PART 102-39—REPLACEMENT OF
PERSONAL PROPERTY PURSUANT TO THE EXCHANGE/SALE AUTHORITY
Subpart A—General
102-39.5— How
are the terms “I” and “you” used in this part?
102-39.10— What
does this part cover?
102-39.15— Why
should I use the exchange/sale authority?
102-39.20— What
definitions apply to this part?
102-39.25— How
do I request a deviation from this part?
Subpart B—Exchange/Sale
Considerations
102-39.30— When should I not use
the exchange/sale authority?
102-39.35— How do I determine
whether to do an exchange or a sale?
102-39.40— When should I arrange
for a reimbursable transfer of exchange/sale property to a Federal agency or
other eligible organization, or sell such property to a State Agency for
Surplus Property?
102-39.45— What
prohibitions apply to the exchange/sale of personal property?
102-39.50— What
conditions apply to the exchange/sale of personal property?
102-39.55— What
exceptions apply to the conditions for exchange/sale in §102-39.50?
Subpart C—Exchange/Sale
Methods and Reports
102-39.60— What
are the exchange methods?
102-39.65— What
are the sales methods?
102-39.70— What
are the accounting requirements for the proceeds of sale?
102-39.75— What
information am I required to report?
PART 102-39—REPLACEMENT OF
PERSONAL PROPERTY PURSUANT TO THE EXCHANGE/SALE AUTHORITY
Subpart A—General
§102-39.5—How are the terms “I” and “you” used in this part?
Use of pronouns “I” and “you”
throughout this part refer to executive agencies.
§102-39.10—What does this part cover?
This part covers the exchange/sale
authority, and applies to all personal property owned by executive agencies
worldwide. For the exchange/sale of aircraft parts and hazardous materials, you must meet the requirements
in this part and in parts 102-33 and 101-42 of this title.
§102-39.15—Why should I use the exchange/sale authority?
You should use the exchange/sale
authority to:
(a) Reduce the cost of
replacement personal property. If you have personal property that needs to be
replaced, you can exchange or sell that property and apply the exchange
allowance or sales proceeds to reduce the cost of similar replacement property.
By contrast, if you choose not to replace the property using the exchange/sale
authority, you may declare it excess and dispose of it through the normal
disposal process. Any sales proceeds from the eventual sale of that property as
surplus generally must be forwarded to the miscellaneous receipts account at
the United States Treasury and thus would not be available to you.
(b) Avoid costs (e.g.,
administrative and storage) that may be incurred when declaring the property to
be replaced as excess and processing it through the normal disposal process.
The normal disposal process may
include abandonment or destruction, reutilization by other Federal agencies,
donation to eligible non-Federal public or non-profit organizations, or sale to
the public. The time required to determine which of these options will apply
and to complete the disposal transaction is likely to exceed the time required
for an exchange/sale transaction.
§102-39.20—What definitions apply to this part?
The following definitions apply
to this part:
“Acquire” means to procure or
otherwise obtain personal property, including by lease.
“Combat material” means arms,
ammunition, and implements of war listed in the
“Exchange” means to replace
personal property by trade or trade-in with the supplier of the replacement
property.
“Exchange/sale” means to
exchange or sell non-excess, non-surplus personal property and apply the
exchange allowance or proceeds of sale in whole or in part payment for the acquisition of similar property.
“Executive agency” means any
executive department or independent establishment in the executive branch of
the Government, including any wholly owned Government corporation.
“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/her direction).
“Historic item” means property
having added value for display purposes because its historical significance is
greater than its fair market value for continued use. Items that are commonly
available and remain in use for their intended purpose, such as military
aircraft still in use by active or reserve units, are not historic items.
“Replacement” means the process
of acquiring property to be used in place of property that is still needed but:
(1) No longer adequately
performs the tasks for which it is used; or
(2) Does not meet the agency’s
need as well as the property to be acquired.
“Similar” means where the
acquired item and replaced item:
(1) Are identical;
(2) Are designed and constructed
for the same purpose;
(3) Constitute parts or
containers for identical or similar end items; or
(4) Fall within a single Federal
Supply Classification (FSC) group of property that is eligible for handling
under the exchange/sale authority.
§102-39.25—How do I request a deviation from this part?
See §§102-2.60 through 102-2.110
of this chapter to request a deviation from the requirements of this part.
Subpart B—Exchange/Sale
Considerations
§102-39.30—When should I
not use the exchange/sale authority?
You should not use the
exchange/sale authority if the exchange allowance or estimated sales proceeds
for the property will be unreasonably low. You must either abandon or destroy such property, or declare the
property excess, in accordance with part 102-36 of this chapter. Further, you must
not use the exchange/sale authority if the transaction(s)
would violate any other applicable
statute or regulation.
§102-39.35—How do I
determine whether to do an exchange or a sale?
You must determine whether an
exchange or sale will provide the greater return for the Government. When
estimating the return under each method, consider all related administrative and
overhead costs.
§102-39.40—When should I
arrange for a reimbursable transfer of exchange/sale property to a Federal
agency or other eligible organization, or sell such property to a State Agency
for Surplus Property?
If you have property to replace
which is eligible for exchange/sale, you should first, to the maximum extent
practicable, solicit:
(a) Federal agencies known to
use or distribute such property. If a Federal agency is interested in acquiring
and paying for the property, you should arrange for a reimbursable transfer. Reimbursable
transfers may also be conducted with the Senate, the House of Representatives,
the Architect of the Capitol and any activities under the Architect’s
direction, the
(1) Do so under terms mutually
agreeable to you and the recipient.
(2) Not require reimbursement of
an amount greater than the estimated fair market value of the transferred
property.
(3) Apply the transfer proceeds
in whole or part payment for property acquired to replace the transferred
property; and
(b) State
Agencies for Surplus Property (SASPs) known to have
an interest in acquiring such property. If a SASP is interested in acquiring the property, you
should consider selling it to the SASP by negotiated sale at fixed price under
the conditions specified at §102-38.125 of this title. The sales proceeds must
be applied in whole or part payment for property acquired to replace the
transferred property.
§102-39.45—What prohibitions apply to the exchange/sale of personal
property?
You must not use the
exchange/sale authority for:
(a) The following FSC groups of
personal property:
10 Weapons.
11 Nuclear
ordnance.
12 Fire
control equipment.
14 Guided
missiles.
15 Aircraft and airframe
structural components (except FSC Class 1560 Airframe
Structural Components).
42
Firefighting, rescue, and safety equipment.
44 Nuclear
reactors (FSC Class 4472 only).
51 Hand tools.
54
Prefabricated structure and scaffolding.
68 Chemicals
and chemical products, except medicinal chemicals.
84 Clothing,
individual equipment, and insignia.
Note to §102-39.45(a): The exception to the prohibition
is Department of Defense (DOD) property in FSC Groups 10, 12, and 14 (except
FSC Class 1005) for which the applicable DOD demilitarization requirements, and
any other applicable regulations and
statutes are met.
(b) Materials in the National
Defense Stockpile (50 U.S.C. 98-98h) or the Defense Production Act inventory (50
U.S.C. App. 2093).
(c) Nuclear Regulatory
Commission-controlled materials unless you meet the requirements of
§101-42.1102-4 of this title.
(d) Controlled substances, unless
you meet the requirements of §101-42.1102-3 of this title.
(e) Scrap materials, except in
the case of scrap gold for fine gold.
(f) Property that was originally
acquired as excess or forfeited property or from another source other than new
procurement, unless such property has been in official use by the acquiring agency for at least 1 year. You
may exchange or sell forfeited property in official use for less than 1 year if
the head of your agency determines that a continuing valid requirement exists,
but the specific item in use no longer meets that requirement, and that
exchange or sale meets all other requirements of this part.
(g) Property that is dangerous
to public health or safety without first rendering such property innocuous or
providing for adequate safeguards as part of the exchange/sale.
(h) Combat material without
demilitarizing it or obtaining a demilitarization waiver or other necessary
clearances from the Department of Defense Demilitarization Office.
(i)
Flight Safety Critical Aircraft Parts unless you meet the provisions of
§102-33.370 of this title.
(j) Acquisition of unauthorized
replacement property.
(k) Acquisition of replacement
property that violates any:
(1) Restriction on procurement
of a commodity or commodities;
(2) Replacement policy or
standard prescribed by the President, the Congress, or the Administrator of
General Services; or
(3) Contractual obligation.
(l) Vessels subject to 40 U.S.C.
548.
§102-39.50—What conditions apply to the exchange/sale of personal
property?
You may use the exchange/sale
authority only if you meet all of the following conditions:
(a) The property exchanged or sold is similar
to the property acquired;
(b) The property exchanged or
sold is not excess or surplus, and you have a
continuing need for that type of property;
(c) The number of items acquired
must equal the number of items exchanged or sold unless:
(1) The item(s) acquired perform
all or substantially all of the tasks for which the item(s) exchanged or sold
would otherwise be used; or
(2) The item(s) acquired and the
item(s) exchanged or sold meet the test for similarity specified in §102-39.20
that they are a part(s) or container(s) for identical or similar end items;
(d) The property exchanged or
sold was not acquired for the principal purpose of exchange or sale; and
(e) You document at the time of
exchange or sale (or at the time of acquiring the replacement property if it
precedes the sale) that the exchange allowance or sale proceeds will be applied
to the acquisition of replacement property.
§102-39.55—What exceptions apply to the conditions for exchange/sale in
§102-39.50?
The exceptions that apply to the
conditions for exchange/sale §102-39.50 are:
(a) You may exchange books and
periodicals in your libraries for other books and periodicals, without monetary
appraisal or detailed listing or reporting.
(b) In acquiring items for
historical preservation or display at Federal museums, you may exchange
historic items in the museum property account without regard to the FSC group, provided
the exchange transaction is documented and certified by the head of your agency
to be in the best interests of the Government and all other provisions of this
part are met. The documentation must contain a determination that the item exchanged
and the item acquired are historic items.
Subpart C—Exchange/Sale
Methods and Reports
§102-39.60—What are the exchange methods?
Exchange of property may be
accomplished by either of the following methods:
(a) The supplier (e.g., a
Government agency, commercial or private organization, or an individual)
delivers the replacement property to one of your organizational units and removes the property being replaced
from that same organizational unit.
(b) The supplier delivers the
replacement property to one of your organizational units and removes the
property being replaced from a different organizational unit.
§102-39.65—What are the sales methods?
(a) You must use the methods,
terms, and conditions of sale, and the forms
prescribed in part 102-38 of this title, in the sale of property being
replaced, except for the provisions
of §§102-38.100 through 102-38.115
of this title regarding negotiated sales. Section 3709, Revised Statutes (41
U.S.C. 5), specifies the following conditions under which property being replaced can be sold by
negotiation, subject to obtaining such competition as is feasible:
(1) The reasonable value
involved in the contract does not exceed $500; or
(2) Otherwise authorized by law.
(b) You may sell property being
replaced by negotiation at fixed prices in accordance with the provisions of §§102-38.120
and 102-38.125 of this title.
§102-39.70—What are the accounting requirements for the proceeds of
sale?
You must account for sales
proceeds in accordance with the general finance and accounting rules applicable
to you. Except as otherwise directed by law, all proceeds from the sale of
personal property under this part will be available during the fiscal year in
which the property was sold and for one fiscal year thereafter for obligation
for the purchase of replacement property. Any sales proceeds not applied to replacement
purchases during this time must be deposited in the United States Treasury as
miscellaneous receipts.
§102-39.75—What information am I required to report?
(a) You must submit, within 90
calendar days after the close of each fiscal year, a summary report in a format
of your choice on the exchange/sale transactions made under this part during
the fiscal year (except for transactions involving books and periodicals in
your libraries). The report must include:
(1) A list by Federal Supply
Classification Group of property sold under this part showing the:
(i)
Number of items sold;
(ii) Acquisition cost; and
(iii) Net proceeds.
(2) A list by Federal Supply
Classification Group of property exchanged under this part showing the:
(i)
Number of items exchanged;
(ii) Acquisition cost; and
(iii) Exchange allowance.
(b) Submit your report
electronically or by mail to the General Services Administration, Office of
Travel, Transportation and Asset Management (MT),
Washington, DC 20405.
(c) Report control number:
1528-GSA-AN.
(d) If you make no transactions
under this part during a fiscal year, you must submit a report stating that no
transactions occurred.