GENERAL SERVICES ADMINISTRATION May 4, 2006

GENERAL SERVICES ADMINISTRATION May 4, 2006

Washington, DC 20405

FEDERAL MANAGEMENT REGULATION

Amendment2006-01

TO: Heads of Federal agencies

SUBJECT: FMR Case 2006-102-3; Replacement of Personal Property

Pursuant to the Exchange/Sale Authority

1.Purpose. This document includes pages that reflect amendments to Part 102-39 of the Federal Management Regulation

(FMR).

2.Background. In the years since 41 CFR part 102-39 was published as a final rule, the references to other regulations which migrated from the Federal Property Management Regulations

(FPMR) (41 CFR chapter 101) to the Federal Management Regulation

(FMR) (41 CFR chapter 102) became outdated. Also, Public Law 107-

217 revised and recodified certain provisions of the Federal Property and Administrative Services Act of 1949 (Property Act). For example, the Property Act provisions and topics previously found at 40 U.S.C. 471-514 will now generally be found at 40

U.S.C. 101-705. This revised regulation updates the title 40

U.S.C. citations to reflect the changes made by Public Law 107-

217. Additionally, in the intervening years since these three regulations were published, several agencies have moved or changed names. Finally, updating or clarifying revisions were made where the revisions are seen as administrative or clerical in nature.

3.Effective date. This rule was published in the Federal

Register and became effective on May 24, 2006.

4.Explanation of changes. The General Services Administration is amending the Federal Management Regulation (FMR) language that pertains to personal property by correcting references to

outdated or superceded provisions of law or regulation; correcting text to be in conformance with revised laws, regulation, or Federal agency responsibilities; and clarifying text where the intended meaning could be updated or made clearer.

5.Filing instructions. Make the following page changes: Remove FMR pages: Insert FMR pages:

102-39-1 thru 102-39-4102-39-1 thru 102-39-4

Attachment

2

AMENDMENT2004-1 MARCH11,2004

PART102-39—REPLACEMENTOFPERSONALPROPERTY PURSUANTTOTHEEXCHANGE/SALEAUTHORITY§102-39.30

PART102-39—REPLACEMENTOF PERSONALPROPERTYPURSUANTTOTHE

EXCHANGE/SALEAUTHORITY

SubpartA—General“Exchange/sale”meansto exchangeorsell non-excess, non-surpluspersonalpropertyandapplytheexchangeallow-

§102-39.5—Howaretheterms“I”and“you”usedinthisanceorproceedsofsaleinwholeorinpartpaymentforthe

part?acquisition ofsimilar property.

Useofpronouns“I”and“you”throughoutthispartrefer“Executiveagency”meansanyexecutivedepartmentor

to executive agencies.independentestablishmentin theexecutivebranchofthe

Government,includinganywhollyownedGovernmentcor-

§102-39.10—Whatdoes this part cover?poration.

Thispartcoverstheexchange/saleauthority,andappliesto“Federalagency”meansanyexecutiveagencyor any

allpersonalproperty ownedbyexecutiveagenciesworld-establishmentinthelegislativeorjudicialbranchoftheGov-

wide.Fortheexchange/saleofaircraftpartsandhazardousernment(excepttheSenate, theHouseofRepresentatives,

materials,youmustmeettherequirementsinthispartandinandtheArchitectoftheCapitolandanyactivitiesunderhis/

parts102-33 and 101-42 of thistitle.herdirection).

“Historic item”meanspropertyhavingadded value for

§102-39.15—Why should Iusethe exchange/saledisplay purposes becauseits historical significance is greater

authority?thanitsfairmarketvalueforcontinueduse.Itemsthatare

You should use the exchange/sale authority to:commonlyavailableandremaininusefortheirintendedpur-

(a)Reducethecostofreplacementpersonalproperty.Ifpose, such as militaryaircraft still in use by active or reserve

youhavepersonalpropertythatneedstobereplaced,youcanunits,arenothistoricitems.

exchangeorsellthatpropertyandapplytheexchange allow-“Replacement”meanstheprocessofacquiringpropertyto

anceorsalesproceedstoreducethecostofsimilarreplace-be used in placeof property thatis still needed but:

mentproperty.Bycontrast,ifyouchoosenottoreplacethe(1)Nolongeradequatelyperformsthetasksforwhichitis

propertyusingtheexchange/saleauthority,youmaydeclareused;or

itexcessanddisposeofitthroughthenormaldisposalpro-(2)Doesnotmeettheagency’sneedaswellastheproperty

cess.Anysalesproceedsfromtheeventualsaleofthatprop-tobeacquired.

erty as surplus generally must be forwarded to the“Similar”means wheretheacquireditem and replaced

miscellaneousreceiptsaccountattheUnitedStatesTreasuryitem:

and thuswouldnot be available to you.(1)Are identical;

(b)Avoidcosts(e.g.,administrativeandstorage)thatmay(2)Aredesignedandconstructedforthesamepurpose;

beincurred whendeclaring thepropertyto bereplacedas(3)Constitutepartsorcontainersforidenticalorsimilar

excessandprocessingitthroughthenormaldisposalprocess.enditems;or

Thenormaldisposalprocess mayincludeabandonmentor(4)Fall within a single Federal Supply Classification

destruction,reutilizationbyotherFederalagencies,donation(FSC)groupofpropertythatiseligibleforhandlingunderthe

toeligiblenon-Federalpublicornon-profitorganizations,orexchange/sale authority.

saletothepublic.Thetimerequiredtodeterminewhichof

theseoptionswillapplyandtocompletethedisposaltransac-§102-39.25—HowdoIrequestadeviationfromthispart?

tionislikelytoexceedthetimerequiredforanexchange/saleSee §§102-2.60 through 102-2.110 of this chapterto

transaction.request adeviation fromthe requirements ofthis part.

§102-39.20—Whatdefinitions apply to this part?Subpart B—Exchange/SaleConsiderations

The followingdefinitions applyto this part:

“Acquire”meanstoprocureorotherwiseobtainpersonal§102-39.30—WhenshouldInot use the exchange/sale

property, including by lease.authority?

“Combatmaterial”meansarms,ammunition,andimple-Youshouldnotusetheexchange/saleauthorityifthe

ments of war listedintheU.S. munitions listexchangeallowanceorestimatedsalesproceedsfortheprop-

(22CFRpart121).ertywillbeunreasonablylow.Youmusteitherabandonor

“Exchange”meanstoreplacepersonalpropertybytradeordestroy such property, or declare thepropertyexcess, in

trade-in withthesupplierofthereplacementproperty.accordancewith part102-36ofthischapter.Further, you

(Amendment2006-01)102-39-1

AMENDMENT2006-01 MAY24,2006

§102-39.35FEDERAL MANAGEMENTREGULATION

must notuse the exchange/saleauthorityif the transaction(s)44Nuclear reactors (FSCClass 4472 only).

would violate anyother applicablestatute orregulation.51Handtools.

54Prefabricated structureandscaffolding.

§102-39.35—How doI determine whetherto doan68Chemicalsandchemicalproducts,exceptmedicinal

exchange or a sale?chemicals.

Youmustdeterminewhetheranexchangeorsalewillpro-84Clothing, individual equipment, and insignia.

vide the greater return for the Government. When estimating

thereturnundereachmethod,considerallrelatedadministra-Note to §102-39.45(a): The exception to the prohibition is

tiveandoverheadcosts.Department of Defense (DOD) property in FSC Groups 10, 12, and

14(exceptFSCClass1005)forwhichtheapplicableDODdemili- tarizationrequirements,and anyotherapplicableregulationsand

§102-39.40—Whenshould I arrange for a reimbursablestatutesare met.

transferofexchange/salepropertytoaFederalagency

or other eligible organization, or sell suchpropertyto(b)Materialsin the National Defense Stockpile

a State Agency for SurplusProperty?(50U.S.C.98-98h)ortheDefenseProductionActinventory

If you have property to replace which is eligible for(50U.S.C.App. 2093).

exchange/sale,youshouldfirst,tothemaximumextentprac-(c)NuclearRegulatoryCommission-controlledmaterials

ticable,solicit:unlessyoumeettherequirementsof§101-42.1102-4ofthis

(a)Federalagenciesknowntouseordistributesuchprop-title.

erty.IfaFederalagencyisinterestedinacquiringandpaying(d)Controlledsubstances,unlessyoumeettherequire-

fortheproperty,youshouldarrangeforareimbursabletrans-ments of §101-42.1102-3of this title.

fer.Reimbursabletransfersmayalsobeconductedwiththe(e)Scrapmaterials,exceptinthecaseofscrapgoldforfine

Senate, theHouseofRepresentatives,theArchitectof thegold.

CapitolandanyactivitiesundertheArchitect’sdirection,the(f)Propertythatwasoriginallyacquiredasexcessorfor-

DistrictofColumbia,andmixed-ownershipGovernmentcor-feitedpropertyorfromanothersourceotherthannewpro-

porations. When conducting a reimbursable transfer, youcurement,unlesssuchpropertyhasbeeninofficialusebythe

must:acquiringagencyforatleast1year.Youmayexchangeorsell

(1)Dosoundertermsmutuallyagreeabletoyouandforfeitedpropertyinofficialuseforlessthan1yearifthehead

the recipient.ofyour agency determinesthatacontinuingvalidrequire-

(2)Notrequirereimbursementofan amountgreatermentexists,butthespecificiteminusenolongermeetsthat

thantheestimatedfairmarketvalueofthetransferredprop-requirement, and that exchange or sale meets all other

erty.requirementsof this part.

(3)Applythetransferproceedsinwholeorpartpay-(g)Propertythatisdangeroustopublichealthorsafety

mentforpropertyacquiredtoreplacethetransferredproperty;without first renderingsuch property innocuous or providing

andfor adequate safeguardsas part of theexchange/sale.

(b)StateAgenciesforSurplusProperty(SASPs)knownto(h)Combatmaterialwithoutdemilitarizingitorobtaining

haveaninterestinacquiringsuchproperty.IfaSASPisinter-ademilitarizationwaiverorothernecessaryclearancesfrom

estedinacquiringtheproperty,youshouldconsidersellingittheDepartmentof Defense Demilitarization Office.

totheSASPbynegotiatedsaleatfixedpriceunderthecondi-(i)FlightSafetyCriticalAircraftPartsunlessyoumeetthe

tionsspecifiedat§102-38.125ofthistitle.Thesalesproceedsprovisions of§102-33.370ofthistitle.

must be applied in whole or part payment for property(j)Acquisitionofunauthorized replacement property.

acquired toreplace thetransferred property.(k)Acquisitionofreplacementpropertythat violates any:

(1)Restrictiononprocurementofacommodityorcom-

§102-39.45—Whatprohibitionsapplytotheexchange/modities;

saleof personal property?(2)Replacementpolicyorstandardprescribedbythe

You must notuse the exchange/sale authorityfor:President,theCongress,ortheAdministratorofGeneralSer-

(a)Thefollowing FSC groups ofpersonalproperty:vices;or

10Weapons.(3)Contractualobligation.

11Nuclear ordnance.(l)Vesselssubject to 40U.S.C.548.

12Fire control equipment.

14Guided missiles.§102-39.50—What conditions applyto theexchange/sale

15Aircraftandairframestructuralcomponents(exceptof personalproperty?

FSCClass1560AirframeStructuralComponents).Youmayusetheexchange/saleauthorityonlyifyoumeet

42Firefighting,rescue,andsafetyequipment.allof the followingconditions:

102-39-2

AMENDMENT2006-01 MAY 24,2006

PART102-39—REPLACEMENTOFPERSONALPROPERTY PURSUANTTOTHEEXCHANGE/SALEAUTHORITY§102-39.75

(a)Thepropertyexchangedorsoldissimilartotheprop-§102-39.65—Whatarethesalesmethods?

ertyacquired;(a)Youmustusethemethods,terms,andconditionsof

(b)Thepropertyexchangedorsoldisnotexcessorsur-sale,andtheformsprescribedinpart102-38ofthistitle,in

plus,andyouhaveacontinuingneedforthattypeofproperty;the sale ofproperty beingreplaced, except for the provisions

(c)Thenumberofitemsacquiredmustequalthenumberof§§102-38.100through102-38.115ofthistitleregarding

ofitems exchanged orsold unless:negotiated sales. Section3709,RevisedStatutes

(1)Theitem(s)acquiredperformallorsubstantiallyall(41U.S.C.5),specifiesthefollowingconditionsunderwhich

ofthetasksforwhichtheitem(s)exchangedorsoldwouldpropertybeingreplacedcanbesoldbynegotiation,subjectto

otherwisebeused;orobtaining such competition as is feasible:

(2)Theitem(s)acquiredandtheitem(s)exchangedor(1)Thereasonablevalueinvolvedinthecontractdoes

soldmeetthetestforsimilarityspecifiedin§102-39.20thatnot exceed $500; or

theyareapart(s)orcontainer(s)foridenticalorsimilarend(2)Otherwise authorized by law.

items;(b)Youmaysellpropertybeingreplacedbynegotiationat

(d)Thepropertyexchangedorsoldwasnotacquiredforfixed prices in accordance with the provisions of

the principal purpose ofexchange orsale;and§§102-38.120 and102-38.125 ofthis title.

(e)Youdocumentatthetimeofexchangeorsale(oratthe

timeofacquiringthereplacementpropertyifitprecedesthe§102-39.70—Whataretheaccountingrequirementsfor

sale) thattheexchange allowanceorsale proceedswillbethe proceeds ofsale?

applied to theacquisition ofreplacementproperty.Youmustaccountforsalesproceedsinaccordancewith thegeneralfinanceandaccountingrulesapplicabletoyou.

§102-39.55—WhatexceptionsapplytotheconditionsforExceptasotherwisedirectedbylaw,allproceedsfromthe

exchange/sale in§102-39.50?saleofpersonalpropertyunderthispartwillbeavailabledur-

Theexceptionsthatapplytotheconditionsforexchange/ingthefiscalyearinwhichthepropertywassoldandforone

sale§102-39.50 are:fiscal year thereafter for obligation for the purchase of

(a)You may exchange books and periodicals in yourreplacement property. Any sales proceeds not applied to

librariesforotherbooksandperiodicals,withoutmonetaryreplacementpurchasesduringthistimemustbedepositedin

appraisal ordetailedlisting or reporting.theUnitedStates Treasury as miscellaneous receipts.

(b)Inacquiringitemsforhistoricalpreservationordisplay

atFederalmuseums,youmayexchangehistoricitemsinthe§102-39.75—What information amIrequiredtoreport?

museumpropertyaccountwithoutregardtotheFSCgroup,(a)Youmust submit,within 90calendar daysafterthe

providedtheexchangetransactionisdocumentedandcerti-closeofeachfiscalyear,asummaryreportinaformatofyour

fiedbytheheadofyouragencytobeinthebestinterestsofchoiceontheexchange/saletransactionsmadeunderthispart

theGovernmentandallotherprovisionsofthispartaremet.duringthefiscalyear(exceptfortransactionsinvolvingbooks

Thedocumentationmustcontainadeterminationthattheitemandperiodicals in your libraries). Thereport mustinclude:

exchanged and theitem acquiredarehistoricitems.(1)AlistbyFederalSupplyClassification Groupof propertysoldunderthispartshowingthe:

Subpart C—Exchange/SaleMethodsand(i)Numberofitemssold;

Reports(ii)Acquisition cost;and

(iii)Net proceeds.

§102-39.60—Whataretheexchangemethods?(2)AlistbyFederalSupplyClassification Groupof

Exchangeofpropertymaybeaccomplishedbyeitherofproperty exchanged under thispart showing the:

thefollowingmethods:(i)Numberofitemsexchanged;

(a)Thesupplier(e.g.,aGovernmentagency,commercial(ii)Acquisition cost;and

orprivateorganization,oranindividual)deliversthereplace-(iii)Exchange allowance.

ment property to one of your organizational units and(b)Submityourreportelectronicallyor by mailto the

removesthepropertybeingreplacedfromthatsameorgani-GeneralServicesAdministration,OfficeofTravel,Transpor-

zational unit.tationand AssetManagement (MT),1800 FStreet,NW.,

(b)ThesupplierdeliversthereplacementpropertytooneWashington, DC 20405.

ofyourorganizationalunitsandremovesthepropertybeing(c)Report control number:1528-GSA-AN.

replaced from a different organizational unit.(d)Ifyoumakenotransactionsunderthispartduringafis- calyear,youmustsubmitareportstatingthatnotransactions occurred.

102-39-3

FEDERAL MANAGEMENTREGULATION

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102-39-4(Amendment 2006-01)