaw 93-83) sought to extend
authority of the Law Enforcement Assistance Administration to do-
nate surplus Federal propertv to local a'rencies for law enforcement
purposes. For technical reasons. GSA held that actual donation au-
thority for this new purpose had not been provided to the Adminis-
12 .Se footnote 9. above.
1- Hearings pages 44-45.









6

trator. To remedy the omission, the Senate included a provision in
S. 821, entitled the "Juvenile Justice and Delinquency Prevention Act
of 1974." It would have permitted Federal surplus property to be
donated to States for use in their law enforcement and criminal justice
programs. There was no comparable provision in the House bill. As
a result of discussions between the House Government Operations
Committee and the conferees, the Senate amendment was deleted. The
joint explanatory statement of the committee of conference contains
this comment:
The conference substitute does not contain the Senate lan-
guage. In deleting the Senate provision, it is noted, that the
House Committee on Government Operations is taking up a
general revision of the subject of excess and surplus property
distribution. It is hoped that needs of Law Enforcement
Agencies will receive due consideration for suitable priority
and entitlement to eligibility * *.14
Shortly after the above events, a new matter of paramount concern
to GSA, HEW, and the donable property program unexpectedly arose.
In September 1974, Congress enacted a new type of excess property
distribution program. Again, it was not through amendment of the
Federal Property Act. Instead, it came as a Senate amendment to the
Public Works and Economic Development Act Amendments of 1974
(P.L. 93-423). Section 11 of that Act added a section 514, which
authorizes excess personal property to. be loaned or given outright
without reimbursement to public bodies, tax supported organizations,
Indian tribes, and nonprofit hospitals and colleges.15 Federal cochair-
men of seven Regional Action Planning Commissions are authorized to
transfer such property for the purpose of economic development-
which is not specifically defined. The new program covers seven eco-
nomic development regions established by the Secretary of Commerce.
They include 32 States or part of States (areas not covered include,
for example, Appalachia, to which section 514 does not apply.) Dis-
tributed property is not a substitute for any appropriated economic
development funds. The excess property is not used to minimize
Federal expenditures for property.
The House Committee on Government Operations did not partici-
pate in the consideration of this legislation. It did. however, foresee
the heavy impact it was to have on existing property utilization and
donation programs. In one year the section 514 program has become
by far the largest taker of excess property for non-Federal use. From
about $10 million in excess property transferred in fiscal year 1975,
the taking has grown to over $131 million for the period ending
June 30, 1976. (Dollar figures represent original Government acquisi-
tion costs of property.)
Yet the section 514 program is only one of many for which Federal
agencies obtain excess property directly from the holding agencies in
order to put it into the hands of non-Federal users. In the Appendix
to this report are tables showing for the fiscal year period ending
June 30, 1976, transfers to grantees by 17 Federal agencies and trans-

House Report No. 93-1298. See Coniressional Record. Aurust 19. 1974 (daily ed.)
pages HR579 and H8580. See also July 25. 1974. pages 813505-13506; August 19, 1974,
pare S15266: and August 21. 1974. pages H8796-8797.
1542 U.S.C.. 1974 Supp.. section 1893.






82


7

fers to recipients by Federal Co-chairmen of the seven Federal Re-
gional Action Planning Commissions (section 514 program). Property
costing $98,337,132 was transferred to grantees, and, as mentioned,
property costing $131,825,644 was transferred under the section 514
program. These programs do not include several similar property pro-
grams, such as donations of surplus property for public airports,
excess property for federally recognized Indian tribes and for the
Cooperative Forest Fire Control Program, and property loans by the
Defense Civil Preparedness Agency. Also omitted is the original
surplus property donation program for education, public health, and
civil defense utinder section 203 (j) of the Federal Property Act, includ-
ing donations to educational activities of special interest to the armed
services. Thus, at least 28 separate programs take Government property
and turn it over, in most cases, to local governments, or schools, or
hospitals. Excess property programs are taking most of the good prop-
erty. Programs restricted to surplus property are now suffering seri-
ously for want of suitable items. In particular, the original donable
property program under section 203((j) of the Act is in danger of
starving while waiting for "surplus" leftovers at the end of the line.
The Federal Government has on its hands today an unplanned col-
lection of Federal programs, a largely random process that has become
a hodge-podge. Efficiency, economy and equity are lost in the shuffle.
This fragmentation mandates prompt establishment of an orderly,
efficient, integrated system.

NONUSE OF PROPERTY BY RECIPIENrTS AND OTHER PROBLEMS
The need for a new overall approach to the problems of fragmenta-
tion was accentuated by the results of a GAO report to the subcom-
mittee in September 1975.16 Entitled "Use of Government Excess
Personal Property by Non-Federal Entities," it disclosed numerous
examples of the inability of both grantor agency and grantee to man-
age this type property assistance effectively and equitably.
At the subcommittee hearing, the General Accounting Office wit-
nesses testified about the problem in establishing and maintaining
administrative controls by grantor agencies. It was their general con-
clusion that the grantors simply have not had the administrative facili-
ties for administering these programs.17 Some specific findings and
observations presented by GAO follow:8
1. Frequently grantees were not using the property.
2. Some property in use could not be directly related to the grants.
3. General supply items were stockpiled and used by both grant and
nongrant activities.
4. Despite regulations,19 no documentary evidence was found to
demonstrate that the grantor agency had made a determination that
acquisition of the property would result in a reduction in cost to the
Government or in an enhancement of benefit from the grant.
5. A detailed system of accountability has been prescribed.20 But
up-to-date, accurate, and complete accountability for transfer of excess

"$GAO Report LCD-76-207, B-101466 (September 15, 1975.) The report is printed in
the hearings, pp. 380ff.
17 Hearings. p. 91.
Hearings. pp. 78-79.
"43 CFR 43.320(b).
20o 43 CFR 43.320.






83


8

property to grantees generally has not been maintained by the spon-
soring Federal agencies.
It is GSA policy to maintain an order of preference or sequence for
determining competing transfer orders for excess property. The first
order of preference is to transfers which will preclude current new
procurement.21 The serious consequences of nonuse underlie the GAO's
testimony concerning the impracticality of determining whether
another Federal Agency would have had a need for the excess property
at the time it was "frozen" by the acquiring agency for transfers to its
nion-Federal recipients:
Mr. RANDALL. But someone some place should have been
able to determine the relative internal need, shouldn't they?
I mean you are just an auditing agency. Are you saying you
cannot audit? Are you saying that you cannot ever go back
and see whether a good job was done'?
Mr. SHAFER. I would not say the word "ever" because that is
absolute. However, it is not very practical for us, 1 or 2 years
later, to go back and look at a given item that was declared
excess and reserved for a grantee and then go back and deter-
mine whether 1 or 2 years earlier, had it not been given to the
grantee, some other Federal agency or State agency might have
grantee, some other Federal agency or State agency might
have been able to use it.
I do not think it would be practical for the GAO or any
other Government agency to do that in an ex post facto
situation.
Mr. RANDALL. Do you mean because of cost?
Mr. SHAFER. Yes; it would be too costly.
Mr. RANDALL. You mean the cost of conducting the audit
would be in excess of the value of the object?
Mr. CONNOR. In addition to that, Mr. Chairman, if a grantee
would select that, then it would not be on the next catalog that
went out. If he had not selected it and it was in the next cata-
log, then another agency would have been able to get it.
Mr. RANDALL. You would never be able to trace it; that is
right.
Mr. SHAFER. Mr. Chairman, the problem here is that in the
way it is administered the grantee is in the same position of
working through the granting agency as any other Federal
agency. Once he claims that item, then it is almost impossible
to determine whether anyone else would have claimed it had
he not done so.22
After the subcommittee hearing, GAO again went to the field. It
looked at property distributed under several programs, including the
regional excess property program for economic development under
section 514. It found that much of this property was not being used.
Many GAO pictures and documents are reproduced in the appendix
of the subcommittee hearings, along with a tabular summary,23 which
shows the following:

21 GCA Handbook "Utilization of Excess Personal Property," PMD P 7800.1 (May 12,
1970). Part 5, paragraph 35.
22 Hearings, p. 90.
Hearings, p. 565.






84


9

GAO checked 691 items distributed through the Four Corners Re-
gional Action Planning Commission, with an original Government
acquisition cost of $232.900. Only 25 were being used. GAO was told
that there were plans to use 491 items, but not right away. There were
125 items for which GAO did not report even planned use. Depart-
ment of Commerce regulations governing the section 514 program
provide: "Only property which will be immediately used bv a recipient
agency will be acquired by a Federal Cochairman. * The Federal
Cochairman will not acquire property to be stockpiled by a recipi-
ent."' 24
GAO examined 145 items provided by the National Science Founda-
tion (most to universities). The items cost the Government $2,467,928.
Of the 146 items, 102 were not in use. They originally cost the Govern-
ment $1.7 million.
GAO also checked property loaned to grantees by the Commerce
Department's Economic Development Administration.25 This is sepa-
rate from the section 514 program. EDA can only LEND property to
grantees. GAO checked 239 items costing $792,784. They found 106
in use, 126 not used, and only 4 for which there was a planned use.
Clearly, these programs are lacking in efficiency, economy, and fair-
ness. It is deplorable that, in the present jumble of programs providing
excess property to local entities, so much property is taken and then
allowed to sit unused. Moreover, there seems to be no workable system
for getting it returned and redistributed to meet true needs elsewhere.
Testifying before the subcommittee, on which as subcommittee
chairman he had spent many years in an effort to develop and preserve
an effective surplus property program, Full Committee Chairman
Brooks summed up this problem and related it to the need for
legislation:
In all these cases and many more illustrated in the GAO
report, it must be emphasized that the property was made
available prior to being screened by other Federal agencies,
without being distributed by GSA through the coordinated
State donation agencies, and without any effort to determine
which recipients of which States had the highest priority
need for such property. H.R. 9152 has been introduced to
eliminate these defects.26

III. HEARINGS
The Government Activities and Transportation Subcommittee held
hearings on H.R. 9152 and H.R. 9593 on September 30 and October 2,
1975. Witnesses included the Full Committee Chairman, Mr. Brooks;
representatives of the General Services Administration, the Depart-
ment of Health. Education, and Welfare, the General Accounting Of-
fice, the Department of Commerce, the National Governors' Confer-
ence. the National Association of State Agencies for Surplus Property,
the Coalition of Eastern Native Americans; and a former assistant

2 13 CFR 570.4. Hearings. p. 198-q. The Four Corners Commission's property handbook
requires that "Only that property that will he immediately used by a Recinlient will be
acquired. Neither the Title V Regional Commission nor the Recipient will maintain ware-
hoiusps and will not acouire and store materiel." Hearings. p. 564.
13 CFR 314.50. Hearings. p. 301 ff.
S Hearings. p. 31.





85


10

general counsel of the Department of HEW. Statements for the record
were received from three Members of Congress. All witnesses sup-
ported reform of the existing legislation, and most either fully or
largely favored the approach proposed in the bills. The revision which
H.R. 14451 represents is based to a large extent on views and sugges-
tions received during the hearings and in subsequent correspondence
and discussions with Federal and State officials and representatives of
other interested groups. Appendixes to the printed hearings 27 incorpo-
rate numerous letters, statements, reports, regulations, and exhibits.

IV. SUMMARY OF THE BILL
H.R. 14451 would establish an orderly, efficient, and fair system to
consolidate and simplify the many separate, overlapping, uncoordi-
nated activities by various Federal agencies for distributing excess
and surplus property to public or nonprofit organizations within the
States. Its basic approach is to place the Administrator of General
Services, as the Government's principal property management author-
ity, in a guiding role over such activities. At the same time, it would
create a partnership with the States, which would assume a greater role
in the actual handling, distribution, and control of surplus property
acquisition and distribution.
This is the same basic donation plan developed for education, Pub-
lic Health and civil defense recipients as part of the 1949 Federal
Property Act. That Act is an immensely useful and durable statutory
tool. In amending the Act, the bill builds on an already existing struc-
ture. It is an evolutionary step, not a new departure. More simply, it is
a reorganization measure.
In brief, the bill-
(1) Puts almost all property programs for State and local users into
one system.
(2) Preserves all the benefits enjoyed under existing property pro-
grams.
(3) Broadens both the purposes to be served and the categories of
eligible recipients.
(4) Puts GSA in general charge on the Federal side.
(5) Assures fair allocation and distribution of property.
(6) Give States and their Governors a more active role.
(7) Provides that voices of local interests should be heard at both
the Federal and the State levels.
(8) Facilitates transition and limits disruption of existing programs
by deferring the effective date.
(9) Requires GSA to keep track of the entire program and report
yearly to Congress (something not now done).
Testimony from GSA indicates that each year approximately $5
billion in property (at original acquisition cost) is declared excess.
Over $1 billion of this is transferred for further Federal utilization.
What remains is generally declared surplus. Donation programs tak-
ing surplus property will require about $400 million of this. The re-
mainder, some $3.5 billion, is available for other surplus disposal, gen-
erally through competitive sales to the public (See hearings, p. 33.)
One-third may represent usable property. If even 10% of this were

2See footnote 8, above.





86


11

usable in the donation program, it would represent well over $100
million.
The Committee believes and expects that once the Administrator is
charged with overall responsibility for the consolidated program, the
full weight of GSA's experience and resources will be brought to bear.
The result will be that more property will flow to State and local
users than would ever have been possible under the current fragmented
arrangement. GSA's Federal Supply Service Commissioner testified:
Mr. TIMBERS. Let me see if I can remember some of the
statistics in my testimony. There is about $26 billion worth of
property that has actually been reported and screened over
the last 5 years.
That is original acquisition cost. Approximately $5 billion
of that was transferred via the excess property program.
About $2 billion was transferred under the surplus program.
We feel that there is a tremendous amrhount of property that
could now be donated under the surplus property program
and be put to good use. This would only be if we had a broader
category of donees and if we improved the system and how it
operated.
Mr. FORSYTHE. Do you mean the computer system?
Mr. TIMBERS. Yes, the computer system and the way the
property would go straight from GSA to the State agencies
for surplus property.
We feel in the long run that there is almost an unlimited
or a vast amount of resources and personal property that
could move forward for this purpose.
We do not see the broadening of the eligibility, along with
all of the other things that are envisioned, as being detrimen-
tal to those activities.28

V. MODIFICATIONS MADE IN EARLIER BILLS
H.R. 14451 does not alter the basic plan or structure of H.R. 9152.
However, the Committee believes it is much more workable than H.R.
9152 and should prove more broadly acceptable. It includes many
changes responsive to comments and suggestions received after the
hearing.
0MB
The Office of Management and Budget, in a letter to the Committee
Chairman dated November 18, 1975, expressed four main points of
difference with respect to the original bill, H.R. 9152. Virtually all
of these differences have been composed in H.R. 14451, and the Com-
mittee is advised that 0MB now substantially concurs in the provisions
of HI.R. 14451. The four points, together with the related changes
found in H.R. 14451, are as follows:
(1) GSA should not have to determine and enforce eligibility as
related to the named purposes to be served by donation.
Related Changqes.-The changes make clear that the purposes to
be served by property donation are not necessarily confined to those
enumerated and also that it is the State's function to determine eligi-
28 Hearings, page 49. See also page 34.








12

ability and relate donation to appropriate purposes. Furthermore,
eligibility of private, nonprofit organizations serving public health
or education purposes is no longer tied to an exclusive list, as in the
present donation statute (section 203 (j) (3) of the Act).
(2) Indian groups that are the special responsibility of the United
States Government should not be dependent upon State distribution
of Federal property.
Related changes.-Direct Federal responsibility for federally recog-
nized Indian groups is retained so that excess property would be avail-
able for transfer to such groups. (Indian groups on State reservations
are classified as "public agencies," eligible for surplus property by
donation.)
(3) Federal agencies should retain at least some authority to use
excess property for the purpose of furnishing it to project grantees.
Related changes.-All project grantees can obtain excess property
with title if the grantor agency pays into the U.S. Treasury from grant
funds 25 percent of the acquisition cost of the property item. Also,
certain special provisions are made. Federally recognized Indian tribes
will be eligible for property as grantees. Scientific and technical equip-
ment can continue to be loaned to grantees under the National Science
Foundation Act. Property may be furnished in connection with the
Agriculture Department's Cooperative Forest Fire Control Program.
These changes made it possible to eliminate from the original bill the
complicated provisions giving donee eligibility to Federal grantees,
with a special priority for equipment suitable for scientific research.
(4) GSA would retain too many administrative responsibilities in
connection with State plans of operation, with accounting and inven-
tory control systems, and with restrictive conditions on property use.
Related changes.-The burden on GSA is further reduced. Respon-
sibility for the plan of operation is largely that of the State. Congress
in the bill-not GSA through regulation-sets out minimum required
elements of any State plan. Imposing conditions of use on property is
chiefly the task of the State agency. Federal conditions could be at-
tached with respect to property having special characteristics. Each
State could employ the same accounting and management control sys-
tems that it uses for its own property.
CHANGES RELATED TO STATE AND LOCAL CONCERNS
Several amendments assure affected local interests greater participa-
tion in the planning and execution of the new system. Those concerned
about property for economic development uses should be particularly
interested.
(1) GSA is to work out basic property allocation criteria after con-
sultation with State agencies.
(2) When GSA actually allocates and transfers property, it must
give fair consideration to needs and interest of eligible institutions as
expressed through the State agencies.
(3) The Governor of each State must submit to GSA a separate
plan of operation. The plan must be published 60 days in advance. All
interested parties have 30 days to comment on the plan before
submittal.
(4) Where service charges are authorized to be collected by a State
agency, the method is to be set out in the plan of operation. Any such






88


13

charges must be fair, equitable, and based on services performed by
the State agency.
(5) The phrase "public agency" is expanded to include economic
development districts as well as Indian tribes or groups on State
reservations.
(6) Each State may use management control and accounting systems
for donable property of the same types as are used for State-owned
property.
(7) After two years, GSA must send to Congress a full independent
evaluation of the new system including how benefits previously ren-
dered under the various prior programs are being satisfied.

VI. DISCUSSIONS

GSA AND STATE ROLES
H.R. 14451 is based on utilizing the existing structure and organiza-
tions of the Federal donable surplus property program established by
the Federal Property Act. The question is asked: Can GSA and the
States do the jobs they will be called on to perform? The Committee is
confident that they can. They have done similar work before. They have
administrative and technical resources in being: Organizations, facili-
ties, procedures, equipment, and experienced professionals.
As to GSA, reference has been made above to its readiness.29 As to
the States, the informative testimony of the President of the National
Association of State Agencies for Surplus Property is instructive:
Mr. STANISLAWCZYK. This concludes our analysis of the bill,
Mr. Chairman. We want to turn our attention now to the capa-
bilities we have to serve the donee community.
Out of 47 SASP's which responded to a recent association
survey, it was reported that there are 1,110 State employees
working in the program. Of these, 155 are screeners. The
screeners, all of whom are certified by the Department of
Health, Education, and Welfare, average 12 years' experience
in screening property for the donation program. We also have
access to 71 consultants.
In the 47 responding SASP's, there are 72 distribution cen-
ters which have an average of 35,510 square feet of covered
storage space and 95,040 square feet of open space. To supple-
ment these facilities, the State agencies have acquired 123
truck tractors, 264 trailers, and 364 other motor vehicles, not
including material handling equipment such as forklifts. Most
of this equipment, Mr. Chairman, was acquired from SASP
revenues, but surplus equipment is used whenever the program
can be enhanced and overall costs reduced.
We respectfully submit, Mr. Chairman, that this data shows
that the SASP's have the capability of providing the neces-
sary services to donees. Furthermore, we would anticipate a
decrease in overall service charges, together with an improve-
ment in the quality and quantity of property0

"Hearings pp. 34, 39. 49.
3o Hearings. p. 49.






89


14

Testimony from the Director, Logistics and Communications Divi-
sion, General Accounting Office, an outside, impartial observer, is also
affirmative. He first pointed out that there is a need for a single focal
point to oversee and have knowledge of property transferred or
donated to special institutions and that the pending bill would set up
the State agency at that focal point.31 Then he added:
Mr. SIHAFER. * We have reviewed the agencies in a
number of States and found that for the most part they were
administering their programs effectively.
SMost of the States' accounting records were complete and
accurate and showed the current status of property items.
Also, they were determining that the restrictions on certain
donated property were being complied with. This was accom-
plished either through documented correspondence or physi-
cal verification.
Therefore, generally, most of the States have the basic orga-
nization needed to meet the requirements and responsibilities
that would be assigned tothem under this bill.32
*
As focal points for and within each State, the State surplus property
agencies offer important advantages over direct property distribution
methods used in the various excess property programs. For example, a
State agency can respond immediately to an urgent need such as replac-
ing equipment and furnishing emergency facilities where a school has
been destroyed by fire. It can acquire property that can only be taken
in large lots or bulk packages and then break these down for distribu-
tion to separate recipients. It can provide a means for sharing trans-
portation and screening services on behalf of recipients. It can work
through a nationwide communications network of State and Federal
agencies to expedite business and to match demand with availability
and accessibility. It can participate in a so-called "push-supply" oper-
ation at certain large bases where a Federal screener receives lists of
acceptable property from many States and then sends the property in
large shipments to obtain lower freight rates."
Another important advantage of the State agencies is that they have
learned to work-well together and help one another. This cooperative
interdependence is shown in many practical ways, such as the overseas
property program and the organizations known as Western States
Surplus Property Organization (WSSPO) and Eastern States Sur-
plus Property Organization (ESSPO). The State surplus property
directors from Maryland and Utah respectively testified concerning
these activities:
Mr. MAYNARD. My dates may be a little off, but it seems like
in 1968 or early 1969, through a recommendation of, at that
time, Congressman Monagan.
Mr. RANDALL. He had a subcommittee back years ago. He
was from Connecticut. That was the original Donable Prop-
erty Subcommittee. I think we called it.
Mr. MfAYNARD. That is right. He recommended through one
of the reports that the State agencies, with the General Serv-

SHearlngs, pp. 77-78.
*Hearlnis, p. 80.
U Hearings; p. 153.






90


15

ices Administration, Department of Health, Education, and
Welfare, and the Department of Defense explore the possi-
bility of returning overseas excess property for use within the
Federal Government as well as the donable property program.
Several meetings were held, and we hired employees. The
state agencies went together under a cooperative arrangement
and hired these employees to put in Europe, to start with.
Later on in the program, we hired employees and put them
in Asia.
The program has worked very successfully, and I would be
happy to give you some statistics as to what has happened
since March of 1969. We have 40 States that are participating
in this program. From March of 1969 from the Europe pro-
gram, we have returned 642 trailerloads of property, and 231
shipments of heavy equipment such as bulldozers, cranes,
motor graders, and that type material. In the Pacific area, we
started approximately March of 1970, and we have returned
862 containers of property-or vanloads of property-and 61
items of heavy equipment.3'
*
Dr. DRAPER. * The Western States Surplus Property
Organization was the first of these which we started about 22
years ago. Under our procedures, this provides for the report-
ing by the stated location" of all nonreportable property which
is located in this area.
We actually type up lists, descriptions of this property, and
then we send it out to all the other States in the organization.
They make their requests from those lists and request the
properties through the allocating office.
So what we are doing in the 14 WVSSPO States, and, I think,
16 ESSPO States, at the moment, is reporting both reportable
and nonreportable, and allocating same.
We hope, some day in the future, to spread this into other
parts of the country.35

ALLOCATION OF PROPERTY AMONG STATES
H.R. 14451 provides that the Administrator, acting under criteria
based on need and utilization and established after consultation with
State agencies, shall allocate surplus property among the States, for
transfer and distribution through donation. The question is asked:
How will this work and will it work fairly and effectively?
Again, the bill draws on existing experience and authority in similar
circumstances. A comparable allocation authority is provided to the
Secretary of HEW under the existing section 203(j) of the Act in
connection with the established donable property program. The cur-
rent criteria are set out in HEW regulations.36
HEW witnesses, the Assistant Secretary for Administration and
Management and the Director, Facilities, Engineering, and Pronertv
Management, testified concerning allocation. Asked whether HEW

*Henrinns. p. 151.
3 HearlneI. p. 156.
45 CPR 13.4. See als6 hearings, pp. 85-86.





91


16

was encountering problems with the present system, which is based
on need and utilization, the witnesses responded:
Dr. OTTINA. We have recently reviewed the formula allo-
cation. We have considered in the formula additional ele-
ments such as the cost of transportation and different kinds
of schemes.
There has been a formula that has been in effect for about
3 years and has been unchanged.
The complaints or the problems with it are those that if we
knew what could be done, we would be more than willing
to remedy.
Perhaps Mr. Fremouw could specifically speak to that.
Mr. FREMOUW. We have been working with the State agen-
cies for the last few years on examining the formula fre-
quently to be sure it is acceptable to the States.
We find, generally speaking, that there is someone in one
State or another who has a different idea. However, a major-
ity of the States have been concurring and endorsing the
formula.37
GSA's witness discussed the manner in which that agency expected
to perform the allocation function by referring to the existing system
as a beginning, adding the step of immediate consultation with State
agencies toward making improvements:
Mr. TIMBERS. Under H.R. 9152, which provides for an al-
location system based on need and use, we would probably
initially work on the same guidelines that had been estab-
lished and tested through the HEW system for some time.
We would, however, immediately consult with State agen-
cies for surplus property. We would work with them. We
would attempt to see if we could make any improvements
in the way in which priority systems are actually admin-
istered.38
As with formulation of the criteria, the bill requires the Admin-
istrator, in the actual allocating, to give fair consideration to ex-
pressions of local need and interest from within the State, trans-
mitted through the State agency.39
Consultation and cooperation among interested Federal agencies
and GSA are provided for both under general provisions of the Prop-
erty Act 40 and section 203(j) (4) (B) under the bill, as well as other
legislation.41
PROPERTY FOR ECONOMIC DEVELOPMENT
As has been pointed out. two separate excess pronertv programs now
furnish property to local entities for economic development. One is
the relatively small program administered by the Economic Develop-
ment Administration, which acquires excess property for loan to its
grantees. Property so transferred in the fiscal year period ending June
30, 1976, totaled $3.9 million in terms of original Government acquisi-

3 -Tearlnes. p. 62.
Hearlnrs. n. 49.
Se-tlon 2f.AR(1 (3)i nner the hil.
Spetoinn 2M (h). 40 TT.S.C sertlon 486(h).
Q Cf. 42 U.S.C. 3183 (d), relating to regional action planning commissions.


79-600 0 77 7





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17

tion cost. The other is the new program authorized in 1974 by section
514 42 of the Public Works and Economic Development Act of 1965,
as amended. The latter is enormously larger. As mentioned above, the
Federal cochairmen of the seven Regional Action Planning Commis-
sions acquired and transferred, by loan or gift, excess property in the
FY 1976 period costing $131.8 million.
Although both programs serve economic development purposes,
Commerce Department witnesses testified that the two are not co-
ordinated or cross-connected.43
In bringing these and other excess or surplus property programs
into one orderly system, based on donation through the States, H.R.
14451 expressly preserves property assistance for economic develop-
ment. The same types of recipients would be eligible under the new
system.
Section 3 of the bill limits excess property programs for grantees.
This includes the EDA's property program, which is not based on a
special statute. Section 6 of the bill affects the regional commissions'
property programs; and because they are based on a special statute,
section 514, it is necessary to repeal that section. The effect of sec-
tions 3 and 6 is that both EDA and the Federal cochairmen would no
longer have line responsibility for actual acquisition and account-
ability of excess property and its transfer to the local recipients.44 Some
participants in these programs, particularly those benefiting from the
section 514 program, have expressed opposition or uneasiness to
changes in the status quo.
The EDA is, of course, subject to the common management prob-
lems associated with lending excess property to grantees and super-
vising its use. EDA supplied for the record a figure of 2,199 separate
pieces of equipment it had provided to its recipients.45 GAO's findings
as to use and nonuse of property by EDA recipients have been referred
to earlier in this report. Testimony by the Assistant Secretary of Com-
merce for Economic Development stressed EDA procedures concern-
ing notification when at grantee's use of property has been completed
so the property can be returned to EDA for further utilization. The
Subcommittee Chairman sought details about this during the hearing:
Mr. RANDALL. You made an interesting comment a few mo-
ments ago that sounds mighty good. I wonder if it ever hap-
pens. You tell us not to worry, that this property that is trans-
ferred or loaned to these grantees is all going to be returned. I
would like for you to supply us with a list of any that has
ever been returned.
[The information follows:]

EXCESS PROPERTY RETURNED TO EDA BY RECIPIENTS
Two floodlight trailers; 1 Caterollar. full track D-6; and
15 dump trucks. 21/2-ton.46
4 P.L. 93-423. September 27. 1974: 88 Stat. 1158. 1163; 42 U.S.C.. 1974 Supp.. see.
1893.
42Henrln s. pp. 128 and 139.
44 In the case of the section 514 program, the line responsibility is not direct. Commerce
Department regulations renuire that the request for property will bear the concurrence of
the Governor of the State in which the applicant is located (13 CFR 570.4(a)).
45 Hearings. pp. 121-122.
0 Hearings. p. 119. Cf. 41 CFR 101-43.320(j).





93


18

Mr. RANDALL. You said a minute ago-don't worry, every-
one is going to tell us; the districts, cities, counties, towns,
whoever the recipients are. They are going to let us know,
you said.
I would like to see some of those letters, some of those docu-
ments, some of those phone calls of when they let you know
and how many you had. I expect it is not a very long list.
[The information follows:]
As of October 22, 1975, there have been two recipients who
wished to return or were no longer in need of, the excess prop-
erty they received. They are required to report this fact on
standard form 120 (rev. April 1957). The following form 120
is a copy of one such report by a recipient.47
The section 514 program has an extremely troublesome aspect: It
does not cover many areas that unquestionably have just claim to the
same benefits. It is startling that Appalachia is excluded. But section
514 does not anplv there. Nor does Appalachia have its own special
equivalent of the section 514 program.48 No part of either Mississippi
or Alabama is within a Title V regional commission. Yet all of Loui-
siana and much of Georgia on either side are within Title V regional
commissions and receive benefits through section 514. Testimony was
received about the part of South Carolina that is outside the Coastal
Plains Regional Commission. Among the 18 excluded counties are
some of the poorest in the State.49 Inevitably, States and areas not now
covered will insist on the same treatment as the section 514 areas cov-
ered today. Bringing in more States and areas will add to the con-
fusion and competition, making it even more imperative to set up a ra-
tional system on a nationwide basis. H.R. 14451 will bring such a sys-
tem into being now.
The Committee concludes that it would be impractical and illogical
to establish an integrated property assistance system bringing to-
gether more than two dozen separate programs while leaving un-
touched the largest and most independent excess property program
of them all. the section 514 program. The Department of Commerce
official responsible for the section 514 program testified for repeal
of that section, stating:
Mr. CIhAMBERS. However, the commissions and the offices of
the Federal Cochairmen are not staffed or organized to be
in the property disposal business. In my opinion, this is a
program which can be better handled bv such agencies as the
General Services Administration which has property man-
agement, accountability, and disposal as one of its major
ongoing functions. The regional commissions have as their
primary function the planning for, and coordination of. eco-
nomic development within their respective multi-State
regions.
An expanded ability for individual States to acquire sur-
plus property for economic development as well as for other
purposes would result from the provisions of section 1 of

7 Hearings. p. 125. The form referred to covers two floodlight trailers being returned by
EDA to GSA for disposal as scrap.
SSee hearings, p. 103.
Hearings, page 130.





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19

H.R. 9152. In effect, it removes the necessity for regional
commission involvement.
Accordingly, the administration and I support the repeal
of section 514 of the Public Works and Economic Develop-
ment Act as provided for by section 6 of H.R. 9152 as not
being a program within the scope of the multi-State intent
or Federal staffing of the regional action planning commis-
sions, and as a program that can possibly be administered at
less cost to the taxpayer by other sectors of the Federal
Government.50
The matter of payment of service charges to State surplus property
agencies has been raised. Some contend the State agency service
charges on donated property would be unfair for some of the smaller
recipient entities.
Three main points need to be made. First, these entities already
pay some charges. Section 514 requires that property recipients pay,
to the Federal agency holding the property, the costs of care and
handling (storing, preserving, insuring, repairing, packing and trans-
porting). Second, the service charge matter must be discussed in terms
of the language of the bill. H.R. 14451 sets precise and fair standards
for those charges. Section 203(j) (4) (C) provides that where a State
agency is authorized to collect service charges, the method of estab-
lishing the charges must -be set out in the State plan of operation.
This plan is subject to prior public comment. Further, any such
charges must be fair, equitable, and based on services performed, such
as screening, packing, crating, removal, and transportation. It is
obvious that somebody has to pay the bills for costs incurred in the
transfer of the property from the Federal Government to another
entity. The issue is whether it should be the Federal taxpayer or the
benefited recipient. Third, the Committee received testimony that
under the bill it could be -anticipated the overall service charges would
decrease.51 Clearly with more and better quality property available,
the total cost of servicing each item would be less and the charge to
the recipient would be correspondingly reduced.
The Committee further notes that during the past year a number
of local public bodies actually were allowed to purchase vehicles
through some regional commissions under the section 514 program.
They paid 10 percent to 15 percent of the original acquisition cost
and were apparently glad to do it. The local entities undoubtedly
would still be doing it if the subcommittee had not pointed out that
such sales were illegal. The vehicles were not excess property; instead
they were property being replaced by DOD under the exchange/sale
authority of section 201 (c) of the Federal Property Act.52
The great expansion of the excess property distribution programs,
particularly the section 514 program, is having a serious effect on
the present donation program under which surplus personal property
is given, through the State surplus property agencies, to State and
local entities for education, public health, and civil defense. Since
Congress authorized it 27 years ago in section 203(j) of the Federal
Property Act, this long-established, valuable program has been con-
50 Hearings. Tp. 134-135. See also p. 124.
SHearlngs. p. 149.
Hearings, pp. 141-142. 517 ff.